$7500 Tax Credit 10/23/08
On July 30th President Bush signed H.R.3221 into law. Part of this housing bill created a new, temporary tax credit to provide an incentive for first time homebuyers. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009
It is important to know that unlike other tax credits, this tax incentive must be paid back. All eligible purchasers who claim the credit will be required to repay it over 15 years. Thus, a buyer who qualifies for the full $7500 credit will repay $502.50 each year. There are no interest charges on the outstanding balance. If the home is sold during the 15 year repayment period the balance will be due in the year of the sale.
There are eligibility requirements and many of the mechanics of repayment are unknown. As always with any tax law change, check with a tax advisor if there are questions about using this provision.
Articles for buying and selling real estate.
Down Payment Assistance 8/01/08
PROHIBITION OF SELLER-FUNDED DOWN PAYMENT ASSISTANCE
The House of Representatives passed H.R. 3221, which addresses a wide range of housing related issues.
One issue that will have an immediate effect on the housing market is the prohibition of down payment assistance programs. After October 1st 2008, buyers may not be able to use down payment assistance programs such as Nehemiah. Buyers may still receive down payment assistance from family or an employer however it must be a gift.
For example a buyer, can afford the monthly payments but does not have sufficient savings to put down 3% on an FHA home loan may simply have to wait to purchase the home, without seller-funded down payment assistance.
Buyers: Talk to your Realtor & your loan officer to see if this change might affect your ability to make an offer on your new home.
Housing Report 5/13/08
The statistics below compare 2007 & 2008 ending March 31.
| |
Hancock |
|
Marion |
|
Hamilton |
|
Madison |
| Avg. Sale Price: |
-5% |
|
-7% |
|
1% |
|
-4% |
|
| Units Sold: |
-3% |
|
-12% |
|
-10% |
|
-8% |
What does this mean to you?
For Seller’s: it is very important that you seek sound advice from a real estate professional who will take a close look at the market in your neighborhood & surrounding community to develop a realistic & sound pricing strategy for your home.
For Buyer’s: If you are in a good financial position, this is a great time to buy. Interest rates are still low, home prices are down & there are plenty of homes to choose from. Consult your Realtor, he or she can save you tons of time sorting through the homes on the market and find the right home for your budget.
Source: Metropolitan Indianapolis Board of Realtors report. 4/22/08