My husband, Jake, travels to and from Raleigh on a semi-regular basis for his job. Once he is in our fair capital city, he tends to ask those who live and work in the area, how things are going in their neck of the woods--economics, real estate, politics, etc.
This past week, he was talking with a former college roommate who had his home on the market for the past year with little to no activity. He finally closed on his home in the suburbs and purchased a trendy little loft in downtown Raleigh. He was gushing over the $8000 tax credit and what a "shot in the arm" it had been to the real estate market. How it had been "dead" and once the tax credit was announced and the details understood, how all of these buyers came out of the woodwork, showings immediately picked up and lo and behold, he had an offer on his home within weeks.
Jake of course arrives at home, tells me the story and proceeds to interrogate me as to why our area just doesn't seem to "get" the advantages of this credit and what it means to home buyers who are currently looking or considering purchasing over the next few months.
My response was this:
Our area is usually a little slow to respond to things that seem to come "without strings".
Generally, we are a pretty conservative bunch when it comes to our finances, especially those folks in the greater Winston-Salem area. A local bank exec, told me several months ago, that folks in our area incur less debt than their neighbors in other cities and have a good deal more liquid assets or "cash on hand" than their counterparts. For the most part, we're skeptical when the government says "hey, take this and give us nothing in return". Also, we like to know all of the details...
-Do we have to pay it back?
The first tax credit which expired in Dec 08 did have to be paid back, this one does not have to be repaid.
-Does it have limitations that apply to first-time buyers only?
As long as you have not owned a home in the past three years, you qualify as a first-time buyer.
-Are condos and townhomes allowed?
Yes, as long as it is your primary residence.
-Is the credit refundable?
Yes, It will reduce or it can eliminate income tax liability for the year of the purchase. Any unused amount can be refunded.
-Is there an income limit? What if I make too much money?
Yes, you cannot make over $75,000 individually or $150,000 jointly.
-How long do I have to make a purchase?
As long as you close before December 1, 2009 you qualify for the credit.
-When can I start looking for new homes?
The program is already in effect, so start now while rates are low and inventory is high!
Hope this information helps and allows folks some comfort while they are out looking for a home and STIMULATING the Triad's economy by purchasing real estate!
Brooke
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