After the recent economic slump the sales of  property especially the  houses has  gone down to the lowest ever and thanks to the  recession everyone is losing jobs and  those who have brought a property  are in serious  trouble  for not  being able to  pay the  monthly installment of the  sweet home they  brought. The  new government has come up in the united states and in the  route of  reviving the economy they have recently  announced  a  tax credit from the stimulus plan   for the first time  home  buyers. This was announced by the president barrack Obama recently.

 Sure, it costs a lot for the government and definitely shows a commitment towards the improvement of the economy and the country as such. However, look at the amount of tax credit that is being given. $8000 tax credit is no where even close to stimulating any one to go ahead and take the leap to buy a new home. And there are clauses for this

first one being  only those who  brought  a  house  after January 2009 are eligible for this package .The second one being   this should  be  the  first time   the person should be  buying the house in the past three years  and this should be the primary  place of  residence for them. The person should not have an income of more than $75000 individually or more than $150000 if it is a couple. And  if  by  chance the  owner wants to sell the home he will have to pay back the $8000 to the  government  before they  sell it .

 This  first time home buyers tax credit  doesn’t  help  in any sort  in stimulating the  people to come forward and   buy  a  house worth a  hundred thousand dollars,  just because  you are getting an incentive  of  $8000 tax credit . The only people who will be happy with this tax credit stimulus plan are those who are anyways buying the   home, it will help them save 8000$ so they can buy some furniture for the house. so in a way they will be  happy about  it as everyone is  cutting down  on many things  just because  a penny saved  is penny  gained. So in that way eight thousand dollars is a huge amount and those who are getting that will surely be happy with this package.

So in spite of all this    if u are   motivated and want to buy a new home, the procedure is rather simple. Just fill up the IRS form 5405, submit it, and then will have to claim the amount on the form 1040 and you are done. The government will have to spare annual amount of about 32 billion for this stimulus plan tax credit. Well many say this is a good move in initiation of improvement of the economy. Think   If this really works in anyway? It would have been much better if that 32 billion is spent in creating new jobs for the people than motivate people to buy a home and get into more debt.