Here's some hot real estate news for the Greater Lansing, Michigan Real Estate market on the proposed new Home buyer Tax Credit. According to an article written by Bloomberg the U.S. Senate leaders moved closer to an agreement replacing an expiring $8,000 tax credit for first- time home buyers with a smaller one that would expand access to so-called step-up purchasers.
The Senate deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290. The credit would be available on home purchases that are under contract by April 30, 2010 and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.
UPDATE: Move up buyers capped at $6500.00 Deal Sealed
The new agreement, which is still being negotiated and may change, would grant the credit to borrowers who have lived in their current home for at least five years. Lawmakers want to keep home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression. Economists say a recovery in housing is a key to rebuilding the confidence and finances of American consumers, whose spending makes up 70 percent of the world’s largest economy.
The demand for new homes and condominiums may increase by “more than two times because you’re allowing step-up buyers into the equation,” said Andrew Parmentier, a managing partner at Height Analytics, a research firm in Washington. “ You just opened up a whole new pool of people who can buy into those empty homes and empty condos that were built out.”
The Bloomberg article went on to say:
The income eligibility for first-time home buyers would remain the same at $75,000 for individuals and $150,000 for couples. The income criteria for step-up buyers would be $125,000 for individuals and $250,000 for couples.
This is an opportunity for those sellers who have been sitting on the sidelines in the Greater Lansing real estate market to take advantage of selling their home, and moving up to more space for the growing family. Regardless of values coming down over the past 3 years, sellers who are moving up, should be able to pick up the loss on the new purchase, in addition to a tax credit if qualified. Keep in mind that if you have considered moving, now is the time to plan ahead.
Buying or selling a home in today's real estate market can be complicated without having the proper expertise and guidance throughout the process. Visit MikeBowler.com for additional tips to assist you.
“Expect the Best” Mike
Mike Bowler Sr. ePRO, CRB, GRI, SRES
Coldwell Banker Hubbell Briarwood
1020 S. Creyts Road, Lansing, MI 48917
Phone: 517-492-3400 Fax: 888-832-6203
email: Mike@MikeBowler.com
Website for Clients: MikeBowler.com
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