Have we reached the bottom of the Real Estate Market downturn</= title> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceType"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceName"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"place"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"address"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"Street"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"country-region"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> <st1:place = w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:s= t=3D"on">County</st1:PlaceType></st1:place> Real Estate News and Views<o:p></o:p> Volume 8 Is= sue 9 <o:p> </o:p> Published b= y: Ben and <st1:Street w:st=3D"on"><s= t1:address w:st=3D"on">Marie Lane</st1:address></st1:Street><o:p></o:p> TwoLanes<o:p></o:p> <o:p> </o:p> First Time Home Buye= rs Tax Credit<o:p></o:p> <o:p> </o:p> First time home buyers are the foundation of our housi= ng market. According to census data First Time Buyers make up around 40% of ho= me buyers. When “first timers” purchase their first home the rippl= es can be felt from one end of the Real Estate Market to the other. For Instance: -Home sellers can take their proceeds and “move up” to a larger and/or more expensive home. -The reduction in “For Sale” inventory mea= ns new sellers can successfully enter the market. -With an ever changing inventory new buyers can find f= resh opportunities. -Simply put, First Timer buying activity stimulates th= e real estate market and consumer sentiment. <o:p> </o:p> On the flip side, if first time buyers have difficulty purchasing their first home the entire Housing Market suffers. You can call= it the “trickle up” effect. <o:p> </o:p> We think an opportunity exists at the present time that gives First Timers a unique chance to capitalize on the large inventories t= hat exist in the real estate market, to benefit from historically low interest rates, and to take advantage of affordable housing prices. <o:p> </o:p> We feel the “F= irst Time Homebuyer Tax Credit” is this <st1:place w:st=3D"on">Opportunity= </st1:place>.<o:p></o:p> This portion of a major housing bill (H.R. 3221) signed into law in July, can give First Time Home Buyers , and the entire Housing Market, a positive boost. <o:p> </o:p> FOR A LIMITED TIME, FIRST TIME HOME B= UYERS CAN RECEIVE A FEDERAL TAX CREDIT OF UP TO $7,500 WHEN THEY PURCHASE A PRINC= IPAL RESIDENCE.<o:p></o:p> <o:p> = </o:p> Here’s how it works: <o:p> </o:p> First Time Homebuyers: Defined as an individual (and purchasers’ spouse) who have not owned a principal residence in the 3 years prior to the purchase. <o:p> </o:p> Limited Time: Applies to home purchases = made on or after April 9, 2008 and before July 1, 2009. The “purchase̶= 1; means the “closing”, (in layman’s terms when the buyer ge= ts the keys and the seller gets the money) not the date of the Sales and Purch= ase Contract. <o:p> </o:p> Up to $7,500: The tax credit applies to = a maximum of 10% of the purchase price of the home, not to exceed $7,500. For instanc= e, if a home sold for $55,000 the tax credit would be $5,500. If a home sold f= or anything more than $75,000 the tax credit still would top off at $7,500. </= p> The credit only applies to the home sale price, not the number of people buying the home. If two or more unmarried individuals purc= hase a home eligible for the full tax credit the tax credit will still be capped= at $7,500 total. <o:p> </o:p> Income Guidel= ines: To receive the full eligible tax credit individuals filing as single or head of household must have an adjusted gross income of $75,000 or less, and individuals who file a joint return are capped at $150,000 or less for full credit. However, there are gradual “phase outs” in the credit f= or individuals making up to $95,000 and couples earning up to $170,000. <o:p> </o:p> Principal Residence: Can be any single f= amily residence including single family detached homes, condos, townhomes, coops, manufactured housing, and new construction. But the property must be locate= d in the <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">U.S.</st1:countr= y-region></st1:place>, and it must be your principal residence (generally defined as where you spe= nd more than 50% of your time). <o:p> </o:p> Tax Credit:= The credit amount is deducted from your tax liability on your Federal Tax Return. For example if your tax liability was $9,000, and your = tax credit was the maximum of $7,500, your tax liability would be reduced to $1,500. If your tax liability was less than your tax credit, say your liabi= lity was $5,000 and your tax credit was $7,500 you would receive a $2,500 tax cr= edit refund. <o:p> </= o:p> Repayment: Yes, the credit must be repai= d. 6.67% of the original tax credit amount is to be repaid each year for 15 ye= ars. For example, if the original credit was $6,000 the annual bill would be $400.20. If the home is sold before year 15 the amount of the c= redit still unpaid will repaid at the