All contracts must be ratified by April 30th 2010! You must close on the property by June 30th!
What is the tax credit for first-time home buyers? An eligible home buyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where a individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
The tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit? Darned if I know...just kidding. For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filling an amended 2009 tax return with Form 5405.
Wednesday, April 14, 2010
House Passes Legislation Extending FTHB Tax Credit for Veterans
There has been some confusion about the First Time Home Buyer's Tax Credit for Veterans. I hope this will clear any confusion up!
HR 3590 will allow eligible military personnel, foreigh service and intelligence officers to apply for $8000 tax credit for ONE YEAR BEYOND ITS CURRENT NOVEMBER 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spend at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the law. The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for the one-time opportunity to purchase a home.
HR 3590 will allow eligible military personnel, foreigh service and intelligence officers to apply for $8000 tax credit for ONE YEAR BEYOND ITS CURRENT NOVEMBER 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spend at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the law. The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for the one-time opportunity to purchase a home.
Thursday, April 1, 2010
Jan, Feb real estate market update.
Well, What is happening in the Colorado Springs housing market people!!! It's a mixed bag but here is what we know so far...
It STINKS!!! Just kidding...well sort of. The following is information as of the end of February 2010. The inventory of homes on the market is actually at a 4 year low! Good news for you sellers out there. There has been a 10% increase in the number of listings over the last 60 days which is the largest surge in listings since 2001...this could signal some downward pressure on prices in the future.
For those of you with homes under $250,000, there is a STRONG demand for your home! 82% of all sales in the last 90 days were under $300,000.
Colorado Springs has 8.7 months of inventory overall. Under $225,000 the inventory is even lower. Your price range is dictating how long it will take you to sell you home. Average months on market range from 2.54 for the $75,000 - $100,000 and a whoppin' 46.5 monthe for the $1.5 -$2.0 million price range. It's all about "hitting" the right price for the buyers who are currently in the market.
In January and February, 2010, less than 45% of all sales were distressed sellers (forclosures, short sales, etc.) Sounds terrible doesn't it! Well, compare that to 60% during the same time frame last year in 2009 and it makes this year look pretty rosey!
Interest rates remain low for now. Experts have been predicting increases starting in April due to a change in the fed's policy with respect to the purchase of mortgate backed securities. So what are you buyers waiting for?
March information will follow in a few days as we are just compiling this data.
It STINKS!!! Just kidding...well sort of. The following is information as of the end of February 2010. The inventory of homes on the market is actually at a 4 year low! Good news for you sellers out there. There has been a 10% increase in the number of listings over the last 60 days which is the largest surge in listings since 2001...this could signal some downward pressure on prices in the future.
For those of you with homes under $250,000, there is a STRONG demand for your home! 82% of all sales in the last 90 days were under $300,000.
Colorado Springs has 8.7 months of inventory overall. Under $225,000 the inventory is even lower. Your price range is dictating how long it will take you to sell you home. Average months on market range from 2.54 for the $75,000 - $100,000 and a whoppin' 46.5 monthe for the $1.5 -$2.0 million price range. It's all about "hitting" the right price for the buyers who are currently in the market.
In January and February, 2010, less than 45% of all sales were distressed sellers (forclosures, short sales, etc.) Sounds terrible doesn't it! Well, compare that to 60% during the same time frame last year in 2009 and it makes this year look pretty rosey!
Interest rates remain low for now. Experts have been predicting increases starting in April due to a change in the fed's policy with respect to the purchase of mortgate backed securities. So what are you buyers waiting for?
March information will follow in a few days as we are just compiling this data.
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