Dennis Norman
By:Dennis Norman
Earlier this year Congress passed The American Recovery and Reinvestment Act of 2009. One of the items contained within the 407 page Act that has been getting a lot of attention is an $8,000 tax credit for first-time home buyers.
For buyers that qualify I think this,coupled with housing affordability,low-interest rates and lower home prices (read more about affordability in my earlier post about it) presents a great opportunity to buy a home.
To qualify for the credit you must be a first-time home buyer and you must purchase the home after January 1,2009 and before December 1,2009. The law defines a “first-time”buyer as someone that has not owned a home in the three year period prior to purchase.
The credit is equal to 10% of the purchase price of the home up to a maximum credit of $8,000 and is available for new or existing home purchases.
The National Association of Home Builders has created an informative website with complete information on the credits for home buyers and is worth checking out.
Related posts:
- Homebuyer tax credit has been primary cause of recent return of buyers to market according to study
- Home Loan Applications Increase As Buyers Race to Beat Tax Credit Deadline
- New updated info from IRS on Homebuyer Tax Credit
- Pending Home Sales Increase In April as Buyers Rush to Beat Tax Credit Deadline
- First-time homebuyer credit provides tax benefits to 1.4 million familes to date according to the IRS
I found myself in a financial bind because I invested too heavily in the real estate back in the 2000s. Just about everyone who has dabbled into real estate in the early 2000s rave about how much money they have made. Feeling jealous and envious,I attempted to do the same,but to find that it is not as easy as all the TV shows claim to be. Especially if you had purchased the homes at the highest,which no one would have known until the bubble had burst. In any event,I was left with these properties which were not selling,and eventually I had to dump them with a huge loss. I had to endure such a big financial loss that the only thing that I can do is to file for bankruptcy protection if I ever get back on my two feet again. It was definitely difficult for me emotionally as I seemingly was on top of the world,and then in a matter of a year or so,I was left with nothing. Since the fallout of my financial demiss,I have learned that I cannot look for the shortcut to making easy money. It is a better choice to be realistic about what you can make,whether it is through your job,or any investment you are thinking of. Do not put yourself in a position where you will have so much debt that you will have to file for bankruptcy protection.
[...] told the committee that the first-time home buyer credit and elimination of the mortgage cancellation tax are having a positive impact on the real estate [...]