MORRIS
PLAINS, N.J., Aug. 17,
2009- Since Congress passed the American Recovery and Reinvestment Act
earlier this year, many have seized the opportunity offered by the $8,000 tax
credit for first-time home buyers. When you factor in today’s
historically-low interest rates and housing affordability with the financial
incentive from the government, it’s easy to see why so many first time buyers
have taken advantage of this chance to realize their dream of
homeownership.
However, the ability to
utilize this $8,000 tax credit will not be available to would-be homeowners
much longer. To receive the tax credit, a first-time buyer must purchase
and close on a principal residence before Dec. 1, 2009. Since closing on
a home generally takes anywhere from 45-60 days, that leaves prospective buyers
a little more than a month to take advantage of the this financial
opportunity.
“It’s hard to imagine a better time
than right now to be a first-time buyer,,” said
In addition to taking
advantage of the tax credit, another reason for first-time buyers to consider
making a purchase now are the recent signs of a stabilizing real estate
market. Last week, the National Association of Realtors announced that
home sales increased in 39 states in the second quarter of the year compared to
the first. Last month, the S&P/Case-Shiller index showed an increase in the
monthly value of homes for the first time in nearly three years.
Buying a home now might not only be
the opportunistic thing to do but also the more practical decision.
In many instances, renting can actually be more expensive than
buying. By choosing a fixed-rate mortgage, individuals can lock in to a
lower payment that will stay the same unlike rent which can increase
yearly.
First-time buyers, as well those who
haven’t owned a home in more than three years, who purchase a home by Dec. 1,
may be eligible to claim all or part of the tax credit based on their income
level. Congress will even allow individuals to still claim the credit as
part of their 2008 tax return if they file an amended tax return. Individuals
can also elect to receive the credit on their 2009 tax return. As with
any tax law, individuals should check with a tax advisor to discuss any
specifics regarding the use of this provision.
Weichert has nearly 18,000 sales
associates in approximately 500 company-owned and franchised sales offices in
key markets throughout the
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