California Extends And Expands Home Buyer Tax Credit

On March 25, 2010 Governor Schwarzenegger signed Assembly Bill (AB) 183 allocating $200 million for home buyer tax credits. The bill splits the $200 million in half with $100 million going to qualified first-time home buyers who purchase existing homes and the other $100 million for purchasers of new or previously unoccupied homes.

To be able to utilize the allowable tax credit, eligible taxpayers will have to close escrow on their qualified principal residences between May 1, 2010 and December 31, 2010, or close on a qualified principal residence on or after December 31, 2010 and before August 1, 2011 contingent upon an executed contract on or before December 31, 2010.

The credit will be equal to the lesser of 5 percent of the purchase price of $10,000, taken over three consecutive years in equal installments. Home buyers will be required to live in the home (as their principal residence) for at least two years or forfeit the credit.

This, obviously, is a huge benefit for first time home buyers and should push people off the indecision fence.
Even in a place like Mammoth Lakes, where the median home listing price is $1,267,500, there are opportunities to purchase Foreclosures, REOs and Short Sales priced under $500,000.

This, in turn, will reduce our inventory and get local contractors busy renovating these properties.

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For more information on the Mammoth Lakes real estate market, please log onto my real estate website at www.easternsierraproperties.com