Obama Set to Sign New Homebuyer Tax Credit Bill

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If you thought you missed your chance of $8,000 from the government, think again!  Buy a home before May 1 and collect up to $6,500 from the government.  If you’re a first-time homebuyer, get up to $8,000.  That’s right…President Obama is set to sign an extension of the $8,000 first-time homebuyer tax credit and this new bill also includes a credit for current homeowners.

Already passed by the Senate, the House voted 403-12 Thursday to expand on the current $8,000 first-time homebuyer tax credit.  Included in the bill is an extension of unemployment benefits and expands a tax break for money-losing businesses.  It is expected that President Obama will sign the bill today.

Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers — or people who haven’t owned homes in the previous three years — could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes.

The credit is equal to 10 percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for others.

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that were included in a bill extending unemployment benefits for those without jobs for more than a year. The other tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years.

That break would help industries that have suffered big losses in the recession, including retailers, homebuilders and newspapers.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

Senate Passes Extension of Homebuyer Tax Credit

Senators agreed on Wednesday to extend the popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.  The current $8,000 first-time homebuyers tax credit is set to expire at the end of November.

The agreement in the Senate extends the existing tax credit for first-time homebuyers while also offering a reduced credit of up to $6,500 tax credit to repeat buyers who have owned their current homes for at least five years.

These tax credits would be available to homebuyers who sign sales agreements by the end of April.  They would have until the end of June to close on their new homes.

September saw a 3.6 percent fall in new home sales…the first time it fell since March.  Many feel that it was the uncertainty of the tax credit that made new home sales fall in September.

It takes 45-60 days to close on a house, making it unlikely that a sale made today would qualify for the current tax credit which has a deadline of the end of November.

About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Brock Built Introduces “Stormy Weather” Coverage

Many critics of the $8,000 homebuyer tax credit say that it doesn’t really help motivate individuals to buy a home because there still exists job insecurity in the workforce.  This is a pretty valid claim as many would-be homebuyers I’ve talked to have said that due to layoffs and poor company performance they are afraid to purchase a home in fear that they could be jobless within the next year.  Brock Built understands these concerns which is why they are introducing “Stormy Weather” coverage.

Stormy Weather coverage helps protect against two primary reasons for default and foreclosure. These include involuntary job loss and extended financial hardship requiring negotiation with your mortgage servicer. The major components include: mortgage payment relief, homebuyer education, advocacy and counseling and loss mitigation.

Brock Built focus on creating warm and welcoming neighborhoods in the city and surrounding area of Atlanta. Steve Brock, founder and CEO of Brock Built, has been building for over 25 years. Visit a Brock Built community and you will likely find neighbors chatting at the mailbox, children riding bikes on sidewalks, at pool parties, home owners walking dogs and socializing at the community club house or community outdoor fireplaces/fire pits.

The Brock Built homes are intriguing themselves, but since the community is placed in unique locations the areas offer much more. The Smyrna Collection is located just next to the Smyrna Market Village which offers shopping, dining and entertainment. Smyrna is perfect for all ages and offers something for everyone. Few inventory homes remain priced from $300,000 and are priced up to over $100,000 off which make them unbeatable prices! Looking for something smaller in the Smyrna area at an affordable price? Watch for details on new Smyrna homes that will be available. Be sure to stop by and visit the Smyrna Collection homes and visit the fabulous Smyrna Market Village for a bite to eat as well as entertainment.

Will the $8,000 Home Buyer Tax Credit Be Extended?

This is a question I’ve been hearing a lot lately…”will the $8,000 home buyer tax credit be extended?”  Unfortunately, I am no fortune teller, neither is H2 Realty’s lead Realtor Aaron Hofmann or any other real estate professionals that I know of.  Here is what I’ve found though in doing some research.

There is no official extension.

Here is where things stand.

• There is bipartisan support in Congress for extending the credit past Nov. 30th.  It is still unclear if it were to be extended, how far it would be extended, the size of the credit and how many more buyers would qualify.
• It is unclear what President Obama’s stance is on the issue.
• The latest idea under discussion is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years.
• Proponents of the credit say that if it is allowed to expire, the housing market and the broader economy will grow moribund again.
• Critics state that of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30th that only about 10% to 20% bough homes solely because of the credit.

Atlanta Ranks as Top Recession Proof Cities to Retire In

Atlanta is the top ranked city in another Forbes list…this time for being the best recession proof city to retire in. The list was compiled by crunching seven sets of statistics from sunny days to median home price, reveals that Atlanta has many trends working in its favor–low cost of living, plenty of sun and housing that is affordable and projected to rise in value over the next five years.

“Atlanta is the financial and industrial center of the South,” says Eduardo Martinez, senior economist at Moody’s Economy.com. “With companies like Delta and Home Depot, it’s home to more and more international business.”

If you are nearing the age of retirement you ought to consider Atlanta as the place to retire.  Get involved now and purchase a retirement home while mortgage rates are at historical lows.  Contact the H2 Realty Team today to have a real estate professional contact you and help you find your retirement home.

Forbes looked at the country’s 40 largest metropolitan areas and ranked them according to seven different categories:

1. current median home price
2. five-year projected home price
3. median monthly housing expense
4. cost of living index
5. median income for households over age 65
6. five year job growth outlook
7. sunny day statistics

1. Atlanta, Ga.
(Atlanta-Sandy Springs-Marietta, Ga., metro area)

Sunny Days: 17 of 40
Income 65 And Over: 17 of 40
Median Home Price: 7 of 40
Projected Home Price Growth ‘09-’14: 17 of 40
Projected Job Growth ‘09-’14: 5 of 40
Cost of Living: 11 of 40
Median Monthly Housing Cost: 23 of 40

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