Yup, it’s true.  President Obama really might have an ever so slight effect on our economy.  Well, definitely an effect on my clients’ economy.  It is now law that if you are a first time home buyer and purchase a home from January 1 to November 1, 2009 you may very well qualify for an $8,000 tax credit. 

Since this is a tax credit and not a deduction, it means if you owe $8,000 in taxes at the end of the year, you will then owe nothing.  If you owe only $4,000 in taxes, you’ll get a $4,000 refund check.  Sweet! 

Of course there is fine print.  First of all, the plan starts to phase out for individuals who make over $75k or couples who make over $150k.  Also if you sell your house in three years, you have to pay it back.   The only stipulation on the house itself is that it has to be your primary residence, which makes sense since it’s for first time home buyers only. 

Additional good news if you already own  your home: check with your accountant regarding the big tax incentives for energy saving upgrades.  Now is definitely the time to purchase that solar water heater, extra insulation, new doors/windows, etc.  I talked to one solar heater installer who said his prices will increase March 1st because he anticipates great demand with these incentives. 

Obama also attempted to roll out a plan that’s going to help people on the verge of foreclosure to stay in their homes longer.  Unfortunately I haven’t seen any concrete evidence of it yet, but if I do you can be sure I’ll post it.  My own mom lost her job recently and at 63 is having a dang hard time finding a new one.  I really want her to be able to stay in her home as long as possible so I’m keeping a close eye on it. 

If you hear of any other good news for homeowners, be sure to leave a comment.