Homeowner tax credit expiration

you need to be in constract by end of April and close by end of June to be eligible for the tax credit.

good to know...thanks

I haven't met anyone who's eligible for the tax credit AND can afford to buy in NYC.
http://www.federalhousingtaxcredit.com/faq1.php

there are no married couples who earn less than 150k buying an apartment in nyc?
huh?
The real question is what do you put the odds for an announcement extending this program again?

Not at current NYC prices, unless it is a one bedroom or they have alot of cash. One cannot responsibly buy a $1,000,000 apartment if combined salary is under $150,000. In fact, one cannot responsibly buy a $700,000 home if there combined salary is under $150,000 unless they have 50% to put down. It has been people reaching to buy apartments that have driven up prices and gotten us into this mess to begin with

they should just make it permanent

"Not at current NYC prices, unless it is a one bedroom or they have alot of cash. One cannot responsibly buy a $1,000,000 apartment if combined salary is under $150,000. In fact, one cannot responsibly buy a $700,000 home if there combined salary is under $150,000 unless they have 50% to put down. It has been people reaching to buy apartments that have driven up prices and gotten us into this mess to begin with"

Indeed.

Even with a $150K combined HHI, with the typical 20% down, you can really only responsibly afford a $450,000 home. In New York -- in the "good" neighborhoods of Brooklyn, Bronx, and Queens, that's a one bedroom. In most parts of Manhattan, that's a studio.

For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

You can probably buy a $600K property for $225K annual income assuming 20% down. Assuming you receive the full amount of the tax credit, that's 1.3% of the purch price - hardly an incentive.

In Manhattan, we have generally seen the first-time homebuyer tax credit as one single homebuyer with around $75K-$100K of income buying a $600-$700K apartment by taking a fairly small mortgage and using a down payment of a few hundred thou which is a gift from Mommy and Daddy.

ali r.
DG Neary Realty

"In Manhattan, we have generally seen the first-time homebuyer tax credit as one single homebuyer with around $75K-$100K of income buying a $600-$700K apartment by taking a fairly small mortgage and using a down payment of a few hundred thou which is a gift from Mommy and Daddy."

And therein lies the problem.

Junior would have to have been "gifted" at least half a million to responsibly afford a $700K apartment (and it's associated monthly maintenance) on a $100K income.

I'm guessing there aren't REALLY that many rich Mummies and Daddies out there.

I am a little confused about the repeat buyer tax credit. Would someone clarify? It says that each party of a couple needs to have owned and lived in the previous home at least five consecutive years out of the past eight years. Does this mean, that you have to have owned/resided in your home for at least a minimum of 5 or 8 years?

SO basically the tax credit is nothing more than a subsidy for rich trust fnd kids. I love it!

In manhattan, that is absolutely correct.

http://streeteasy.com/nyc/sales/washington-heights-manhattan/price:-450000|beds:2

but Matt here are 37 listings for 2 beds under 450k in that fine dining destination that is Washington Heights?

about 2 hours ago
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"I haven't met anyone who's eligible for the tax credit AND can afford to buy in NYC."

Can you also show me where in this blanket statement it says in a good neighborhood in manhattan?
You know there are 5 boros in nyc right?
The number of listings that fit the tight under 450k 2 bed or more throughout NYC is a measley 1617 listings
http://streeteasy.com/nyc/sales/nyc/price:-450000|beds:2

So i guess you meant to say "i haven't met any single person who can qualify for a 1 bedroom, or couple who can qualify for a 2 bedroom in a nice area of manhattan"

"Can you also show me where in this blanket statement it says in a good neighborhood in manhattan?
You know there are 5 boros in nyc right?
The number of listings that fit the tight under 450k 2 bed or more throughout NYC is a measley 1617 listings
http://streeteasy.com/nyc/sales/nyc/price:-450000|beds:2"

Manhattanville? Rockaway? Bed-Stuy? You're kidding, right? You don't honestly think these are viable options, particularly for families, do you?

"So i guess you meant to say "i haven't met any single person who can qualify for a 1 bedroom, or couple who can qualify for a 2 bedroom in a nice area of manhattan""

No.

The correct statement would be "I haven't met a single person who can qualify for a one-bedroom, or a couple who can qualify for a tw-bedroom, in a safe, convenient, and non-ghetto part of New York City."

