Tuesday, April 7, 2009

$8,000 Tax Credit for First-Time Home Buyers in 2009

Buy this year and you can receive a tax credit up to $8,000!

A new law could put up to $8,000 in your pocket via a first-time homebuyer tax credit that does not have to be repaid.

But you must purchase a property this year to qualify.


When do I need to purchase to qualify?

If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.

How does the law define "first-time homebuyer"?

The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

What are other requirements to qualify?

All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.

How do I apply for the credit?

Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.

Does the credit have to be repaid?

No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.

(RealtyTrac.com email blast April 7, 2009)

4plex Investments in San Jose

There are some very good deals out there. And there is also a very fluid market too. If a property hits a certain price point, there are buyers who are lining up. I just went after a fourplex in San Jose. Decent condition, large property, fully occupied were the upsides. Crowded "fourplex neighborhood", not a great unit mix were the downsides. Approximately 4,000 square feet building with a short sale asking price of $675,000. After a few days, the listing agent has 5 offers! I'm sure this deal will sell very close to what they are asking or even higher. To land a good deal out there, I suggest being fast and when need be, aggressive. These low interst rates and low prices make for some very good cashflows. Buyers this year will be very happy down the road.

Stunning Estate Bank REO in Los Gatos - Open House April 11th.

Amazing Bank owned REO estate in Los Gatos. Huge, gated property very close to downtown Los Gatos. Outstanding schools, great demographics, perfect place to call home for a long time. Countrywide Home Loans took this property back and they are pricing it very low to get it sold! I am holding the home open on Saturday, April 11th from 1:30-4:30pm. Or call me for a private tour anytime this week. You will fall in love with this house and with the opportunity. Home is at 17450 Phillips Avenue, Los Gatos, CA 95030. Offered at $2,750,000 (new price as of April 7, 2009)for 5,725 square feet on over 4 acres. See the virtual tour here.