While attending the Star Power Conference in Denver recentlly, I heard the owners of the top real estate franchises speak. One of the group has been working with Washington on trying to get a $15,000 tax to anybody who buys a house, regardless of whether or not they’re first time home owners or their income. Seeing how the housing crisis led us into this recession, it will lead us out of the recession, and it’s critical that every means possible is used to jump start the housing market.
Something I always suspected but didn't have the real stats on was also revealed. National statistics indicate that each home sale generates approximately $63,000 worth of cash infused into the local community, based on an average sales price of $300,000. This includes the fees that are paid to Real Estate Agents, banks, title companies as well as the vendors and business who sell things most new homeowners make when they move into a house such as curtains, appliances, flooring, paint, furniture, etc; and the ripple effect from all of that spending that spreads throughout the local economy.
I encourage everyone to contact their senators and representatives in Washington to encourage them to pass this bill should it come to a vote. In my opinion, a $15,000 tax credit is well worth the $63,000 of local economic activity that is created with each average home sale, not to mention the benefit to the home buyer.
If you would like to know more about the $15,000 tax credit and buying an property in the Greater Baton Rouge Area, give me a call, I’d be happy to talk to you about it!