Lake Conroe residents are running out of time to take advantage of the $ 8,000 first time home buyer tax credit. The program which has added 900,000 additional home buyers nation wide is coming to a close at the end of April. The program also offers a $ 6,5000 tax credit to repeat buyers who have owned a home in the last 5 years. The home buyer credit only applies to the purchase of a primary residence so the purchase of a vacation home will not earn the tax credit (no matter how much you want it to).
This program was really designed to encourage people to purchase homes in places hit hard by the Real Estate crash like California, Florida and Michigan. Here in Texas especially in the Lake Conroe area home values have remained steady so the $ 8,000 home buyer credit can be treated like the cherry on top. By buying a home right now your building equity, you are guaranteed a steady increase in property value and a to top it all off a gift of $ 8,000.
Some of the guidelines of the are as follows: Income can not be over $ 125,000 for an individual and can not be over $ 250,000 per household. The actual credit is 10% of the purchase price of the home up to $ 8,000 ex. $ 60,000 purchase = $ 6,000 credit. Also the credit is only available to properties with a purchase price below $ 800,000.
The home buyer tax credit may expire at the end of this month but for now buyers and realtors are busy trying to find the right home.