May 4th, 2009
Posted by dee dee arena
There is a lot of discussion about the 2008 tax credit. Here is a quick overview. Hope it helps!
Any home purchased for $80,000.00 or more qualifies for teh full $8000 credit amount. The credit will be 10% of the cost ONLY if home costs less than the $80,000.
- Only first-time home buyers are eligible. Definition of first-time home buyer is one who has not owned or had ownership interest in a home in three years prior to 2009
- This credit is good from January 1, 2009 and before December 1, 2009. Closings must occur before December 1, 2009 to be eligible for the credit
- This credit is claimed on their income tax return by reducing income tax dollars by every dollar received as a credit. Tax credits are applied to reduce the total tax bill
- If taxpayers tax liability ends up less than the $8000 credit, the IRS refunds the difference
- Income restrictions: Single earning no more than $75,000 and married filing joint return no more than $150,000 (Based on Adjusted Gross Income)
- Home must be buyer’s principal residence
- Most financing arrangements are acceptable and will not affect eligibility
- There is NO repayment for this credit!!
- You do not apply for credit, eligible purchasers just claim the credit on their IRS 1040 tax return form. There will be a new form 5405 that will attach to the 1040 form
- Congress will not allow this credit to be used as a down payment, however Washington State is in the process of voting to allow homes purchased in the state to use it as a down payment. Stay tuned!
- If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit
The South Sound Properties Team hopes this helps explain the credit. For any further information, contact us and either Matt or myself will be happy to answer any other questions.
There are MANY first time buyer priced homes in the South Sound region. Let us help you find your first home, help you get qualified and hand you the key to your OWN home!
February 4th, 2009
Posted by dee dee arena
South Sound Properties Real Estate
Team has some Simple Home
Improvements for Function and Flair
The South Sound has had its share of bad weather
winter and it is only February! There are many ways
to help secure our homes. Visit the global warming site
below for more helpful hints.
1. Securely weatherizing your home—sealing windows, doors and
other gaps with acrylic caulk and weather stripping saves energy and
decrease utility bills—by as much as $275 to $300 a year by
some estimates
.
2. A new coat of paint on a home’s exterior is functional—it protects the home from
rain, snow, wind, and sun damage. In addition to improving the life of its
‘skin,’ paint revives curb appeal and pumps up the value of a home.
3. Properly insulated walls and ceilings saves 2,000 pounds of carbon dioxide,
and can generate about $250 in annual energy savings, according to
www.stopglobalwarming.org.
January 27th, 2009
Posted by dee dee arena
Resolve to Get in the
Black in 2009
(ARA) For many South Sound Americans, the only area where they may have lost weight
over the holidays is their wallet. As their credit card statements begin to
arrive with the reminder—and obligation—of their holiday spending,
consumers should resolve now to lower their debt in the New Year.
“Losing weight and losing debt are among the top New Year’s resolutions
every year,” says Joseph Montanaro, certified financial planner with USAA, a
leading financial services organization serving military members and their
families. “But, unfortunately, the resolve of consumers to stick to their plans
typically thaws along with the weather when spring rolls around.”
His suggestions include:
* Start with a specific goal. Start small,
and add incremental goals along the way.
Set new goals with each milestone you
reach.
* Put the plan on paper. Establish a
realistic budget, and stick to it with each
paycheck.
* Track progress. Continually tracking
progress over time will help keep the
overall goal front and center, and allow
for budget adjustments as more money is
freed up over time.
* Splurge…in moderation. While keeping
a focus on reducing debt undoubtedly
will require some sacrifice, it’s OK to
splurge on a reward for a job well done
from time to time.
* Save like there is a tomorrow. Spend less
than is earned so there will be money left
over to save. With that extra money,
consider increasing contributions to a
401(k) or IRA, and start saving more for
everyday expenses and emergencies by
setting up a monthly automatic transfer
into a savings account.
The South Sound region is no different than any other in the country and with all
the financial uncertainty, this is very sound advice. We are all in this together!
January 21st, 2009
Posted by dee dee arena
Valentine’s Day—a
billion dollar business
Esther Howland, the woman who
produced the first commercial American
valentines in the 1840s, sold a then mindboggling
$5,000 in cards during her first
year of business. The valentine industry
in the United States has been booming
ever since. Today, over 1 billion valentine
cards are sent in this country each
year—second in number only to
Christmas cards, according to the
Greeting Card Association.
