West Chester, Ohio Real Estate News: Tax Credit Extensions?

by Leave a Comment

 

Campaign To Extend and Expand Housing Tax Credit

A campaign to extend and expand the housing tax credit officially got underway on Capitol Hill last month.

Bills have now been introduced in both the Senate and the House to open up the credit, to all buyers, keep it on the books through next year, and get rid of the current income limitations.

On the House side, two Texas congressional representatives – one a Democrat, the other a Republican – have filed bills calling for a broadening of the first-time buyer credit to cover all home purchasers in the coming year, whether they already own houses or not.

Democratic Congresswoman Eddie Bernice Johnson of Dallas wants to extend the November 30 expiration date for the credit through the end of 2010. Her bill would also remove the income limits of the current program, which start phasing down the amount of the credit at $75,000 for singles and $150,000 for married couples.

Johnson’s Republican colleague from the Dallas-Ft. Worth area, Kenny Marchant, also introduced a bill that would open up the credit to all buyers, without income limits, but only through June of next year.

But Congressman Marchant’s bill adds a whole new element to the mix – a $3,000 tax credit for people who refinance their home loans. Why? Marchant says the idea is to encourage more people to “take advantage of (today’s) low mortgage rates,” or to use the money to build equity in their homes “if they’re a little underwater.”

In the Senate, Georgia Republican Johnny Isakson introduced a bill last week that would nearly double the maximum credit to $15,000, open to anyone who buys a house, regardless of income.

Wondering about the value of your home in today’s market?  Request a Free Market Analysis.

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester & Liberty Township Ohio Real Estate News

by Leave a Comment

Here are a couple of articles to start off your Monday:

Smart Money Magazine recently published this article titled 10 Mistakes First Time Homebuyers Make. It’s a pretty good article, worth reading if you are a 1st time homebuyer.  Here is more information on the $8000 tax credit for 1st Time Homebuyers.

An article in the Cincinnati Enquirer today touches on the growing trend of short sales in real estate.  They are a little late to the story here and the article is not very informative to someone struggling to make their payments or needing to sell and owing more than the house is worth, but you can read the article here:

Cincinnati Enquirer Short Sale Article.

Wondering about the value of your home in today’s market?  Request a Free Market Analysis.

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester & Liberty Township Ohio Real Estate: Interest Rate Update

by Leave a Comment

30 year fixed rate mortgages continue to be the bargain of a lifetime.  Rates today (April 4, 2009) are at 4.99% with no points.  When you combine these low rates with the low housing prices that we are currently experiencing in West Chester, Beckett Ridge and Liberty Township, what you get is an incredible opportunity.  How long it lasts is anyone’s guess.  Here are some example payments based on some different interest rates.  You can see the tremendous impact these low rates have on a monthly payment.

On a $200,000 loan:

A 6.50% interest rate = $1264.14 monthly payment of principal and interest

A 6.00% interest rate = $1199.11 monthly payment of principal and interest

A 5.50% interest rate = $1135.58 monthly payment of principal and interest

A 5.00% interest rate = $1073.64 monthly payment of principal and interest

And if you want to wait and see if the rates will drop even farther and risk missing out on the 5.00% rate:

A 4.75% interest rate = $1043.30 monthly payment of principal and interest

This last example of course is only valid if rates ever dropped to 4.75%.  You would save an additional $30 per month, but you risk waiting and missing out on the lowest rates we have seen in decades should rates begin to inch back up as they most certainly will at some point.

And of course, if you are a First Time Homebuyer you can get the $8000 Tax Credit by buying a home.

This is a lot of numbers.  If you have any questions, please call or email.

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester OH Real Estate: Why Buy A Home Now?

by Leave a Comment

 

Why Buy a Home Now??

If you’re renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, “The average homeowner is worth 35 times more than the average renter.”

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they’re only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into home ownership. If the market conditions have scared you, perhaps you’re not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. “People can get a lot of what they need and almost all of what they want today,” said Jay Papasan, one of the authors of “Your First Home”.

