We’ve had 2 years of tax credits for first time home buyers. Those were wonderful programs to provide assistance to the beginners to the home buying process. They have been purchasing the foreclosed and distressed properties that are on the low end of the economic food chain.
But what about folks who have a house to sell and want to buy another property? With the real estate prices on the decline of late, there was little money left to pay the expenses that rest on the seller’s shoulders. So, the home buying process stagnated with that middle sector of the home buying public. Which made for a slow moving middle and high priced housing market. Enter the new plan!!!!!
The original $8000 tax credit is still in place for first time home buyers, but the income limits have been extended a bit. It used to be $75,000 for a single and $150,000 for a couple. Now, it’s $125,000 for single and $225,000 for a couple! That should assist some buyers who have been sitting on the fence. In addition, there is a $6500 tax credit being offered to those who will sell their current home and purchase another residence. Some restrictions apply: they must have lived in the house they’re selling for at least 5 years and they must be purchasing a residence they will be living in, it cannot be a second home or an investment property.
I view these credits with cautious optimism. While it’s a good idea to offer some incentives to get this very large sector of our economy moving again, I am trepidatious about how this tax credit will impact our overall spendable income as a nation as well as how it will be incorporated in to the picture of the nation’s financial “recovery”. I don’t want there to be any question that, while these dollars are meant to offer assistance, it should not be discounted when making calculations regarding what made these purchases possible, in part.
Read this article for more clarification about how theses credits work. Then, call me right away to get started before your time runs out!!! This benefit expires on April 30, 2010, which means you must have an offer turned in and accepted by then with a closing date set for no later than June 30, 2010. Contact me today to make an appointment so we can get your file up and running.
Susan Hofflander is a seasoned real estate professional, providing real estate consultations for home buyers and sellers in the Twin Cities since 1994. Susan specializes in homes for sale in Lake Calhoun/Lake Harriet, Minneapolis, Plymouth, MN, Minneapolis Western Suburban Cities and Downtown Minneapolis Lofts.
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