Biden proposes $10,000 tax breaks for first-time homebuyers, 'starter home' sellers

[BumRushDaShow]

Source: CNBC

Published Fri, Mar 8 2024 3:23 PM EST Updated 19 Min Ago


President Joe Biden has floated plans to address the country’s affordable housing issues, including new tax breaks for first-time homebuyers and “starter home” sellers. However, experts have mixed opinions on the proposals.

“I know the cost of housing is so important to you,” Biden said during his State of the Union speech Thursday night. “If inflation keeps coming down, mortgage rates will come down as well. But I’m not waiting,” he said.

How the homebuyer, ‘starter home’ sale credit works

Biden has proposed a “mortgage relief credit” of $5,000 per year for two years for middle-class, first-time homebuyers, which would be equivalent to lowering the mortgage interest rate for a median-price home by 1.5 percentage points for two years, according to an outline released by the White House on Thursday.

The administration is also calling for a one-year credit of up to $10,000 for middle-class families who sell their “starter homes” to another owner-occupant. They define starter homes as properties below the median price for the seller’s county.

Read more: https://www.cnbc.com/2024/03/08/president-biden-floats-10000-first-time-homebuyers-tax-credit.html

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Link to White House FACT SHEET - FACT SHEET: President Biden Announces Plan to Lower Housing Costs for Working Families

[JustAnotherGen]

1. I love it!

But it won't help tax payers in high cost of living states - or as I like to call it . . . states where we take care of ourselves.

The SALT Cap remains at 10K so that money will eat right into their ability to place their State or Property taxes in for the reduction.

IF we could raise the SALT cap - then its good for everyone. If not - its just another transfer of income from a family of four in NJ in the 22% tax bracket.

[cactusfractal]

2. How about limiting corporate investors

who are gobbling up entire neighborhoods of single family homes and turning them into permanent rental communities?

ETA: 10k more for a first time home buyer is meaningless when they're up against bottomless pockets who can pay well over asking knowing that they will easily recoup the difference in renting the home.

[pfitz59]

4. Equity firms buying hmes can be taxed out of existence.

Slap a 'hotel tax' on single-family home rentals. Or require owner occupied homes in certain zones. Ban 'commercial operations' in residential zones. I believe that law already exists in many areas, but hasn't been applied to 'homes' as commercial real estate.

[Auggie]

7. +1,000,000, because this is the reason

[SouthernDem4ever]

8. Exactly. Don't let it just be a big corporate giveaway

Limit it to people buying it as their place of residence for the first time. Conditional on them living there for two years or more.

[pfitz59]

3. Will it be retroactive?

I'm still in my first home.

[newdayneeded]

5. Nope, you and i get nothing....

as usual.

[onetexan]

6. But it will help those who haven't been able to purchase their 1st home yet

We have 4 young adults out of college and looking to buy. They could use a leg up.

[SWBTATTReg]

9. Sure would have been nice back in the day when I was first out of college, bought my first home, w/o

any help from anyone, no family money, no borrowed money from friends or no massive savings built up yet. But I did have good friends who recommended my first home to buy (which I did), so I am totally grateful and very appreciative of the aid and help in buying my first home.

It was wonderful and those days of living in that first home will never be forgotten. I passed the tradition on too, to the next buyer of that home too, that home which I sold, was their first home (I downsized to a 4 bedroom from a six bedroom ten or so years back). I didn't have an exorbitant price on the home, as I sold it 'as is', didn't want to do anymore to the first home (lived in for almost 40 years). They wrote me a letter regarding buying that home, and it was so nice of them to write me. They were the only ones to even look at the house. Their letter sold me as to who would buy my first home.

I could have fixed up the first home and got an exorbitant price, but we didn't want to mess w/ it. We were ready to move on, had already a 2nd place ready to move into.

If you have anyone that can help you, w/ advice, w/ anything, go for it. It did wonders for me and helped me during a time when my hands were literally shaking the first time, I bought my first home (signing the mortgage).

And, if in some small way, if you can help someone w/ their first home purchase, go for it. You'll be proud of your contribution to society. Not everybody has family or friends loaded w/ money, able to help you (remember, we're all young usually, and our circle of friends are all usually young too), and parents have just paid your college costs (not always). Of course, watch out for the scumbags who will quickly fix and resell your old home. That's not the people you want.

[ck4829]

10. K&R