Wednesday, February 18, 2009

Today, we heard the news that part of the stimulus plan is to include an $8000 tax credit for first time home buyers. While I generally disagree with all aspects of Obama's stimulus package, this tax credit will definitely help the home building market and indirectly the furniture market. At Patriot Furniture, we are in the home stretch of our "Best Return" promo. At Vale-Irvin Homes, we are staging one of our recently finished homes and it looks awesome. Our presold custom homes (currently 5) are progressing nicely and all the respective buyers are excited and happy as they see their dreams come to life.
My investment group is in the beginning stages of an exciting project...Killeen's first mixed use high rise condo complex. I say hi rise...It's only three floors. If interest rates hold, we will probably break ground late 09

1 comment:

  1. Quoted from US News and World Report:

    1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

    2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

    3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

    4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

    5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

    6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

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