California $10K Home Buyers Credit Proposed

Sacramento, California

Today Gov. Arnold Schwarzenegger announced that the California budget was 21 BILLION in the red. One would think that with this horrible news, the state would look at ways to reduce or in the very least, cap spending.  Maybe I’m just being too logical, because practically in his next breath, Schwarzenegger proposed the adoption of a new home buyer tax credit for California taxpayers.

Last year California had a $8,000 new home buyers credit. Now with a much larger deficit, the Governator has upped the credit to $10,000!

In a press release the executive’s press office said:

“To continue encouraging homeownership among Californians, the Governor will propose to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers. The buyer must not be a dependent and must be purchasing a home that does not belong to a relative. Under the Governor’s proposal, the Franchise Tax Board will extend the credit to buyers who purchase homes until $200 million dollars in tax credits have been granted.”

I guess if we’re 21 BILLION in the hole, what is another $200 million?  As a California Realtor I think this is great, but as a California taxpayer living in a bankrupt state, I think Schwarzenegger has gone off the deep end of rational thinking.

San Diego real estate agents