There are several indications that the new stimulus bill passed by Congress will have a positive influence on the struggling housing market. If you are considering buying a Santa Cruz home for the first time the stimulus plan may help make that happen.
How the Stimulus Bill Stimulates the Bottom Line
The biggest effect the stimulus plan will have on new home buyers is a tax incentive. We all want to get more money back on our tax returns and the stimulus bill has an $8,000 tax credit for first-time home buyers purchasing a Santa Cruz home.
How You Qualify
In order to qualify for the stimulus tax incentive you must:
• Not have owned a home in the past three years.
• Use the new home as your primary residence.
• Have an income of less than $75,000 per person or $150,000 per couple.
No action is necessary other than reporting the purchase on your income tax filings. You must keep your home for at least 36 months in order to not have to pay back the incentive in the following tax year. If, however, you keep your new home for 36 months or longer you never have to repay the incentive.
There is no cap on return for this incentive either. Even if you would not normally be entitled to the full amount according to your taxable income level you will still receive the entire $8,000 amount in return.
Stimulating Interest on Santa Cruz Home Purchases
The stimulus bill also gives first-time home buyers a chance to get into those big ticket houses. Houses with market values over $417,000 will be eligible for lower interest rates to make them more affordable. The luxury home industry has stagnated in the failing real estate market and this should give it a vital boost.
President Obama's stimulus plan is serious about improving the housing market. The bill gives people looking to buy a Santa Cruz home reason to hope.
Interested in more information on how the stimulus plan can you help buy a home? Call me at 831.662.6522, or, if you prefer to remain anonymous, email me at lauren@laurenspencer.com I'll never share your contact information with anyone for any reason.
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