TAX HOME CREDIT UP FOR SENATE VOTE
The United States Senate is expected to vote, later today, on a bill to extend Unemployment Insurance benefits. This bill will contain the Dodd - Lieberman - Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit. The Extended and Expanded Tax Credit will contain the following provisions: Amount: $8,000Eligibility: ALL HOME BUYERS (Step-up buyers will have to have lived in their current home for SEVEN* years to be eligible)
Income Limits: $125,000 for single filers/$225,000 for joint filersTime Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010 *The 7 year ownership requirement is designed to lower the "score" or cost of the tax credit. This is still open to change.
The Congressional Budget Office is going to "score" the cost of 3 year and 5 year requirements. We are continuing to push for step-up buyers to be required be in their current home for three year period.
Tuesday, October 27, 2009
Saturday, October 24, 2009
HOUSE SALES UP 9.4% sales activity highest in 2 years!
Sales of existing homes jumped 9.4 percent, to a seasonally adjusted rate of 5.57 million units in September from 5.1 million units in August. Sales activity is at its highest level in more than two years, according to NAR figures. Cheaper homes, coupled with the first-time homebuyer credit, are behind the increase, NAR chief economist Lawrence Yun noted.
“We are hopeful the tax credit will be extended, and possibly expanded, to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery,” he said in a news release.
Unsold inventory totals are 15 percent below a year ago, according to NAR.
“The current housing supply is the lowest we’ve seen in two-and-a-half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.
Sales of existing homes jumped 9.4 percent, to a seasonally adjusted rate of 5.57 million units in September from 5.1 million units in August. Sales activity is at its highest level in more than two years, according to NAR figures. Cheaper homes, coupled with the first-time homebuyer credit, are behind the increase, NAR chief economist Lawrence Yun noted.
“We are hopeful the tax credit will be extended, and possibly expanded, to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery,” he said in a news release.
Unsold inventory totals are 15 percent below a year ago, according to NAR.
“The current housing supply is the lowest we’ve seen in two-and-a-half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.
Thursday, October 08, 2009
Up to $8,000 First-TimeHomebuyer Tax CreditThe American Recovery and Reinvestment Act of 2009 provides for an $8,000 tax credit that would be available to first-time homebuyers.The credit does not require repayment, and it will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.Unprecedented Incentives for New HomesBuilders are offering unprecedented incentives for new homes such as flooring upgrades, new appliances, and discounted financing. Don’t just dream about purchasing a home; make your dreams a reality. Right now is the right time to “Get Off the Fence!”
It's a Buyer's MarketBuyers who are pre-approved have incredible negotiating power. Financing options are available for those with a steady income and good credit. Sellers are pricing their homes more competitively.Lower prices also mean a wider range of options from which to choose in a variety of locations.
Historically Low Interest RatesInterest rates are at historical lows – lower rates equal lower payments, or a larger home – you choose. Contrary to perceptions, conventional mortgages are available at favorable interest rates for homebuyers. Buyers with good credit, a steady income and a realistic view of what they can afford are excellent candidates for a mortgage, even in this market.
Building Wealth with HomeownershipHistorically, homes are a solid long-term investment. For the past 40 years, real estate has delivered the most consistent positive return over any investment. When you buy a home, you are building equity and adding to your assets. According to the Federal Reserve Board, the average renter’s net worth is $4,800, while the average homeowner’s net worth is $171,000. Finally, you’ll see a sizable difference each year when you claim the mortgage interest deduction on your taxes.Get Off the Fence in 2009Prices are right, rates are low and there are plenty of homes on the market NOW. As the economy improves and more people look for homes, prices will rise.If you’re playing the waiting game, remember that the market will come back around – it always does – and you could miss your opportunity for a fantastic deal. Take advantage of today’s market - you’ll be glad you did. Get off the fence and into a home!Talk to Market Experts: REALTORS®Not only can REALTORS® help you find your perfect home, they are an invaluable resource for selling your home as well.Did you know there are over
180 steps in a typical real estate transaction? It’s not worth navigating such a complex process by yourself.Get organized and informed and get ready to get off the fence – contact your REALTOR® today!
Inventory Levels for Metro Atlanta
As of October 9, 2009 listed in FMLS 66,992 total listings for sale.
38,989 single family homes
9067 attached residential homes
2787 farms
7919 residential developed lots
643 multi family
5292 rental
2294 commercial
Inventory levels are half what they were in 2007.
Saturday, September 12, 2009
Georgia Drops to Number 9 in Highest Foreclosure Rates in the US
We have been at number 3, 5, 7 and now rated 9th of the highest number of foreclosures per state. Why you ask? Banks have been aggressive in 2009 in getting these assets off their books. They have reduced pricing, auctions, short sales and loan modifications to get buyers interested. Our state has introduced down payment assistance programs to aid in the sale of foreclosed properties.
