It was the talk of the day. All the buzz was about extending the tax credit to Apr '09.
A Senate Committee reached a compromise yesterday to extend the $8000 tax credit for first time home buyers. They also are trying to add a $6500 credit for other primary home purchasers with a raised qualifying income limit to $125,000 for single taxpayers and $225,000 for joint taxpayers. Under the Senate panel compromise, buyers must have sales agreements in hand by April 30th and must close by June 30th, 2010.
But this measure still faces votes in the full Senate and the House in order to be passed.
Stay tuned!
Thursday, October 29, 2009
Best/Favorite City/Town in NJ Across Manhattan
Found it here: http://www.city-data.com/forum/new-jersey/802782-best-favorite-city-town-nj-across.html
Downtown Jersey City, NJ
Found this on the web but I don't know who to give credit to. I think it's a beautiful image of my city.
Wednesday, October 28, 2009
Federal First‐time Home Buyer Tax Credit - Everything You Need To Know...
In 2008, Congress enacted a $7,500 tax credit designed to be an incentive for first‐time home buyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.
For 2009, Congress has increased the credit to $8,000 and made several additional improvements. This revised $8,000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new home buyer tax incentive for 2009?
The 2008 $7,500, repayable credit is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7,500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time home buyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9,500, an $8,000 credit would wipe out all but $1,500 of the tax due. ($9,500 ‐ $8,000 = $1,500)
4. So what happens if the purchaser is eligible for an $8,000 credit but their entire income tax liability for the year is only $6,000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6,000, the IRS would send the purchaser a check for $2,000. The refundable amount is the difference between $8,000 credit amount and the amount of tax liability. ($8,000 ‐ $6,000 = $2,000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
6. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
7. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
8. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).
In this example, the disallowed portion of the credit is 75% of $8,000, or $6,000
($15,000/$20,000 = 75% x $8,000 = $6,000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8,000 = $2,000)
9. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single‐family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
10. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
11. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7,500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
12. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
13. Do 2008 purchasers still have to repay their tax credit?
YES. The $7,500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
14. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
15. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
16. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time home buyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
17. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
18. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible home buyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8,000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
19. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7,500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7,500 credit?
No, you would qualify for the $8,000 credit. Eligible purchasers who have already claimed the $7,500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
20. If I claim my 2009 $8,000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
21. I made an eligible purchase of a principal residence in May 2008 and claimed the $7,500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8,000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time home buyer.
22. I live in the District of Columbia. If I qualify as a first‐time home buyer, can I use both the $5,000 DC credit and the $8,000 credit?
No; double dipping is not allowed. You would be eligible for only the $8,000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8,000 credit are somewhat more easily satisfied than the DC credit.
23. I know there is no repayment requirement for the $8,000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. 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, including any refund you received from it. A few exceptions apply. (See below, #25). Note that this same 3‐year recapture rule applies, as well, to the $7,500 credit available for 2008. This provision is designed as an anti‐flipping rule.
24. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
25. I’m purchasing a home as a first‐time home buyer but can only obtain financing if my father signs on the mortgage. Do I still get the credit? Does my dad get any of the credit?
As long as you meet the definition of a first‐time home buyer, you should be eligible for the credit. The credit does not depend on the manner of financing. You must be the owner (or co‐owner) and you must use the home as your principal residence. The person who co‐signs the loan is not eligible for the credit, as the home (except in the rarest of circumstances) will not be the principal residence of the co‐signer.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
Prepared by the NATIONAL ASSOCIATION OF REALTORS®
For 2009, Congress has increased the credit to $8,000 and made several additional improvements. This revised $8,000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new home buyer tax incentive for 2009?
The 2008 $7,500, repayable credit is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7,500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time home buyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9,500, an $8,000 credit would wipe out all but $1,500 of the tax due. ($9,500 ‐ $8,000 = $1,500)
4. So what happens if the purchaser is eligible for an $8,000 credit but their entire income tax liability for the year is only $6,000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6,000, the IRS would send the purchaser a check for $2,000. The refundable amount is the difference between $8,000 credit amount and the amount of tax liability. ($8,000 ‐ $6,000 = $2,000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
6. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
7. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
8. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).
