If you’ve been hesitant to make your first Chicago real estate purchase, now might be the ideal time to buy. Not only is the current real estate market extremely seller-friendly, interest rates are at a historic low and President Obama’s economic stimulus plan includes a $7,500 credit for first time buyers. Clearly, as a first time home buyer you have many incentives to make a purchase.
The qualifications for the credit are fairly straightforward – In order to be eligible for the credit, you cannot have owned a home for the past three years and your new place has to be used as your primary residence. Moreover, applying for the credit is incredibly simple – just claim it on your tax return. The credit can be applied to any home purchase completed between January 1st through this summer, so as long as you don’t plan to sell for thirty-six months, you’ll have an extra $7,500 in your pocket (perfect for outfitting your new Chicago condo or home with beautiful furniture!).
While it is important to note that the credit is being phased out as income rises above $75,000 for singles and $150,000 for couples (and individuals who make $95,000 as well as couples who earn $170,000 combined do not qualify), if you are in the qualifying income bracket, this extra cash could be the tipping point. After all, the real estate market hasn’t been this seller-friendly in a long while, so now is the time to invest in a piece of Chicago real estate.