The 2009 Home Buyers Tax Credit
It’s not surprising that the federal government is getting involved to try to spur activity in the housing market. In addition to providing measures that allow for the processing of loan modification, to help stem the tide of foreclosures, there is also an $8000 tax credit for people who buy a house. Now that we’ve just passed through the gauntlet of tax season, having this extra $8000 in pocket may really speak to people.
The 2008 tax benefit was $7500, which has been raised by $500 in the new year and is good until December of this year. If the house costs less than $80,000 then the tax benefit will be 10% of the cost. Obviously this doesn’t factor into the home costs of homes in the Hollywood Hills, unless you have the ability to travel very far back in time – at which point you won’t be eligible for the 2009 tax break 
Generally, most homeowners will be eligible for the full $8000 and this money can factor into how much you put down for your down payment. This is an increasingly important part of the home buying transaction. It always was, but with lenders being more risk averse, it is becoming more necessary to put down a larger down payment to ensure lower rates – even with the low prime rate.
The important thing to consider is that this is a first time buyer’s tax break. However, first time is a fairly liberal term, as someone who has not bough a home within the last three years is also eligible. If a person’s tax liability is below the amount received for the tax credit then the IRS will send the difference as a handsome check. Really, it’s a good program that will hopefully spur some home sales. Yes, $8000 is a small fraction of home costs in the Hollywood Hills, and elsewhere, but it is not insignificant, especially for those on the fence about whether or not to enter this housing market.
About Susan Andrews:
Susan Andrews is a top producing real estate agent at prestigious Beverly Hills real estate firm, Hilton & Hyland. She specializes in Hollywood Hills, West Hollywood and Los Feliz real estate. Susan can be contacted at 323.829.8811 or by e-mail regarding her properties.
