Category: Home buyers

Learn About the First Time Home Buyer Credit

Learn About the First Time Home Buyer Credit

There are a host of financial incentives the federal government is providing to encourage people to buy their own home. The largest and most critical of these is the one contained in the 2009 Employee, Home Ownership, and Business Assistance Act. In accordance with the provisions of this act, a total of USD 8000 is provided to eligible first time home buyers as a tax credit number. It is a major monetary benefit to home buyers for the first time since one does not have to repay this amount until and unless the property is sold or is not used as the beneficiary’s principal residence that received the tax credit. read the blog

What are the conditions necessary to be fulfilled to be eligible for this tax credit? According to the IRS definition, a first time home buyer is a person who has not purchased a residence during the three years immediately preceding his purchase. Income levels have been stipulated above which the tax credit is not available for single buyers and married couples. For properties purchased between January 1 , 2009 and November 05 2009, a single buyer’s maximum income level must be less than USD 75,000 and the income level can not exceed USD 150,000 in the case of couples who are joint owners. Similarly, for sale transactions conducted from November 06 2009 to April 30, 2010, the maximum income level for single buyers and couples could be USD 125,000 and USD 250,000 respectively. Only in case either partner has not purchased a home within the last three years will you apply for a joint credit. The couple also has the option of taking out a loan by buying the house as a single buyer on behalf of the partner who hasn’t bought a house in the last three years.

Some important points you need to note about the first time home buyer credit include the fact that the amount of tax credit available depends on the property price The tax credit available is equal to ten percent of the purchase price of the property, with 8000 USD being the maximum amount that can be claimed. The other key point to remember that not all purchased homes will qualify for this rebate. Only those houses with a maximum price of USD 800,000 would be considered when granting credit to home buyers. In order to be included in the list of beneficiaries, you must ensure that you purchase a home by 30 April 2010, sign the necessary contract papers and complete the sale by 30 June 2010 to qualify under this scheme.

The Smart Home Buyer

The Smart Home Buyer

Put into practice an existing plan that will enable you to purchase a home now-and:

  1. In record time, move to a larger house when building a big savings account or
  2. Have the ability to pay off your home very fast, without making any extra payments.

The keys to the scheme are plain. You simply need to know how to manage your earnings, interest and equity.

You also need to buy “less house” for the first time out than you are qualified.

I have observed during my many years of work in the real estate industry that there are two types of home buyers there. We are going to call them Type A and Type B. I strongly suggest you to visit Axess Home Buyers to learn more about this.

Class A Buyers Home

Buyers of type A Home are conservative. They are combating the urge to bite off more than they can chew. The first home they buy will cost less than they could afford.

They ‘re not rushing out on credit to buy new furniture. We don’t buy new cars or claim that they own all the newest high-ticket items.

As a result, their budgets aren’t stretched, they have extra money to invest and save, and they’re not forced to use high interest credit cards to pay for any emergencies that come up in their lives.

They live largely on cash basis. If they do not have to spare the cash; they are not buying it.

This lifestyle might seem familiar to you. This is how our ancestors, grandparents and every generation lived before them. It is the way of life that America has created.

Home buyers Type B

When buying their first home, Type B home buyers do things differently. They buy a home for the maximum sum they are licensed for and then spend their entire extra cash on new furnishings.

They are likely to take advantage of some of the “12 months the same as cash” offers to buy even more new furnishings, and may decide they need a new car to go into the garage.

The Budget is stretched to the limit at this point. Each paycheck is for paying bills. There is no extra capital to spend and to save.

Worsening. The refrigerator conks out and they are forced to purchase a new one on a credit card with high interest. The “12 months the same as cash” has expired and the already over-taxed budget has hit more payments.

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