Proposed Tax Cut For First Time Homebuyers In Ulster County NY

Posted by Murphy Realty Group on Thursday, March 22nd, 2012 at 8:34pm.

Ulster County Executive Mike Hein is proposing a property tax exemption for first time homebuyers who move into newly constructed homes or buy used existing or renovated homes.

Ulster County Executive Mike Hein wants to keep up the momentum, by keeping first time homebuyers on the Ulster tax rolls. He's proposing to cut their property tax levy over five years by fifty percent in the first year of a newly constructed home sliding down to a 10 percent savings in the fifth year, totaling on average, more than a $1,000 in savings. The same scale would exist for the value of improvements made to existing homes.

"This is hundreds and hundreds of dollars on an annual basis to people," said Hein. "That makes a difference in making a mortgage payment, it makes a difference in people being able to get into a home, and that's an exciting part of this."

The tax initiative also includes a 30 percent increase of property tax exemptions for low income seniors, veterans, and disabled residents. The legislature is expected to vote on the measures in April.

Many first time home buyers are often overwhelmed in the home buying process, which is why it’s very important to have an experienced, knowledgeable Realtor who can help and guide them through the process.

One common question asked is “why buy now, when I can rent a little cheaper”? The answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years, and since it’s currently a buyer’s market and the addition of this proposed tax cut for first time home buyers, now is the prime time to buy!

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