November 7, 2009
As you may now know, both the House of Representatives and the Senate have passed the homebuyer’s tax credit bill and Obama will soon be signing this into law. This is huge for all of us, as it will continue to stimulate our local economy for first time buyers and provide incentive for existing homeowners to sell and purchase another home, perhaps downsize. The purchase limits are up to $800,000 for first time or existing homeowners.
Laguna Beach homes and Laguna Niguel homes being affected
With purchase limits being up to $800,000., this segment of our coastal homes will be very popular. As of now, there are approx. 12 Laguna Beach homes (excluding Laguna Canyon), and 170 Laguna Niguel homes priced under $800,000. As this inventory is sold, let us see what happens to the next highest price range of $800-$1 million as we head into the first half of 2010.
If you want to assist your children in buying a home, what better time than this? Here are some added benefits to helping them buy a first time home. Interest rates are historically low still, there are tax benefits to owning versus renting, and the high monthly rental rates in our area oftentimes justify having a mortgage for the same price. Talk with your tax accountant for advice on gifting money to your kids as well as your mortgage broker letting you know how to structure the timing of the gift. If you would like suggestions for a mortgage broker, please contact me.
Provisions of buying a coastal home with the tax credit
To qualify for this tax credit, the home needs to be for a primary residence and not a second home. In addition, one needs to be under contract to purchase by April 30, 2010 and that is just 5 months away. One of the provisions requires the home not to be resold for three years. There are income limits for the buyer also, $125,000 for individual buyers and $225,000 for people buying jointly. Existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.
So, convinced yet that you have a huge opportunity to act now? Even if you don’t buy or sell in the next 5 months, the wave of transactions will be affecting your current asset as these homes get sold and will hopefully push up the demand for these next higher price ranges to begin moving. Please contact me if you have any questions as to how you can take advantage of this amazing real estate market!
By: Gilda Duhs, a Broker Associate in Laguna Beach with Coldwell Banker, specializing in Laguna Beach’s oceanfront and ocean view homes, Laguna Niguel homes, Dana Point homes, and coastal communities of south Orange County. She can be reached at 949-683-7232.
http://www.CoastalLagunaRealEstate.com
http://www.LagunaBeachOceanfrontHomes.com
http://www.LagunaBeachOceanviewHomes.com
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