First Time Home Buyer $7,500 Tax Credit

Good news for first time homebuyers! Homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible for a $7,500 tax credit. It really is a great time to buy, especially with all the low priced foreclosure homes available now. Investors are coming out of the woodwork buying up all the deals. Financial advisors nationwide are advising their rich clients to place their investment money in real estate. Typical of any down market cycle, the sign of a recovering market are the investors. These are not the run-of-the-mill investor types, rather these are the real investors with loads of money. If they’re out buying multiple properties, a first time home buyer should get a signal that this might be the best time to purchase instead of signing another 12 month lease. There are many skittish potential first time home buyers out there sitting on the fence waiting for someone to say it’s the best time. Though difficult to pin down to a specific day, week or month, if you buy within the year of the bottom of the down cycle, you’re going to be doing well. No one will know exactly when the bottom has hit until long after it happened.

 

I saw a news report on the local news which stated that real estate was up about 50% from this time last year. Another report issued by our local Realtor board stated that we were up 25% in the previous month as compared to 12 months ago. The media certainly has more control over the public perception of the real estate market than the actual facts. Certainly people are always going to be influenced by the negative press releases about the economy. This is only prolonging the down cycle. I hear many buyers say they’re still waiting.

 

I’d like to remind buyers of the homestead exemption purchase and filing deadlines.  You must own and occupy your home prior to January 1st of the year that you make application for the exemption. The deadline for filing is March 1st, however, you can pre-file at any time during the year for the following year. Feel free to contact me if you have any questions regarding filing. 

More great news! For 2009 homeowners can claim double exemptions for up to $50,000 but you must be in the home by December 31, 2008 to qualify for 2009.

 

With the tax credit and homestead exemptions and low low Orlando home prices, It could make a huge difference in their monthly payment come December 2009 and beyond.  This alone won’t save our Orlando real estate market by itself, I believe the investors will, but great for the entry level buyers!

  

Here’s a website that will explain in more detail about the $7,500 credit…

 www.federalhousingtaxcredit.com/index.html

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4 responses to “First Time Home Buyer $7,500 Tax Credit

  1. Can someone tell me if i can build a house and receive the 7500 dollar tax relief. If so, when would i need to start building,when would it need to be completed and when i need to start living in the new home. I have never owned a home before. If any one has any information please let me know. Thanks for your time.
    Justin jbellas7@hotmail.com

  2. Yes, as long as you close on the house & land before July 1, 2009. Be careful of builder’s contracts, they may tell you that it will be completed in 6 months but the fine print may allow them to take as long as 2 years!

  3. It’s a shame I bought my house the first week of March as I was planning on using this for much needed updates. Why would they start the tax credit 4/9? On a Wednesday?!

  4. This credit is a joke I did my taxes with HR block on line and its really for me throwing 3100 back in my pocket yet I need to pay back 500 the next 15 years LOL good try

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