Here is my take on the Obama Stimulus Plan as it relates to our local real estate market.
There is one significant items that helps first-time buyers only. It's the $8,000 tax credit. This will help buyers by giving a credit that can reduce or eliminate their income tax liability. Balances not used in the year of purchase can be carried over until credit is used up.
It can be used for single family homes, condos, co-op's that will be your primary residence.
The full credit is available for purchasers who make less than $75,000 (single) $150,000 (joint) and phases out after $95,000 (single) $170,000 (joint).
Here's the catch. If the home is sold after three years of purchase the credit is recaptured on sale.
This applies to home purchased between January 1, 2009 and December 1, 2009
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