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Attention First-Time Homebuyers: Care for $8,000? |
If there is one bright spot in the dark
economic picture, it may be this - it's a great
time for first-time homebuyers to
join
the ranks of homeownership.
If you haven't owned a house in at least
three years, conditions are right for you to
buy a home, for three simple
reasons:
- Housing prices have
dropped.
Unless you have been living in a
convent in rural
Venezuela, you know that the real
estate market is
in a slump and pricing is depressed.
-
You have nothing to sell.
People
who need
to sell in order to buy are often
stuck
wondering which to do first. They have
trouble
accurately assessing their budget without
knowing
their current home's selling price. Plus, what
if they
lose money? Without anything to sell, you
are in an
excellent position to take advantage of the
lower
housing prices.
-
You can have $8,000 free and clear.
Uncle Sam really wants you to buy a house.
In fact, if
you've never owned one, you are eligible for
an $8,000
tax credit.
Before you click away from this newsletter
to
find your
dream home in an online listing, let's talk
about a few
specifics of the tax credit.
Who?
Any individual whose Adjusted Gross
Income (AGI) is less than $75,000
per year
or a married couple whose combined AGI is
less
than
$150,000 qualifies. You cannot have owned
a primary
residence in the past 3 years.
What?
It's money for first-time buyers - free and
clear. The 2008 first-time
homebuyer plan required people to pay the
money
back to the feds. It was actually a no-interest
loan.
This one for 2009 is money in the
bank.
When?
You must have purchased a primary
residence on or
after January 1, 2009 and before December
1, 2009.
Where?
Wherever you want to buy a home, and
whatever type
you want - single families, condos, or
multi-family units that serve as your primary
residence are
some examples.
How?
Simply claim the credit on your federal
income tax
return when
the time comes. Be sure to fill out an IRS
Form 5405.
You do not need any pre-approval or
permission. (Of
course, you should make sure you qualify
before you
take any major steps.)
Why?
More consumer spending means more jobs.
More
jobs mean more spending. More spending
and more
jobs mean higher real estate prices, so get
moving
before things get too good!
For more information about the 2009
first-time
homebuyers' tax credit, check out:
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June's Home Value Improver |
Should You Add a Deck to
Your Home?
If the impending sunshine has you
hankering for some outdoor time, you may
be thinking
about adding a deck onto your house.
Fortunately, in
addition to being fun to have, a deck adds
value to
your home. Real estate professionals
estimate that
homeowners can recoup up to 75% of the
cost of
building a deck.
Before you start seeking a contractor or
digging up the
dirt if you're doing it yourself, take some time
to think
about the following:
1. Decide what you will do on your
deck.
- Will you entertain lots of people or will it
be just you
and your spouse?
- Will there be children around or will it
see mostly
adult use?
- Does it lead to a pool or a spa?
- Do you need privacy from neighbors?
2. Get the appropriate
permits.
- Start at your local town or city Building
Department and get information about the
zoning laws that may apply and the permits
that are required.
- If you have a homeowner association,
learn its
rules about decks.
- Find out if the utility companies have any
pipes
buried in your yard that could be disturbed
by
digging.
3. Consider cool design
features.
- If form matters as much (or more) than
function to you, you might include some
design flairs,
such as 45-degree angles, multiple levels,
or just a
funky-shaped deck.
- You might also consider a "cut-out,"
which
means that your deck can actually be built
around a
tree or other structure.
4. Choose your material of
choice.
- Pressure-treated wood works well, but
will
undergo the wear and tear of any wood due to
insects, color changes, etc.
- Composite material sometimes is more
difficult to
install, although some of the material acts
just like
wood. One drawback is that it can sag at the
joists in
the heat.
5. Figure out your budget (Yes, I
saved this for
last.)
- Prices vary widely depending on the
materials and style you choose.
- If you have the deck designed, consider
buying
materials and pulling permits yourself. If you
do this
work, you will save money on any work a
contractor may do.
- Committed do-it-yourselfers will save
the most money, of course. But make sure
you can devote the time and attention the
project deserves.
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We are in an extremely volatile market. My
advice to homeowners is to find a rate you
can live with, lock it in and move on.
It is never wise to play the market - very few
people win in Vegas, and very few win when
gambling with mortgage rates.
Two things I have learned in my years so far:
1. Never run for the bus.
2. Lock and close and move on with your
life - a .125% or .25% rate change usually
makes a very small difference in monthly
payments.
As always, I am happy to discuss your
specific situation or answer any questions
you may have!
Best regards,
Debbie Siegel
President
Westchester Mortgage
P.S. You're receiving this E-Newsletter because you have a prior relationship with me or with Westchester Mortgage. If I've sent this to you in error, or if you want to remove yourself from the list at any time, just click the "SafeUnsubscribe" link at the bottom of this e-mail.
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