In this example, the disallowed portion of the credit is 75% of $8,000, or $6,000
($15,000/$20,000 = 75% x $8,000 = $6,000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8,000 = $2,000)
9. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single‐family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
10. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
11. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7,500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
12. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
13. Do 2008 purchasers still have to repay their tax credit?
YES. The $7,500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
14. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
15. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
16. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time home buyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
17. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
18. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible home buyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8,000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
19. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7,500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7,500 credit?
No, you would qualify for the $8,000 credit. Eligible purchasers who have already claimed the $7,500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
20. If I claim my 2009 $8,000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
21. I made an eligible purchase of a principal residence in May 2008 and claimed the $7,500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8,000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time home buyer.
22. I live in the District of Columbia. If I qualify as a first‐time home buyer, can I use both the $5,000 DC credit and the $8,000 credit?
No; double dipping is not allowed. You would be eligible for only the $8,000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8,000 credit are somewhat more easily satisfied than the DC credit.
23. I know there is no repayment requirement for the $8,000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. 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, including any refund you received from it. A few exceptions apply. (See below, #25). Note that this same 3‐year recapture rule applies, as well, to the $7,500 credit available for 2008. This provision is designed as an anti‐flipping rule.
24. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
25. I’m purchasing a home as a first‐time home buyer but can only obtain financing if my father signs on the mortgage. Do I still get the credit? Does my dad get any of the credit?
As long as you meet the definition of a first‐time home buyer, you should be eligible for the credit. The credit does not depend on the manner of financing. You must be the owner (or co‐owner) and you must use the home as your principal residence. The person who co‐signs the loan is not eligible for the credit, as the home (except in the rarest of circumstances) will not be the principal residence of the co‐signer.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
Prepared by the NATIONAL ASSOCIATION OF REALTORS®
New Jersey Real Estate Market Facts | Real Estate NJ
New Jersey Real Estate Market Facts | Real Estate NJ: "Real Estate Market Facts"
Time winding down for home buyers
By DAVID P. WILLIS • BUSINESS WRITER • October 26, 2009
APP.com
With its expiration just over a month away, a push is on to extend the first-time home buyers' tax credit, which boosted the beleaguered housing market in the midst of a recession.
There are competing ideas out there to extend — and even expand — the tax credit, which gives up to $8,000 to first-time buyers who close on a home by Nov. 30.
In a press conference on Monday at the New Jersey Association of Realtors in Edison, U.S. Rep. Leonard Lance, R-N.J., said his bill would open the tax credit to all people buying a primary residence, regardless of past home ownership or income. He would increase the credit to $15,000 and extend the program through Dec. 1, 2010.
"We do not want the American dream to expire," Lance said. "We want to make sure as many Americans as possible have home ownership."
Lawmakers are under pressure from real estate agents and others in the housing industry to extend the credit.
The timing is critical, Lance said.
In New Jersey, more than 45,000 first-time buyers will claim the credit in 2009, according to the National Association of Realtors. An additional 6,500 first-time buyers have purchased homes this year over the same period last year, said Diane E. Dilzell, president of the New Jersey Association of Realtors.
"We need this to expand," Dilzell said. "We need this to continue because you don't want to stop something dead in its tracks. You want the momentum to keep moving forward."
Lance warned of a "extremely detrimental impact" if the program isn't extended, he said.
Dilzell said people would continue to buy and sell homes. "Will it continue at the same pace that it's been doing since the $8,000 credit? We really don't have an answer for that."
In the Senate, Senate leaders are negotiating to extend the credit and gradually reduce it through 2010, Democratic Sen. Bill Nelson of Florida said Monday.
Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats, may seek to add the home buyers' extension to legislation extending unemployment benefits that may be debated as early as this week, according to Regan Lachapelle, an aide to Reid.
Another proposal by Sen. Christopher Dodd, D-Conn., Senate banking committee chairman, and Georgia Republican Sen. Johnny Isakson would extend the credit through next June and expand it to couples earning $300,000 or less, up from the current program's $150,000 maximum income eligibility for married couples.
