Survey Shows End of Home Buyer Tax Credit Unlikely to Deter Buyers!

Looks like those who are looking to sell this summer have some good news! According to findings released by Prudential Real Estate and Relocation Services, Inc., 65% of surveyed consumers who are currently in the process of shopping for homes, believe that the end of the tax credit will have little or no effect on their interest in purchasing a home.

Furthermore, more than 90% of consumers believe the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. As for people's local areas, 46% of consumers are expecting prices to increase over the next year, compared to only 12% who believe they will decline. As for consumer's outlook over the next five years, 79% expect real estate prices to increase and 20% expect a "substantial increase" in home prices.

With regard to home ownership as an investment, an interesting finding of the survey is the majority of consumer's (75%) believe home ownership is a better investment than individual stocks and bonds. 72% believe home ownership is a better investment than mutual funds, and 74% affirm that it's better than a traditional savings account.

Yet another fascinating revelation, is that despite the real estate downturn nationally and the softened economic state the U.S. is in, the perception of home ownership as a quality investment remains strong with renters. Of those who currently rent, 75% believe that in the long-term, owning their home is a more satisfactory choice over renting.

The survey by Prudential Real Estate and Relocation Services, Inc. was conducted during April 15-20th, 2010 and included 1,000 Americans between the ages of 25-64 with a household income of at least $35,000.

 

This is a bit of good news for both buyer's and seller's in the wake of a tender economic state. I've always believed that the generation of jobs should be the number one economic concern of the government and with that comes everything else. If people have money, they'll buy property. This is probably easier said than done and I am certainly no economic strategist. I'm just a pro-style agent. I try not to spread my expertise too thin. People get jealous and no one likes a know-it-all. Suddenly, I'm reliving those moments of being picked last for kickball in 6th grade. My mom said it's because it was the picker's strategy, act like you don't want the best player so you can build the rest of your team. She is so smart!

http://rismedia.com/2010-04-28/end-of-home-buyer-tax-credit-unlikely-to-deter-most-real-estate-buyers/

Tax Credit Coming To A Close...

In twelve days the deadline for the $8,000 first-time home buyer and $6,500 repeat home buyer tax credits will arrive. You must find a home and get a contract executed by midnight on April 30th to receive the credit, but have until June 30th to close on the home.

Anyone who hasn't owned a home in the past three years is considered a "first-time home buyer." Repeat home buyers do not have to sell their old home before purchasing, but you may not have a choice if you cannot qualify for two mortgages. To receive the credit, the new home does NOT have to be more expensive and you must have lived there for five consecutive years any time during the past eight years. Both credits require yearly income limits for eligibility of $125,000/year for singles and $225,000/year for marrieds filing jointly.

If you have any questions or want to see if you qualify for a loan, don't hesitate to call me today (512) 703-7416. There is still time to get a home. Once you find one that meets your needs, it will take about two days to negotiate and arrive at mutually agreed price and terms and get the contract "executed." That leaves you about 10 days from today to get something in. So "hur' up fo the hogs come'n get it!" Something grandma used to say on her farm growing up. I suppose it's application in this situation isn't exactly a bullseye, but the point is to hurry before some big hog comes out of the woods and eats up all the good properties!

First-time & Repeat Home Buyer Tax Credits Expiring Soon!

In a little over 3 weeks the cut off for executing a contract for the tax credits will arrive. April 30th, 2010 at midnight marks the deadline that buyer's must finish initial price and terms negotiations and execute a contract. They then will have until June 30th 2010 to close on the property. There are two tax credits currently available:

- First-Time Home Buyer Tax Credit: Value of credit is $8,000 and does NOT have to be paid back. That is under the condition that the buyer must live in the home for 3 years or the full $8,000 must be repaid. To qualify as a "first-time home buyer" you must have not owned a home in the past 3 years. So, the term "first-time" is not literal.

- Repeat Home Buyer Tax Credit: Value of credit $6,500 and does NOT have to be paid back. That is also under the condition that the buyer must live in the home for 3 years or the full $6,500 must be repaid. You must have lived in your current home for 5 consecutive years anytime during the past 8 years. A common question is, "Does the new home have to be priced higher the your old one?" The answer is no. You also do NOT have to sell your old home before April 30th or June 30th, so don't panic. However, if you cannot qualify for two mortgages, you may not have a choice but to wait for your current home to sell.

In both cases to be eligible, the yearly income must not exceed $125,000/year for singles and $225,000 for married filing jointly. I have been asked many times if I think this will be extended for a second time. I do NOT believe this will be extended again. Last November, we found out about 3 weeks before the deadline that it would be extended and there was a great deal of chatter going on about the extension weeks prior to that. This time I haven't heard anything that would signal another extension. If you are planning to take advantage of this tremendous incentive contact me with any questions you may have. I'm always here to help.