Extension of Homebuyer Tax Credit Signals Maine Lakefront Property Buyers to Keep in Close Touch with Market

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November 11, 2009

Extension of Homebuyer Tax Credit Signals Maine Lakefront Property Buyers to Keep in Close Touch with Market


Congress has just passed and, on Friday, the President has signed a bill that includes the homebuyer tax credit extension and expansion.
While this bill directly affects first time home buyers and, now, some current homeowners, and deals with primary residences, the broader view is that this bill will continue to support progress in the overall recovery of the housing market and help keep the economy moving forward.
For buyers interested in purchasing Maine lakefront real estate there is little direct impact, but the larger message is clear – there is strong sentiment on the federal level to do what it can to help the depressed housing market recover.
If the legislation has its intended affect, the residential real estate industry, across the board, will benefit and, with interest rates still hovering around their all time lows, inventory high, and prices correcting from their highs from a couple of years ago, now may be the time to consider purchasing a Maine lakefront property.
Here’s a summary of the legislation from the National Association of Realtors site:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8,000 for first-time purchasers. No change to definition of first-time purchaser.
New $6,500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010.
Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
You can also view a YouTube video here of a Seattle real estate agent giving a clear presentation of the newest changes instituted by the law just passed. Lastly, use this link to the National Association of Realtors  for a thorough explanation of the bill and its ramifications.

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