Thanks to the: Historic Dryborough Association, the Neuse River Community Development Corp., Inc, the Greater Duffyfield Residents Council and the City of New Bern Planning & Community Development Dept. for allowing me to speak about home buying and real estate in general recently.
It is very exciting to see individuals taking the first steps to become responsible home owners.
Research shows that people who attend these types of classes and programs are 13% less likely to go into foreclosure, after they become home owners. Information is power.
New Owners
Today’s residential real estate buyer has a lot to be thankful for today!
I will will say it twice, “Today’s residential real estate buyer has a lot to be thankful for today!”
Why do I say that?
Look at this:
- Interest rates are approaching historic lows
- Home prices have stopped increasing by double digits
- There are lots of homes in great neighborhood available
- The $8000 tax credit is still available to some buyers if they act immediately! If you buy an $80,000 home that could be 10% off.
- The U.S tax laws smile on home owners. Homeowners get lots of tax benefits, currently like mortgage interest and property tax deductions.
- Under certain conditions buyers that later become sellers (3 years minimum) can shelter $250,000 in profits if they file single or $500,000 if they file married on the sale of their primary residence.
Is this a great country or what?
Cut off the T.V. and take advantage of America being on sale!
First Time Home Buyers Tax Credit
In my opinion the biggest risk for home buyers in 2009 is the failure to take advantage of the 2009 First Time Home Buyers Tax Credit. This program could have had other provisions included to help our clients navigate this challenging time in our economic cycle, however it still has a lot to offer individuals and families that can qualify.
- Up to $8000.00 or 10% of the purchase price of a home for qualified buyers.
- Very limited repayment conditions, i.e. own for 3 years, anti-flipping clause.
- Income limits of $75,000 single and $150,000 joint filing incomes so lot’s of people can qualify
- Easy way to claim the credit IRS form 5405
- Aimed at home ownership, not speculation. Owner occupied only, in the U.S.
My concern is that in North Carolina it seems that loans are taking longer to process due to re-fi’s and more banking oversight due to sins of the past. I hear that 40-45 days is now becoming more common to take a loan to closing.
Several things should be addressed with the potential first time home buyer:
- The deal must close by November 30, 2009 to get any credit as the bill is now written
- If it takes 45-50 days to close they can’t wait until November 1 to see what the economy will do
- Every 1% rise in interest rates reduces purchasing power by 10%
- The best homes always go first
- Sellers may be less reluctant to make concessions it they believe a turn around is building.
