Tax incentives for purchasing a home this year.

If you are a first-time home buyer, you are in a GREAT time to buy. (I don't mean just great, but GRRRREAT.) The reasons are the home price has gone down 30-40% in many areas since 3 years ago, record low interest rates, and now the tax incentives. Although you might have missed the absolute bottom so far (it happened right before or shortly after the stimulus package came out in early March in many areas), you are still in a great position to get your first home. You have been saving all your money (but not putting it in stock market, I hope) these past few years when the home prices were beyond reach, haven't you?

There are two tax incentives this year. The $8,000 refundable tax credit is from the Uncle Sam, and it applies to new and existing homes. You will be qualified for this tax credit if you purchase a home this year until December 1st. The best part of this tax credit is it's refundable, and it applies to your taxes, not income. Say if you owe $3,000 in taxes in 2009, and you purchase a home, you will actually get $5,000 back next tax season.

The $10,000 tax credit is from the State; it applies to only new constructions and is to be credited over 3 years. You have to live in the property for 2 years after you purchase it.

With these tax incentives, there are a lot of activities in the starter homes market. Prepare yourself by getting pre-approved. If you are ready to take on the pride of home ownership, email me or call me at 858.382.1805 to dicuss your needs. I'd be happy to assist you.