closing. However, there is no interest due = on the outstanding amount, effectively making this tax credit a 15 year intere= st free loan. In the event the profit from the sale of the home is l= ess than the amount you still owe the government will “forgive” the difference. For example if your profit was $3,000 and you still owed $2,500= for the credit, $500 would be forgiven by the IRS. If you made no profit, or ev= en had a loss, the entire credit amount not yet paid would be forgiven. <o:p> </o:p> Getting the Credit: Just claim the credi= t when you file your 08 or 09 Federal Tax Return. <o:p> </o:p> Before they start the search process of finding a first home, especially in this real estate environment, First Timers need to get their finances and credit issues straight (that will be the topic of another article). Their next step is to research a= nd find programs that can help them make the leap from Renters to Owners, we t= hink this is one of those programs. <o:p> </o:p> To us, the First Time Home Buyer Tax Credit program se= ems quite a bit less cumbersome than many government endeavors and is worth examining. <o:p> </o:p> Who Can it Help?<o:p></o:p> If you’re a “First Time Buyer” check= it out, there are many potential benefits. <o:p> </o:p> If you’re a veteran home owner the opportunity t= o sell your existing home and the ability it gives you to “move up” are encouraging. <o:p> </o:p> If you are a seller maybe you should also take a close= r look at the Credit and perhaps use the knowledge to help educate a potential eligible buyer so you sell your home. <o:p> </o:p> If you’re currently an active seller, or are thi= nking about putting your home on the market, the program can create a pool of new customers and remove competing properties from the marketplace. <o:p> </o:p> Finally, if you have kids or grandkids ready to enter = the housing market share the information with them. <o:p> </o:p> In this environment of low housing prices, large inven= tories and historically low interest rates, we feel this opportunity is important,= not for only First Time Home Buyers, but to the entire Real Estate Market. <o:p> </o:p> <o:p> </o:p> Need More Information:<o:p></o:p> Contact Us:<o:p></o:p> Email: <a href=3D"mailto:twolanes@twolanes.net">= twolanes@twolanes.net</a>,<o:p></o:p> Phone: Ben 386-931-8531, Marie 386-931-5727<o:p>= </o:p> </div> </body> </html>

MIME-Version: 1.0 Content-Location: file:///C:/2D6C18D9/volume8issue9.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Have we reached the bottom of the Real Estate Market downturn</= title> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceType"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"PlaceName"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"place"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"address"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"Street"/> <o:SmartTagType namespaceuri=3D"urn:schemas-microsoft-com:office:smarttags" name=3D"country-region"/>  <style>  </style>  </head> <body lang=3DEN-US link=3Dblue vlink=3Dpurple style=3D'tab-interval:.5in'> <div class=3DSection1> <st1:place = w:st=3D"on"><st1:PlaceName w:st=3D"on">Flagler</st1:PlaceName> <st1:PlaceType w:s= t=3D"on">County</st1:PlaceType></st1:place> Real Estate News and Views<o:p></o:p> Volume 8 Is= sue 9 <o:p> </o:p> Published b= y: Ben and <st1:Street w:st=3D"on"><s= t1:address w:st=3D"on">Marie Lane</st1:address></st1:Street><o:p></o:p> TwoLanes<o:p></o:p> <o:p> </o:p> First Time Home Buye= rs Tax Credit<o:p></o:p> <o:p> </o:p> First time home buyers are the foundation of our housi= ng market. According to census data First Time Buyers make up around 40% of ho= me buyers. When “first timers” purchase their first home the rippl= es can be felt from one end of the Real Estate Market to the other. For Instance: -Home sellers can take their proceeds and “move up” to a larger and/or more expensive home. -The reduction in “For Sale” inventory mea= ns new sellers can successfully enter the market. -With an ever changing inventory new buyers can find f= resh opportunities. -Simply put, First Timer buying activity stimulates th= e real estate market and consumer sentiment. <o:p> </o:p> On the flip side, if first time buyers have difficulty purchasing their first home the entire Housing Market suffers. You can call= it the “trickle up” effect. <o:p> </o:p> We think an opportunity exists at the present time that gives First Timers a unique chance to capitalize on the large inventories t= hat exist in the real estate market, to benefit from historically low interest rates, and to take advantage of affordable housing prices. <o:p> </o:p> We feel the “F= irst Time Homebuyer Tax Credit” is this <st1:place w:st=3D"on">Opportunity= </st1:place>.<o:p></o:p> This portion of a major housing bill (H.R. 3221) signed into law in July, can give First Time Home Buyers , and the entire Housing Market, a positive boost. <o:p> </o:p> FOR A LIMITED TIME, FIRST TIME HOME B= UYERS CAN RECEIVE A FEDERAL TAX CREDIT OF UP TO $7,500 WHEN THEY PURCHASE A PRINC= IPAL RESIDENCE.