Move up to this 1930s-era home
One of the overlooked aspects of the recent home buyer’s tax credits approved by Congress is the credit that is available for the “move-up” or repeat home buyer. Many people are aware of the up to $8,000 tax credit for first-time home buyers, but there has not been a real concerted effort to let people know about the up to $6,500 tax credit available to buyers who sold their previous home and are “moving up.”
The law defines a tax credit-qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase of the move-up home. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
Move up to this loft
The homeowners who fall in to this move-up category, would have purchased their homes in 2002 or prior, which means they bought their homes prior to the real estate madness of 2005 to 2007 and probably made some money, or at least didn’t lose money. For those who fall into this category, you have until April 30, 2010 to take advantage of this one-time tax credit. If you have lived in your current home for five of the last eight years, and are interested in moving up, time is running out to sell your home and make the move-up purchase.
Find out more about the Move-Up/Repeat Home Buyer Tax Credit
Lyle Plocher is a licensed Real Estate Broker with the Urban Connection Realty team at HomeSmart. Lyle can be reached at lyle@downtownphoenixjournal.com.
Better get a move on it. From what I’ve heard, there are no plans to extend this tax credit again, and some at the federal level have mentioned that it won’t get extended. I think it’s the end this time, for real.
Also, with the MBS buy-back program ending here at the end of March, expect interest rates to shoot up from their 4.8% 30Y level right now, to maybe 6% 30Y. Maybe only a half point, but I’m going to be a pessimist.
Lyle, this information on the move-up and repeat home buyer tax credit s really need dissemination. Few people know this and it’s very helpful of you to share this. Keep it up. Thank you.