President Obama approved the extension of the $8,000 first-time home buyer tax credit. Not only did they agree to push back the deadline, they are expanding to allow current homeowners and more affluent buyers to utilize the tax credit.
A few things to know about the tax credit...
1. The tax credit was designed to stimulate the housing market and allow unsold properties to be sold, which were putting a downward pressure on the market.
2. The deadline for first-time home buyers was pushed back to April 30, 2010. Home buyers must have a sales contract by April 30th and then they have 60 days to close.
3. The most significant change is that current homeowners who have lived in their home for at least 5 years are eligible to claim up to $6,500. The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit.
This is great news for real estate investors. The tax credit extension should help keep house sales up, during the generally slow winter market. We primarily buy houses that we can sell to first-time home buyers. This tax break has allowed us to sell our houses within days of being on the market.http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html
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