<o:p></o:p> <o:p> = </o:p> Here’s how it works: <o:p> </o:p> First Time Homebuyers: Defined as an individual (and purchasers’ spouse) who have not owned a principal residence in the 3 years prior to the purchase. <o:p> </o:p> Limited Time: Applies to home purchases = made on or after April 9, 2008 and before July 1, 2009. The “purchase̶= 1; means the “closing”, (in layman’s terms when the buyer ge= ts the keys and the seller gets the money) not the date of the Sales and Purch= ase Contract. <o:p> </o:p> Up to $7,500: The tax credit applies to = a maximum of 10% of the purchase price of the home, not to exceed $7,500. For instanc= e, if a home sold for $55,000 the tax credit would be $5,500. If a home sold f= or anything more than $75,000 the tax credit still would top off at $7,500. </= p> The credit only applies to the home sale price, not the number of people buying the home. If two or more unmarried individuals purc= hase a home eligible for the full tax credit the tax credit will still be capped= at $7,500 total. <o:p> </o:p> Income Guidel= ines: To receive the full eligible tax credit individuals filing as single or head of household must have an adjusted gross income of $75,000 or less, and individuals who file a joint return are capped at $150,000 or less for full credit. However, there are gradual “phase outs” in the credit f= or individuals making up to $95,000 and couples earning up to $170,000. <o:p> </o:p> Principal Residence: Can be any single f= amily residence including single family detached homes, condos, townhomes, coops, manufactured housing, and new construction. But the property must be locate= d in the <st1:place w:st=3D"on"><st1:country-region w:st=3D"on">U.S.</st1:countr= y-region></st1:place>, and it must be your principal residence (generally defined as where you spe= nd more than 50% of your time). <o:p> </o:p> Tax Credit:= The credit amount is deducted from your tax liability on your Federal Tax Return. For example if your tax liability was $9,000, and your = tax credit was the maximum of $7,500, your tax liability would be reduced to $1,500. If your tax liability was less than your tax credit, say your liabi= lity was $5,000 and your tax credit was $7,500 you would receive a $2,500 tax cr= edit refund. <o:p> </= o:p> Repayment: Yes, the credit must be repai= d. 6.67% of the original tax credit amount is to be repaid each year for 15 ye= ars. For example, if the original credit was $6,000 the annual bill would be $400.20. If the home is sold before year 15 the amount of the c= redit still unpaid will repaid at the closing. However, there is no interest due = on the outstanding amount, effectively making this tax credit a 15 year intere= st free loan. In the event the profit from the sale of the home is l= ess than the amount you still owe the government will “forgive” the difference. For example if your profit was $3,000 and you still owed $2,500= for the credit, $500 would be forgiven by the IRS. If you made no profit, or ev= en had a loss, the entire credit amount not yet paid would be forgiven. <o:p> </o:p> Getting the Credit: Just claim the credi= t when you file your 08 or 09 Federal Tax Return. <o:p> </o:p> Before they start the search process of finding a first home, especially in this real estate environment, First Timers need to get their finances and credit issues straight (that will be the topic of another article). Their next step is to research a= nd find programs that can help them make the leap from Renters to Owners, we t= hink this is one of those programs. <o:p> </o:p> To us, the First Time Home Buyer Tax Credit program se= ems quite a bit less cumbersome than many government endeavors and is worth examining. <o:p> </o:p> Who Can it Help?<o:p></o:p> If you’re a “First Time Buyer” check= it out, there are many potential benefits. <o:p> </o:p> If you’re a veteran home owner the opportunity t= o sell your existing home and the ability it gives you to “move up” are encouraging. <o:p> </o:p> If you are a seller maybe you should also take a close= r look at the Credit and perhaps use the knowledge to help educate a potential eligible buyer so you sell your home. <o:p> </o:p> If you’re currently an active seller, or are thi= nking about putting your home on the market, the program can create a pool of new customers and remove competing properties from the marketplace. <o:p> </o:p> Finally, if you have kids or grandkids ready to enter = the housing market share the information with them. <o:p> </o:p> In this environment of low housing prices, large inven= tories and historically low interest rates, we feel this opportunity is important,= not for only First Time Home Buyers, but to the entire Real Estate Market. <o:p> </o:p> <o:p> </o:p> Need More Information:<o:p></o:p> Contact Us:<o:p></o:p> Email: <a href=3D"mailto:twolanes@twolanes.net">= twolanes@twolanes.net</a>,<o:p></o:p> Phone: Ben 386-931-8531, Marie 386-931-5727<o:p>= </o:p> </div> </body> </html>