Our we out of the woods? Our foreclosure filings have reduced almost a 1/2% from July 2009 but no. Atlanta's unemployment rate will hold us back for another 6 months but I think on Spring of 2010 we will begin to see an increase of sales in our market but until then it is good to see us continue to fall in ranking.
Current ratings as of August 2009 are:
1. Nevada
2. Florida
3. California
4. Arizona
5. Michigan
6. Idaho
7. Colorado
8. Utah
9. Georgia
10. Illinois
We have been at number 3, 5, 7 and now rated 9th of the highest number of foreclosures per state. Why you ask? Banks have been aggressive in 2009 in getting these assets off their books. They have reduced pricing, auctions, short sales and loan modifications to get buyers interested. Our state has introduced down payment assistance programs to aid in the sale of foreclosed properties.
Our we out of the woods? Our foreclosure filings have reduced almost a 1/2% from July 2009 but no. Atlanta's unemployment rate will hold us back for another 6 months but I think on Spring of 2010 we will begin to see an increase of sales in our market but until then it is good to see us continue to fall in ranking.
Current ratings as of August 2009 are:
1. Nevada
2. Florida
3. California
4. Arizona
5. Michigan
6. Idaho
7. Colorado
8. Utah
9. Georgia
10. Illinois
GA Dream NSP $14,000 Down Payment Over
Funds ran out for the Georgia Dream NSP program July 17, 2009. The program opened April 1, 2009 and expected to fund purchases of foreclosed homes until 2010.
How can you still purchase a home with down payment assistance? Homestretch Gwinnett is being run by Gwinnett County is doing a down payment program for homes in Gwinnett County. Homes have to be in superior condition and do not have to be lender or bank owned.
Funds just began available in mid August and I believe they too with run out of funding quickly.
Sunday, August 23, 2009
Foreclosures Listings Down in Metro Atlanta
According to FMLS, foreclosure listings are down in metro Atlanta. In Fall of 2007 many REO brokers had an excess of 400 to 500 listings each. Currently the top REO brokerage companies have 100 listings each. What does this say about our market? I believe the worst has passed us. My prediction is home prices will begin to increase in the 2nd quarter of 2010. Homeowners needing to sell will no longer have to compete against a high number of REO owned properties. What has helped decrease these numbers. Banks are willing to modify loans, auctions and sales have decerased inventory levels and tax credit got buyers off the fence.
So if you are in the market for a home NOW is the time. Prices won't get any better!
According to FMLS, foreclosure listings are down in metro Atlanta. In Fall of 2007 many REO brokers had an excess of 400 to 500 listings each. Currently the top REO brokerage companies have 100 listings each. What does this say about our market? I believe the worst has passed us. My prediction is home prices will begin to increase in the 2nd quarter of 2010. Homeowners needing to sell will no longer have to compete against a high number of REO owned properties. What has helped decrease these numbers. Banks are willing to modify loans, auctions and sales have decerased inventory levels and tax credit got buyers off the fence.
So if you are in the market for a home NOW is the time. Prices won't get any better!
Thursday, July 30, 2009
TAX FREE WEEKEND!To help you with these expenses, the Governor and General Assembly have declared a sales tax holiday from Thursday, July 30 to Sunday, August 2, 2009.
The following items will be exempt from state and local sales tax during the holiday:
Computers and accessories under $1500
Clothing and footwear under $100
School supplies under $20
Of course, the sales tax holiday applies to everyone, even those without school age children. For more detailed information, including lists of exempt items and answers to frequently asked questions, please visit the Georgia Department of Revenue website.
Wednesday, July 29, 2009
This article was published on: 02/01/2002 in Realtor Magazine
MANAGING YOUR MONEY
Buy and sell property using retirement dollars
BY KELLI CLICK
Everyone knows the rule of thumb that you must diversify your investment portfolio to spread out your risk. But few people are aware that they can invest in real estate using money from certain individual retirement accounts, known as self-directed IRAs.A self-directed IRA is like other IRAs in every respect, except that it allows account holders to direct their own investments.
You can buy and sell investment real estate for yourself while deferring the tax consequences. And you can earn commissions helping investor clients buy and sell real estate through their self-directed IRA.The IRS allows you to use retirement money to buy real estate in any form: raw land, condos, office buildings, and so on.
Say you find a piece of undeveloped land for an excellent price. You can buy the land through your IRA and then sell it to a developer for a profit. You can also develop the land yourself, though funds for all the improvements must come from your IRA. Once you sell the property, all proceeds go back into your IRA, where the money continues to grow tax-deferred.Properties can be bought, sold, or used as rental property in a self-directed IRA. For rentals, all maintenance and improvement costs, taxes, insurance, and property management fees must be paid from the IRA, and all rental income must go back to the IRA.
But that rental income becomes part of your IRA balance and may be used to buy other types of investments, such as mutual funds, certificates of deposit, stocks, bonds, treasury securities, and even precious metals.When an investor uses real estate in an IRA as a rental property, the custodian of the IRA usually requires the investor to appoint a property manager to collect rents, ensure payment of taxes, and maintain the property.
