What would you do if you saw this headline? You'd probably be thinking, if it sounds too good to be true it probably is, right? Well in this case it almost is too good to be true, but not quite. The housing legislation signed into law in late July by the President has another little benefit hidden in there. The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500. The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments. Still not a bad deal considering you can do whatever you want with the money since it comes after filing your federal income taxes for tax year 2008. So buy a house, get up to $7500 tax free, invest it, use it for downpayment on another house or you could always do what most Americans would do......spend it on useless items that lose their appeal after a few weeks.
Sunday, September 28, 2008
Saturday, September 27, 2008
Bailout or Cop Out?
As Congressional leaders are meeting at this moment creating a rescue plan for the current economic crisis, the views and opinions are as varied as the number of people involved in the process. Hopefully, there will be some concrete plans in place by the end of the weekend.
There are numerous questions that need to be asked about this legislation that it seems no one is asking or answering. The recurring theme in this proposed plan is that the Federal Government (you and me) is going to buy out all of these mortgage securities.
Question #1 - What happens to all the real property (homes) that are tied to these mortgage securities? Do the banks relinquish these properties to the Feds and they now become owned by the Feds? In one of his speeches this week, President Bush indicated that the Feds would hold these properties until the market turns. So what are we talking about? 6 months, a year, two years or more? Fact is no one knows so we are going to allow whatever entity the government sets up to administer this monstrosity to hold these properties for an indefinite period of time? Things that make you go "hmmmm...."
Question #2 - How are they going to dispose of these distressed properties? What regulatory nightmare is going to be created in the process? More bureaucracy and costs, possibly less reimbursement for the provider of the services, i.e. REALTORS(TM) if healthcare and other government programs are any indication.
Question #3 - Who is going to maintain the properties while the government waits for the market to turn? HOA's? That will put additional burden on the taxpayers and homeowners because the HOA's will not be able handle these without raising their fees. Yet if they don't, the junky homes, overgrown yards and algae filled pools will draw property values down further defeating one of the purposes of the legislation!
Oh well, I guess we'll know before too long. However, don't forget the only place the Federal Government has to get money is to print it, borrow it, or take it from the taxpayer. I sure hope we get a good return on our investment. That'd be free enterprise socialism at it's best.
Thursday, September 25, 2008
Wednesday, September 24, 2008
Wednesday, September 10, 2008
Got Foreclosures?!
Most REO listing agents have a two "P" approach to selling bank owned homes:
1. Put it in the Multiple Listing Service (MLS)
2. Put a sign in the yard
This lacksidasical approach to selling real estate has led to diminishing closing rates on bank owned homes and diminishing property values across the valley. We attribute this to agents and companies getting in over their head with few systems in place for follow up, feedback and most importantly contracts. At My Arizona Home Team we are out to change this perception.
Our teams' combined experience of 50 years in the real estate industry and 7 years in the mortgage industry allows us to be quick in identifying and responding to situations before they become challenges. While most have been cutting back in this declining market, we have been moving forward increasing our advertisement budget and perfecting our systems.
If you have any questions about foreclosures or would like a free foreclosure list for homes in your area give us a call at 1-888-324-7052 or email at myazhometeam@aol.com
Sell your HOME!! September podcast!
Hey everyone!
Katie and Laurel, your favorite double agents, are at it again. Listen to this month's podcast for some tips on selling your home!
Please email us at myrealtalk@gmail.com with your questions and comments. We love hearing from you!
Tuesday, September 09, 2008
Another Hidden "Jewel" In Housing Legislation
This is courtesy of Kathy Morrow at On Q Financial:
"Tax change for home sellers? This portion of the recently passed housing bill is raising some eyebrows, and takes effect January 1. Prior to the bill's passage, homeowners could enjoy tax-free capital gains of up to $250,000 for a single person and up to $500,000 for a married couple if they used the home as their principal residence for at least two of the previous five years. Under the revised law, in the housing bill, a homeowner can no longer enjoy tax-free capital gains from the home during the years it isn't the owner's principal residence. For example, if a homeowner uses the house as a vacation home for three years and as a principal residence for the next two, the owner will have to pay capital gains taxes on three-fifths of the gain — which represents the three years the home isn't a principal residence. Previously, the homeowner would have pocketed the entire capital gain up to the limit."
So while downpayment assistance programs are getting most of the press, there are many "easter eggs" tucked away in this legislation that any homeowner must be aware of. Of course, consult your tax accountant for the impact this legislation may have on your particular situation.