But you and your 3 kids love washington heights with its good schools and great restaurants and i gave you 37 places to choose from there.

And you culled through all 1600+ listings in less than a minute and there all in bed stuy, rockaway and manhatanville? (which btw have plenty of families)

Are you new here moxieland? When people on SE refer to NYC, they generally mean PRIME MANHATTAN... below 95th St. We are not talking abotu Bed Stuy or Washington Heights.

"And you culled through all 1600+ listings in less than a minute and there all in bed stuy, rockaway and manhatanville? (which btw have plenty of families)"

Families who would give their eyeteeth in a second to move out of the ghetto and live somewhere else.

"I haven't met anyone who's eligible for the tax credit AND can afford to buy in NYC."

please show me where in this ridiculous statement the word "family" is?

And please answer the more pertinent question you already browsed through all of those listings? And i guess your nabe that you love soooo much is the Ghetto?

I was referring to Manhattan where I'm looking; the boroughs offer family friendly neighborhoods where housing is still affordable. Staten Island, Middle Village, Bensonhurst, Riverdale, etc

"When people on SE refer to NYC, they generally mean"

Ignore alpo. He's in New Jersey, and knows very little about NYC, and even less about NYC real estate.

He's completely incorrect in his assertions here.

Yo pres...I aint new..and if thats what someone means they can just tell me so when i ask politely(please check initial statement) ask for clarification....
NYC Matt does not deserve polite recourse so he doesn't get it

Fair enough economists... thanks for jumping back in..good luck in your search

Living in Staten Island and Riverdale is like living in NJ... where I don't live, FYI.

"Living in Staten Island and Riverdale is like living in NJ."

Not true.

At least there are subways connecting you to civilization in Riverdale. And there's no weird smell in the air, either.

The credit can be a boon for gay (or otherwise unmarried) couples. If one qualifies and one doesn't, the one who does qualify can take the full credit.

AND you can qualify based on either 2009 or 2010 income. If you have the choice of when to take bonus money, you can possibly get your MAGI lower by deferring some end-of-year bonus money to January.

401(k) contributions are not included in MAGI either, so you can essentially add $16,500 to the upper income limits ($33k for married couples) if you're maxing out your contributions.

Doing the above will definitely get some Manhattanites into range for the credit.

"At least there are subways connecting you to civilization in Riverdale."

Which you must take a BUS to get to.

So if you are a single homebuyer...1st time.....you get an $8k credit if you make less than $125k per year.......and home is less than $800k, correct? For some reason i thought the price of the home also impacted how much the credit was...ie if it was 500k...you would get a smaller credit vs $700k?

You can't have it both ways, lad. If the "gay" couple needs both incomes to buy the property, the couple will be treated as a single unit for qualification of the credit.

But the credit is only based on income ....but not purchase price if the purchase price is lower than 800k . ..correct?

Actually, Matt, the IRS is crystal clear that unmarried partners can divide the credit pretty much however they want, provided they co-purchase:
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
http://www.irs.gov/pub/irs-drop/n-09-12.pdf

An unmarried couple, each single tax filers, who co-purchase a qualifying property absolutely CAN "have it both ways" if EITHER one of them is under the income limitations.

Iad is quite right. I am doing something very similar and it is well within the rules.

eastside, that is correct. If the sales price of the home is more than $800,000 than the purchase does not qualify for the credit.

> "Living in Staten Island and Riverdale is like living in NJ."
> Not true.
> At least there are subways connecting you to civilization in Riverdale. And there's no weird smell
> in the air, either.

Yes, alpo again is wrong. Thats what happens when you live in NJ and try to talk about NYC.

You also get to pay NYC taxes, and vote for mayor...and claim to live in the greatest city in the world.

NJ is like East St. Louis in that regard.

In NJ, you take a bus to Manhattan, where you catch the subway
In Riverdale, you take a bus to the station, where you ctach the subway
In Staten Island, you take a bus to Manahttan where you catch the subway

What is the difference?

no subway in Staten Island bro, I think you meant Staten Island Railway.

disregard,,,dyslexia

"In Riverdale, you take a bus to the station, where you ctach the subway"

Or as in much of the neighborhood, you just walk to the subway.