The historically low interest rates that we are currently enjoying make buying a home especially compelling roght now.  A 30 year fixed rate mortgage is 4.90% with no points as of today!

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors’ housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider…

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester Ohio Real Estate: A Short Sale Could Be A Option

by Leave a Comment

“A Short Sale” has become quite a buzz word in real estate today.  Many people are unsure of exactly what this term means and how it might help someone.  For homeowners that have fallen behind on their payments or are having difficulties making their mortgage payments due to a hardship of some sort, a short sale may be an option that should be considered.  The most important point to make here is:  foreclosure does not have to happen!

In a recent study of homes in the West Chester and Liberty Township, Ohio areas that were facing a sale at the Sheriff’s Sale in Butler County, I found that a very high percentage of the homes had not been on the market for sale in the months leading up to the foreclosure.  The only conclusion that can be drawn here is that many homeowners don’t know that they can sell their home utilizing this process and avoid foreclosure and the extreme damage that is done to their credit.

A West Chester or Liberty Township, Ohio real estate short sale is an opportunity to get out from under a home you owe more money on that the current market dictates it’s value at.  A short sale is the process of negotiating with the mortgage company(s) to accept a short payoff (less than the balance owed).  For instance, you have a mortgage of $100,000, but your home is only worth $85,000 in today’s market.  The lender agrees to accept the proceeds from a sale at $85,000 as payment.  To qualify for a short sale you usually have to demonstrate an economic hardship like a job loss, family illness or some other change in your financial status.  Also important to note here is that you do not pay the real estate fees involved in the sale, the mortgage lender does.

If  you or someone you know could possibly benefit from a short sale, please feel free to call me directly for a confidential conversation at 513-874-1830.

Learn the current market value of your home!

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester OH Real Estate: Stimulus Plan Contains Tax Credit For Housing

by Leave a Comment

There has been plenty of coverage regarding the economic stimulus package and all of the pros and cons of it.  The most significant part of the plan as it currently stands and that matters here on RealEstate-Ink is the proposed tax credit for homebuyers.

The Senate has passed an expansion of the original tax credit proposal.   The proposal would be available to all purchasers (not just first-time homebuyers).  The key elements are:·   A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever is less), with the option to utilize the credit all in one year or spread it out over two years
·   The tax credit is available to all purchases of any home from date of enactment for one full year.
·   Able to claim the credit against the 2008 tax return
·   Buyers must occupy the homes for two years as their principal residences
·   Purchases of homes by investors are ineligible
·   Terminates the previous $7,500 Housing Tax credit on the date of enactment
 

 

Keep in mind that this has not been passed into law and is subject to change at any second…remember this is Washington, D.C. and Congress we are talking about.

Below is some further detail on the current proposal:

Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market
Homebuyer Tax Credit Revived Market in 1975 and Would Work Today

WASHINGTON – The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

“It is time to fix America’s problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.”

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

Last year, Isakson introduced legislation to specifically target those homes that were causing the unprecedented increase in housing inventory by offering tax credits to individuals purchasing a foreclosed home or a home where foreclosure is pending. In April 2008, the Senate passed legislation to stimulate the nation’s declining housing market that included Isakson’s proposal. However, the final version of the legislation that was signed into law included only a $7,500 tax credit for first-time homebuyers that must be repaid over a 15-year period. Isakson’s amendment that passed today would sunset that $7,500 tax credit.

Isakson spent more than three decades in the real estate business, beginning his business career in 1967 when he opened the first Cobb County, Ga., office of a small, family-owned real estate business, Northside Realty. Isakson later served as president of Northside for 20 years, presiding over the company’s growth into the largest independent residential real estate brokerage company in the Southeast and one of the largest in America.

Isakson has not made a decision regarding his vote on the overall economic stimulus legislation.

Wondering about the value of your home in today’s market?  Request a Free Market Analysis.

If you think now is the time to begin your search for a new home, start by checking out my Feature homes for sale and then search the MLS, all on my website:  www.LowryTeam.com

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio