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Unformatted text preview: healthy, potential buyers are more optimistic and willing to spend their money without the worry of losing their jobs. In a healthy economy customers will purchase more homes. Tax benefits are another factor that comes into play when purchasing a new home. Tax benefits play a large part in the decision process, for example there is currently an $8,000 dollar tax deduction to first time home buyers. The removal of this tax deduction would cause housing sale to decrease because the consumer would lose the tax incentive when purchasing the home. Changes in government spending and taxes will also affect the potential buyers decision to purchase a new home as well. If there is an increase in taxes the customer is going to be paying more out of his/her pocket when it comes time to pay taxes on the purchase and the personal property taxes they pay each year....
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- Spring '11