Denise Ramey, 2013 president of the Charlottesville Area Association of Realtors, spoke to a local CBS affiliate about the proposed homebuyer savings accounts that VAR’s introduced as part of its 2013 Legislative Agenda — why they would be great for consumers, the real estate market, and of course Realtors.
What’s the homebuyer savings account? Much like 529 Plan college savings accounts that let you put away money tax-free for a college education, a homebuyer savings account would allow a first-time homebuyer to put away up to a certain amount per year tax-free, to be used for a down payment and closing costs of a home. Savers would have a certain amount of time to use the money before it was subject to a penalty and income tax.
This is what’s in the initial proposal, and that’s likely to change or at least be tweaked. Plus, there are some unanswered questions. For example, will the allowed amount be different for individuals and married couples? Can the money be used for a home outside Virginia? What kinds of accounts would qualify — savings, investment, something else?
Click here to watch Denise on the CBS Charlottesville affiliate spot.
You can click here to read the description — it’s actually quite short and clear.