Tax Credit Rumors

In the real estate business, there is much talk about the tax credit especially now that there is a crunch to get all of those “wait until the last minute” first time homebuyers qualified for their mortgage and closed by the end of November.  Once the possibility of an extension existed, the story has been all over the map.

According to the San Antonio Business Journal, if the proposed legislation in the U.S. House of Representatives is passed, it will extend the first time home-buyer tax credit through June 1, 2010.  The bill will exempt military personnel from a provision that prevents homeowners from utilizing the credit and selling within the first two years since they often must sell their homes quickly with new military orders.

Okay, in addition to the extension, another piece of legislation would raise the credit to $15,000, and eliminate income restrictions.  Wow!  Who could resist that kind of a tax credit and get a house as a bonus, too?

Unspent funds from the economic stimulus package will pay for these two bills, if they pass.  Unspent funds?  Have you driven just about anywhere in America lately?  Road construction.  I am amazed there are unspent funds but who’s counting? Hopefully someone, and, of course, as a Realtor, I love the idea of an extension.  $8,000 is a great tax credit for first time homebuyers but $15,000 is nearly twice as nice.  Is it necessary to raise it to $15,000?  I haven’t heard the school of thought behind that bill.  So, at the end of November, will all those buyers delay closing until December so they can get a nearly double the tax credit?  Hmmmm!

It is obvious that if the first time home-buyer tax credit is going to be extended, our government had better make a decision quickly.   Is that an oxy-moron?  We shall see.

Happy House Hunting

Happy House Hunting

Published in: on October 18, 2009 at 2:45 am  Leave a Comment  
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1975 vs 2009 Interest Rates

When I purchased my very first home in the 70’s, Adjustable Rate Mortgages (ARM’s), were becoming popular because interest rates were prohibiting many young couples, and, no doubt, not so young, from qualifying to purchase a home.  The American Dream out of reach for so many.  We were fortunate enough to finance our first home at an interest rate many coveted – 11% fixed.  Yes, I said eleven percent.  Doesn’t that sound unbelievable?  Unbelievable or not, it is quite true.  That year, my brother-in-law also purchased a house and because interest rates by then were hovering around 17%, he secured an ARM.  That was the first I had heard of ARM’s.  Now, when I hear mumbling and complaining about interest rates moving up to 6% fixed, I am compelled to get on a soap box.  I sound more like my mother every day.

Last week, interest rates were below 5%.  Yes, BELOW five percent!  Wow!  That’s almost like buying a house at 30 years-same as cash!  It is, in comparison to our interest rate in the 70’s.

Consider now, being a first time homebuyer and purchasing your very first starter home at an almost, if not completely, record setting low interest rate of approximately, let’s say……….4.675% and to top that an $8,000 tax credit.  Weigh that against renting or waiting.  Some folks will wait and regret waiting while they continue to rent.  Don’t get me wrong, I know and understand that some people can not qualify to purchase a home due to previous unfortunate events or just plain old financial irresponsibility.  But, if you’ve been in a quandary, because of the negative media regarding the economy and real estate, consider the savings of buying a larger home during these economic times.  I own rental property and the facts are, at least in the Tulsa area, house rent is higher than house payments. I almost wish I was a first time home buyer.  But then again, if I was, I wouldn’t have a soapbox now would I?

Happy House Hunting!

For Sale: 3BR/1BA Single Family House in Claremore, OK, $78,000

This is a great home for first time home buyers. Don’t delay…the $8000 tax credit expires soon. Call or text me today 918-798-7271.

For Sale: 3BR/1BA Single Family House in Claremore, OK, $78,000

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Published in: on September 24, 2009 at 9:08 pm  Leave a Comment  
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July 2009 Home Sales Statistics

Here are the most current real estate statistics provided by the Greater Tulsa Association of Realtors. The market is holding and there is a surge of activity of first time home buyers due to the $8,000 tax credit which expires December 1, 2009. If you have any questions about buying, selling or the statistics, please give me a call at 918-798-7271.

July 2009 Home Sales

FIRST-TIME HOME BUYER TAX CREDIT

Time is running out on taking advantage of the $8,000 tax credit for first-time home buyers. The tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. What is the homebuyer tax incentive? Read all about the program basics in the brochure which can be found in My Shared File Box.

Published in: on August 26, 2009 at 9:06 pm  Leave a Comment  
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