Cape Coral Florida's Real Estate Guide

As part of the new $789 billion dollar economic stimulus package, first time home buyers will be able to take advantage of a $8,000 non-repayable tax credit for purchasing a home in 2009. According to estimates from the National Association of Realtors, this tax credit will increase this year's sales by 500,000 homes This expected to instigate a ripple effect in the economy as there is $62,000 of additional economic activity for every house sold and an approximately $31 billion in incremental economic benefits.

Why? Every purchase stimulates another purchase down the line in addition to increased purchases of home goods and services National Association of Home Buyers pushed hard for a $15,000 tax credit for home purchases in 2009 but the government decided that was too much for a stimulus package that contains $280 billion worth of tax benefits.

There are other tax credits contained in the stimulus package for homeowners including an extension or expansion of all energy-related tax credits through 2010. By taking steps to reduce your home's energy consumption (example: installing solar panels) you can qualify for this credit. Additional economic activity is aimed at the "weatherization" of homes. Here in Florida, this means doing things like installing hurricane shutters to protect your home in the event of a natural disaster.

In order to clean up some of the hardest hit neighborhoods in the US, $2 billion dollars tax credits have been allowed for local governments and agencies to buy up and renovate foreclosed and vacant homes to rent or resell them. This money will stimulate local economies as the work needed to rehabilitate these homes will flow to businesses and individuals in the area.

Do you think tax benefits will have the impact needed to help the current housing market? Leave a comment and let your voice be heard!