Wednesday, December 23, 2009
Sunday, November 8, 2009
"First Time Homebuyer Tax Credit Extended” and “A New Tax Credit for Certain Existing Home Owners”
President Obama has signed a bill that extends the tax credit for first-time. The current program had been scheduled to expire on November 30, 2009. In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
The extension measure also offers opportunities for some who are not buying a home for the first time.
The $8000 tax credit program that has existed for first time homebuyers remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Higher Income Caps are now in effect. The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
What is the tax credit for first-time homebuyers? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the first time homebuyer tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
-You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
-You do not use the home as your principal residence.
-You sell your home before the end of the year.
-You are a nonresident alien.
-You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
-Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
-You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
If you have any questions related to the first time homebuyer credit that we did not cover here, please speak with your accountant. We are real estate agents and cannot give you tax advice. If you need a referral to an accountant/CPA, please contact us, we can refer one to you.
Kerstin G. Brooks
Brooks & Heinze Team
Cell: 206.276.5827
Send us an email
Sunday, October 4, 2009
Housing Recovery? Not so fast?
I received some feedback and questions about one of our July blog entries regarding signs of a recovery in the housing market. The entry was entitled: Housing Market is Showing Signs of Recovery. Some of my clients wanted to know if this meant they will stop "losing money" and that their property prices would go back to what they were.
There has been a lot of talk about a housing recovery. We, the Brooks and Heinze Team, have also reported on promising developments such as more sales in recent months, and multiple offers in some neighborhoods and other promising news.
After a long time of little or no movement in the market, this development certainly was worthwhile reporting and very encouraging. Some of the 'flurry' can be attributed to lower interest rates, greater affordability and the first time homebuyer tax credit.
However, for a sound recovery to take place which will stabilize prices and offer some growth in the future, the economy has to improve and good jobs need to be available. Real estate agents and economists know that the housing market cannot truly improve or recover unless the economy and with it the job market improve.
According to the Bureau of Labor Statistics, unemployment rates were higher in August than a year earlier in all 372 metropolitan areas, the U.S. Bureau of Labor Statistics reported today. Sixteen areas recorded jobless rates of at least 15.0 percent, while 9 areas registered rates below 5.0 percent. The national unemployment rate in August was 9.6 percent, not seasonally adjusted, up from 6.1 percent a year earlier. Among the 369 metropolitan areas for which nonfarm payroll employment data were available, 356 areas reported over-the-year decreases in payroll employment, 11 reported increases, and 2 had no change.
The economic downtown was created to a great extent by an insane housing bubble made possible by the availability of easy and cheap money or "bad loans". People who should not have qualified for a loan were able to buy homes and other people who should have been able to buy a home were put into higher loans than they should have qualified for or were made loans that were structured in a way that made them unaffordable.
To make matters worse now, the number of good loans that are now going into default are surging as a result of the economy, not just poor loan underwriting. So, although the housing crisis may have help in the economic downturn, at this point the economic downturn is putting additional pressure back on the housing market due to job losses, and losses in property values; so even the once "good" loans are now going "bad".
This brings me back to why I wrote this article. I want to make sure that our clients understand that there is some good news about the housing market but I also want them to understand that only as the economy at large improves and more good jobs are created, will the market and prices stabilize; and then I will be able to report that there has been a true recovery of the housing market.
There has been a lot of talk about a housing recovery. We, the Brooks and Heinze Team, have also reported on promising developments such as more sales in recent months, and multiple offers in some neighborhoods and other promising news.
After a long time of little or no movement in the market, this development certainly was worthwhile reporting and very encouraging. Some of the 'flurry' can be attributed to lower interest rates, greater affordability and the first time homebuyer tax credit.
However, for a sound recovery to take place which will stabilize prices and offer some growth in the future, the economy has to improve and good jobs need to be available. Real estate agents and economists know that the housing market cannot truly improve or recover unless the economy and with it the job market improve.
