Overland Park KS Homes for sale & Johnson County Real Estate Blog: $8,000 here today, gone April 30th for Johnson County KS first time home buyers

Reprieve would be a good word to describe the extension of the $8,000 first time home buyer tax credit. There were a lot people who wanted to take advantage of the tax credit but the timing was just not right. So you have a reprieve until April 30th 2010, you have until that date to find a home and have a written binding contract to purchase. Under the extended tax break you will have until June 30th to complete the transaction.

So that officially gives you 113 days to take advantage of the greatest first time home buyer incentive ever offered. For those of you who are still in the fence I want you to think about 2 things. Interest rates and inventory. 

Interest rates are near all time lows 5%. Rates are expected to rise later this year to 6 and even possibly 7%. Every 1% increase in interest rate lowers your purchase power by 10%. Do the math, $200,000 at 5% is $1073 per month for principal and interest. $180,000 at 6% is $1079 per month principal and interest. It is a true cost of waiting. Now I want you to think about inventory.

Since the expiration of the first tax credit the sale of homes has slowed considerably and with the addition of the $6500 tax credit for move up buyers home inventories are swelling. That leaves you with an incredible selection of homes to choose from. Plus the banks are coming out of their winter foreclosure moratorium, which means even more homes to choose from.

Lastly I want you to understand with new government regulations, closing have been taking much longer. The April 30th and June 30th deadlines are hard and fast dates. You will not get an extension based on loan conditions.

If you want to purchase your first home now is the time. $8,000 tax rebates and 5% interest rates will not be here forever they most likely will be gone as of April 30th. What are you willing to risk?

For more information about buying your first home call the Russell Home Team today at 913-681-1383 or use the links below to search all Johnson County KS homes for sale and to get more information on the $8000 tax rebate.