ATTENTION ALL PROCRASTINATORS!
If you are a potential tax credit Buyer, or know someone who is, here is your friendly tap-on-the-shoulder reminder: You must be have an accepted contract by this Friday, April 30th to qualify.
If you have not yet completed your property identification and negotations, you must act now! Don't risk losing out on a potential $8000 cash from Uncle Sam - contact me today~! 208-201-2034.
Chris
Buying and Selling homes in Eastern Idaho made simple.
Showing posts with label tax credit. Show all posts
Showing posts with label tax credit. Show all posts
28 April 2010
17 March 2010
Homebuyer Deadline Looms
Homebuyers Deadline Looms
There are only 6 weeks remaining for homebuyers who plan to take advantage of the Federal tax credits to identify their next home and successfully negotiate a contract!
The extended 1st-Time Buyer Tax Credit and the expanded "Move-up" Credit both require qualified Buyers to be in contract by April 30, 2010 in order to qualify for the credits, according to the bill signed into law by President Obama in November 2009.
Do you have a roadmap?
Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. It’s essential to learn more about the process and seek out qualified assistance.
Let me be your guide! As an Accredited Buyer's Representative (ABR®), I have the training and experience to guide you through the process, assist in negotiating the transaction and developing a negotiation strategy, provide vendor referrals and keep track of all the details throughout the transaction.
Time is running out!
Call me today for more information and a free consultation!
Chris Pelkola Lee, REALTOR®
ABR, CDPE, GRI, ePRO
208.201.2034
Chris@IFListings.com
http://www.iflistings.com/
www.Twitter.com/IFListings
www.Facebook.com/IFListings
There are only 6 weeks remaining for homebuyers who plan to take advantage of the Federal tax credits to identify their next home and successfully negotiate a contract!
The extended 1st-Time Buyer Tax Credit and the expanded "Move-up" Credit both require qualified Buyers to be in contract by April 30, 2010 in order to qualify for the credits, according to the bill signed into law by President Obama in November 2009.
Do you have a roadmap?
Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it’s probably also the most complex. It’s essential to learn more about the process and seek out qualified assistance.
Let me be your guide! As an Accredited Buyer's Representative (ABR®), I have the training and experience to guide you through the process, assist in negotiating the transaction and developing a negotiation strategy, provide vendor referrals and keep track of all the details throughout the transaction.
Time is running out!
Call me today for more information and a free consultation!
Chris Pelkola Lee, REALTOR®
ABR, CDPE, GRI, ePRO
208.201.2034
Chris@IFListings.com
http://www.iflistings.com/
www.Twitter.com/IFListings
www.Facebook.com/IFListings
15 January 2010
10 Things to Take the Trauma Out Of Homebuying - Installment 2
So after only a *short* break from my new blog series, here is the second installment. I know you are all loyal readers and fans, and will forward this to anyone you know who might benefit from it. Hopefully, I have all the *math* right!
2. The Right Time to Buy?
While in most price ranges home prices have fallen locally over the last two years, I am seeing signs that Buyers are still afraid to buy. Mortgage rates remain at the lowest rates in decades, first-time Buyers and now qualified “move-up” Buyers can benefit from an $8000 and $6500 tax credit respectively, and yet Buyers are still leery to pull the trigger. How will they know when to buy?
The tax credit for first-time Buyers has enough media coverage and Buyer attention to get the word out on the financial benefits of homeownership: not only the potential of equity growth over time, but the ability to deduct mortgage interest and property taxes and that any gains made on sale are tax-free if you occupied the home two of the last five years.
Even with the recent value drop, the common consensus among investors is that real estate remains one of the best performing long-term investments. Yet what about the near-term? No one wants to feel like they made one of the largest purchases of their life only to wonder if they could have gotten the same home for $10,000 less in six months!
So, let’s create a scenario. Say you are looking to buy a home for $200,000 with 3.5% down. Your loan amount would be $193,000 and your down payment $7000, your Principal and Interest Payment $1036/mo.