According to the Bureau of Labor Statistics, unemployment rates were higher in August than a year earlier in all 372 metropolitan areas, the U.S. Bureau of Labor Statistics reported today. Sixteen areas recorded jobless rates of at least 15.0 percent, while 9 areas registered rates below 5.0 percent. The national unemployment rate in August was 9.6 percent, not seasonally adjusted, up from 6.1 percent a year earlier. Among the 369 metropolitan areas for which nonfarm payroll employment data were available, 356 areas reported over-the-year decreases in payroll employment, 11 reported increases, and 2 had no change.
The economic downtown was created to a great extent by an insane housing bubble made possible by the availability of easy and cheap money or "bad loans". People who should not have qualified for a loan were able to buy homes and other people who should have been able to buy a home were put into higher loans than they should have qualified for or were made loans that were structured in a way that made them unaffordable.
To make matters worse now, the number of good loans that are now going into default are surging as a result of the economy, not just poor loan underwriting. So, although the housing crisis may have help in the economic downturn, at this point the economic downturn is putting additional pressure back on the housing market due to job losses, and losses in property values; so even the once "good" loans are now going "bad".
This brings me back to why I wrote this article. I want to make sure that our clients understand that there is some good news about the housing market but I also want them to understand that only as the economy at large improves and more good jobs are created, will the market and prices stabilize; and then I will be able to report that there has been a true recovery of the housing market.
Kerstin G. Brooks
Brooks & Heinze Real Estate Team
Phone: 206.276.5827
Email: kerstinbrooks@earthlink.net
Web: http://www.propertyinseattle.com/
Tuesday, September 1, 2009
Why Buy a Business Opportunity?
Why Buy a Business Opportunity? So you can have your own small business, without having to start one from scratch.
A lot of the risk in starting a business from scratch is encountered during the startup phase. No one knows your name, what you’re selling or where you are. So they are less likely to buy from you.
A business opportunity offers you the opportunity to reduce that vulnerability, and jump right to extending the reach of an already known enterprise.
With a business opportunity, you’re buying-in to an existing operating system and clientele.
Ever thought of owning and running your own coffee shop? The Brooks and Heinze Real Estate Team in Seattle, WA has a fantastic Coffee Shop Business Opportunity for Sale in Downtown Seattle. This is a fabulous coffee shop with a tremendous amount of pedestrian traffic in close proximity of many office buildings, waterfront and Ferry Terminal. Established, loyal clientele! Please contact us to learn more about this terrific opportunity.
Kerstin G. Brooks & Krisanne Heinze
Brooks & Heinze Team at Skyline Properties, Inc.
Phone: 206.920.2541
Email: info@propertyinseattle.com
Web: http://www.propertyinseattle.com/
A lot of the risk in starting a business from scratch is encountered during the startup phase. No one knows your name, what you’re selling or where you are. So they are less likely to buy from you.
A business opportunity offers you the opportunity to reduce that vulnerability, and jump right to extending the reach of an already known enterprise.
With a business opportunity, you’re buying-in to an existing operating system and clientele.
Ever thought of owning and running your own coffee shop? The Brooks and Heinze Real Estate Team in Seattle, WA has a fantastic Coffee Shop Business Opportunity for Sale in Downtown Seattle. This is a fabulous coffee shop with a tremendous amount of pedestrian traffic in close proximity of many office buildings, waterfront and Ferry Terminal. Established, loyal clientele! Please contact us to learn more about this terrific opportunity.
Kerstin G. Brooks & Krisanne Heinze
Brooks & Heinze Team at Skyline Properties, Inc.
Phone: 206.920.2541
Email: info@propertyinseattle.com
Web: http://www.propertyinseattle.com/
Saturday, August 1, 2009
Get "moving" first time home buyers, time is running out!!!
Time is running out for first time home buyers to take advantage of the $8,000 tax credit.
We are in the month of August now, and time is slipping away to take advantage of the $8000 first time home buyer's tax credit.
