There are several indications that the new stimulus bill passed by Congress will have a positive influence on the struggling housing market. If you are considering buying a home in Chicago for the first time, the stimulus plan may help make that happen.
How the Stimulus Bill Stimulates the Bottom Line
The biggest effect the stimulus plan will have on new home buyers is a tax incentive. We all want to get more money back on our tax returns and the stimulus bill has an $8,000 tax credit for first-time home buyers purchasing a home in Chicago.
How You Qualify
In order to qualify for the stimulus tax incentive you must:
- Not have owned a home in the past three years.
- Use the new home as your primary residence.
- Have gross income of less than $75,000 per person or $150,000 per couple.
- Report the purchase on your income tax filings. Should you sell your home within the first 3 years of owning, you will need to re-pay all or a portion of the stimulus money. After 3 years, all of the stimulus money is yours! It’s my understanding that if you owe money to the IRS, that amount is deducted from the $8,000 incentive and you would be refunded the difference! Not a bad incentive!!
Stimulating Interest on Lincoln Park Home Purchases
The stimulus bill also gives first-time home buyers a chance to get into those big ticket houses. Houses with market values over $417,000 will be eligible for lower interest rates to make them more affordable. The luxury home industry has stagnated in the failing real estate market and this should give it a vital boost.
President Obama’s stimulus plan is serious about improving the housing market and has a lot to offer the first time buyer. The bill gives people looking to buy a home in Lincoln Park reason to hope. What are you waiting for…all of the ingredients are here, waiting for you to take advantage of them!