The Keys to Homeownership

BY JEFFREY JONES

It’s true; New Jersey is one of the most expensive states to live in the U.S. Does that mean homeownership is out of reach? Absolutely not. As the conversations around the state have focused on high prices and low inventory, we’ve seen many potential homeowners count themselves out of their own American Dream. There are obstacles to overcome in order for New Jerseyans to make the leap to become a homebuyer, but with the right guidance they can get there, and that’s exactly what our new Keys to Homeownership webinar series focuses on.

With the help of a Consumer Advocacy Grant from the National Association of Realtors®, we’ve assembled a team of experts for a series of free virtual seminars around the state. We’re focusing on the positive aspects of the housing market right now and how, despite some conversations, it is certainly possibly to buy a home right now.

The combined knowledge from NJ Realtors® and our expert friends from other organizations will provide seminar attendees with a head start along the path towards homeownership. It’s homeownership 101 with no obligation and no sell.

After hosting our first two seminars, we’ve learned the biggest concern consumers have is the cost of entry into the housing market, as demand continues to rise. In response, we worked with members of the State Legislature to introduce legislation to help first-time homebuyers along the path to homeownership. The legislation establishes the New Jersey First-Time Home Buyer Savings Account Program which will provide tax benefits for certain contributions and earnings on assets maintained in accounts that were established under the program. The bill was reported out of the Senate Community and Urban Affairs Committee, and now is in front of the Senate Budget and Appropriations Committee for its second reading.

Under the bill, certified first-time homebuyers are allowed a five percent tax credit of up to $15,000, or up to $7,500 if married and filing taxes separately. The bill excludes the gross income earnings on a first-time home buyer savings account, and the earnings on these accounts are tax-free until they are distributed from the account. Then, the earnings and the contributions are allowed as a tax credit.

For more information visit newjersey.realestate/keys.