Monday, November 23, 2009

Tax Credit Not Just For First Timers

As expected the $8,000 first time buy tax credit has been extended by the federal government. The tax credit will apply for all home sales closed January 1 through April 30, 2010 and will also apply to sales that close by June 30, 2010 as long as they are under contract by April 30, 2010. The $8,000 tax credit is only for buyers who have not owned a principal residence for the last three years, but now there is a $6,500 tax credit for a buyer that has owned their own home. The maximum allowable income is the same, $125,000 for a single person and $225,000 for a married couple. Just as for first timers there is a maximum purchase price of $800,000. The move-up/repeat program requires that you have lived in your home for 5 consecutive years of the last 8 and are buying and moving into your new principal residence. There are no requirements that you must buy a home of equal or greater value, just no transactions between family members allowed. Hopefully many home owners will find this tax credit to be the extra motivation they need to move into the house or neighborhood they always wanted or maybe just downsize.

Tuesday, November 17, 2009

Open Water Gulfview Home For Sale

REDUCED AGAIN!!! $554,900
One of the newest gated communities in Key West, Roosevelt Annex is located off of North Roosevelt Boulevard offering waterfront homes and townhomes with beautiful open water views to the Gulf of Mexico.

Just a short walk, bike ride or drive to Old Town Key West and nearby shopping centers, restaurants, post office, drug stores, movie theater and many more establishments.

Invite some friends over and relax in the backyard of this well maintained townhome with a cocktail in hand, barbeque a juicy hamburger, take a dip in your very own private pool and enjoy the amazing sunsets over the bay that leads to the Gulf of Mexico.

Monday, November 2, 2009

Perfect Storm for Real Estate Purchase

With three significant conditions converging together in one place in time we are experiencing a never matched opportunity to invest in real estate. We now have mortgage rates below 5%, the more then likely extension of the $8,000 first time homebuyer credit, and record low prices in the Lower Keys. How long it will last is unknown, but it is here and it is happening now.

The week of October 9th showed an average 30 year mortgage rate of 4.87%, down from the prior week average of 4.94%. This has actually contributed to an 18% increase in refinance applications. The Federal Reserve has announced slowing down programs intended to lower rates, but it is predicted that there will be little change in the next 30 to 45 days.

The $8,000 tax credit for first time home buyers, due to expire November 30, 2009 is most likely to be continued for at least six more months. There is even one bill sponsored by a senator from Georgia that is proposing that it not only be extended, but it be for $15,000, no longer be for only first time home buyers only, and have no maximum income caps (currently $75,000 for a single person and $150,000 for a married couple). Wow, that would really crank things up to the next level!

Last, but not least, everyone is so well aware of the fact that we have never seen prices this low. In some neighborhoods the values have gotten in the time machine of real estate travel and gone back 8 to 9 years. A family can now actually buy a home and have a monthly payment less then rent. We no longer need an affordable housing program, it is here, and investors, you can now buy and actually have a positive cash flow.

The planets will most likely never align together in this way for a very long time, call me today to talk about your next real estate purchase.