The current program comes with costs. Congress allocated $13.6 billion for the home buyers' credit. As of July 17, 2009, more than 1.1 million tax returns claiming more than $8 billion in credits have been processed.
Lance said money from his proposal, needed in New Jersey because of the state's high housing costs, would come from unspent stimulus funds.
Boosting the credit further would help to create jobs, he added.
"New Jersey is also a state where we send a great deal of tax revenue to Washington and do not get much in return," he said.
APP.com
With its expiration just over a month away, a push is on to extend the first-time home buyers' tax credit, which boosted the beleaguered housing market in the midst of a recession.
There are competing ideas out there to extend — and even expand — the tax credit, which gives up to $8,000 to first-time buyers who close on a home by Nov. 30.
In a press conference on Monday at the New Jersey Association of Realtors in Edison, U.S. Rep. Leonard Lance, R-N.J., said his bill would open the tax credit to all people buying a primary residence, regardless of past home ownership or income. He would increase the credit to $15,000 and extend the program through Dec. 1, 2010.
"We do not want the American dream to expire," Lance said. "We want to make sure as many Americans as possible have home ownership."
Lawmakers are under pressure from real estate agents and others in the housing industry to extend the credit.
The timing is critical, Lance said.
In New Jersey, more than 45,000 first-time buyers will claim the credit in 2009, according to the National Association of Realtors. An additional 6,500 first-time buyers have purchased homes this year over the same period last year, said Diane E. Dilzell, president of the New Jersey Association of Realtors.
"We need this to expand," Dilzell said. "We need this to continue because you don't want to stop something dead in its tracks. You want the momentum to keep moving forward."
Lance warned of a "extremely detrimental impact" if the program isn't extended, he said.
Dilzell said people would continue to buy and sell homes. "Will it continue at the same pace that it's been doing since the $8,000 credit? We really don't have an answer for that."
In the Senate, Senate leaders are negotiating to extend the credit and gradually reduce it through 2010, Democratic Sen. Bill Nelson of Florida said Monday.
Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats, may seek to add the home buyers' extension to legislation extending unemployment benefits that may be debated as early as this week, according to Regan Lachapelle, an aide to Reid.
Another proposal by Sen. Christopher Dodd, D-Conn., Senate banking committee chairman, and Georgia Republican Sen. Johnny Isakson would extend the credit through next June and expand it to couples earning $300,000 or less, up from the current program's $150,000 maximum income eligibility for married couples.
The current program comes with costs. Congress allocated $13.6 billion for the home buyers' credit. As of July 17, 2009, more than 1.1 million tax returns claiming more than $8 billion in credits have been processed.
Lance said money from his proposal, needed in New Jersey because of the state's high housing costs, would come from unspent stimulus funds.
Boosting the credit further would help to create jobs, he added.
"New Jersey is also a state where we send a great deal of tax revenue to Washington and do not get much in return," he said.
Monday, October 26, 2009
Northeast Home Resales Post 11% Annual Increase
by The Associated Press, Oct 23, 2009
NEW YORK (AP) -- Home resales in the Northeast posted the biggest annual increase of any region in the country last month, reflecting a more stable market than September last year when financial markets were roiled.
The nine-state region registered 81,000 home resales last month, up 11 percent from a year ago, the National Association of Realtors said Friday. The median price, however, fell 7 percent to $234,700.
Nationally, sales of existing homes jumped almost 8 percent from September last year, without adjusting for seasonal factors. The median sales price declined 8.5 percent to $174,900.
Full Article here: http://www.nytimes.com/aponline/2009/10/23/business/AP-US-Home-Sales-Northeastern-Cities.html
NEW YORK (AP) -- Home resales in the Northeast posted the biggest annual increase of any region in the country last month, reflecting a more stable market than September last year when financial markets were roiled.
The nine-state region registered 81,000 home resales last month, up 11 percent from a year ago, the National Association of Realtors said Friday. The median price, however, fell 7 percent to $234,700.
Nationally, sales of existing homes jumped almost 8 percent from September last year, without adjusting for seasonal factors. The median sales price declined 8.5 percent to $174,900.
