Atlanta Realty Blog

$ 8,000 Refundable Tax Credit for First Time Homebuyers - Good for closings through November 30, 2009! ~ posted by Melanie Bailey

First-time homebuyers should begin planning now to take advantage of a tax credit included in the recently enacted American Recovery and Reinvestment Act of 2009, commonly referred to as “the stimulus bill”.

The Credit

Applies to home purchases on or after January 1, 2009 and before December 1, 2009.

The credit is equal to 10% of the purchase price of the home up to a maximum credit of $8,000.00

Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.

Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

First-Time Homebuyer and Qualifying Home

A taxpayer is considered a first-time homebuyer if he/she had no present ownership interest in a principal residence in the United States during the three-year period prior to the purchase of the home to which the credit applies. Thus, a prior owner of real estate may qualify if the three-year test is met. If a taxpayer owned a vacation home but not a primary residence within the last three years the taxpayer will be eligible for the credit if purchasing a primary residence.

 

When and How to Claim the Credit

Eligible homebuyers may claim the credit on their 2008 income tax return for qualifying purchases in 2009. Thus, in certain cases, one may be able to get a refund of the credit shortly after the purchase closes.

Income Limits

The credit is phased out based on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income adjusted for various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out begins at $150,000. For other taxpayers, the phase-out begins at $75,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less

Credit Recapture

The credit for new homebuyers is recaptured if the home is sold within three years of the date of purchase. Exceptions will be made in certain cases such as sales that occur because of death or divorce.

If you or someone you know may qualify please feel free to contact us Or please pass this along to your friends, family and co-workers so they can take advantage of buying a home before the November 30th deadline.

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Do you Qualify for a First-Time Home Buyer Tax Credit? ~ posted by Amanda Nichols

Low fixed interest rates combined with an abundance of affordable for sale housing make this one of the best times in history for first-time home buyers. Add in the fact that you might also qualify for a large tax credit, and the only question left to ask is-what are you waiting for?!

The economic stimulus package that was put in place earlier this year includes a nice incentive for first-time home buyers-a tax credit of 10% of the purchase price of the home, up to $8,000. If you're wondering if you qualify for this tax deduction, read on to learn some important points about this limited-time government offering.

Who qualifies?

In addition to being a literal "first-time home buyer"-a person who has never owned a home before-purchasers who have owned in the past can still qualify if they have not owned a residence during the three years prior to this new purchase.

Another factor for qualification is salary. If you are single, you qualify for a full tax credit if your income is $75,000 or less. For married couples the limit is a combined income of up to $150,000. Singles or couples who make more than these limits may still qualify for a partial credit.

When do I have to purchase?

The house must be purchased and closing completed on or after January 1, 2009 and before December 1, 2009 to qualify for the tax credit.

What type of property do I have to buy?

Whether new construction or resale, the tax credit is valid on all primary residences including condos, townhouses, and single-family homes. (Even houseboats qualify!)

Posted by Amanda Nichols ~ Realtor ~ Keller Williams Realty Peachtree Battle

770-490-1563 ~ AmandaNichols@kw.com ~ www.AmandaNichols.com

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TOP 12 Reasons to BUY A HOME during THE HOLIDAYS posted by Melanie Bailey

1.       Uncertainty regarding loan programs and limits that may not be available in 2009 or after we have a new President in the White House.

2.       Because there are fewer buyers shopping for a home at this time, you may be in a stronger negotiating position.

3.       With fewer buyers on the market during the holidays, there may be less multiple offer situations, especially regarding REO properties and Short Sales.

4.       The transaction load is lighter for lenders at this time, so your file may be handled quicker, more efficiently, and more accurately.  This is true also for Title and Escrow.

5.       It’s nice to get a feel for a home when it’s decorated for the holidays.

6.       You may have more vacation or free time instead of having to ask off work to look at homes or complete paperwork, signings, etc.

7.       You can show your visiting friends and family your prospective new home.

8.       With fewer buyers on the market at this time, it may be easier to schedule inspections, etc., allowing you to shorten a contingency period in exchange for a more favorable price or lock in an interest rate on your loan.

