A new legislation will allow Virginians to put aside $50,000 as a “first time homebuyer savings plan account” free of state taxes! This means great things for new homeowners starting July 1, 2014, allowing hopeful homebuyers to set aside money in investment accounts (including savings accounts, mutual funds, brokerage accounts, and more) to help cover the costs of buying a home (downpayment and closing costs). Having already been approved by Congress, all that’s left is Governor McAuliffe’s signature.
According to Andrew Kantor with the Virginia Association of Realtors, “While the tax savings themselves may not be tremendous, the real value is in the existence of these accounts. They remind future homebuyers that they need to live a solid financial life before buying a home — they need to save.”
These first-time homebuyer savings plans will not only allow Virginians to save money tax free, but they also reinforce the idea that taking out a loan isn’t as easy as it used to be. Buying a home is a large purchase and investment that people need to prepare for.
The Virginia Association of Realtors along with individual agents themselves have worked hard to push this legislation through in order to help prepare future homeowners.
Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding buying or selling contact Alyssa at 757-329-6161 or firstname.lastname@example.org. You can also find Alyssa on Facebook or on the web at www.lizmoore.com/alyssagodwin.