The new California first time buyer's tax credit and New Home Buyer's tax credit seem to be timed perfectly to keep California real estate on the road to recovery. There is a major concern though! The new State of California tax credit gives qualified buyers $10,000. This is broken down to $3,333.33 per year over a three year period. To qualify the buyer needs to be a first time buyer defined as a buyer that has not owned a home in the previous three years. The buyer must own and live in the home for the first two years after closing escrow. Also any buyer of a brand new home in the State of California will receive the $10,000 if they also own and live in the home for the same two year period. There are other conditions that may affect this program as well!
My concern is that the buyer is given the $10,000 of their California State Income Tax. Many first time buyers may pay little or no state income tax. I want to know what will happen if the buyer is not paying state income tax how will they receive the $10,000? I called Bill Friedman in Santa Clarita, California for his advice and opinion. He said that this is an incredible question. It was his understanding that if no tax is paid then no credit can be issued. I still do not know the definitive answer to this question and will continue researching!
There is incredible news for home owners in California! Home prices are on the rise. This may not sound like the best news for home buyers, however these same buyers have been sitting on the fence waiting for assurance that the real estate market and home purchase have bottomed out. Buyers now have that assurance! Following are the Price increases in Valencia, California & Santa Clarita, California according to Zillow Home Value Index dated 4/18/2010 -
Valencia, California home prices up 3.8% year over year!
Santa Clarita, California home prices up 1.9% year over year!
Canyon Country, California home prices up 2.9% year over year!
Saugus, California home prices up 1% year over year!
Newhall, California home prices up .5% year over year!
This information was sent by Zillow, check it out for yourself!
Your Friend & Realtor,
Tony Lewis RE/MAX of Valencia www.TonyLewis.com tonyglewis@yahoo.com 661-702-4720
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