The government’s tax credit for first time homeowners is picking up steam as summer comes. That tax credit is as much as $8,000 for properly qualified homeowners. That’s a very good amount, but there are areas of the country that are offering extra incentives, as well as governmental recommendations for an increase in the amount of the tax credit itself.
For instance, earlier this year, the home builder Taylor Morrison offered an option for some home buyers where, for a short period of time, they would match the $8,000 tax credit, or whatever amount the home buyer qualified for. They ran that for one month, and it was only for new homes that Taylor Morrison would build, but, based on some fancy accounting work, some buyers were able to save upwards of $50,000 on the purchase of a new home.
Then we have the state of California, which has added to the $8,000 tax credit by giving an additional 5% tax credit to some home buyers, which means a home owner could end up with a tax credit of $18,000 overall. For this one, the homeowners only had to live in the house for 2 years, as opposed to the federal plan where owners have to live in the house for 3 years. Of course, since it’s a government program, it has a limitation. The credit is available for just one year, and it’s on a first come, first serve basis. Since the state allocated $100 million to it, once it runs out, that’s it. And, instead of getting the credit all at once, the credit is given out over a 3 year period, which means you could possibly be out of the house and still getting a credit.
In Georgia, a tax bill was signed in May that gives up an a $1,800 tax credit for first time home buyers who purchase their homes between June 1 and November 30, 2009. The amount is based on giving purchasers 1.2% of a credit for the purchase price up to that $1,800 figure.
Also, something not many people know is that there’s a special tax incentive for both new and existing home owners to go “green” on renovation of their homes, which could earn them a tax credit of $1,500, although it’s a one time credit and has to be claimed in either 2009 or 2010.
Of course, the big bonus is the introduction of legislation by Georgia Sen. Johnny Isakson that would increase the amount of the present tax stimulus from $8,000 to $15,000, as well as eliminate financial caps now in place, making it open for more than just first time homeowners. The idea here is to allow both new and existing home owners to take advantage of the high number of foreclosed upon homes that are available, homes that were formally at a very high cost but have come down as the glut of houses kept growing.
Indeed, it looks like there are not only states that are willing to help potential home owners, but the federal government is also trying to boost what they’ve already given you. This is definitely a good time to be looking into the possibility of purchasing a new home.
By: Luis Pezzini
Posts Tagged ‘First Time Homeowners’
Other Tax Incentives For New Home Buyers
March 3rd, 2010Home Improvement Tips for First Time Homeowners
January 30th, 2010The thrill of being a home owner is difficult to explain until it has been experienced firsthand. The sense of pride and accomplishment that comes from owning a home is a feeling unto its own. One of the first things that homeowners often immediately do after moving into their home is personalize it with their own furniture and wall art. Even before all their boxes from moving day are unpacked, new homeowners are contemplating furnishing and home improvement projects that they would like to undertake.
For many, home improvement means building a swimming pool in the backyard, including a gazebo, or adding additional rooms to the home. For others, turning a house into a home may mean undergoing a massive outdoor landscaping project or perhaps even remodeling the kitchen. Often, focusing on such large undertakings can overshadow other smaller yet equally important projects that help to make everyday life a richer experience. Before diving head first into massive renovation projects, consider the following useful home improvement tips for first time homeowners:
Start Small
With an entire house and yard to serve as a canvas, the options are seemingly limitless when it comes to home improvement projects. Too often though, the small and unique details that make life enjoyable are sadly overlooked, that is, until they begin to cause problems. For example, consider the annoyance caused by pests.
Insects and rodents can be found anywhere whether your first home is older or is new construction. Ants are the most common pest problem in households across the US. While exterminators offering high price services will try to convince you that treating your home every six weeks is the only way to rid them from your home, a household insecticide such as a liquid ant killer should do the trick for a fraction of the cost. An ultrasonic repellent is also a great pest control solution if you have children or pets, as they do not rely on harsh or dangerous chemicals. As an added bonus, ultrasonic repellents also keep away rodents, cockroaches, and spiders, which is something especially important if you live in an area where there is continual construction.
Save Money
Since first time homeowners are, in many cases, used to paying utility bills associated with apartment-style living, the first set of bills can be a massive shock. Windows, often an overlooked area, are one of the ways in which homeowners can minimize the amount of money that they spend on electricity monthly.
Many people wrongly assume that solar screens are the only way to prevent household heat loss and air leakage. While solar screens do cut down on electricity usage, they are extremely costly to install inside of your home. The easiest way to save money and make both your home and life more energy efficient is to tint your windows. Vinyl window tinting film is a permanent and inexpensive solution that can be applied to your existing windows. In the time that it would take to schedule a solar screen consultation, every window in the home could be tinted and forgotten about. The best part about tinting your windows at home is that if you later on decide to go for the pricey solar screens, it is very easy to remove the tint.
Increase Value
Many first time homeowners become so caught up in the excitement of owning their first home that they often forget just what a shrewd investment they have made. Like all investments, there are several steps that one can take to increase the value with relative ease. Again, most people look at landscape and swimming pools when they are considering home improvement, but kitchen improvements are what actually raise the value of a home the most.
Unfortunately, kitchen remodeling is also a costly project to undertake. Appliances, tile floors, new paint and cabinets can all add up to dizzying heights and an even more towering cost. Rather than being talked into debt-inducing remodeling projects at your local home improvement store, take stock of your kitchen and consider what really needs to be updated the most. Rather than sanding and painting or purchasing replacements, use this low cost cabinet make-over that no home improvement store will ever tell you about.
In stores you can now find PVC sheets in wood grain patterns that are available in a variety of shades. Simply cut the sheets to fit your tired, cracked or chipped cabinets and affix it in place. In less time than it takes to find the tools needed to refinish cabinets, your kitchen will look refreshed for pennies on the dollar and will look great.
By: Allan Young
