Are you letting your clients know about the $7,500 tax credit ?
There is a great opportunity for first time homebuyers to take advantage of the $7,500 first time homebuyer tax credit !! Just in the last couple of days, when we have spoke to buyers about purchasing a property, they were so pumped up to learn about this. This is a great way for realtors to educate their past clients and inform new clients about this opportunity !!
We think it is so great we just added a link on The Somers Team site - please check it out here !
In the meantime to highlight some of the items, our friend and colleague Patrick Lopez at Cardinal Financial in Philadelphia (who works in our Philadelphia office) put together this very informative flyer on the tax credit .
Highlights are as follows:
Amount of the Credit - 10 percent of the home not to exceed $7,500
Elgible Property - any single family residence (including condos) that will be used as a primary residence
Income Limit - up to $75,000 for inviduals and $150,000 for couples (there is a partial credit up to $94,999 for individuals and $169,999 for couples)
Recapture - is an interest free loan that is repaid over 15 years or when the property sells.
Effective dates - April 9, 2008 through July 1, 2009
Remember this is a tax CREDIT, not a deduction, so if someone would normall get a tax refund of $2,500, they would now get a refund of $10,000 !
If interested in buying or selling a home in Philadelphia, contact Chris and Stephanie Somers at thesomersteam@yahoo.com or 215-400-2612.
Philadelphia Real Estate - Chris and Stephanie Somers
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I do think that more buyers should be aware of this tax benefit and thanks for posting it.
hey guys, great point for everyone to take notice of, BUY A HOME it will never be a better time
Dave
Christopher & Stephanie,
Thanks for the post. I never could understand how a tax credit = interest free loan. Nonetheless, it is a helpful tool going into the purchase.
When I 1st heard about this program I was real excited as I thought it was a straight tax deduction but it is really nothing more than a loan.
Loreena - Definitely ! Most buyers are not aware of this unless it is communicated to them !
Dave - you got that right !
William - It is a great tool. I agree that it is not a strong since it is an interest free loan but can really help out the buyer too.
Bill - Agreed. But still. I was disappointed when I found that out too. But after thinking more about it, an interest free loan is still a great deal ! The power of money is strong. That extra money can be saved up or gone toward a significant item. An interest free loan is still free money to a certain degree.
Interest free loans are something people at the position of first time home ownership, appreciate. The interest is usually what kills them otherwise as they usually don't have as great a credit rating as someone who's looking to buy their 2nd or 3rd house, etc.
Thanks for the update and for reminding us to offer it. There are definetely a huge array of first time homebuyers in the market right now who are seeing the absolute best opportunities to buy than they may ever see again. These little incentives can sometimes help close a deal.
Castellum,
You are right about that opportunity... I think in the next year or two folks will be kicking themsevles if they could have purchased a property but instead waited. These incentives really make it a no-brainer as well as providing that extra kick for stabiity in the market. All the signs point to a turnaround in 2009.
Thanks for this amazing real estate blog.
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