The Rec-room is coming along quite nicely. Paint is up, now we're just waiting for the drywall mud to dry in the hallway so the sanding can be completed then it's time for wallpaper carpet and trim woohoo!
I'm currently debating whether to take the first time home buyers tax credit. The $7500 would be really nice for working on the house, but do I really want to pay for it for the next 15 years? This is not going to be our forever-home. This is a temporary house and yet I'll be paying for the improvements for 15 years. I'm really not sure.
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The problem: A 1956 suburban home neglected and left to fester The solution: $9,000.00 in "rehab" money, blood, sweat, tears, and some good old fashioned elbow grease Can she do it? I'm not sure only time will tell.
6 comments:
It all depends on if you think you can get the money back plus some when you sell the home. In our case, the house's value is close to the maximum it will sell for, so it wouldn't make sense for us to do that.
Every improvement is an up in value for us. The house was purchased for 1/2 of what neighboring properties were selling for pre-housing crash. We're on a budget. It's tighter than grannys girdle, and boy would I love some new siding...
This is a great heads up. Thanks!
Mark
Found this regarding the payback
"Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven."
As part of Obamas stimulus plan you no longer have to pay it back. Hallelujah to that.
Yup. Documented it at the blog, right before DW went a-plinthing...
Great stuff.
You can buy a place next to us for probably 32k, get 8k from the feds if you finish it this year and $6k from the city.
And, if you need it, you can get up to 25k from our city in low interest money that they'll subordinate to your primary mortgage.
This is a good time to be buying.
Mark
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