Comments on: First Time Homebuyer Tax Credit Extended – Higher Income Threshold Will Help Hoboken Condo Buyers

By: Guest

Guest — Mon, 02 Nov 2009 18:06:31 +0000

I’d venture a guess that few people in the market for a reasonably-sized 2BR in Hoboken is in the income brackets stated here to qualify, and the amt seems nothing more than another give away to prevent a REAL recalculation of overpriced real estate.

Kicking the can down the road once again. A big surprise.

The reality is that this tax break affects the states that have had crushing losses an jobs and RE prices. Hedge-fund and NYC professional Hoboken is not the target for this incentive.

My take as a buyer with a family looking in Hoboken is a big collective Yawn.

Keep the temporary max limit increase to qualify for a jumbo conforming loan at 729K for a single family and $934 for a multi-family and then you might have something.

But as of now, those limits that are critical to propping up Hoboken’s RE prices are set to expire (close before 11/16 or else your max “jumbo-conforming” limit rolls back 100K to 625K). This increases borrowing costs for the larger 800-1+ million dollar properties that finally saw some traction with the recent reflation trade.

By: Lori

Lori — Mon, 02 Nov 2009 14:22:08 +0000

Thanks, TS. Sorry if I was not clear. Let me rephrase – the old program did little for Hoboken buyers since most of them, especially to afford to buy in Hoboken, have income over the limit so they didn’t qualify. I happen to agree that if you’re making under $75k as a single or $125K as a couple, unless you’ve already saved a substantial amount to use as a down payment, you probably can’t afford to buy in Hoboken anyway. The new proposal with the much higher income limits, however, will be a huge bonus to first time Hoboken buyers because, in my opinion and experience, the typical first time Hoboken buyer is making a little over 100K and the typical couple just over 200K. Maybe “huge” was too enthusiastic a word. On a purchase of 400 to 500K, an $8,000 credit is a tiny drop in the bucket. Still, I’d rather have it than not. It will (almost) pay for a buyer’s closing costs. I don’t believe that will be a major deciding factor in whether potential buyers will act. I think the perceived health of the market is much more important in that regard.

By: TS

TS — Sun, 01 Nov 2009 21:06:18 +0000

Homeboken,

I took her to mean that the expiration of the *current* tax credit plan won’t matter much to Hoboken since it cuts off at income levels under what typical Hoboken buyers earn. But that the proposed extension and *new* plan with widened income limits will be “huge”.

Incidentally, I don’t think it will be huge, although one can never underestimate the power of psychological gimmicks.