1. Get Your Start in Investing

Buy a new home and rent out your current home. And Voila! You are now a real estate investor and Uncle Sam has helped you out with a $6500 tax credit. If you have owned your current home for five years, consecutively, out of the past eight, you qualify for the long-time homeowner credit. You do need to move into the new home and live in it as your primary residence for three years. But you can do whatever you want with the first home once you move into the new one.

2. Buy Now, Sell Later

Buy your new home now while the inventory is plentiful and mortgage rates are low.  Since you don’t have to sell your current home in order to get the tax credit, you don’t have to be in a rush to sell it. You can keep it until prices go back up again. In the meantime, either rent it out or just keep it empty while you are trying to sell it. But remember that in order to avoid Capital Gains taxes you’ll need to sell it within three years after you move out.

Just like with the height requirements for the cool Disneyland rides, there are set requirements you need to meet to get the credit. To see if you qualify for the credit, take this painless eligibility test:
http://www.homebuyertaxcredit.com/eligibility.aspx

Then let’s go shopping! We have until April 30th to get something under contract.