Homebuyer Tax Credit Extension Should Help Heat up DC’s Condo Market
President (and current DC resident) Barack Obama has signed off on a first-time homebuyer tax credit extension that should help heat up the DC real estate and condo market. After the issue was passed through Congress, Obama approved the bill, which will, in effect, give money back to first-time homebuyers.
The bill is part of a multi-billion dollar economic stimulus package, that will push the tax credit deadline back from what had been November 30, all the way through the end of April 2010. The extension benefits first-time homebuyers, defined as someone who has not owned their main place of residence during the previous three year period. That’s right long-time DC area renters…THIS IS YOUR TIME TO BUY!
“There was a collective sigh of relief among local real estate agents and developers last week as the administration signed the tax credit extension,” Said Will Smith of UrbanTurf.com. ”Many worried that the momentum in the DC area real estate market might slow had it not been extended. Now the expectation is that the momentum will continue into 2010.”
Single first time buyers who have a yearly income of less than $125,000 will be eligible for up to an $8,000 tax credit, with repeat buyers being eligible for up to $6,500. If you are a single buyer and your income is between $125,000 and $145,000, you will be eligible for a partial tax credit. Married couples who make less than $225,000 are eligible for the full $8,000, while couples who make between $225,000 and $245,000 will be eligible for a portion of that credit.
“Even in the DC area, where real estate is quite expensive compared to other parts of the country, an extra $8,000 is really enticing to buyers,” Smith said. ”You can furnish a 2-bedroom home for that amount of money.”
The tax credit is also refundable, which means that if you owe $6,000 in taxes, and you receive the full $8,000 of first-time homebuyer tax credit, you will not pay a dime to the government. In fact, they will mail you a nice, fat check for 2 G’s. If you like Bazooka gum, that refund could get you 40,000 pieces. That’s a lot of gum.
The credit is all yours, unless you stop using the condo or home as your main residence, or sell it off within three years.
What will this do for DC condos? It should just heat the pot that was already about to start boiling. The bill gives the green light to people who have wanted to move into their dream DC condo but were debating about the cost. This refund should give first-time buyers the motivation to make the move. After waiting for so long to buy that unit in Capitol Hill with the ridiculous views, or the condo right in Chinatown with the floor to ceiling windows, this is your chance. Check out all of our properties, here, now, and take advantage of this unique, money-saving opportunity.
[...] November 30th, 2009 all the way to the end of April in 2010. So, what’s so great about the homebuyer tax credit extension and what does it mean for you [...]