Move-Down Buyers Can Be Eligible for Tax Credit Too
December 22nd, 2009
St. James Plantation, NC home builder Mark Johnson Custom Homes would like to share a recent RealtyTimes.com article by Bob Hunt regarding the Federal Tax Credits. Through this article, Hunt aims to disprove the media’s implications that the Federal Tax Credit is only available to “move-up” buyers, as well as outlining the eligibility requirements. Below is an excerpt and to read the complete article, click here!
“Move up, move down, move sideways; it just doesn’t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for “move-up” homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one. Indeed, even the November 6 White House Press Release said that the credit would be available to qualified homeowners who “wish to step up to a new home.” Same implication.
So, it is worth emphasizing that the credit is equally available to homeowners who are moving down, cost-wise.
The move-down homebuyer is not an unusual phenomenon. For years retirees have been known to move from a larger home to one that is smaller and often less expensive. Moreover, it is reasonable to think that current economic conditions may lead to even more move-down buyers. Just as thousands of families have found it necessary or desirable to downsize with respect to their cars and their general lifestyle, so it may be when it comes to considering the costs of owning and maintaining a larger house than they really need.
The same requirements apply to both move-down and move-up buyers.”
