May 8, 2008 6:39 pm US/Central
Suburb Offers $5,000 To Those Who Buy A New House
Village Offering Incentive In Hopes Of Spurring New Growth
MANHATTAN, Ill. (CBS) ―
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Manhattan, Ill., is offering prospective homebuyers up to $5,000 to buy a new home.
CBS
Most homebuyers are looking for great schools and a prime location. But in a down market, one community is offering prospective newcomers an incentive.
CBS 2's Kristyn Hartman reports the mayor of far southwest suburban Manhattan, Ill., population almost 7,000, wants to make sure the town keeps growing.
It's a tough task because people aren't buying new construction like they were a few years back.
"Our building permits were down to 160 permits, a considerable drop," Mayor Bill Borgo said, from about 250 a year.
The decrease had village leaders looking for ways to create an increase. Their idea was to spend a little money to make more in the long run.
"If you buy a brand new home in Manhattan you can get up to $5,000 back -- cash at closing.
The money comes from fees builders -- like Michael Cason -- pay.
"It's a good thing for everybody, really everybody can win," said Cason, the General Manager of Gallagher Homes.
He perhaps gets more business, and more homes mean more people, which could mean more commercial development -- and a bigger tax base to pay for village services.
Another upside -- every new home needs people to build it, so as long as they're building in Manhattan, folks are working.
Village leaders think their rebate might be the only one like it in the area although they say other suburbs were considering similar measures.
Manhattan is offering the program to people who buy new homes from now until July 2009, or for the first 200 houses sold, whichever comes first.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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