9.       You’ll be enjoying your new home in the spring as opposed to waiting to move in.

10.   January is typically the best time of the year to buy decorating items or home improvement items, as the retail industry doesn’t want a huge slump after the boom in holiday shopping.

11.   If you have kids, they can transfer to their new school at the start of the new semester and avoid “getting behind”.

12.   What could be a better gift for the family than a NEW HOME FOR THE HOLIDAYS!

 

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Dekalb County Water Conservation ~ Low Flow Requirements posted by Melanie Bailey

Effective June 1, 2008, Dekalb County will no longer connect water services to homes built before 1993 that do not have low flow toilets.  What does this mean to you?

Staying focused on your financial goals! Posted by Amanda Nichols

Appreciation Rates Are Down Not Property Values ~ posted by Amanda Nichols

As they love to do, the national media has been putting the fear into people about the ‘pending crash’ of the real estate market.  This is an exaggerated truth, at best, that applies to very limited markets.  We have heard stories about record foreclosure rates that would lead you to believe that every third home is going into foreclosure.  The truth is that the vast majority of homeowners are continuing to pay their mortgages as they always have and are not in danger.

 

This is not to say that there aren’t some less than rosy things going on.  There is a significant tightening of the sub-prime lending market.  What this means to you is that if you have a credit score of 560 you can no longer get an interest only loan for 105% financing on that new home you’ve been eying (yes, these loans were actually being made).  This also means that there is a bit of a reduction in the number of able buyers in the market place.

 

The reduction in the number of buyers equates to a reduction in the rate of increase of property values.  This does NOT mean that there is a reduction in property values in the Atlanta market but simply a reduction in the rate at which they were increasing.  This means that people can no longer spend $40,000 on their credit cards and then expect to simply refinance their houses to pay that off year after year.

 

As the number of able buyers reduces in the market place coupled with the standard reduction in activity at this time of the year it gives more leverage to the buyers who are ready and able to buy.  If you are a solid buyer with good credit and some money to put down (you don’t have to put down 20% but it’s getting much harder to find 100% financing) you have an opportunity to find distressed Sellers and get a good deal that wouldn’t have been available just a few months ago.

 

If you are a ready and able Buyer or if you have any questions about this information, what’s going on in the market and what it means to you please contact me.  I am still strong, still selling and keep a very close eye on everything that is going on in our market.  Your home is my business!!

Posted by Amanda Nichols ~ Realtor ~ Keller Williams Realty Peachtree Battle

770-490-1563 ~ AmandaNichols@kw.com ~ www.bestagentever.com

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Great Opportunities for First Time Buyers & Investors in a Buyers Market ~ posted by Amanda Nichols

We’ve all heard the bad news that has been plastered everywhere about the current housing market situation.  From huge increases in foreclosure rates, to significant numbers of lenders closing doors, and builders reducing their inventory, it seems like the world is coming to an end.  Don’t believe it’s all bad just yet! 

As with every cloud there is a silver lining.  For first time home buyers with good credit and even just a little bit of money to put down this is a dream situation!  Many of Atlanta’s new home builders are trying to drop as much as 50% of their current inventory.  This means that the builders are offering amazing incentives.  This is a 180 degree change from just a year ago.  Many buyers and agents got used to full sticker price no negotiating situations for new construction.  Now, you can expect to see builder paid closing costs, decorating allowances, finished basements, and still negotiate on the price.  This is the time for first time home buyers to truly take advantage of a fantastic market situation for them.

First time buyers aren’t the only winners in this situation, however.  Long term real estate investors can also take advantage of this situation.  If you plan to buy and hold real estate as a long term investment this is about to be a fantastic market for you as well.  As the foreclosure rates increase and put pressure on other sellers who truly need out of their homes we will see phenomenal opportunities that have been rare over the last few years. 

As all of the news continues to scare sellers this is the perfect time for Buyers who plan to hold their homes for a number of years to take advantage of the change in the market.  Now that everything is shifting, it is the buyers who hold the reins.  Let’s start looking, negotiating, and finding some fantastic deals!! 

Posted by Amanda Nichols ~ Realtor ~ Keller Williams Realty Peachtree Battle

770-490-1563 ~ AmandaNichols@kw.com ~ www.bestagentever.com

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