Parsippany, NJ

Time is Running out on Interest-Free Assistance for First-Time Home Buyers

Area real estate professional notes that Housing and Economic Recovery Act benefits are set to expire soon

Parsippany, NJ (Grassroots Newswire) 12/10/2008 -- Individuals and couples contemplating the purchase of their first home have an opportunity to take advantage of a federal income tax credit that can help put them in the home of their dreams - but time is running out, noted Susan Fishman, Sales Manager of Gallo & DeCroce in Parsippany.

"The Housing and Economic Recovery Act of 2008 created a new, temporary federal income tax credit to provide an incentive for qualified first-time homebuyers," Fishman said, "but because of the recent uncertainty in the financial markets, many buyers who would qualify missed this piece of good news. Fortunately, there's still time for buyers to benefit."

A qualified "first-time" buyer - defined as an individual who has not owned a home during the past three years - can receive a federal tax credit of 10 percent of the cost of their principal residence, up to a maximum credit of $7,500. Buyers receive a tax credit (in essence, an interest-free loan) on their personal income tax return in the calendar year following the year of closing on their home.

Unlike a tax deduction, the tax credit lowers a qualified first-time homebuyer's tax bill, dollar-for-dollar. Tax deductions reduce taxable income, so their value varies with the tax bracket of the individual.

One year after taking the credit, the buyer begins paying the tax credit back in equal installments over the next 15 years. If the home is sold at any point during the 15-year payback period, the balance of the loan is repaid; the balance is forgiven if the home sells at a loss.

"The temporary tax credit provides one more sound reason for first-time buyers to take advantage of today's attractive interest rates and ample inventory of homes, as well as save on their federal taxes," Fishman said. "The benefits are significant. For example, if a home costs $65,000, the allowable credit is $6,500. For a home that's purchased for $120,000, the allowable credit is $7,500."

Fishman cautions that the emphasis is on "temporary." The credit went into effect on April 9, 2008, and to be eligible for the tax credit, a qualified first-time buyer's principal residence must be purchased before July 1, 2009. Other eligibility requirements must be met to receive the credit, Fishman noted, including income limits. Individuals who exceed the limit may be eligible for a partial credit. Buyers should seek advice from a professional tax advisor for specific tax calculations.

"For anyone contemplating the purchase of a home, there are currently very attractive opportunities out there," Fishman said. "And the availability of the temporary federal income tax credit makes this an especially good market for first-time homebuyers who qualify.

"I'd be happy to provide further information to anyone who may be thinking of buying and may be eligible to take advantage of this tax credit," Fishman continued, "as well as to anyone who may be providing financial assistance to a first-time homebuyer. To be sure they qualify they should contact their attorney or tax preparer."

To find out more about the Housing and Economic Recovery Act temporary federal income tax credit for first-time homebuyers, contact Susan Fishman of Gallo & DeCroce directly at susan.fishman@era.com or 973-887-1560.

###

Sycamore End Unit! Loaded with Upgrades! Best of the Best! 3 Bedrooms. 2.2 Baths. 2-Story Foyer with Beautiful Italian Ceramic Tile Floor. Kitchen with Bamboo Hardwood Floor, Maple Cabinets, Granite Countertops, Blue Mosaic Tile Backsplash, and Stainless Steel Appliances. Dining Room with Bamboo Hardwood Floor and Hanging Chandelier. Living Room with Bamboo Hardwood Floor, Gas Fireplace with Granite Hearth and Surround, Recessed Lights, and a Sliding Glass Door to an Upgraded Deck with Court Yard Views. Master Bedroom with Beige Wall to Wall Carpet and a Large Walk-in Closet. Master Bathroom with Ceramic Tile Floor, Vanilla White Vanity, and a Shower Stall with an Upgraded Glass Door Enclosure. Large Finished Basement with Recreation Room and Half Bath. 1-Car Garage. Private Driveway. Central Air. Easy Access to Train Station (Morris Plains). Easy Access to Routes 10, 287, 80 and 24. Short Walk to Community Swimming Pool. For a VIDEO TOUR of this Home visit www.FoxHomeTeam.com!

148 Springhill Drive, Parsippany / Morris Plains, NJ

OFF THE MARKET!

Market Report For Parsippany Troy Hills , NJ January 2008

During the month of January 2008 there were 74 newly marketed properties in Parsippany Troy Hill with an average asking price of $462,099.00. The least expensive property is a 4 room Condo with an asking price of $179,900.00. The most expensive property is a 10 room Contemporary with an asking price of $939,900.00.

Twenty properties went under contract with an average asking price of $509,295.00 and these properties were on the market for an average of 108 days.

Twenty-Nine properties transfer title with an average asking price of $394,096.00 and an actual Sold Price of $379,703.00 and they were on the market for an average of 73 days. This represents a 96.34% of Asking Vs. Sold Ratio.

Twenty -Five properties withdrew from the market with an average asking price of $507,135.00 these properties were on the market for an average of 121 days.

Eighteen properties expired from the market they had an average asking price of $517,744.00 and were on the market for 204 days.

Parsippany is a large town with lots to offer to the growing family. Good area to raise a family. In close proximity to schools, shopping and houses of worship.