If you’re looking for one of the best deals this year, you don’t have to look far. But the clock is ticking. If you’ve been thinking about taking advantage of the real estate market slump, there’s no better time than the present. Not only are the home prices in many counties and neighborhoods much lower than they’ve been in recent years, there are also financial incentives for making a home purchase today.
Home Buyer Tax Credit: Your Greatest Deal For 2010
In particular, I’d like to remind you of the greatest deal in real estate that you can get now. That’s the federal first time home buyer tax credit, which is not just for first time homebuyers; it’s also been extended to encompass those homeowners who are interested in moving to a new house after 5 years in their principal residence.
The 2010 Homebuyer Tax Credits, which were supposed to expire in November 30, 2009, have now been extended by the government until April 30, 2010. Here are some of the particulars:
- If you are a first time homebuyer or someone who has not owned a home in the past three years, you can be eligible to receive up to $8,000 as a tax credit.
- Those who’ve resided in their current home for 5 consecutive years out of the past 8 years can receive a tax credit that’s worth up to $6,500 if they decide to buy a new house.
- To receive any of these tax credits, you’ve got till April 30, 2010 to sign your binding contracts as a home buyer. You’ll need to close by June 30, 2010.
- To qualify, there are income limits: $125,000 for singles, $225,000 for married folks. The tax credit is subject to income phase outs.
Some other interesting facts to note: it appears that the first time home buyer tax credit is working as intended, with the statistics showing an increase of new home buyers from 41% to 47% of sales within the span of a year. These were the best numbers on record since 1981, beating the peak set in 1991 with 44% of sales attributed to new buyers. With the news being good, the government is hoping that more “move-up” home buyers will be encouraged as well, so they’ve gone ahead to pass the tax credit extensions into law.
I still remember a mere few years ago when many of my friends and relatives couldn’t wait to become new homeowners. And not just for the sheer pleasure of owning one’s very own residence, but also to be part of the wave of new landlords and home flippers who couldn’t help but be swept in that go-go real estate era.
Fast forward to today — and most of these once very eager would-be homeowners have now developed a wait and see attitude, wondering if property prices will go lower. But I believe that if you’ve got the finances in order and have been interested in buying a home for a while, the time is ripe for great deals in the property market. It may be worth checking out a mortgage lender for more information and to get you started in the right direction.
Copyright © 2010 The Digerati Life. All Rights Reserved.
{ 6 comments… read them below or add one }
This is really a good deal that probably will not come around again in the near term with the budget crisis the US is having. Many people think this is for first time buyers, but it can be for anyone who has lived in their house for 5 years (watch the rules if married).
You better hurry if you want to take advantage of this, it usually takes about a month to close on a house.
The planets are well-aligned here for first time home buyers. Not sure how many people are necessarily aware of the tax credit — surely a lot are. But it’s good to know that this thing (the tax credit) got extended for a few more months and now covers not just would-be first time buyers but also those homeowners just aching for a change after so long.
Prices have crashed around where I live, but nobody is jumping to buy just yet. Could be that people are just generally broke.
I am planning to buy a house soon and this credit is just icing on the cake. But make sure you have the money to buy before jumping in. Don’t get into the cycle of borrowing more than you can handle just because prices look good.
This is a great opportunity for home buyers to save some money but they should be sure that they have the money to begin with before they buy a new home. Hopefully with this tax credit being extended for a few more months, more people will jump at the chance to own a new home and take advantage of it before it is gone.
In my area of Massachusetts, the 1st time home buyer tax credit has been a big help for keeping the inventory low at the bottom half of the market. This of course is great for creating stability in the market. It would be great if it was extended again.