Full Article here: http://www.nytimes.com/aponline/2009/10/23/business/AP-US-Home-Sales-Northeastern-Cities.html
Saturday, October 24, 2009
Highlights from the Fed's latest economic survey
By JEANNINE AVERSA (AP) Oct 21, 2009
New York area This region covers New York and parts of Connecticut and New Jersey.)
The economy showed scattered signs of a pickup. Factory activity strengthened, with manufacturers optimistic about the near-term outlook. Retail sales picked up "noticeably" in September. Sales in New York City — which had been lagging other areas — improved "considerably" especially for a higher-end department store chain. Auto dealers saw sales fall with the end of the Cash for Clunkers rebate program. Tourism activity in New York City was sluggish. An ongoing "pronounced slump" in business travel was partly offset by leisure visitors. Broadway theater attendance picked up somewhat. Manhattan hotels reported steady occupancy rates.
Housing markets were sluggish across the region, although sales activity picked up in some areas. Commercial real estate activity was described as "steady to softer" with Manhattan's office vacancy rate continuing to climb. A major New York employment agency specializing in office jobs said activity "virtually ground to a halt" in the legal and publishing industries. Banks reported decreased demand for all types of loans, except home mortgages.
Full Article here: http://www.google.com/hostednews/ap/article/ALeqM5gJEolvXyelhD8fPHOlma_qWn1gPgD9BFOEVO0
New York area This region covers New York and parts of Connecticut and New Jersey.)
The economy showed scattered signs of a pickup. Factory activity strengthened, with manufacturers optimistic about the near-term outlook. Retail sales picked up "noticeably" in September. Sales in New York City — which had been lagging other areas — improved "considerably" especially for a higher-end department store chain. Auto dealers saw sales fall with the end of the Cash for Clunkers rebate program. Tourism activity in New York City was sluggish. An ongoing "pronounced slump" in business travel was partly offset by leisure visitors. Broadway theater attendance picked up somewhat. Manhattan hotels reported steady occupancy rates.
Housing markets were sluggish across the region, although sales activity picked up in some areas. Commercial real estate activity was described as "steady to softer" with Manhattan's office vacancy rate continuing to climb. A major New York employment agency specializing in office jobs said activity "virtually ground to a halt" in the legal and publishing industries. Banks reported decreased demand for all types of loans, except home mortgages.
Full Article here: http://www.google.com/hostednews/ap/article/ALeqM5gJEolvXyelhD8fPHOlma_qWn1gPgD9BFOEVO0
Friday, October 23, 2009
Home sales rebound to highest level in 2 years
Sales of existing homes bounce back to their highest level since July 2007, boosted by first-time homebuyers. Prices continue to fall.
Full article here: http://money.cnn.com/2009/10/23/real_estate/existing_home_sales/index.htm
Full article here: http://money.cnn.com/2009/10/23/real_estate/existing_home_sales/index.htm
Thursday, October 22, 2009
msnbc.com Article: The 100 best places to raise kids
Your Jersey City - LUCKY 13!
Article here: http://www.msnbc.msn.com/id/33385798/ns/today-parenting_and_family/from/ET
Article here: http://www.msnbc.msn.com/id/33385798/ns/today-parenting_and_family/from/ET
Preparing your home for the winter
Every fall, we button up the house by cleaning and checking, fixing and sealing. Turns out that getting the house ready for winter isn’t just a cold-winter thing—it’s an eco-friendly thing, too. A tight house uses—and loses—less energy, requires fewer natural resources and produces less pollution. With just a bit of effort, you can make your fall house chores even greener. Here’s how:
Seal: Gaps and spaces around windows and doors and in the attic can suck up to 30% of your home’s energy efficiency, according to the U.S. Department of Energy. Fill them with caulk and you’re being green. Use the right caulk, and you can be even greener. Low- or no-VOC caulks have fewer noxious chemicals, but they may not be the best choice. Look for a product with a long life expectancy, said Phil Smith with Minnesota’s Office of Energy Security. Using a caulk that has a 25-year life expectancy, such as siliconized acrylic, means you’ll use less material and discard fewer empty caulk containers over the years.
