February 25th, 2009
To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing efficiency efforts.
Adam Turriff
ERA Titletown REALTORS
Posted in Economic | No Comments »
February 19th, 2009
Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)
Who will this apply to?
The credit will apply to First time home buyers. A taxpayer is considered a first-time homebuyer if he (or spouse, if married) had no present ownership interest in a principal residence in the U.S. during the 3-year period before the purchase of the home to which the credit applies. The first-time homebuyer credit phases out for individual taxpayers with modified AGI between $75,000 and $95,000 ($150,000-$170,000 for joint filers) for the year of purchase.
What time frame is the credit good for?
The home must be purchased between January 1, 2009 and December 1, 2009.
How do I know how large my Credit will be?
The credit is base on 10% of the sales price and caps at $8,000. For example, if you purchase a property for $50,000 the buyer would be eligible for a $5,000 credit. If a property is purchase for $80,000 the buyer would receive an $8,000 credit. The program caps at $8,000 so a property purchased for $100,000 the buyer would be eligible for $8,000.
How did I get my refund?
It is filed with your taxes. Eligible first-time homebuyers who purchase a principal residence after Dec. 31, 2008, and before July 1, 2009, may elect to treat the purchase as made on Dec. 31, 2008. Otherwise credit will be filed with your 2009 tax returns. Please contact your tax advisor for additional details.
What is the difference between the $7500 credit and the new $8000 credit?
The main difference between the credits is the new $8000 credit may NOT need to be paid back. The case it would need to be paid back would be if you did not reside in the property for 3 years.
Can I purchase a duplex?
Yes, but the property must be owner occupied for at least 3 years.
Adam Turriff
REALTOR
ERA Titletown, REALTORS
Posted in Economic, Financing / Credit, For Buyers | No Comments »
February 17th, 2009
According to the Wisconsin REALTORS Association, home-sale prices in the state held up better than the U.S. average in 2008. While home prices declined 9.5% nationally, prices dropped only 3.7% in Wisconsin. The average 2008 sale price of a residence in Wisconsin was $158,000. WRA President Bill Malkasian notes that prices in Wisconsin outperformed those elsewhere in the Midwest region too.
According to REALTORS Association of Northeast Wisconsin stats, home prices in the Green Bay market dropped only 2.16%. The average 2008 sale price of a home in Green Bay was $157,643, with an average of 148 days on market.
ERA Titletown, REALTORS is proud to offer you our preferred property program, Gold Star Property. Enlisting in the Gold Star Program ensures you a faster and smoother sale, since each Gold Star Property must pass a thorough inspection and includes an ERA Home Protection Plan. This assures buyers they are getting a quality home which is properly priced - without unpleasant surprises.
Our 2008 year end results for this program yielded an average of 96 days on market, compared to the average of 156 days for the local market as a whole.
Craig Amundson
REALTOR
ERA Titletown, REALTORS
Posted in Economic, For Buyers, For Sellers | 1 Comment »