Around 85 percent of all valentines are
purchased by women. In addition to
cards, there are millions of boxes of
chocolates and bouquets of roses
purchased (mostly by men) for the February 14th Holiday!
January 3rd, 2009
Posted by dee dee arena
Federal Tax Credits
for Energy Efficiency
Extended in 2009
On October 3, 2008, President Bush
signed into law the “Emergency
Economic Stabilization Act of 2008”
which included an extension of the
residential tax credits for energy efficient
improvements. The previous tax credit
expired at the end of 2007. The extension
is for improvements made January
1–December 31, 2009. Improvements
made in 2008 are not eligible for a tax
credit.
Selected Tax Credits
H $300* Central air conditioner or heat
pump.
H $150* Furnace or boiler.
H Up to $200* Windows.
H Up to $500* Insulation and sealing.
H Up to $2,000 Ground-source heat pump.
* Maximum of $500 total for home
improvements.
What is the difference between a tax
credit and tax deduction? A tax credit
reduces the tax you pay, dollar-for-dollar.
Tax deductions—such as those for home
mortgages and charitable giving—lower
your taxable income. If you are in the
highest 35-percent tax bracket, the
income tax you pay is reduced by 35
percent of the value of a tax deduction.
But a tax credit reduces your federal
income tax by 100 percent of the amount
of the credit.
What do I need to do to get the tax credit?
File IRS Form 5695 with your taxes. In
addition, you will need to keep receipts
proving that you purchased the
improvements and a copy of the
manufacturer’s certification (or the
ENERGY STAR label for windows).
Visit the IRS website at www.irs.gov.com
for full information.
December 10th, 2008
Posted by dee dee arena
List of Things To Do
Is Your Home Physically Fit? To give your home a competitive edge when it’s time to sell, make sure it is in good physical condition. This not only makes your home more attractive and desirable, it also simplifies the negotiation process when the time comes for the buyer’s pre-purchase inspection. According to home inspection experts, approximately half the resale homes in the market today have at least one significant defect. Routine maintenance is the best way to prevent major, costly problems from developing in the first place. If you have been putting off those repairs, now is the time to make them.
A Home Seller’s Check List Over the years, ASHI has identified a list of common problems that typically appear on buyer’s home inspection reports. Early correction of these problems can increase a home’s appeal and its selling price. It also sets the stage for a favorable home inspection report for the buyer, and thereby helps to expedite the sale. The following 6-point checklist can help you achieve these marketing goals.
Check The Major Systems
1. CHECK THE MAJOR SYSTEMS After size, style, and location, a home buyer’s primary concern is the condition of the home’s basic structure and major mechanical systems. Most buyers do not want to invest a great deal of money correcting problems in such critical areas. A pre-listing home inspection of the visible and accessible home components can reveal most of these problems, and include recommended repairs, if needed, on the following major items: Roof structure and covering Foundation, basement, and/or crawl space Central heating and air conditioning systems Electrical system Plumbing system
2. MAKE MAINTENANCE IMPROVEMENTS A number of maintenance improvements are relatively easy and inexpensive to make, yet they can substantially improve a home’s appearance, efficiency, and comfort. A professional home inspector may make helpful maintenance suggestions, such as: Trim trees and shrubs which touch or overhang the house Apply new caulking and weather stripping as needed around windows and doors Clean gutters of debris and leaves; repair or replace cracked or broken gutters, downspouts, and extensions to ensure proper drainage Replace bathroom caulk or grouting where necessary to prevent seepage and improve appearance Ventilate closed basements and crawl spaces, or install a dehumidifier, to prevent excessive moisture build-up Regrade soil around the foundation, as needed to keep water away from the house Replace dirty filters in the heating and air conditioning systems Have the heating and air conditioning systems professionally serviced Have chimneys professionally cleaned, and install chimney hoods or caps as needed
December 2nd, 2008
Posted by dee dee arena
Come and enjoy the fun festivities here in Gig Harbor, which is centrally located in the South Sound region and just across the Narrows Bridge from Tacoma.
