The recently introduced $6,500 tax credit for home buyers is quite valuable for the so-called “move up” or repeat buyers as U.S. starts to revive from recession.
Basically it’s a goverment initiave approved in for homeowners who’s living in their current home five out of the past eight years with adjusted household annual income of $125,000 or lower.
The tax credit can be used in so many ways. Some homeowners who need to downsize may prove to be significant users of this incentive as well as people who are relocating due to employment changes. Here are some of its features:
- The cost of the house you want to buy must not cost exceed $800,000.
- Allows a broad range of housing type such newly constructed or existing single-family homes, condominiums, manufactured or mobile homes, and even boats that function as your main residence.
- Cannot be claimed if you’re getting an investment property or a second home.
According to some experts, this tax credit will extend both an economic benefit and the market-relief-psychology to the move-up crowd. There’s a deadline though for this $6,500 tax credit for home buyers – a binding contract by April 30, 2010 and a settlement by June 30, 2010.