Governor Endorses New Home Buyer Tax Credit
Real Estate in Rancho Santa Margarita and other Orange County cities could get another boost from the government. Governor Arnold Schwarzenegger has proposed a new homebuyer tax credit for California taxpayers.
Not Just For First Time Buyers
Just like the new recently passed Federal program, the proposed credit would apply to the purchase of existing as well as new homes. There are some restrictions on the proposed credit. For example, the buyer cannot be a dependent, and cannot be purchasing a home that belongs to a relative.
Some Details of the Program
Buyers would receive a credit of up to $10,000, although the specifics of how the credit would be calculated have not been determined. Under the old program the buyers could receive a credit of 5% of the purchase price of the home, also up to $10,000. The state would allocate up to $200 million – twice the amount of the previous program, which ran out of money almost 8 months before the program deadline. Other details haven’t been released, such as the dates in which homes must be purchased to qualify.
What Orange County Homes For Sale Will Qualify?
Almost any single family home for sale in Rancho Santa Margarita, Mission Viejo, Coto de Caza, or Ladera Ranch will qualify for the full $10,000 credit, since all are priced well above the $200,000 mark. There are some condos in those cities priced lower, and even some houses in Central and North Orange County cities the wouldn’t get the expected full credit, but most buyers can expect to take full advantage if the bill is passed and they move quickly! Remember, the last program like this ran out of money months before the scheduled end, so get your pre-approval and get ready to move.
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