After weeks of rumors and premature announcements from "industry experts", Congress has finally passed the extension of two important measures for you and everyone you know. Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the Home Buyer Tax Credit. That bill will be sent to President Obama for his signature in the next day or so. We are certain that he will sign it.
So, why is that important to you?
1. The First-Time Home Buyer Tax Credit ($8,000 TAX FREE CASH) to anyone* who hasn't owned a home in the last three years - extended through (under contract April 30, 2010 - close by July 1). This means if you or someone you know has not owned a home in the last three years (and meets generous maximum income standards) Buys a home, they can get up to $8,000 TAX FREE CASH back from Uncle Sam, either as a Tax Credit or Rebate check. That's equivalent to getting an $11,000 +/- Bonus check from your employer. Over 60% of our Home sales in the last six months have been to First-Time Buyers. It was extended to keep the economy growing and to give relief to a large number of Active duty Military who have been extended in Iraq or Afghanistan who could not make the previous November 30 Deadline.
2. So, if they buy an existing home, where does the current owner move to? Now, under the new program, if you have owned your home for at least 5 of the last 8 years, you may qualify for a $6,500 TAX CREDIT when you sell your old home and buy another. It's a little complicated, so I have attached a chart from the National Association of REALTORS® that lays it out clearly. That helps move everyone up the ladder a little.
So, how do you feel about this? Some of our friends on both sides of the political aisle get exercised over programs like this. We won't argue the politics - there are enough folks doing that already. Choose up sides and have a blast. We choose to be reality-based. The programs exist. They are about to become the law of the land. They will propel home values upward again, interest rates are staying (for the moment) at historic lows, bargains abound, and this is the best time in our lifetime to buy a home - period.
*Unless you make more than $220,000 per year jointly, $110,000 if single, it is unlikely that you will ever have a better shot at getting a foothold in the American Dream than now. If you do make more than that, let's talk about investment properties! J
We are very fortunate that San Antonio remains the #1 most recession-resistant city in the entire USA. Our home values are stable and rising, we have never had the great value plunge that, say parts of California, Nevada and Florida "enjoyed", our job base (both Military and Civilian) is increasing, and it hasn't snowed here since 1985.
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