But you were not sure it was the right time, so you waited. Six months later the Seller reduced the price to $190,000 (a 5% price reduction). Your loan amount now is $183,350 and your down payment $6650 (saving you $350). But the rate in the mean time has gone up to 5.5%. Still incredibly low! However, your payment now is $1041/mo.
Yes, it’s only $5/mo more, and you saved $350 in down payment. But if you plan to live in the home 5 years, that is an extra $300 in payments, and while you were waiting the six months for the price to drop, you were still paying rent! If your rent is $500/mo – that’s $3000 out of your pocket that you could have used for a down payment! Or to build equity in YOUR home instead of someone else’s. And you cannot deduct ANY of that $3000, while if it was being applied to your mortgage payment, the bulk of that would be deductible on your Federal Taxes (please consult a tax advisor for information). Is it possible rates won't rise 0.5%? Yes. But what is more likely: a Seller reduces the asking price by 5% or rates rise 0.5%?
Consider further the chart to the right, as provided by the National Association of REALTORS®. This assumes a purchase price of $200,000 with 10% down at a rate of 5.5% vs $1000/mo in rent (a bit high for this area, but comparable to a mortgage payment in this price range). Not considering any equity gain from payments made toward the principal, in a year of no growth the annual cost of the loan is $9,673 vs $12,000 renting. That means even with no market value growth, the homeowner would still have an extra $2327 in his pocketbook vs. renting. Who couldn’t use that? Even at a 1% depreciation in value, the homeowner would be up $327 on the investment vs. renting. And obviously even better off with below trend growth.
So is it a good time to buy? Yes! Most price ranges currently have increased inventory to choose from. And if you are a first-time or “move-up” buyer, the scenario above does not even take into account the added tax credit available – which is refundable – cash in hand! And this time, it is NOT likely to be extended again.
Think you are interested in more? Call me today!
NEXT: Why Should I Get Pre-qualified?
2. The Right Time to Buy?
While in most price ranges home prices have fallen locally over the last two years, I am seeing signs that Buyers are still afraid to buy. Mortgage rates remain at the lowest rates in decades, first-time Buyers and now qualified “move-up” Buyers can benefit from an $8000 and $6500 tax credit respectively, and yet Buyers are still leery to pull the trigger. How will they know when to buy?
The tax credit for first-time Buyers has enough media coverage and Buyer attention to get the word out on the financial benefits of homeownership: not only the potential of equity growth over time, but the ability to deduct mortgage interest and property taxes and that any gains made on sale are tax-free if you occupied the home two of the last five years.
Even with the recent value drop, the common consensus among investors is that real estate remains one of the best performing long-term investments. Yet what about the near-term? No one wants to feel like they made one of the largest purchases of their life only to wonder if they could have gotten the same home for $10,000 less in six months!
So, let’s create a scenario. Say you are looking to buy a home for $200,000 with 3.5% down. Your loan amount would be $193,000 and your down payment $7000, your Principal and Interest Payment $1036/mo.
But you were not sure it was the right time, so you waited. Six months later the Seller reduced the price to $190,000 (a 5% price reduction). Your loan amount now is $183,350 and your down payment $6650 (saving you $350). But the rate in the mean time has gone up to 5.5%. Still incredibly low! However, your payment now is $1041/mo.
Yes, it’s only $5/mo more, and you saved $350 in down payment. But if you plan to live in the home 5 years, that is an extra $300 in payments, and while you were waiting the six months for the price to drop, you were still paying rent! If your rent is $500/mo – that’s $3000 out of your pocket that you could have used for a down payment! Or to build equity in YOUR home instead of someone else’s. And you cannot deduct ANY of that $3000, while if it was being applied to your mortgage payment, the bulk of that would be deductible on your Federal Taxes (please consult a tax advisor for information). Is it possible rates won't rise 0.5%? Yes. But what is more likely: a Seller reduces the asking price by 5% or rates rise 0.5%?