2008 HOLIDAY EVENTS AND ACTIVITIES IN BEAUTIFUL GIG HARBOR
The first weekend in December enjoy:
Gig Harbor Tree Lighting and Santa Arrival
www.gigharborguide.com
The Famous TIDEFEST Art Fair
www.tidefest.org
Gig Harbor Art Walk on Saturday
The second weekend in December enjoy:
Harborfest Holiday Tour of Homes
www.altrusa.org/Washington/gigharbor.html
Gig Harbor Lighted Boat Parade
http://www.gigharboryc.com
Candelight Christmas in the Harbor
www.gigharborguide.com
Chapel Hill Christmas Concert
www.chapelhillpc.org
Both weekends enjoy great live holiday theater productions at
Paradise Theatre www.paradisetheatre.org
Encore! Theatre www.encoretheater.com
There are many more activities throughout December. For more information and a complete listing of hiliday activites in Gig Harbor Peninsula, center of the South Sound visit www.gigharborguide.com or call (253) 857-4VIC and start making holiday memories today!
November 20th, 2008
Posted by dee dee arena
Fighting the Financial Crisis,
One Challenge at a TimeBy Secretary Henry M. Paulson, Jr.
(Reprinted from the New York Times)
We are going through a financial crisis more severe and unpredictable than any in our lifetimes. We have seen the failures, or the equivalent of failures, of Bear Stearns, IndyMac, Lehman Brothers, Washington Mutual, Wachovia, Fannie Mae, Freddie Mac and the American International Group. Each of these failures would be tremendously consequential in its own right. But we faced them in succession, as our financial system seized up and severely damaged the economy.
By September, the government faced a system wide crisis. After months of making the most of the authority we already had, we asked Congress for a comprehensive rescue package so we could stabilize our financial system and minimize further damage to our economy.
By the time the legislation had passed on Oct. 3, the global market crisis was so broad and so severe that we needed to move quickly and take powerful steps to stabilize our financial system and to get credit flowing again. Our initial intent was to strengthen the banking system by purchasing illiquid mortgages and mortgage-related securities. But the severity and magnitude of the situation had worsened to such an extent that an asset purchase program would not be effective enough, quickly enough. Therefore, exercising the authority granted by Congress in this legislation, we quickly deployed a $250 billion capital injection program, fully anticipating we would follow that with a program for buying troubled assets.
There is no playbook for responding to turmoil we have never faced. We adjusted our strategy to reflect the facts of a severe market crisis, always keeping focused on our goal: to stabilize a financial system that is integral to the everyday lives of all Americans. By mid-October, our actions, in combination with the Federal Deposit Insurance Corporation’s guarantee of certain debt issued by financial institutions, helped us to accomplish the first major priority, which was to immediately stabilize the financial system.
As we assessed how best to use the remaining money for the Troubled Asset Relief Program, we carefully considered the uncertainties around the deteriorating economic situation in the United States and globally. The latest economic reports underscore the challenges we are facing. The gross domestic product for the third quarter (which ended Sept. 30, three days before the bill passed) shrank by 0.3 percent. The unemployment rate rose in October to a level not seen since the mid-1990s. Home prices in 10 major cities have fallen 18 percent over the previous year. Auto sales numbers plummeted in October and were more than a third lower than one year ago. The slowing of European economies has been even more drastic.
I have always said that the decline in the housing market is at the root of the economic downturn and our financial market stress. And the economy, as it slows further, threatens to prolong this decline, as well as the stress on our financial institutions and financial markets.
A troubled-asset purchase program, to be effective, would require a huge commitment of money. In mid-September, before economic conditions worsened, $700 billion in troubled asset purchases would have had a significant impact. But half of that sum, in a worse economy, simply isn’t enough firepower.
If we have learned anything throughout this year, we have learned that this financial crisis is unpredictable and difficult to counteract. We decided it was prudent to reserve our TARP money, maintaining not only our flexibility, but also that of the next administration.
The current $250 billion capital purchase program is strong medicine for our financial institutions. More capital enables banks to take losses as they write down or sell troubled assets. And stronger capitalization is essential to increasing lending, which is vital to economic recovery.
Recently I’ve been asked two questions. First, Congress gave you the authority you requested, and the economy has only become worse. What went wrong? Second, if housing and mortgages are at the root of our economic difficulties, why aren’t you addressing those problems?
