Orlando Short Sale Expert | Orlando Short Sales » $8000 Tax credit

The Cost of the Orlando Home Buyer Tax Credit

jerrylarose — Wed, 25 Nov 2009 18:21:41 +0000

With all the stimulus packages being floated out there at costs of up to $5,000 per tax payer (per program), the question comes begging about the Homebuyer Tax Credit.

“At $8,000 for each first-time homebuyer and now $6,500 for move-up buyers – how much is that going to cost the American taxpayers?” Good question. Not knowing how many people will be able to take advantage of it, we’ll have to start with some guestimates.

Keep in mind, first, that about 4.5 million existing home sold in 2008 altogether and we have been on track to sell roughly the same in 2009.

For 2009, the tax credit was only for first-time buyers and up to $8,000 (10% of the sales price, not to exceed $8,000). So not everyone received the $8,000 if they purchased a house less than $80,000 – but let’s go ahead and say they did for argument sake.

If the stats hold true, and that is about half of all buyers are first-timers, then there were 2.25 million buyers that qualified (assuming they didn’t go beyond the income limits – which many did). But for simplicity, we’ll say they all qualified.

Simple math puts the tax credits at $18 billion for 2009 that doesn’t have to be paid back. For all the money that’s being floated out there to stimulate the economy, this is probably the best plan in play.

Now, before all my conservative friends blow a vein behind their eyeballs that are now popping, here’s what happens when a homeowner purchases a house (vs., say when someone buys a car or some other depreciating asset). They spend money on it. Lots of money.

The foreclosures/short sales that have made up most of the market for the last 2 years are mostly in paltry condition and need paint, carpet, appliances, countertops, cabinets, windows, landscaping, rot replacement, sump pumps, mold remediation, heat pumps, etc.

Unless you saw these houses, you just wouldn’t understand. I’m not talking “updating” homes that would otherwise be in good living condition, but making them inhabitable altogether. In fact, regular home buyers like you and me can’t even finance many of these houses because of the condition they’re in.

People get into a tizzy about home flippers swooping in and making “all this money” by flipping a house. Let me tell you – without the flippers some of these houses would completely fall apart. Remember, that lenders WON’T LEND MONEY on a house without complete bathrooms, that are mold invested, lack certain appliances, etc. And the REO banks WON’T fix them up to sell them. They just let them deteriorate while they wait for a buyer.

Enter the investor/rehabber who purchases the house with either cash or off-line financing, then fixes it up to pristine condition, sells it at a fair price and moves on to the next project. They are providing a much-needed service to even make the houses salable, much less inhabitable.

Now, as the market turns around in city after city (that’s what the increase in pending sales is all about across the country), we’ll see an increase in sales and a use of the home buyer tax credit to fix up the housing pool.

The tax credit for home buyers has played its role and now it will go away April 30, 2010. The question for consumers is will they recognize and act on a good deal when they see it?

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://OrlandoShortSaleExpert.com or www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange or Osceola County Florida and Orlando, Windermere, Winter Garden, Kissimmee or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

$8000 First Time Homebuyers Tax Credit Extended! Orlando Real Estate should continue to Recover

jerrylarose — Fri, 06 Nov 2009 13:53:55 +0000

Great news…

The U.S. House of Representatives has just voted (403-12) to extend and expand the homebuyer tax credit. It’s now on its way to the President for his signature!

You can view (and print) a one-page PDF document that outlines the final provisions using this link:

http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

The modifications in the column labeled “December 1 – April 30, 2010” become effective when President Obama signs the bill (he is expected to sign by tomorrow). All changes made to the current credit become effective on that date, as well.

Thank you to everyone for the endless calls and emails to our Congressional Delegation! This is a great win!

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Orlando First time home buyer get more relief regarding $8000 tax credit

jerrylarose — Thu, 29 Oct 2009 18:11:26 +0000

Great news!

The US Senate voiced support on Wednesday for extending and expanding a soon-to-expire $8000 first time homebuyer tax credit.

The Extended and Expanded Tax Credit agreement includes the following provisions:

Amount: $8,000

Who: First-time homebuyers — same definition as current law

Amount: $6500

Who: Repeat purchasers. Have used previous home as principal residence 5 of the 8 previous years.

Income Limits: $125,000 for single filers/$225,000 for joint filers. Same for first-time & repeat/move-up buyers

Limitation on cost purchased home: $800,000

Time Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010

Anti-fraud measures have been added.

Time is Running Out for Orlando First-Time Home Buyer Tax Credit

jerrylarose — Tue, 27 Oct 2009 12:44:03 +0000

The clock is ticking. Time is running out. To be exact, time runs out midnight, November 30, 2009. Many readers will know what I am referring to. Under the American Recovery and Reinvestment Act of 2009, November 30 is the last day for a home purchased by a first-time home buyer to qualify for the $8,000 tax credit. The purchase must be closed and title transferred by that date. It will not be sufficient simply to be under contract or in escrow.

By way of a brief refresher:

The tax credit is for first-time home buyers only. For the program, the IRS defines a first-time home buyer as someone who has not owned a principal residence for the past three years.
The credit does not have to be repaid.
The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.
The credit is available for homes purchased (closed) on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The credit can be taken for either 2008 or 2009 taxes. In the former case, an amended return can be filed.