Cover: Even after window frames have been sealed, windows can be a source of heat loss and drafts. The standard fix—a window insulation kit—may not seem very eco-friendly. What’s green about stretching plastic over the windows and sealing it with a hair dryer? Quite a bit, actually. Insulated windows reduce heat loss. And you can make the insulation kits greener by re-using them. At the end of the season, remove the plastic carefully, roll it up and store it for next year. However, to be able to re-use the plastic, make sure you leave an inch or two of overlap when you install the plastic the first time.
Filter: Before the furnace starts working hard again, treat it to a new filter. Not all filters are created equal, though. The standard filter (think fiberglass mat in a metal holder) collects larger particles in household air that could interfere with furnace operation. But it’s designed to be replaced—and tossed in the garbage—every month. A high-performance furnace filter (one with large paper pleats) does a better job of keeping indoor air clean and needs to be changed only once or twice a year. Plus, the paper part of many high-performance filters is recyclable.
Insulate: Adding insulation keeps warm air in and cold air out, which saves money on heating bills and saves the planet’s resources. If you need to add insulation, one environmental choice is cellulose, which is made from recycled materials. “It’s taking yesterday’s newspaper and extending its life for a hundred years,” said Smith.
Prevent: Before the autumn rains and winter snows come, make sure your gutters and downspouts are in good condition and free-flowing. A dry house needs fewer repairs and dry walks and driveways need less deicer. If you do need new gutters, consider aluminum and steel. Because they’re recyclable, they’re a better choice for the planet than vinyl.
Read more: http://rismedia.com/2009-10-10/around-the-home-preparing-house-for-winter-goes-far-to-make-it-more-energy-efficient/#ixzz0Uf0oXpQv
Seal: Gaps and spaces around windows and doors and in the attic can suck up to 30% of your home’s energy efficiency, according to the U.S. Department of Energy. Fill them with caulk and you’re being green. Use the right caulk, and you can be even greener. Low- or no-VOC caulks have fewer noxious chemicals, but they may not be the best choice. Look for a product with a long life expectancy, said Phil Smith with Minnesota’s Office of Energy Security. Using a caulk that has a 25-year life expectancy, such as siliconized acrylic, means you’ll use less material and discard fewer empty caulk containers over the years.
Cover: Even after window frames have been sealed, windows can be a source of heat loss and drafts. The standard fix—a window insulation kit—may not seem very eco-friendly. What’s green about stretching plastic over the windows and sealing it with a hair dryer? Quite a bit, actually. Insulated windows reduce heat loss. And you can make the insulation kits greener by re-using them. At the end of the season, remove the plastic carefully, roll it up and store it for next year. However, to be able to re-use the plastic, make sure you leave an inch or two of overlap when you install the plastic the first time.
Filter: Before the furnace starts working hard again, treat it to a new filter. Not all filters are created equal, though. The standard filter (think fiberglass mat in a metal holder) collects larger particles in household air that could interfere with furnace operation. But it’s designed to be replaced—and tossed in the garbage—every month. A high-performance furnace filter (one with large paper pleats) does a better job of keeping indoor air clean and needs to be changed only once or twice a year. Plus, the paper part of many high-performance filters is recyclable.
Insulate: Adding insulation keeps warm air in and cold air out, which saves money on heating bills and saves the planet’s resources. If you need to add insulation, one environmental choice is cellulose, which is made from recycled materials. “It’s taking yesterday’s newspaper and extending its life for a hundred years,” said Smith.
Prevent: Before the autumn rains and winter snows come, make sure your gutters and downspouts are in good condition and free-flowing. A dry house needs fewer repairs and dry walks and driveways need less deicer. If you do need new gutters, consider aluminum and steel. Because they’re recyclable, they’re a better choice for the planet than vinyl.
