Will This Year’s Tax Credits Bring Home Ownership Within Your Reach?
Your financial circumstances have been dismal for as long as you can remember, perhaps for almost as long as you have been in the workforce. The thought that your slightly older contemporaries who graduated during the recession of 2008 thought that they could hold out for better times by going to graduate school, student loans and all, seems laughable. Your generation has resigned itself that none of you will own a house except those whose parents own a house and also have plenty of money in the bank. Today’s housing market seems almost entirely out of reach for first-time homebuyers. Why should 2024 be any better, especially with home mortgage interest rates as high as they are? This year, the federal government has introduced several tax credits for the purpose of opening up opportunities for first-time homebuyers. If you already own a house and wonder if selling it to a first-time homebuyer is a feasible way to avoid foreclosure, contact a Philadelphia mortgage foreclosure lawyer.
Uncle Sam May Just Hand You the $10,000 Separating You From Your Home Purchasing Goal
One of this year’s residential real estate tax credits goes to first-time homebuyers. People who make their first ever real estate purchase in 2024 will get a $10,000 tax credit. This is not enough to bring home ownership within the reach of everyone who is struggling to pay rent and can only dream of making a dent in their credit card debt and medical bills, but if you are only $10,000 away from being able to buy a house, this tax credit could close the deal for you.
People Who Sell to First-Time Homebuyers Get a Tax Credit, Too
Buyers’ own financial struggles are not the only thing getting in the way of their home ownership plans. It also doesn’t help that current homeowners are in no hurry to sell. If you bought your house with a three percent interest rate on your mortgage, you would think twice before selling and getting a seven percent interest rate on the mortgage on your new house. Therefore, the IRS is also offering a $10,000 tax credit to homeowners who sell their houses to first-time homebuyers. This is not enough money to incentivize homeowners to start listing their houses for sale; everyone whose main goal in selling a house is to make money will want to hold onto the house they have. For people who need to move, though, this tax credit could lead them to choose the first-time homebuyers if they get several offers.
Move Over, Real Estate Investors
The goal of the sellers’ tax credit is to encourage homeowners to sell to first-time buyers, instead of to investors. Ownership of residential properties by investors is at an all time high, and it is making things expensive for everyone else.
Contact CONSUMERLAWPA.com About Affordable Homeownership
A Philadelphia consumer law attorney can help you determine whether this year’s tax credits will enable you to buy a house. Contact CONSUMERLAWPA.com to set up a free, confidential consultation.
Source:
businessinsider.com/home-sellers-summer-disappointment-mortgage-rates-house-prices-real-estate-2024-5