There is a deadline looming for this opportunity. Your home purchase must be CLOSED by November 30, 2009 to qualify for the tax credit.
Most properties take up to a month or two months to close (longer for most short sales). A buyer should try to purchase a home before October 1, so that he/she can close before November 30th.
This means there are only a couple of months left to find a suitable property and get an accepted offer!
So, get "moving" first time home buyers.
There are a lot of great properties for sale here in Seattle, and interest rates are low! Don't delay, buy a house TODAY!
For questions regarding homeownership and the first-time homebuyer credit please contact The Brooks & Heinze Real Estate Team in Seattle.
Kerstin G. Brooks
Brooks & Heinze Team at Skyline Properties, Inc.
Phone: 206.276.5827
Email: info@propertyinseattle.com
We are in the month of August now, and time is slipping away to take advantage of the $8000 first time home buyer's tax credit.
There is a deadline looming for this opportunity. Your home purchase must be CLOSED by November 30, 2009 to qualify for the tax credit.
Most properties take up to a month or two months to close (longer for most short sales). A buyer should try to purchase a home before October 1, so that he/she can close before November 30th.
This means there are only a couple of months left to find a suitable property and get an accepted offer!
So, get "moving" first time home buyers.
There are a lot of great properties for sale here in Seattle, and interest rates are low! Don't delay, buy a house TODAY!
For questions regarding homeownership and the first-time homebuyer credit please contact The Brooks & Heinze Real Estate Team in Seattle.
Kerstin G. Brooks
Brooks & Heinze Team at Skyline Properties, Inc.
Phone: 206.276.5827
Email: info@propertyinseattle.com
Thursday, July 23, 2009
Housing Market is Showing Signs of Recovery
After months and months of discouraging news in the real estate market, for the last couple of months the news has been better.
According to the National Association of Realtors, sales of previously occupied homes rose for the third month in a row in June. Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country. For a detailed breakdown of existing home sales statistics by region, please click on the following link: Existing Home Sales by Region .
Unfortunately, there is still a backlog of foreclosures that have yet to come on the market. It will be interesting to see what their sale will do to home prices. Usually, foreclosure sales drive down market values but if the inventory of homes on the market is shrinking, a downward effect of prices may be avoided by an increased demand. Only time will tell. The good news, at least at the moment, the share of foreclosures on the market is shrinking!
The Brooks and Heinze Team of Seattle, WA expects a slow but continued upward trend in sales to first time homebuyers, at least until the end of November due to the first time home buyer tax credit incentives, great affordability and favorable interest rates. Certain neighborhoods like Ballard, Phinney, Wallingford, Fremont, and Queen Anne have seen very low inventory and some of the better homes have sold in multiple offers.
Kerstin G. Brooks
Brooks & Heinze Team
Phone: 206.276.5827
Email: info@propertyinseattle.com
Web: http://www.propertyinseattle.com/
According to the National Association of Realtors, sales of previously occupied homes rose for the third month in a row in June. Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales were up in all four regions of the country. For a detailed breakdown of existing home sales statistics by region, please click on the following link: Existing Home Sales by Region .
Unfortunately, there is still a backlog of foreclosures that have yet to come on the market. It will be interesting to see what their sale will do to home prices. Usually, foreclosure sales drive down market values but if the inventory of homes on the market is shrinking, a downward effect of prices may be avoided by an increased demand. Only time will tell. The good news, at least at the moment, the share of foreclosures on the market is shrinking!
The Brooks and Heinze Team of Seattle, WA expects a slow but continued upward trend in sales to first time homebuyers, at least until the end of November due to the first time home buyer tax credit incentives, great affordability and favorable interest rates. Certain neighborhoods like Ballard, Phinney, Wallingford, Fremont, and Queen Anne have seen very low inventory and some of the better homes have sold in multiple offers.
Kerstin G. Brooks
Brooks & Heinze Team
Phone: 206.276.5827
Email: info@propertyinseattle.com
Web: http://www.propertyinseattle.com/
Wednesday, June 24, 2009
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