With today's legislation that was signed by President Obama, people looking to buy their first home or for those that it's been at least three years since they owned, the time is right to buy. Hopefully, this will help people jump off the fence to the purchasing side, instead of procrastinating. Why should you buy?
The new home buyer will be able to claim $8,000.00 tax credit for either their 2008 or 2009 taxes. How does it work, this is based on the three scenarios that I found on CNN Money.
Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.
Scenario 2:Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.
Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.
YOU NEED TO PURCHASE A NEW HOME BY NOVEMBER 30th TO QUALIFY, but you must stay in the house at least three years in order not to pay back the tax credit.
There are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)
Also in your favor, is that the mortgage interest rates are at their lowest in almost 60 years. Lenders do not see them staying this low, so if you are ready to jump, do so now. It is also a buyer's market, because of the large inventory. You have the opportunity to get a very good deal because the buyer is controlling the transaction. If you want your own home, this is a great opportunity, please take advantage of it.
For you buyers who are looking at Georgia's Creative Coast or the Carolina Low Country, contact me, I will help you find your house and walk you through the entire process from start to finish. I hope this information is helpful to first time buyers everywhere. They figure this will create 300,000 additional home buyers. I can be reached at 843-338-9087 or [email protected]
HAPPY HOUSE HUNTING!
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