Alberto Pacheco

CALIFORNIA NEW HOME PURCHASE $ 10,000 TAX CREDIT

The $10,000 tax credit is for home buyers that purchase a new home between March 1, 2009 and March 1, 2010. The bill set aside $100 million for the tax credit, so after 10,000 new homes are purchased, the credit is gone. last month, an estimated 29,458 new and resale houses were sold statewide, if yu want the incentive, you probably won't want to wait until next March. Below are details about the tax credit.

1.- The $10,000 tax credit is not a loan and if the home remains your primary residence for 3 years, you do not have to pay any portion of the tax credit back.

2.- The tax credit is for new homes only The construction of a new home generated more tax revenues than the $10,000 tax credit will cost, so the credit is limited to the purchase of new homes. You will not qualify for the state tax credit if you buy an existing home.

3.- The tax credit is good for 5% of the homes's price or $10,000 whichever is less. Example: (Price of home x .05)

If you purchase a new home that cost $150,000, your tax credit will be $7,500. If you purchase a new home that cost $200,000, your tax credit will be $10,000. If you purchase a new home that costs $450,000, hyour tax credit will be $10,000.

4.-Home buyers will receive the tax credit, in equal amounts, over 3 years. Examples: (Tax Credit / 3)

If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years. If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years.

5.-Unlike the $8,000 federal tax credit, the California state tax credit is not limited to first time home buyers.

6.- There are no maximum income limitation so any buyer purchasing a previouly unoccupied home can qualify for the tax credit.

7.- The tax creit only applies if the purchased home is your primary residence.

8,- There is no down payment requirement to receive the $10,000 tax credit.

9.- The $10,000 state tax credit can be used along with the $8,000 federal tax credit for home buyers. If you are a first time home buyer, and you purchase a new home in California that cost more than $200,000 you will get $18,000 in tax credits.

The California tax creidt is subject to elegibility requirements, I can not provide guarantees of actual savings and does not guarantee the homebuyer's qualification for the tax credir of that funds will be available at closed of escrow. Credit is subject to 2 year ownership and other requirements. No tax advice: homebuyers should consult with their tax advisor. Tax laws are subject to change. First time home buyer is an individual (excluding a non resident alien) who has not owned a principal residence during the past three years and is purchasing the new home as their primary residence. Tax credit is subject to elegilibity requirements. I can not privide guarantees of actual savings nor guarantee the homebuyers's qualifications for the federal tax credit. Tax Credit is subject to 3 year ownership requirement. No Tax Advice; homebuyers should consult with their tax advisor

480 Homess changed owners compared to 358 in 02/2008 it was an increase of 122 properties or 34.1%. From those 162 Condos closed escrow 48.6% compares do February 2008 when only 109 condos were sold.

There were eight consecutive months where sales surpassed the prior year, thats quite an improvement. There are plenty of home buyers searching and looking at the small collection of foreclosed homes and regular home listings.

Homes in good condition are attracting multiple offers, last week a home in Reseda with a over 17,000 sq ft Lot got 57 offers, some get offers within the same day they got in the market. The median price of a single family homes sold during February came in at $339,000 down 35% or $185,000 below the median of %525,999 posted on 2008.

The condominium median price of $210,000 was off 36.4% from 2008 and posted a 10.5% increase on a month to month basis. Many listing agents are pricing the homes low and for the same reason they get multiple offers. The Inventory is low since the banks are holding all the foreclosed homes since November 2008 and maybe releasing them by May this year.

Sales are definetely going to increase for the rest of this year, since the banks will release their inventories by the end of the spring or ealry summer.

Info provided by srar

HOMES

21600 San Jose St $ 318,000

19844 Septo St $ 575,000

http://www.stoppayingrentinla.com

HOMES

28488 Avion Circle $ 340,000

28910 Saint Lawrence St $ 256,500

http://www.stoppayingrentinla.com

CONDOS

18519 OLYMPIAN CT $ 350,000

HOMES

27910 RIGEL DR $ 325,000

27559 DEEPTREE AVE $ 235,000

19014 SADDLEBACK RIDGE RD $ 430,000

http://www.stoppayingrentinla.com