1st time buyers, where are you looking, is the 8k available helping? (Ridge: credit, how much)

[Crookhaven]

Seems like entry levels fairly brisk out here (Miller Place/Sound Beach/Rocky Point/Ridge/SWR).

Is Summer 09 our bottom?

Hows by you?

Crooks

[dman72]

8K tax credit is really saving you a couple thousand dollars depending on your tax bracket...I can't see how 2K either way changes someones mind about spending 300K plus, with that much in interest over 30 years.

[Crookhaven]

Originally Posted by dman72

8K tax credit is really saving you a couple thousand dollars depending on your tax bracket...I can't see how 2K either way changes someones mind about spending 300K plus, with that much in interest over 30 years.

Entry levels in the 2s now out here, maybe its working a little.

Maybe its BNL?
Who knows.

I was just curious what the 1st timers thought.

Crooks

[Jdawg8181]

I'm still waiting for my damn home-buyers credit

[Elke Mariotti]

Originally Posted by dman72

8K tax credit is really saving you a couple thousand dollars depending on your tax bracket...I can't see how 2K either way changes someones mind about spending 300K plus, with that much in interest over 30 years.

dman, you're confusing tax credit with tax deduction...

Tax credit is dollar for dollar reduction of you tax LIABILITY
Tax deduction reduces your taxable income

Also, a tax credit can result in an actual refund to you if you owe less than the credit; example: your total tax liability is $5,500 - credit is $8,000 = IRS will send you check for $2,500! If you owed no taxes (we should be so lucky ) you'd get a check for the entire amount...

[dman72]

Originally Posted by Elke Mariotti

dman, you're confusing tax credit with tax deduction...

Tax credit is dollar for dollar reduction of you tax LIABILITY
Tax deduction reduces your taxable income

Also, a tax credit can result in an actual refund to you if you owe less than the credit; example: your total tax liability is $5,500 - credit is $8,000 = IRS will send you check for $2,500! If you owed no taxes (we should be so lucky ) you'd get a check for the entire amount...

Oh, so it actually is a credit and not a deduction. My mistake.

Well, that makes it better, but it's still not even half on one years payments on a very modest house, so I'm still not sure how much it would push someone on the edge of buying over it.

[Elke Mariotti]

Originally Posted by dman72

Oh, so it actually is a credit and not a deduction. My mistake.

Well, that makes it better, but it's still not even half on one years payments on a very modest house, so I'm still not sure how much it would push someone on the edge of buying over it.

Free money ???

In my book, $8,000 is nothing to sneeze at... (if I'm going to buy anyway)

[Crookhaven]

Originally Posted by Elke Mariotti

dman, you're confusing tax credit with tax deduction...

Tax credit is dollar for dollar reduction of you tax LIABILITY
Tax deduction reduces your taxable income

Also, a tax credit can result in an actual refund to you if you owe less than the credit; example: your total tax liability is $5,500 - credit is $8,000 = IRS will send you check for $2,500! If you owed no taxes (we should be so lucky ) you'd get a check for the entire amount...

Thanks Elke!

I know its a bit higher but hows the starter market by you?

[I_Love_LI_but]

Originally Posted by Elke Mariotti

Free money ???

In my book, $8,000 is nothing to sneeze at... (if I'm going to buy anyway)

IMO, those are the operative words. I would say it's a welcome help if someone is ready to buy anyway, but, at least with the prices on LI, it is not a deciding factor for first-time buyers in our area. Maybe out in Podunk, Middle America where you can get a starter house for less than $200K it might be, but not here. Just considering the downpayment requirements for the prices of homes here, if a person is a first-time buyer and doesn't have a home to sell at a profit, they need to have saved up some serious cash. $8K isn't enough to make a first-time buyer able to buy in this market, but of course it helps if someone is already planning to buy.

[dman72]

Originally Posted by Elke Mariotti

Free money ???

In my book, $8,000 is nothing to sneeze at... (if I'm going to buy anyway)

Look at an amortization schedule recently? 8K in free money doesn't add up too 300K in interest payments over 30 years.