Clock is Ticking-Repeat Buyers-Expanded Tax Credit
The clock is ticking for repeat buyers to take advantage and capitalize on the expanded Tax Credit. According to a RISMEDIA article dated January 23, 2010—By now it is well documented that today’s affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory. WHAT many Americans might NOT realize is that a recent expansion of the buyer tax credit has created an equally desirable opportunity for existing homeowners.
This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
The expanded tax credit provides a financial opportunity for existing homeowners wanting to downsize or trade up. By taking advantage of the expanded tax credit, repeat buyers are likely to purchase their next home for less money, at a lower interest rate being currently lower than in years past or years to come AND receive a large sum of money from the government for doing so!
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.
There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, we encourage existing homeowners who want to benefit from this incentive expiring April 30th, to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.
Western NC homes provide many options. Give us a call today and one of our real estate professionals will be glad to assist you.
