Tax Credit Inspiring or Not? (sales, real estate, condominiums)

[lberry]

Is the first time homebuyers tax credit an inspiration? If you were buying a home now, what would be most important to you?

[susie4]

In addition, I just read that this is not only for first time homebuyers. If you are a repeat buyer and have been in your home for more than two years and are buying between 12/1/09 and the end of the time period which I believe is June, then you can get a $6500.00 tax credit.

[Butterfly4u]

The only thing that would matter to me is the purchase price of the house.
This "tax credit" has to be paid back out of your income taxes in the future.
The government does not give you $8,000.00 without being paid back. You will pay that back.
If you buy a home for a fantastic price, you can always refinance the amount of your mortgage at any time in the future if you want, but the purchase price is what is most important.
There couldn't be a better time to buy, unless some people are right, and real estate prices drop even further next year.

[le roi]

Tax credit was not inspiring for me. On the coast, where I live, and where I am talking about, prices are not yet in line with demand.

Some argue that right now, demand is "low, due to the recession", and that it will come surging back any quarter now.

My understanding is that we had artificial demand for about 5 or 6 years, and this low level of the demand we have now is the "New Normal" from here on out.

Some areas didn't have a bubble; I could see where those folks would be wise to take advantage of the tax credit and low interest rates.

[Sheri Sanders]

I want to clarify some of the 2nd home/move up tax credit below:

Move-Up/Repeat Home Buyer Tax Credit – Overview

Qualifying Conditions:
The tax credit is equal to 10% of the purchase price up to a maximum of $6,500. Purchases above $800,000 are not eligible.
Purchase of owner-occupied primary residence between November 7, 2009 and April 30, 2010 -- or one that closes by June 30, 2010, provided a binding sales contract was in force by April 30, 2010.
Any kind of home including single-family, townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
Home owner must have owned and resided in a home for at least 5 consecutive years of the 8 years prior to the purchase date.
Married taxpayers: both the home buyer and his/her spouse must pass the homeownership history test.
The income limit for single taxpayers is $125,000 and $225,000 for married taxpayers filing a joint return.

Other Facts:
New Construction is treated by the tax code as having been “purchased” on the date the owner first occupies the house
Repeat home buyers do not have to purchase a home that is more expensive than their previous home.
The law allows taxpayers to choose to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008, or if the purchase occurred in 2010, choose to treat it as if it occurred December 31, 2009. This means that the previous year’s income limits apply.
A benefit of being able to choose which tax year to apply the credit is that a home buyer in 2009 will know their prior year income and whether they qualify.
Qualified homebuyers will use IRS Form 5405 to submit for the credit. However the current form 5405 is for tax year 2008. Someone wanting to apply the credit to their 2009 taxes will still use form 5405 but will need to wait until the IRS publishes the one dated 2009 in the upper left corner.
Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using IRS Form 1040X.

[Sassy8722]

We tried, never bought a house before, always rented, went to try for a mobile home and got laughed at.