Consider further the chart to the right, as provided by the National Association of REALTORS®. This assumes a purchase price of $200,000 with 10% down at a rate of 5.5% vs $1000/mo in rent (a bit high for this area, but comparable to a mortgage payment in this price range). Not considering any equity gain from payments made toward the principal, in a year of no growth the annual cost of the loan is $9,673 vs $12,000 renting. That means even with no market value growth, the homeowner would still have an extra $2327 in his pocketbook vs. renting. Who couldn’t use that? Even at a 1% depreciation in value, the homeowner would be up $327 on the investment vs. renting. And obviously even better off with below trend growth.
So is it a good time to buy? Yes! Most price ranges currently have increased inventory to choose from. And if you are a first-time or “move-up” buyer, the scenario above does not even take into account the added tax credit available – which is refundable – cash in hand! And this time, it is NOT likely to be extended again.
Think you are interested in more? Call me today!
NEXT: Why Should I Get Pre-qualified?
01 December 2009
New Homebuyer "Move-up" Tax Credit
Do you currently own your home? Have you been considering taking advantage of the lower pricing in the local market and "moving up" to a larger space?
> IT IS TRUE: a larger home is less expensive today that it was 2 years ago.
Have you owned your current home as your primary residence for at least 5 years?
If the answer to all of the above is 'yes', then you may qualify for the NEW tax credit! Not heard of it? As part of the extended first-time buyer credit that passed last month, the homebuyer credit has been expanded to include "move up" buyers that have been in their home at least 5 years. This tax credit is up to $6500 and is also refundable, meaning if you were to file your taxes after purchasing a new home and have a refund of $200 owed to you, you would with this credit have a refund of and additional $6500....in otherwords a $6700 refund!
Certainly, this tax credit alone is not a reason to sell your home and buy a new one, as there are transaction costs involved in buying and selling which are likely above $6500. HOWEVER, if you are considering trading up anyway to take advantage of market pricing, certainly it is worth getting it done in time to use this credit to offset some of these costs.
You have only until April 30th to be in contract on your new home to qualify. Not to sound dire, but while considering this, please also consider that the first offer you make on a home often does not go through! If you were to make your first offer on a home on April 20th and it was not accepted by the Seller, you may not find another home that satisfies your needs in time to qualify for this credit! Please do not leave yourself in a time pinch and "setttling" for your next home just to qualify.
PLAN AHEAD! Start today by contacting your tax advisor and me, your REALTOR!
View the document on my website for more details from the National Association of REALTORS.
Thinking of a friend or relative that may wish to take advantage of the tax credit? I am pleased to offer no-obligation, free consultations...please pass along my information and have them contact me today!
The worst they can say is 'no'....but it might be just what they need!
> IT IS TRUE: a larger home is less expensive today that it was 2 years ago.
Have you owned your current home as your primary residence for at least 5 years?
If the answer to all of the above is 'yes', then you may qualify for the NEW tax credit! Not heard of it? As part of the extended first-time buyer credit that passed last month, the homebuyer credit has been expanded to include "move up" buyers that have been in their home at least 5 years. This tax credit is up to $6500 and is also refundable, meaning if you were to file your taxes after purchasing a new home and have a refund of $200 owed to you, you would with this credit have a refund of and additional $6500....in otherwords a $6700 refund!
Certainly, this tax credit alone is not a reason to sell your home and buy a new one, as there are transaction costs involved in buying and selling which are likely above $6500. HOWEVER, if you are considering trading up anyway to take advantage of market pricing, certainly it is worth getting it done in time to use this credit to offset some of these costs.
You have only until April 30th to be in contract on your new home to qualify. Not to sound dire, but while considering this, please also consider that the first offer you make on a home often does not go through! If you were to make your first offer on a home on April 20th and it was not accepted by the Seller, you may not find another home that satisfies your needs in time to qualify for this credit! Please do not leave yourself in a time pinch and "setttling" for your next home just to qualify.
