In this post, we contend that the new stimulus bill could make some vacation home communities more appealing to long term primary residents.

According to a recent edition of the Washington Post, the Congressional stimulus bill’s measures to attract first time home buyers will not extend to homes beyond those used for principal residences. There were some bills proposed to bolster all homes, but these bills were defeated in commitee.

First time home buyers who purchased their primary residence in 2009 will be eligible for an automatic $8,000 tax credit. This compares to tax credits in 2008 in the amount of $7,500 that would need to be paid out over a 15 year period. In other words, a government tax free loan for 15 years has now been replaced by more direct incentives with fewer strings attached.

Based on our research, the stimulus bill contains no direct incentives for helping the second home/vacation home market. However, if you can get financing, homes that are in traditional vacation home communities may now be bought affordably as primary residences, thanks to the new stimulus program.

The stimulus bill indicates that primary residences will provide tax and financing incentives not available to vacation/second homes. This trend will most likely continue as we have blogged about previously.

As we always disclose, we are incompetent and not professionals, so always consult the appropriate professional to understand the complete financial implications of owning a home in any capacity.