Forbes: 10 Best Cities for a Housing Recovery

Forbes Magazine has reported on 10 of the best cities for a housing recovery. Most of the cities were in the first group of cities to have a slow down in their housing market. Since homeowners or sellers in these markets had a hard time selling their homes and sold for lower prices than in previous times, the real estate market in the Raleigh-Durham area was effected. The number of buyers coming to our area slowed down. They also didn't have as much money to put into a new home when they arrived to our area.

I recently had an e-mail conversation with a former client/neighbor of mine who moved to the Miami-Ft. Lauderdale area in 2006 just before the slow down in the FL market. They bought a home that had been a foreclosure that needed work. They got a great deal on that home at that given time. This past winter they were given the opportunity to transfer. The appraisal on their home came in almost $100,000 less that what they had in the home. However, this summer, similar homes to theirs have sold much closer to the price they purchased their home for in 2006.

So, there is good news out there in the big world. Slowly, one step at a time the housing market will recover back to some "normal" level!

To read the article in Forbes: http://www.forbes.com/2009/08/13/recovery-cities-homes-lifestyle-real-estate-housing-recovery-cities.html

What's In It For You, You ask?

In addition to the First Time Home Buyers tax credit, The American Recovery and Reinvestment Act of 2009 has tax credits for home improvements! The purpose of this part of the act is to promote green jobs and energy independence. The home improvements are all related to improving the energy efficiency of a home. Below is a chart on which home improvement jobs are included and information on the tax credits:

• Windows and Doors 30% of cost up to $1500*
• Roofing 30% of cost up to $1500*
• Insulation 30% of cost up to $1500*
• HVAC 30% of cost up to $1500*
• Water Heaters 30% of cost up to $1500*

*subject to a maxi um of $1500 for all above improvements.

If you decide to use a geothermal heat pump or solar panels and water heaters, the tax credit is 30% of cost with no limit!

Tax credits reduce your total cost of the improvements. The credit is realized on your yearly tax return by reducing your total tax liability by the amount of the tax credit. For example, if you owe the Federal Government $4000 when you fill out your tax return and you have a $1500 tax credit due to qualifying home improvements, you will reduce what you owe the government by $1500 and only pay them $2500.

To qualify for the tax credit, the home improvement has to meet standards that will increase the home's energy efficiency. For more information, check out HGTV's website: http://www.hgtvpro.com/hpro/pac_ctnt/text/0,,HPRO_20196_87115,00.html
(the information is on the lower part of this website)

For more information on the tax credit, see: http://www.irs.gov/newsroom/article/0,,id=204335,00.html OR

www.recovery.gov

Tax Free Weekend Coming Up!

When the stores open on Friday, Aug. 7 through when the stores close on Sunday, Aug. 9, many purchases will be sales tax free! Many states have eliminated the sales tax free weekends do to budget issues so we should thank NC for letting the consumers have this break!

What is tax free you ask?

• Clothing, footwear, and school supplies under $100
• Sports and recreation equipment under $50
• Computers under $3,500
• Computer equipment under $250
• School supplies

All retailers are required to take part in the sales tax free weekend provided they sell the above merchandise. So, go get started on school shopping and maybe even some Christmas shopping -Christmas will be here before you know it! Happy shopping!

For more details, go to http://www.dornc.com/practitioner/sales/bulletins/section34.pdf#34-24

Looking for Land and Great Fishing Pond?

20 acres with an approximate 6 acre pond great for fishing and canoeing.
2 additional homesites located on the property with water connections to the local community well.
Buyer can sell the additional homesites or use the property for a family compound.
Additional homesites would also make a great location for a horse barn since there is running water.
Horses allowed and other horse farms in the area.

1925 sf home that is designed for entertaining. Open flowing floorplan with lots of windows. Dining area is open to the kitchen and can accomodate a table to 8 people.
Living room has a gas logs fireplace.
Kitchen has eating bar, double ovens, solid surface countertops and pull out shelving.
The family room has 3 walls of windows with views of the pond.
The master bedroom has a walk-in closet, glamour bathroom and a private balconey overlooking the pond - great place to rest and relax at the end of a long day.
2 bedrooms on second level with a loft.
1 bedroom on first floor with full bath and door to the exterior - this room would also make a great home office.

Great property for fun and relaxation all for $439,900.
For more information, please give me a call at 919-612-1506
Or email me at beaverc@hpw.com.

$8000 Home Buyer Tax Credit

What a great program offered by the government! The tax credit applies to first time homebuyers and those buyers who have not owned a home during the 3 year period prior to the purchase. Here is a summary of the program:

· The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the
three-year period prior to the purchase.
· 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.

Because of the “mortgage crisis”, 100% mortgages are few and far between. FHA mortgage require 3% down. This tax credit allows buyers to put the money they have toward the down payment on a home and then get the tax credit money to put back in the bank account or to use towards the costs of homeownership.

For more details on this tax credit, go to:
http://www.federalhousingtaxcredit.com/2009/glance.php