$6,500 Federal Tax Credit for “Move Up” Homebuyers – 1.15.2010
January 15, 2010 – 7:43 am
Local agents agree that the real estate market will soon return to the same high-energy activity levels seen before the holidays. Already we are seeing a noticeable, steady interest from eager people showing up at Sunday Open Houses, especially in the $650,000 and below price range.
The first half of January to date, there are only three new listings in the Playa Vista condo resale market. However, five properties went pending and opened escrow. Is it possible that prices have reached a level that is comfortable for most buyers? Could it be that qualified borrowers are taking advantage of the 30-year fixed rate loan with interest rates hovering in the low 5% range? Perhaps, buyers are enticed by the extended $8,000 credit for first-time purchasers, not to mention the $6,500 credit for “move up” homebuyers. All three are good reasons for purchasers.
As the April 30 deadline for these federal tax credits approaches, more and more buyers will aim to make their purchase within this timeframe to qualify for these benefits. With so much attention on the $8,000 tax credit since last year, by now, most first time homebuyers are aware of its advantage. To clarify one of these benefits, take a closer look at the new $6,500 federal tax credit for “move up” homebuyers.
Here are some facts for homeowners who would like to trade up, down, or relocate in this market and pocket $6,500 for doing so:
1) The new credit took effect on November 6, 2009. You have to be in a binding contract by April 30 and close by the June 30, the expiration date.
2) You’ve owned and resided in your current home for a consecutive five of the past eight years.
3) Your adjusted household income does not exceed $125,000 if you file taxes singly or $225,000 if you are married filing jointly.
4) Whatever you intend to purchase, the home cannot cost more than $800,000.
5) The replacement home must become your principal residence, although there is no requirement as to what you can do with your current home. This mean you can sell it, rent it out, use it as your second home, etc.
6) Like the first-time-buyer credit, the $6,500 version permits a broad range of dwelling types for your purchase: single-family homes, condos, mobile homes, etc.
For information that is applicable to your situation, please consult with your tax adviser. You can also go to http://www.federalhousingtaxcredit.com for a summary. Please note that The National Association of Home Builders sponsors the site.
I would be happy to speak to you with more detail, should you like more information on the topics discussed above, properties listed below, or more information about Playa Vista real estate.
Have a wonderful weekend!
Winnie Licht
Broker, Realtor ®
DRE #01272501
Coldwell Banker – Playa Vista
President’s Circle Distinction – Top 5% internationally
5450 Lincoln Blvd.,
Playa Vista, CA 90094
Phone: 310. 745. 7468
EFax: 323. 375. 0193
Email: winnie@winnielicht.com
www.PlayaVistaHomeSales.com
THE PLAYA VISTA SPECIALIST
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