PLAN AHEAD! Start today by contacting your tax advisor and me, your REALTOR!
View the document on my website for more details from the National Association of REALTORS.
Thinking of a friend or relative that may wish to take advantage of the tax credit? I am pleased to offer no-obligation, free consultations...please pass along my information and have them contact me today!
The worst they can say is 'no'....but it might be just what they need!
05 November 2009
Tax Credit Update-Bill Passes!
The House has also passed the tax credit extension by a vote of 403-12! The President is signing the bill tomorrow, Friday.
The $8000 first-time buyer credit is extended, and a "move-up" provision for homeowners who have been in their home as a primary residence for 5 consecutive years of the last 8 years can qualify for $6500. All purchases must be in contract by April 30, 2010 and close by July 1, 2010.
Don't miss out on this one! Call me today to learn how this can benfit you!
The $8000 first-time buyer credit is extended, and a "move-up" provision for homeowners who have been in their home as a primary residence for 5 consecutive years of the last 8 years can qualify for $6500. All purchases must be in contract by April 30, 2010 and close by July 1, 2010.
Don't miss out on this one! Call me today to learn how this can benfit you!
Tax Credit Update
The Senate has voted 98-0 to pass the extension of the First-Time Homebuyer Tax Credit. Now on to the House...which should fast-track it...possibly to the President by Friday!
The Tax Credit is attached to the Unemployment Bill and includes the provision to extend a smaller credit to move-up buyers....more as it is finalized...stay tuned!
The Tax Credit is attached to the Unemployment Bill and includes the provision to extend a smaller credit to move-up buyers....more as it is finalized...stay tuned!
13 November 2008
Home for the Holidays SALE!!!
Calling all Buyers!!
I have today some exciting news!
Local REALTORS(r) and Sellers from Shelley to Ashton have teamed up to offer the "Home for the Holidays" home sale featuring over 260 price-reduced homes and an astounding $3 million plus in savings. This is the largest home sale in Southeast Idaho history and it runs from Monday, November 17th through Sunday, November 23rd. This is a great opportunity to find the home of your dreams or your perfect starter home!
If you were waiting for the right time to buy, don’t delay! Several local banks are also offering incentives in conjunction with this sale.
If you have a friend or family member who is interested in getting into the market but is unsure how, please pass this note along ~ I am happy to work with all your referrals!
Additionally, if you know of a first-time homebuyer (or have a family member who is considering it - or should be), there is an additional tax credit available (up to $7500 and is REFUNDABLE!) from the Federal government if the home is purchased prior to July 1, 2009. Ask me for details! DO NOT PASS THIS ONE UP!
Are you a Seller? There are ways to target your marketing to today's home buyers. Are you?
Local REALTORS(r) and Sellers from Shelley to Ashton have teamed up to offer the "Home for the Holidays" home sale featuring over 260 price-reduced homes and an astounding $3 million plus in savings. This is the largest home sale in Southeast Idaho history and it runs from Monday, November 17th through Sunday, November 23rd. This is a great opportunity to find the home of your dreams or your perfect starter home!
If you were waiting for the right time to buy, don’t delay! Several local banks are also offering incentives in conjunction with this sale.
If you have a friend or family member who is interested in getting into the market but is unsure how, please pass this note along ~ I am happy to work with all your referrals!
Additionally, if you know of a first-time homebuyer (or have a family member who is considering it - or should be), there is an additional tax credit available (up to $7500 and is REFUNDABLE!) from the Federal government if the home is purchased prior to July 1, 2009. Ask me for details! DO NOT PASS THIS ONE UP!
Are you a Seller? There are ways to target your marketing to today's home buyers. Are you?
Contact me today to find out more about these exciting opportunities!
Subscribe to:
Posts (Atom)