If you’re the investor, you can’t manage your own investments; the custodian will require a qualified third-party manager. But there’s nothing to say you can’t manage the properties of investor clients you’ve worked with, giving you the chance to earn some income beyond your commission check.
Custodians typically require that any real estate purchased through an IRA be bought outright with no debt financing. In addition, the property must be used for investment purposes only and can’t be used personally while maintained in the IRA.The purpose of requiring free title is to protect the IRA from contractual payments that could jeopardize the IRA if those payments couldn’t be met.When your IRA has complete title to a property, you can turn around and sell the property with seller financing.
The original deed held by the IRA becomes the collateral for the promissory or mortgage note. All payments by the buyers must be paid to the IRA and can be reinvested in the other investment vehicles. Once the promissory note is paid in full, the property is conveyed to the new owners.You can even invest self-directed IRA money in a future retirement home. To do so, you’d use the property as a rental until you retired, then take a distribution of the property from the IRA at the current market value and pay any taxes before you’d be allowed to move in. Isn’t that a nice bit of information to share with prospective second-home buyers?
Kelli Click is vice president of Sterling Trust Co. in Waco, Texas, a self-directed IRA custodian. You can reach Sterling Trust Co. at 800/955-3434.
MANAGING YOUR MONEY
Buy and sell property using retirement dollars
BY KELLI CLICK
Everyone knows the rule of thumb that you must diversify your investment portfolio to spread out your risk. But few people are aware that they can invest in real estate using money from certain individual retirement accounts, known as self-directed IRAs.A self-directed IRA is like other IRAs in every respect, except that it allows account holders to direct their own investments.
You can buy and sell investment real estate for yourself while deferring the tax consequences. And you can earn commissions helping investor clients buy and sell real estate through their self-directed IRA.The IRS allows you to use retirement money to buy real estate in any form: raw land, condos, office buildings, and so on.
Say you find a piece of undeveloped land for an excellent price. You can buy the land through your IRA and then sell it to a developer for a profit. You can also develop the land yourself, though funds for all the improvements must come from your IRA. Once you sell the property, all proceeds go back into your IRA, where the money continues to grow tax-deferred.Properties can be bought, sold, or used as rental property in a self-directed IRA. For rentals, all maintenance and improvement costs, taxes, insurance, and property management fees must be paid from the IRA, and all rental income must go back to the IRA.
But that rental income becomes part of your IRA balance and may be used to buy other types of investments, such as mutual funds, certificates of deposit, stocks, bonds, treasury securities, and even precious metals.When an investor uses real estate in an IRA as a rental property, the custodian of the IRA usually requires the investor to appoint a property manager to collect rents, ensure payment of taxes, and maintain the property.
If you’re the investor, you can’t manage your own investments; the custodian will require a qualified third-party manager. But there’s nothing to say you can’t manage the properties of investor clients you’ve worked with, giving you the chance to earn some income beyond your commission check.
Custodians typically require that any real estate purchased through an IRA be bought outright with no debt financing. In addition, the property must be used for investment purposes only and can’t be used personally while maintained in the IRA.The purpose of requiring free title is to protect the IRA from contractual payments that could jeopardize the IRA if those payments couldn’t be met.When your IRA has complete title to a property, you can turn around and sell the property with seller financing.
The original deed held by the IRA becomes the collateral for the promissory or mortgage note. All payments by the buyers must be paid to the IRA and can be reinvested in the other investment vehicles. Once the promissory note is paid in full, the property is conveyed to the new owners.You can even invest self-directed IRA money in a future retirement home. To do so, you’d use the property as a rental until you retired, then take a distribution of the property from the IRA at the current market value and pay any taxes before you’d be allowed to move in. Isn’t that a nice bit of information to share with prospective second-home buyers?
Kelli Click is vice president of Sterling Trust Co. in Waco, Texas, a self-directed IRA custodian. You can reach Sterling Trust Co. at 800/955-3434.
Here are some changes to the Fannie Mae underwriting guidelines.
1 Credit documents will be valid for 90 days instead of the current 120
2. IRS Forms 4506 or 4506-T is required at application and at closing.
3. Age of appraisal is reduced from 6 months to 4 months
4. Trailing Secondary Wage Earner Income is eliminated
5. Verbal Verification of Employment required within 10 days of signing the Note
6. Stocks, bonds and mutual funds now valued at 70% instead of 100% to be used as reserves.
7. Retirement accounts valued at 60% instead of 70% to be used as reserves
1 Credit documents will be valid for 90 days instead of the current 120
2. IRS Forms 4506 or 4506-T is required at application and at closing.
3. Age of appraisal is reduced from 6 months to 4 months
4. Trailing Secondary Wage Earner Income is eliminated
5. Verbal Verification of Employment required within 10 days of signing the Note
6. Stocks, bonds and mutual funds now valued at 70% instead of 100% to be used as reserves.
7. Retirement accounts valued at 60% instead of 70% to be used as reserves
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