Are you a home buyer or even a first-time home buyer in the Metro West Boston area looking for homebuyer tax credits? Then you are going to want to read this!
Let’s talk about possible homebuyer tax credits & a few other plans that the new Biden Administration has to help home Buyers in 2021.
1) A Proposed Tax Credit for First time home Buyers-
The Biden Administration is proposing a $15,000 credit for first-time homebuyers to help families purchase their first homes.
The refundable credit would be received by homebuyers at the time they buy their home, offering more financial flexibility after a major purchase rather than forcing them to wait to receive the benefit until they file taxes the next year.
First-time buyers are defined by the federal government as people who have not owned a residence within the previous three years.
The National Association of Realtors stated that they are a little concerned that the tax credit could cause demand to rise higher, and without additional supply, this could send prices even higher.
Therefore, if you are a first-time home buyer and this passes you will want to make sure that you take advantage of it right away!
2) State and Local Tax Changes-
The Tax Cuts and Jobs Act of 2017 implemented a $10,000 cap on deductions of state and local taxes. That aspect of the law disproportionately hit high-tax states such as Massachusetts where tax bills typically exceed $10,000.
Property taxes alone can be several times that amount. The Biden Administration is proposing to eliminate the cap thus making more of our property taxes deductible!
3) Student loan forgiveness-
While it is unclear how much The Biden Administration is thinking in terms of student loan debt forgiveness, the end result is the same. It will go a long way towards freeing up millennial incomes, which means that money will be more available to pay for a mortgage and get into the housing market sooner.
4)Creation of a Public Credit Reporting Agency-
Being able to obtain a credit report is a critical step for homeownership. But today credit reports, which are issued by just three large private companies, often contain errors.
The Biden Administration plans to create a new public credit reporting agency to provide consumers with a government option that seeks to minimize racial disparities, and by accepting non-traditional sources of data like rental history and utility bills to establish credit.
This is also an interesting concept since during this past year I have had more than a few buyers surprised by their credit score only to dig further to find errors and thus needing to wait to get their credit score up before purchasing.
I hope you enjoyed this quick blog about possible Buyer Tax Credits and other plans the new Biden Administration has for 2021 that could have an effect on our Local Real Estate Market. If you’d prefer to watch it in video form or want to share this with someone, my YouTube version is below.
All these policies still need to be passed into law so we will need to stay tuned to see what will happen!
Feel free to reach out with questions about your Buying and Selling Real Estate plans- even if you are not planning a move in the near future. It is never too early to plan for the future!