For Immediate Release
Contact: Terry Judge
Peoples Income Tax
804-204-1040
tmjudge@peoplestax.com
Economic Crisis Provides Opportunity for Renters to Buy Homes
Richmond, VA (February 23, 2009) – Due to the economic crisis many renters have an unprecedented opportunity to become home-owners without increasing their housing expense. According to Chuck McCabe, CEO of Peoples Income Tax, Inc., the following factors can make first time home-ownership a very viable option for renters:
- It’s a buyer’s market; Home prices are very low due to the glut in the market.
- The First-Time Homebuyer Credit of 10% of the purchase price for homes purchased from January 1, 2009-November 30, 2009 does not have to be repaid (as long as the home-buyer does not sell and continues to live in the house for 36 months); and the maximum credit has been increased to $8,000.
- Mortgage interest rates are very low, which also reduces the monthly payment.
- Real estate taxes and mortgage interest are deductible, resulting in tax savings that further augment mortgage payments (real estate tax is now deductible for taxpayers who use the standard deduction because they don’t have enough deductions to itemize).
- A first-time home buyer may qualify for a FHA loan with a down payment as low as 3.5% of the purchase price with most of the closing costs and fees included in the loan.
McCabe noted: “When you combine a decrease in a house price of perhaps 5-10% with the 10% tax credit, the cost of buying a house could be 15-20% less than a year ago. Then add tax savings for interest and property tax deductions, and the effective housing cost may be no more than paying rent; plus a homeowner can build equity over time.”
To facilitate the home buying decision, Peoples Income Tax will help prospective new homebuyers, with no fee or obligation, to determine their personal tax savings of buying a house, said McCabe. A free consultation can be arranged by calling Peoples Tax at (804) 204-1040.
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About Peoples Income Tax
Peoples Income Tax, Inc. is a Richmond, VA based company established in 1987 to provide income tax preparation for individuals and small businesses, as well as small business accounting & payroll services. Peoples Tax operates 10 tax offices in the Richmond area. The Income Tax School, a division of Peoples, published tax course texts for live instruction by tax & accounting firms and colleges & career schools. The Tax School also provides e-learning tax courses and seminars to teach tax preparation to CPAs, accountants and tax professionals nationwide. For more information, visit www.peoplestax.com or call (804) 204-1040.
