« Strawberry Festival at Louisiana Kentucky Krogers Fest-a-Ville »
The economy is a strange thing. The recent surge of foreclosed condos has created more affordable opportunities for homeownership than ever before. Many condo developments sit empty while their frustrated housing managers struggle to find buyers. This has lead to a drop in condo prices, making owning a condominium an affordable opportunity. At the same time, the economic recession makes it difficult for homeowners to even imagine pursuing their dreams. Luckily, the first time home buyer tax credit makes it suddenly feasible for many to purchase real estate and take advantage of the prices that have resulted from the disrupted housing market.
Thanks to the first time home buyer tax credit, new homeowner’s receive an $8,000 tax credit or 10 percent of the home’s value. As the credit is not a loan, it does not require repayment. The credit reduces a homeowner’s tax liability. If the credit exceeds the taxpayer’s liability, a check will be issued for the remaining amount. That’s virtually money in the bank, inspiring more and more people to take advantage of the reduced prices of foreclosed condos.
The buyer must own the home for at least 3 years. If he or she sells the home before that, the tax credit must be repaid. The credit applies only to homes purchased between Jan. 1, 2009 and Dec. 1, 2009.
In order to qualify for the tax credit, home buyers must make less than $75,000 if single or $150,000 as a couple.
Some lawmakers had originally sought a $15,000 tax credit, but the credit was reduced as compromises were made. Still, any tax credit could be a powerful incentive and help seal the deal for many perspective homeowners.
The tax incentive should help to boost the housing market as well and perhaps fill in some of the holes caused by the crisis. Many condominium buildings are sitting virtually empty or useless as the original market has been swept away. By providing this incentive, the government enables many new property owners the chance to take advantage of the low prices that have resulted from the crisis. This will help the market to heal itself.
There are also tax credits available for homeowners to make their homes more energy efficient. 30 percent of the cost of installing more environmental features on a home can be recouped through the credits.
The homebuyer tax incentive may have a limited effect on the market, as first time homeowners are only a small percentage of all real estate sales. This incentive, however, does help make home ownership a more realistic opportunity, enabling more to build a stable financial future. The incentive, combined with the opportunities in housing, makes condo living an affordable possibility.
Related posts:
Post a Comment