| You lucky bunch! First time buyers can get a tax credit | | | | which the ten per cent is calculated at $5,000, you will |
| for as much as ten per cent of a first home purchase | | | | only qualify to claim the tax credit on the maximum |
| (but it must be less than a $7500 refund) . Yep, this is | | | | 10% of the purchase price i.e. the $5,000. |
| all part of the recently-passed and much publicized | | | | New (brand new) housing sales are predicted to |
| Housing and Economic Recovery Act of 2008. | | | | bottom out in the spring of 2009 and then they may |
| However, the fact that it is much publicized should | | | | start rising according to a comment made by |
| mean that every young renting family should know | | | | Lawrence Yun, National Association of Realtors (NAR) |
| about it - but according to a recent survey, at least | | | | Chief economist. |
| 77% of renters do not. | | | | Now is an excellent time to get 'your house in order'. |
| This lack of knowledge could be costly because the | | | | Ensure that your credit rating is up to par, approach |
| tax credit is only designed to be a temporary boost | | | | your bank or broker to arrange pre-approval to |
| and will not be there for long. This concession by the | | | | finance a mortgage for you, and check that you have |
| Government offers quite a substantial saving. | | | | enough savings to deposit a down payment as well as |
| Think about it - ten per cent on a home that costs | | | | moving and closing costs. |
| $75,000 means that you will be allowed the maximum | | | | Part of your pre-approval will point you to which price |
| tax credit of $7,500! Free tax credits! Substantial free | | | | properties you will be able to consider. Of course, we |
| tax credits! | | | | always want the homes in the next price bracket up - |
| However, just a reminder: if you buy a home of | | | | but you can lose a home this way. |
| $100,000 on which the ten per cent is calculated to be | | | | Be wise and be content with 'starting' on the bottom |
| $10,000, you will still only be able to claim a tax credit of | | | | rung of the realty ladder; its not often that there is the |
| $7,500 as this is the maximum allowable. | | | | chance to have a safety net put in place by the |
| Alternatively, if you purchase a home of $50,000 on | | | | government! |