The Bush Administration is proposing a Tax Rebate that will provide approximately $800 to single taxpayers and around $1600.00 to joint filers. This rebate is an attempt to help the sluggish to standing still real estate market. Many people feel that this will not spur the market along. But, I choose to disagree.
This tax rebate may help some families catch up on a mortgage payment therefore, stalling foreclosure of a home, which is rampant at this time in history. It could also be used by the family looking to buy a new home to go toward the down payment or pay off another debt to shore up the credit score or help the debt/income ratio also considered in financing. This rebate could also be utilized by the property owner attempting to sale a property to do some minor improvements to the property to make it stand out amidst the competition.
So, in short, if everyone runs out and purchases a flat screen or new laptop, then the rebate will not help the banking or housing industry. But, if it is used wisely for it's intended purpose it could be useful and help to start some momentum in the market.
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