The answer to the first question is that the purpose of the financial rescue legislation was to stabilize our financial system and to strengthen it. It is not a panacea for all our economic difficulties. The crisis in our financial system had already spilled over into the overall economy. But recovery will happen much, much faster than it would have had we not used TARP to stabilize our system. If Congress had not given us the authority for TARP and the capital purchase program and our financial system had continued to shut down, our economic situation would be far worse today.
The answer to the second question is that more access to lower-cost mortgage lending is the No. 1 thing we can do to slow the decline in the housing market and reduce the number of foreclosures. Together with our bank capital program, the moves we have made to stabilize and strengthen Fannie Mae and Freddie Mac, and through them to increase the flow of mortgage credit, will promote mortgage lending. We are also working with the Department of Housing and Urban Development, the F.D.I.C. and others to reduce preventable foreclosures.
I am very proud of the decisive actions by the Treasury Department, the Federal Reserve and the F.D.I.C. to stabilize our financial system. We have done what was necessary as facts and conditions in the market and economy have changed, adjusting our strategy to most effectively address the crisis. We have preserved the flexibility of President-elect Barack Obama and the new secretary of the Treasury to address the challenges in the economy and capital markets they will face.
As policymakers face the difficult challenges ahead, they will begin with two considerable advantages: a significantly more stable banking system, one where the failure of a major bank is no longer a pressing concern; and the resources, authority and potential programs available to deal with the future capital and liquidity needs of credit providers.
Deploying these new tools and programs to restore our financial institutions, financial markets and the flow of lending and credit will determine, to a large extent, the speed and trajectory of our economic recovery. I am confident of success, because our economy is flexible and resilient, rooted in the entrepreneurial spirit and productivity of the American people.
November 10th, 2008
Posted by dee dee arena
It is not the time to feel bad about your home’s decrease in value since your 2006 appraisal, or the fact that your 401k account you plan to draw on in 12 years is down 34%. It’s time to make make the right real property investments.
Monday, November 3, 2008
ULI ranks Seattle top among real estate markets
Puget Sound Business Journal (Seattle) - Denver Business Journal
The Urban Land Institute named Seattle its top U.S. real estate market to watch next year, in its Emerging Trends in Real Estate 2009 report released
Oct. 21.
The report is based on the insights and predictions of real estate experts nationwide. According to the report, “Seattle boasts its ‘corporate giants,’ but
the market braces for rising downtown office vacancies; now at 10 percent. Tepid job growth will flatten rental rates. Housing demand drops and prices
will slip, but stay above national averages. Interviewees rate the market a strong ‘buy’ for apartments, and the ‘number-one buy’ among industrials is
the Puget Sound ports.”
The top five markets named in the 2009 ULI report after Seattle were San Francisco, Washington, D.C., New York and Los Angeles.
Other top 10 markets were Denver, Houston, Boston, Dallas and Chicago.
The 30-year-old Emerging Trends report is the oldest industry outlook for real estate and land use in the nation, according to the ULI. The land group
collaborates with accounting firm PricewaterhouseCoopers LLP on the study, and polls more than 600 real estate experts across the country. Those
experts include investors, developers, lenders, brokers and consultants.
Experts cited in the 2009 Emerging Trends report expect the country’s real estate and financial markets to hit bottom next year.
Those markets are expected to flounder for much of 2010, with ongoing declines in property values, more foreclosures and “a limping economy that
will continue to crimp property cash flows,” the report said. Real estate values could drop 15 percent to 20 percent from their mid-2007 peak.
“Only when property financing gets restructured will pricing recorrect, so we can find the floor, and this transition could wipe out companies and
people,” one respondent said in the report.
Those interviewed for the ULI report generally believe financial institutions will continue to be pressured to move bad loans off their balance sheets,
and will do that via auctions. Investors will be discouraged until that “bloodletting” ends, the report said. When investors start buying again, cash and
buyers with low leverage will be “king,” banks will impose tougher lending guidelines and commercial mortgage-backed securities (CMBS) will be
popular again in a more regulated form.
One silver lining for the real estate market, according to the report, is that smart investors will be able to capitalize on the inevitable economic recovery,
which could come as early as 2010. “Money will be made on riding markets back to recovery and releasing properties, not on … financing structures,”
the report said.
Based in Washington, D.C., the ULI is a nonprofit group that advocates for responsible land use, and to create and sustain “thriving” communities
worldwide.