Read more: http://rismedia.com/2009-10-10/around-the-home-preparing-house-for-winter-goes-far-to-make-it-more-energy-efficient/#ixzz0Uf0oXpQv
Wednesday, October 21, 2009
Industry's Most Powerful Associations Send Letters Advocating for Extension of Homebuyer Tax Credit
A copy of the letter is below:
Dear Secretaries Geithner and Donovan and Dr. Summers:
The undersigned trade associations have supported the first-time homebuyer tax credit as an effective housing stimulus during the current economic crisis. Congress established the homebuyer credit as part of the Housing and Economy Recovery Act of 2008 and it was subsequently expanded in the American Recovery and Reinvestment Act of 2009. The Internal Revenue Service (IRS) recently reported that over 1.4 million taxpayers have benefited from the tax credit as of August 2009.
The current global credit crunch and economic recession began in the U.S. housing market and recovery will not be complete until the housing market returns to economic health. In normal times, housing represents approximately 15% of U.S. gross domestic product, with numerous spillover benefits into other parts of the economy. Although we are seeing some improvement in the housing market, it is essential that the favorable impact of the first-time homebuyer credit be sustained beyond the upcoming expiration date of November 30, 2009.
The undersigned trade associations request your support for the extension of the first-time homebuyer tax credit for twelve more months.
Read more: http://rismedia.com/2009-10-19/industrys-most-powerful-associations-send-letter-to-administration-advocating-for-extension-of-homebuyer-tax-credit/#ixzz0UZwUmxIw
Dear Secretaries Geithner and Donovan and Dr. Summers:
The undersigned trade associations have supported the first-time homebuyer tax credit as an effective housing stimulus during the current economic crisis. Congress established the homebuyer credit as part of the Housing and Economy Recovery Act of 2008 and it was subsequently expanded in the American Recovery and Reinvestment Act of 2009. The Internal Revenue Service (IRS) recently reported that over 1.4 million taxpayers have benefited from the tax credit as of August 2009.
The current global credit crunch and economic recession began in the U.S. housing market and recovery will not be complete until the housing market returns to economic health. In normal times, housing represents approximately 15% of U.S. gross domestic product, with numerous spillover benefits into other parts of the economy. Although we are seeing some improvement in the housing market, it is essential that the favorable impact of the first-time homebuyer credit be sustained beyond the upcoming expiration date of November 30, 2009.
The undersigned trade associations request your support for the extension of the first-time homebuyer tax credit for twelve more months.
Read more: http://rismedia.com/2009-10-19/industrys-most-powerful-associations-send-letter-to-administration-advocating-for-extension-of-homebuyer-tax-credit/#ixzz0UZwUmxIw
Tuesday, October 20, 2009
Is 'now' a good time to sell?
No.
Those who can afford to wait until the market improves, should.
But for those who absolutely must sell today, sooner is better than later!
When inventory is greater than the demand to the extent that a significant surplus exists, prices are driven down. And not until the opposite is true that you can expect prices to rise again. With 2005 and 2006 5-year ARM loans set to adjust in 2010 and 2011, tons more houses are expected to be added to the existing inventory.
If you don't like the prices today, you'll like them even less later.
Incentives, low prices and better selections make buying attractive to buyers, however. And those who are looking today, despite the cold and upcoming holidays are really serious buyers.
So if you have to sell but was thinking about waiting until Spring? Think again.
Spring brings out more competition from others who are thinking just that.
Those who can afford to wait until the market improves, should.
But for those who absolutely must sell today, sooner is better than later!
When inventory is greater than the demand to the extent that a significant surplus exists, prices are driven down. And not until the opposite is true that you can expect prices to rise again. With 2005 and 2006 5-year ARM loans set to adjust in 2010 and 2011, tons more houses are expected to be added to the existing inventory.
If you don't like the prices today, you'll like them even less later.
Incentives, low prices and better selections make buying attractive to buyers, however. And those who are looking today, despite the cold and upcoming holidays are really serious buyers.
So if you have to sell but was thinking about waiting until Spring? Think again.
Spring brings out more competition from others who are thinking just that.
Monday, October 19, 2009
Time is running out!
The first time homebuyer tax credit is set to expire November 30th 2009.
With closing timelines stretching upwards of 30 days, lenders, appraisers, and title companies will be swamped with last second buyers trying to squeeze in!
