President Obama should be signing the new Stimulus package early this week.  The new bill has reduced the first time home buyer tax credit from $15k to $8k.  While builders, developers and Realtors were hoping for the $15,000 credit, the good news is this tax credit will NOT need to be repaid, as was the previous $7,500 tax credit. 

$8,000 for a first time home buyer could go along way as long as they are responsible with this money.  Here is my advice to these first time buyers receiving the tax credit:
DO NOT:  Buy depreciating assets with this money (ie, car, boat, motorcycle, etc)

DO:  Put in a safe investment vehicle (money market, savings acct, etc), use it for necessary and appreciating improvements to the house (landscape, paint, carpet, mechnicals, etc) or use it to invest in other real estate.

Bottom line!  Do not throw this money away!  Compound it, build wealth or equity with it! 

Stay Tuned for the latest news on the Stimulus package.  As always, if you are considering buying or selling real estate in the Indianapolis area market, please call us at 317 846-4888. 

Derek Gutting, The Gutting Group, Keller Williams Realty,  derek@guttinggroup.com.