November 5th, 2008
Posted by dee dee arena
GET THE FACTS!
Start The Home Search
Start looking for homes using the Internet, where you will find financing options and home buying information. You are encouraged to use a Realtor for many reasons. They help take the mystery and fear out of buying your first home by:
*Researching the market and let you know if you are really getting a good deal
*Help with issues like property lines,easements, home inspections, earnest money, feasibility studies, septic/sewer, etc. There are hundreds of details that need to be considered when purchasing a home
*It does not cost you anything, not a dime to call a Realtor. Commissions are paid by the seller, not the buyer and are usually a percentage of the home sale price
With so many homes on the market, it is a good time to buy. You should be able to find the right home at a fair price. Keep track of interest rates and go online to use a mortgage calculator and plug in some numbers. Right now it is a buyer’s market and that is great news for you as a first time buyer.
Will prices go down further? There are hundreds/thousands like you renting and wanting to buy a home and are just waiting to see what the market is going to do. Now is a good time to buy because as more come forward to buy and reduce the number of homes for sale (inventory), the homes will go up.
Are You Ready to Buy Your First Home?
After you have determined how much home you can afford and if you have saved some money for a down payment on a home you wish to stay in for awhile, then the answer is yes.
Help With Your Down Payment
SHOP FOR A LOAN & RESEARCH FIRST TIME HOME BUYING PROGRAMS! There are many federal programs and dollars available to assist first time home buyers. Start with HUD at www.hud.gov Look for Down Payment Assistance Providers (DAPs), which are government agencies that are there to help you as a first time buyer. Most common is the the FHA(Federal Housing Authority) loan. The federal government knows that first time home buyers are good for the local and national economy. In some cases, you can get an FHA loan for as little as 3% down.
FINANCING!! There are many great programs for the first time home buyer. Spend TIME talking with a loan officer. This is a very important first step. Let them tell you what price range you can afford. It costs nothing to check and there are many reputible lenders in the South Sound area. Use your Realtor to help you find a good and reliable lender.
The best and safest investment is purchasing a home, even in today’s market.
$7500 First Time Homebuyer Tax CreditIn our quest to continue to provide excellence to you, please find below the key points of the First Time Homebuyer Tax Credit that became lawthrough the H.R. 3221 Housing and Economic Recovery Act of 2008. Please feel free to contact me should you have further questions. If thisinformation is not applicable to you, feel free to pass it on to your friends and family. We appreciate your trust.Feature H.R. 3221Housing and Economic Recovery Act of 2008Amount of Credit Ten Percent of the cost of home, not to exceed $7500.Examples: If a home costs $65,000, the allowable credit would be $6,500. If a home costs $120,000, then the allowable credit would be $7,500.Eligible Property Any single‐family residence (including condos) that will be used as a primary residence.Refundable Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.Individuals should consult a professional tax advisor for exact tax calculations.Examples: If an individual’s actual tax liability was $5,000, then after the tax credit is applied the purchaser would receivea total refund of $2,500. The refundable amount is the difference between the $7,500 tax credit and theamount of one’s tax liability. If an individual’s actual tax refund was $2,000, then after the tax credit is applied the purchaser would receivea total refund of $9,500.Income Limit Individuals whose Form 1040 filing status is single (or head of household) are eligible for thetax credit if their income is no more than $75,000. Individuals who file a joint return may haveno more than $150,000 in income. Individuals with incomes between $75,001 and 94,999(single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. Individualswith incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this taxcredit.First‐time Homebuyer Only Purchaser (and purchaser’s spouse) may not have owned a principal residence in three yearsprevious to purchase.Recapture A portion (6.67% of credit) is to be repaid each year for 15 years. If home is sold before 15years, then remainder of credit is due in the year of the sale. If a homebuyer claims the $7,500 credit in 2009 on their federal income tax return for a closing that occurredin 2008, then the credit is received in 2009, so repayment begins in 2010 with an annual repayment amount ofapproximately $500 a year. If the homeowner dies, their heirs do not have to pay back the remaining balance. If the house is sold before fifteen years have passed and the home’s appreciation is less than the amountneeded to be to paid back, the loan is forgiven. If the home is turned into a rental or investment property, the pay back balance is due in that year.Effective Date Purchases on or after April 9, 2008 until July 1, 2009
