Posted 7.8.12 @ 9:20
Everyone talks about the First Time Home Buyer’s Tax Credit, but is it really all that great? What kind of money can you save, and is it something you should really consider as a deciding factor for buying your home? This tax credit was created to ease the slump that happened earlier in the decade; since Canadian including Oakville real estate markets are all pumped up now, it’s not really necessary. But it’s still available so you may as well take advantage of it while it’s there!
How Much is the Tax Credit?
This tax credit rounds out to about $750 when you buy a new home; of course the home that you buy has to fit certain criteria, but beyond that most people qualify for this type of credit. There are stipulations like you can’t have bought a home in the last four years or within three years of filing. So if you’re buying a home now and filing for this year, you can’t have bought a home three years prior. It can get a bit muddled, but we can help with that. When you work with one of our Oakville realtors you’ll be able to get the most out of the tax credit and we can help you figure out if this applies to you.
Shouldn’t It be Higher?
When many look at our tax credit versus the American one (up to 10% of the home’s value!), it can look a bit paltry. But our recession didn’t hit us nearly as hard, and we didn’t need such drastic measures to bring our economy back from the dark times. It’s better to take many conservative measures that mostly work out than one big one and have it fail. It’s just the Canadian way of doing things! There are other kinds of tax credits you can apply for after you buy a home, like the energy efficiency tax credits for saving energy and the like.
Is the Tax Credit Right for You?
If you’re going to buy Oakville real estate but you’re just not sure if the tax credit is “worth” applying for, do it anyway! It may not be much but it can help cover some of those closing costs and you’ll be able to save some money on your taxes. Who doesn’t want to save some money on their taxes?
Is Now the Right Time to Buy a Home?
You’ll also want to consider if now is the time for you to buy a home; are you buying a home for the long run or are you buying it as an investment? For most of the tax credits you’re going to have to have this home as your primary residence, or the place you live in. If you’re buying the property as an investment, you may not be able to qualify for this kind of tax credit. Talk to us today and we’ll help you find the right house!