I was between appointments today at one of my favorite Downtown developments and I started thinking about one of the more tangible pieces of legislation from Washington since the new administration took over. The Housing Stimulus laws for 2009 offer home buyers unprecedented incentives to make purchases this year. One piece of the legislation benefits first time buyers exclusively; the other pertains to all California home buyers.
The First Time Home Buyer Tax Credit offers people who have never owned a home or those who have not done so for 3 years an $8,000 credit. The credit is described as "...a dollar-for-dollar reduction in taxes owed...". In other words, if you owe Federal taxes for 2009 and you bought a primary residence, knock $8,000 off your tax bill. If you don't owe any taxes? Uncle Sam writes you a check for $8,000.
The New Home Tax Credit is the second piece of this tasty, cash-filled pie. California residents who purchase a newly constructed primary residence will receive a $10,000 state income tax credit. This credit applies only to new, never lived-in property. Wow.
To receive a pdf of the entire document provided by The California Association of Realtors, email me and I'll be happy to pass it along.
These combined tax incentives along with the mortgage interest deduction, historically low interest rates and the most affordable prices we have seen in years have done the trick, or so it would seem. So far this Spring sales offices are humming, mortgage applications are rising and people are buying.
Which reminds me, I've got an appointment to catch.
Tuesday, April 14, 2009
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