Now is the time for first time home-buyers to purchase property in La Jolla. Currently there are 59 attached homes; Townhouses, Condos and Duet Homes ranging from $165,000-$525,000 on the SDAR- MLS. Homeowners’ dues for these units range from $220-$375 per month which may include exterior maintenance, water, and utilities depending on the unit and the complex amenities. The affordable detached homes without homeowners’ dues are listed on the SDAR-MLS from $620,000 to $849,000. Although the median price single family home in La Jolla is about $2,150,000 there are affordable homes still available for first time home-buyers.

We sold a $300,000 condominium to a first time home-buyer who is a college professor. She is single, had an adjusted gross income under $75,000 per year, and was able to qualify for the $8,000 tax credit. Her accountant helped her complete the documentation needed to apply for the tax credit. She was able to purchase a one bedroom/one bath located in a complex that is only three blocks from the famous Windn’Sea Beach. Her homeowners’ dues of approximately $300 per month included maintenance of the tennis courts, two swimming pools and a recreation room, water and exterior insurance. She is extremely happy living in La Jolla, The Jewel by the Sea.

How does the tax credit work?

As a benefit for first time home-buyers and to stimulate the housing market, Congress passed legislation to offer them a tax credit up to $8,000. The qualifications are simple; the buyer has not owned a home in the last three years prior to purchasing and the buyer takes advantage of this one-time credit between April 8, 2009-December 1, 2009. This means if the close is escrow is after April 8 and before December 1, 2009 the first time home-buyer can apply for the credit.

First time home-buyers must purchase the home as their permanent residence and the residence has to be a single-family detached or attached home. This includes condos, townhouses, row houses, twin homes, detached homes and co-ops.

The tax credit is calculated by taking 10% of the purchase price with a cap of $8,000. Single buyers with adjusted gross income of $75,000 or less and married couples with adjusted gross income of $150,000 per year or less, qualify for the maximum $8,000. So why not buy today and be sure to consult a tax accountant!

For more information:

http://www.car.org/tools/smart/clients/taxcredit/
http://www.irs.gov/newsroom/article/0,,id=204671,00.html