Stimulus Guarantees Now is the Best Time For Buying a Home "There's no better day for buying a home than today," a real estate agent shared with me. My first thought was yeah right! With the market in such a depressed state you are just desperate to make a sale. That was 1982. He was both right and wrong. He was right because the little 3 bedroom, 1 bath house I bought in 1982 for $100,000 is now worth $450,000 even at today's recession prices. An increase of almost 400% is a convincing argument. But he was also wrong. Are you wondering why? He was wrong because this current economic crisis has created an environment that may never be duplicated in another 100 years.   Here is what I mean. Do you stay current with the news? Are you reading today's headlines? Our government is injecting trillions into what will hopefully end the recession and result in a national recovery. The economic stimulus bill is designed to guard against depression. Many Americans are asking this question. Where is the money for economic recovery coming from?   Money for the stimulus package comes from you and me in different ways. The federal government has to borrow the money from its citizens by selling debt in the form of US Treasuries and Bonds. In addition local and state governments raise taxes and charge higher fees. But when the government borrows money by going into debt, inflation is triggered. When state and local governments increase fees such as sales tax, or gas tax, the cost of living rises. Inflation means that the cost of items we enjoy, use and need every day will become more expensive. For example the price of renting a house is never getting cheaper. So how do we protect ourselves from what is inevitable? One way is by buying a home and locking in monthly house payments at current mortgage interest rates. Right now renting may seem cheaper than buying a home but over time rents are going to increase partly because of demand and partly because the dollar is going to be worth less. We are already seeing an increase in rental demand due to mortgage foreclosures. The decrease in the value of the dollar will come later. Here in lies a big mistake that many people are going to make. Thinking short term. Renting versus buying a home seems like a better deal right now. But if you want to protect yourself and your family from the effects of inflation, you want to start thinking long term instead. This is the point. Even if the rate of inflation remains fairly tame, rents are still going to rise. In addition current mortgage interest rates are not going to remain at historical lows forever. The Federal Reserve will have to manipulate interest rates higher in order to starve the coming inflation. Because the price of buying a home has hit near bottom, real estate prices too will rise. In another 5 years, the value of houses will have increased and the low daily mortgage rates we enjoy today will follow. Do you want to make sure your family is protected from the coming inflation? Even better, don't you want to take advantage of it? The best way is by buying a home. Here is my prediction. There will never be a better opportunity during your lifetime for buying a home than right now. Kate Ford of Get Your Best Mortgage Rate agrees with you about mortgage financing. It's become too complicated. Contact Kate is your opportunity to ask Kate, a mortgage insider, for down to earth answers in real-time. After all, every question is a good question. Article Source: http://EzineArticles.com/?expert=Kate_Ford Senate Adds $15,000 Home-Buying Tax Credit to Stimulus Bill February 05, 2009 11:26 AM ET | Luke Mullins | Permanent Link | Print The Senate on Wednesday approved an amendment to the economic stimulus package that would provide a tax credit of as much as $15,000 to anyone buying a primary residence during a one-year period. The measure, introduced by Sen. Johnny Isakson, a Republican from Georgia, would reportedly add $19 billion to the already-massive stimulus package. Here's the release from Isakson's office: The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year. “It is time to fix America’s problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.” Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid. The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment. Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction. Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered. Last year, Isakson introduced legislation to specifically target those homes that were causing the unprecedented increase in housing inventory by offering tax credits to individuals purchasing a foreclosed home or a home where foreclosure is pending. In April 2008, the Senate passed legislation to stimulate the nation’s declining housing market that included Isakson’s proposal. However, the final version of the legislation that was signed into law included only a $7,500 tax credit for first-time homebuyers that must be repaid over a 15-year period. Isakson’s amendment that passed today would sunset that $7,500 tax credit. Isakson spent more than three decades in the real estate business, beginning his business career in 1967 when he opened the first Cobb County, Ga., office of a small, family-owned real estate business, Northside Realty. Isakson later served as president of Northside for 20 years, presiding over the company’s growth into the largest independent residential real estate brokerage company in the Southeast and one of the largest in America. Isakson has not made a decision regarding his vote on the overall economic stimulus legislation.