Anyone still interested in taking advantage of the $8000 tax credit and low interst rate environment, should take action NOW!
Definition of 1st time buyer: The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
Who is eligible: First-time home buyer spurchaing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
Type of home: Any home that will be used as a principal residence will qualify for the credit. This includes single-family, attached homes such as townhouses and conndominiums, manufactured homes and houseboats.
www.mariadesagun.com
www.jerseycityexpert.com
With closing timelines stretching upwards of 30 days, lenders, appraisers, and title companies will be swamped with last second buyers trying to squeeze in!
Anyone still interested in taking advantage of the $8000 tax credit and low interst rate environment, should take action NOW!
Definition of 1st time buyer: The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
Who is eligible: First-time home buyer spurchaing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
Type of home: Any home that will be used as a principal residence will qualify for the credit. This includes single-family, attached homes such as townhouses and conndominiums, manufactured homes and houseboats.
www.mariadesagun.com
www.jerseycityexpert.com
Thursday, October 15, 2009
Buying a home...
Is one the biggest financial decisions most people will make in their entire lives, so it's only natural to have questions about the process, especially for first-time home buyers.
What are the benefits of owning versus renting a home?
When you add up the tax benefits of owning a home versus renting a home, it costs no more to be a homeowner than it does to rent, in many cases. With this in mind, why help finance your landlord's financial goals when you can own your own home and, as your equity grows, increase your savings for the future as well?
Does my credit score affect my ability to secure a home loan?
When it comes to qualifying for a mortgage, the answer is never simply a matter of yes or no; it's a matter of when: When will you be ready to qualify? While your credit score does affect this process, with credit repair services, government loans, and other programs and strategies, homeownership can be a reality for anyone willing to put in the necessary time and effort.
What's the difference between being pre-qualified and being pre-approved?
There's a world of difference. A pre-qualification is a statement based often on unverified financial data. A pre-approval, however, is a decision to loan, and carries a lot of weight with sellers. With a pre-approval, you are essentially a cash buyer, and not only do you know exactly how much you can afford, sellers will take your offer much more seriously knowing you are pre-approved.
Get all of the answers you need from a source you can trust.
What are the benefits of owning versus renting a home?
When you add up the tax benefits of owning a home versus renting a home, it costs no more to be a homeowner than it does to rent, in many cases. With this in mind, why help finance your landlord's financial goals when you can own your own home and, as your equity grows, increase your savings for the future as well?
Does my credit score affect my ability to secure a home loan?
When it comes to qualifying for a mortgage, the answer is never simply a matter of yes or no; it's a matter of when: When will you be ready to qualify? While your credit score does affect this process, with credit repair services, government loans, and other programs and strategies, homeownership can be a reality for anyone willing to put in the necessary time and effort.
What's the difference between being pre-qualified and being pre-approved?
There's a world of difference. A pre-qualification is a statement based often on unverified financial data. A pre-approval, however, is a decision to loan, and carries a lot of weight with sellers. With a pre-approval, you are essentially a cash buyer, and not only do you know exactly how much you can afford, sellers will take your offer much more seriously knowing you are pre-approved.
Get all of the answers you need from a source you can trust.
How refreshing!
I've been busier these days than I have all year. Some great listings (in the $500 and up range) are bringing in better quality prospects.
Patrick and I closed some nice deals in September and have more coming up at the end of this month and November.
Some experts are touting that we've hit bottom and see the future getting brighter, but I'm not altogether convinced.
There are still many adjustable rate loans set to adjust in 2010 and 2011.
I just saw a recent news article that Jersey City unemployment rate is 11.6% (and that doesn't include unregistered aliens).
We gotta keep fighting! And be fearless!
We will overcome.
Patrick and I closed some nice deals in September and have more coming up at the end of this month and November.
Some experts are touting that we've hit bottom and see the future getting brighter, but I'm not altogether convinced.
There are still many adjustable rate loans set to adjust in 2010 and 2011.
I just saw a recent news article that Jersey City unemployment rate is 11.6% (and that doesn't include unregistered aliens).
We gotta keep fighting! And be fearless!
We will overcome.
Sunday, October 4, 2009
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