Feb 22, 2009 6:58 pm US/Eastern
Home Tax To Help 1st Time Buyers Take The Plunge
BOSTON (WBZ) ―
The Kelley's of West Medford have been searching for a home for three years now. "We've seen everything from whoo – blow it down to stuff we can't afford," said Lisa Kelley.
But the new $8,000 tax credit may help them get their dream house. "It also means we're gonna be able to get into a house because everything was out of our price range," said Lisa.
The tax credit applies for first-time home buyers who close in 2009, or buyers who have not owned a home in the past three years. The money does not have to be repaid to the government as long as you keep the home as your primary residence for three years. "I think it will mean a dramatic increase in our business," said Sven Anderson of Remax Leading Edge.
Anderson says the tax credit – along with current low interest rates – will motivate hesitant buyers. "I think there's a lot of pent-up demand from buyers and this stimulus package is going to help buyers get off the fence."
It's unclear what effect the tax credit will have on the market, but the National Association of Realtors estimates 300,000 more home purchases in 2009.
Anderson says even with the incentives, right now, the problem is the lack of inventory for potential buyers. But this tax credit may help shake things up.
There are some income requirements to get the tax credit -- $75,000 for singles and $150,000 for couples. But if you make more than that, you may still qualify for a credit – just not the full $8,000.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
Reporting
