Archive for February, 2009
Nevermind - The $15,000 Credit Is Out
February 11th, 2009 categories: Home Buyers
A few sources are reporting that the $15,000 tax credit for home buyers is history.
And after all that work on my last post, The Scoop on the $15,000 Tax Credit for Home Buyers.
Emily Litella can say it best.
| Discussion: 1 Comment »
Is Your Connecticut Real Estate Overtaxed?
February 10th, 2009 categories: Home Owners
CBS News’ Early Show had a segment on this morning to remind people to take a close look at their property’s assessment by their town to check for inaccuracies. There’s no time like the present.
An assessment is the value your town/city place on your real estate for tax collection purposes. Every few years, the town hires a company to do a revaluation and the company does an appraisal. Generally, the assessment is 70% of the value in the appraisal and you pay taxes based on the assessment (multiplied by the mill rate).
The issues with these appraisals is that more often than not, no person actually enters the home being appraised. Maybe a drive by is done but maybe not. As a result, “the inaccuracy rate on home assessments is between 30 and 50 percent, depending on the region (according to the National Taxpayers Union).”
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.
| Discussion: 4 Comments »
The Scoop on the $15,000 Tax Credit for Home Buyers
February 9th, 2009 categories: Central Connecticut News & Information, Home Buyers, Home Sellers
Whether you call it pork or stimulus, the bill being argued today in the Senate (and possibly voted on tomorrow) contains a significant incentive for some home buyers. $15,000 of incentive.
“I’m gonna run out and buy me a house.”
That’s what the National Association of Realtors, National Association of Home Builders, Connecticut Association of Realtors and even RE/MAX’s corporate office is hoping home buyers will be thinking (my inbox is chock-full of call-to-action e-mails from these organizations, telling me to call my Senator TODAY).
While the final details of the tax credit have yet to be screwed up approved by the Senate and then the President, the credit has been getting a lot of attention.
Here’s the Scoop…
- Up to 10% of the purchase price of a home, to a maximum of $15,000. Credit is applied to taxes you pay.
- Can be split over two years, but tax credit can only be used for purchases made up to one year from date of enactment.
- No income limits. (Unlike the $7,500 credit)
- Primary homes only and buyers must live in home for two years. New or existing houses.
- Does not have to be repaid, unless you sell before the two years. (Unlike the $7,500 credit)
- I don’t know if this cancels out the $7,500 credit, which was to be in effect until June 30th, 2009 or if it’s an either/or situation.
Who benefits?
Home sellers and buyers in middle - higher price ranges, temporarily.
The benefit is geared towards households who earn more than the median household salary in Connecticut. In order to receive the maximum benefit, a household would need to make earn more than $80,000/year.
Unintended Consequences
The Real Estate Bloggers has pointed out that one of the issues this bill creates is that people will hold off on buying homes until the credit is put into effect. If there is a delay, a major change or the bill isn’t passed in it’s current form, home buyers have been told there is a major problem in the housing market that has to be fixed.
So, buyers may wait until it’s been “fixed.” And just when home buyers and sellers were becoming resigned to the fact that housing prices sometimes go up, and sometimes they go down.
My concern is that the credit will extend the housing market decline. It’s entirely possible that the credit will drive more sellers to list (so they, too, can take advantage of the credit), trading down or up. According to Calculated Risk, the credit would not decrease housing supply at all.
It’s also possible that the credit will encourage home sellers to be overly optimistic about their home’s value, whether or not the credit increases actual demand.
You may also enjoy:
The New Housing Bill’s Impact on Home Buyers
Just How Did We Get Into This Mortgage Mess?
Good Fortune - PJ Harvey
Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.
| Discussion: 5 Comments »
Tyson Needs Your Help
February 6th, 2009 categories: Pets & People
I don’t often post urgent messages about pets who need a home. But I have a special place in my heart for pit bulls…maybe because they are the underdog and I like a good underdog.
Tyson was found wandering the streets of Windsor by a passerby and has been living in the Windsor dog pound ever since. I can’t blame the guy - he’s going nuts in the kennel and is really miserable. He’s so unhappy that he’s begun to hurt himself. He wants out of the kennel NOW.
If you can offer Tyson your home or know someone who can, call the Town of Windsor Animal Control at 860-688-5273 or e-mail davis@townofwindsorct.com.
| Discussion: No Comments »
Home Buying 101 - Step 6: Shop for a Loan
February 3rd, 2009 categories: Home Buying 101
This is the sixth installment in a series of twelve called Home Buying 101, now updated for 2009.
Once you’ve located a buyer’s agent, use him/her as a resource for a lender, inspector, attorney or anyone else you may need in the home buying process.
You have two choices when looking for a loan - a bank or a mortgage broker. For purposes of this article, I lump them together but they are different.
From the Motley Fool:
“Mortgage brokers are much like independent insurance agents…They have access to many lenders and many different programs. They charge a fee, and are sometimes compensated by the lenders. They provide a great service for many consumers, and originate more than 50% of loans in the country. Mortgage brokers normally originate the loan, process it, and pass it along to a lender, who sells it to an investor.” Read the rest of this entry »
| Discussion: No Comments »
