If you have considered purchasing a home, but are waiting for that “perfect time to buy” take note… The Buyer incentive tax credit may not be renewed for a third time. According to industry leaders and lawmakers, the provision that puts up to $8,000 in buyers’ pockets will soon come to an end.
In a recent Los Angeles Times article, the end of the program was explained. Home buyers hoping to take advantage of a new or extended tax credit should not procrastinate: This third bite at the apple will be the last.
Legislative advocates of the $8,000 credit for first-time buyers and the $6,500 credit for move-up buyers made it clear during the debate on Capitol Hill that the benefits would not be renewed when they expire. This fact was confirmed by a lobbyist for the National Association of Realtors at the organization’s annual convention last month.
So what does that mean for potential buyers? If buyers meet the income eligibility requirements, they have until midnight April 30, 2010 to be in contract and must close escrow by midnight June 30th to qualify.
A Brief History of the Buyer Credit Programs -
The original buyer credit, part of the Housing and Economic Recovery Act of 2008, was not as effective as anticipated by legislators. There were relatively few takers, due to the fact that the credit took the form of a no-interest loan rather than a true credit, requiring the purchaser to “pay back” the credit.
In the American Recovery and Reinvestment Act of 2009, lawmakers made the incentive to purchase more appealing by increasing the credit to a maximum of $8,000 for new buyers who closed before December 1st. The only requirement imposed for the program to be a true credit for the buyer – the taxpayer must not move out of the property for a three-year period following the purchase.
This second attempt at stimulating sales and removing standing inventory was extremely successful, so much so that that the housing lobby implored Congress to help keep the momentum going. Lawmakers extended the deadline for first-timers and even added a “long-term resident” tax credit for repeat buyers who owned their current home for at least five consecutive years out of the last eight.
An excellent summary of the current program can be found here.
Alas, all good things must eventually come to an end, and so it seems that the significant tax credit for purchasing a home in today’s market will soon run its course.
So if you have been considering making a purchase at Altaire, now is the perfect time to buy in order to take advantage of this great opportunity!
Altaire is an Upscale Community located in beautiful Palo Alto. Now Selling New Contemporary-Style 1,2,3 and 4 bedroom homes.
Altaire Homes 3901 Fabian Way, Palo Alto, CA 94303 | 650.966.8881 Exclusively represented by: Pacific Marketing Assoc. #01220373
