California announced it’s own, $10,000 tax credit for any homeowner buying a new home between March 1, 2009 and March 1, 2010 regardless of whether they’re a first-time buyer or not. This comes on top of the federal first-time home buyer tax credit of $8,000 announced by the
Details of the California Home Buyer Tax Credit
While it is still unclear exactly how the California Home Buyer Tax Credit program will work, here is what we do know:
- Eligible on NEW homes purchased between March 1, 2009 and March 1, 2010 (must be new construction to qualify)
- $10,000 credit paid in 3 annual installments of $3,333. Home buyers get the $3,333 off their taxes for the first three years after purchasing the new home.
- No income restrictions, meaning that all home prices and incomes can participate.
- Any home buyer buying a new home qualifies. You do not have to be a first-time buyer as in the Federal Home Buyer Tax Credit.
- Pending escrows or recent home sales have not been determined to be eligible at this point, although it will be determined shortly.
- The total credit is $100 million (h/t CR) which works out to 10,000 home sales that would qualify under the California Home Buyer Tax Credit program.
Personally, this seems like a terrible idea pushed through by the home builders for their personal profit. Encouraging builders to build new homes when California is the most overbuilt state in the country is foolish. We have a fundamental problem of supply and demand, and now California is going to artificially (and temporarily) try to increase demand, while in reality we’re really just encouraging builders to add to supply.
Keeping builders building when we need to clear out this glut of homes just makes no sense. But if you’re in the market for a home, you now have 10,000 reasons to consider buying new.
Did you know that a Realtor can help you negotiate the purchase on New Construction?
Let me know how I can help you.
A Division of Richard Realty Groups, Inc 6986 El Camino Real, Ste. H,
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