Joe Moshe, Broker/Owner, Charles Rutenberg Realty, said that those looking to buy a new or existing home should do so before the deadline for the federal tax credit expires on April 30.
In February 2009, the federal government introduced the $8,000 tax credit for first-time homebuyers and a $6,500 tax credit for current homeowners under the American Recovery and Reinvestment Act (ARRA) of 2009. In order to be considered a first-time homebuyer, one must not have owned a home in three years. In order for current homebuyers to be eligible, they must have lived in their principal residence for at least five consecutive years.
The tax credit could be used to buy a newly built or existing home. To receive the credit, the homebuyer must sign the contract by April 30, when the offer for the tax credit ends. In order to receive the tax credit, they must close on the sale by June 30.
“This is the best time right now to purchase a home,” Mr. Moshe said. “As we see more homes being bought and home prices going up as a result, it is very unlikely that we will see the federal tax credit being either extended or reintroduced in the near future. It is imperative that anyone looking to buy a new or existing house should not wait until after this weekend.”
Mr. Moshe said the implementation of the federal tax credit has contributed to the recent rise in home sales. “The federal tax credit — as well as the improvements in the economy and the spring season — played a major role in the recent rise in home sales,” he said. “The question is now whether this trend will continue after the tax credit expires.”
For more information, call (516) 575-7500 or visit http://www.crrli.com.