By all accounts the program has been extremely popular – which is to say, successful. The National Association of Realtors® (NAR) estimated that, by September, about 1.1 million first time home buyers had used the program; and another 700,000 are expected to do so. Already, the Treasury Department has reported nearly 315,000 people have claimed the tax credit after filing an amended 2008 return.

As enacted, the program is set to expire at the end of November. A number of bills have been introduced to extend and/or expand it. Representative Eddie Johnson (D-Texas) introduced a bill to extend the program through 2010. Another would also expand it to all home buyers. In the Senate, a bill co-sponsored by Johnny Isakson (R-Georgia) and Chris Dodd (D-Conn.) would expand the tax credit to $15,000 and make it available to any buyer regardless of income.

One would think that at least the modest proposal for an extension would be a no-brainer. It is a government program that is working, for goodness sakes. But even that legislation is in doubt. Two obstacles are cited. One is the cost. Extending this program would result in reduced future revenues. The second problem is that such a bill will have a hard time receiving any attention while the Congress is – for the next foreseeable months – focused on considerably higher profile items such as health-care and Afghanistan.

The first so-called problem seems just crazy. Suppose an extension generated an extra 1 million sales. That would result in $8 billion in unrealized tax revenues. Now that is a lot of money; but it is chump change compared to the amounts that have been lavished on financial firms and auto makers, with yet to be determined beneficial effects. The tax credit program only costs money if it works. Its cost is proportional to its success. If it didn’t work at all, it wouldn’t cost a dime. Imagine that for a government program.

The second problem is realistic. There’s a lot of heavy-duty stuff going on. But, it would seem a simple extension of the program could be achieved with very little ado and virtually no distractions from the “big issues.”

Meanwhile, what should interested parties do?

If you are a first-time home buyer, you had better get off the dime. There’s certainly no guarantee the program will be extended.

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Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Bringing the Dream of Orlando Homeownership Within Reach

jerrylarose — Wed, 27 May 2009 12:08:01 +0000

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: HUD: Home Buyer Tax Credit Loans Still on Track (REALTOR® Magazine)

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

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Orlando First Time Home Buyer

jerrylarose — Tue, 28 Apr 2009 20:31:56 +0000

First Time Homebuyers

It is an historic time for first time homebuyers. The government, in an effort to stimulate our economy, is giving away money to first time homebuyers. It sounds to good to be true, but I assure you it’s not. I have provided a quick link to the Federal Housing Tax Credit for First-Time Home Buyers website, as well as a quick video that explains the credit. If you have any questions about this great stimulus, don’t hesitate to contact us directly. Don’t wait too long, this will only last through the end of the year.

Federal Housing Tax Credit Explained

Orlando Real Estate market update for March 2009

jerrylarose — Thu, 23 Apr 2009 14:01:43 +0000

Orlando Real Estate see new life. Buyers are back!ALERT: Sales INCREASED 47.59% in March compared to March of last year.

ALERT: First time home buyers now receive an $8,000 INCOME TAX REFUND – no strings attached. This IRS offer is also available to anyone who has not owned a home in the past 3 years. HURRY – Must Close Before December 1, 2009.

	2009	2008	2007	2006
March Sales	1,653	1,120	1,665	2,878
March Inventory	21,448	25,472	23,547	14,559

Orlando Buyer

Shopping for an Orlando house? Now is THE Best Time!

jerrylarose — Thu, 16 Apr 2009 19:32:30 +0000

Buy Now Orlando's On-Sale!

OK, I’m going out on a limb here!

After more than a year of free-falling sales and prices, Orlando’s battered housing market is getting support from both first-time home buyers and investors taking advantage of record foreclosures and distress sales across the region.Sales and how they work.Orlando area sales.Orlando market, and bankers are saying yes more often to short sales, which spare them the expense of a full-blown foreclosure.

With mortgage-interest rates at record lows and an $8,000 tax credit for buyers who haven’t owned a home for at least the past three years, existing-home sales in the region have started rising again compared with a year ago. And half the deals involve bank-owned foreclosures or “short sales” — properties for which the bank has agreed to take less than the amount owed on the mortgage. Throughout this blog you can find much more information on Short

Who’s buying them? Anecdotal reports and a few surveys indicate that first-time home buyers, who don’t have to worry about selling an existing property, and investors venturing into the second-home market for the first time or searching for bargains to add to their inventory, are responsible for most of the

Bulk auctions of both homes and condominiums are creating buzz in the local

Lenders are becoming more responsive. However, the short-sale process still remains slower and more cumbersome than a regular, open-market sale between a willing seller and a qualified buyer. The timing even though is better still encompasses a 4-6 month time frame in general. Therefore, Now is the time to buy. We are at or near the bottom of this cycle and there is little room for prices to continue to drop. Yes, prices in some area may continue to fall but as a general market I feel prices are ready to start stabilizing. Now, that doesn’t mean they’re headed up any time soon. I feel that we are at or near the bottom and we’ll drag along the bottom here possibly for several months before we start showing a modest increase. When price start to grow, I feel that the new growth will be at a 2-5% rate in general. Some areas more, some area less. So, Orlando buyers let’s BUY some property.

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$8,000 Orlando Home Buyer Tax Credit at a Glance

jerrylarose — Wed, 18 Feb 2009 22:39:50 +0000

$8,000 Home Buyer Tax Credit at a Glance

The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

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