Take the Plunge

07.31.09 by
Are you looking for some good reasons to take the plunge into homeownership? Certainly, there are many, but here are a few to chew on before you call an agent and begin your search.

If you haven’t owned a home in the last three years, then you qualify as a “first time buyer,” and you are eligible for up to an $8,000 tax credit if you purchase a home before December 1, 2009. Combined with low-interest rates, now is an excellent time to seek financing and make your move. If you get a fixed-rate mortgage, your monthly payment will always remain the same, while rent and everything else keep going up.

The investment potential of buying a home is very attractive right now because values that were driven down by foreclosures will climb back upward. That means the value of the home you buy now will rise, and soon, resulting in instant equity!

And think about the return on that investment. If you put $10,000 into the stock market and earned 10%, your profit would be $1,000. Put that same $10,000 into a home purchase that appreciates 10%, and you’ve made $10,000.

Finally, there is simply the security of owning your own home and having absolute control over making it as comfortable as possible for your lifestyle. Need more reasons? Call an agent today!

Understanding real estate dilemmas and their solutions is our business, and we’ll happily share our knowledge with you. Why not visit our website GabeSanders.com or call us at (772) 888-2885.

Make Your Move NOW!

07.25.09 by

ALERT: Buyers only have until December 1, 2009 to take advantage of the first-time buyers tax credit authorized in the American Recovery and Reinvestment Act of 2009. Consult now with your tax advisor and real estate representative to get moving!

Most first-time buyers (who haven’t owned a home in three years) will qualify. If you’re married, you and your spouse must both satisfy this description.

There are income limits for claiming the credit of up to 10% of the home’s purchase price, which maxes out at $8,000. If your modified adjusted gross income (on IRS Form 1040, line 37) is less than $75,000 for individuals or $150,000 for married filing jointly, you can claim the maximum credit. For incomes up to $95,000 or $170,000 respectively, the credit is reduced.

This is not a tax “deduction,” but a tax “credit,” meaning that the amount you claim is reduced from your total tax bill! If you will owe less than $8,000 on your 2009 return, you’ll get a REFUND from the IRS for the difference!

The biggest news is that in response to pressure from the National Association of REALTORS®, FHA lenders will allow buyers to use the credit to cover closing costs, buy down the rate, or as an additional down payment! I urge you to take this money from the government and make your move before December!

the Gabe Sanders real estate team

Stuart Florida Real Estate

Residential Homes, Condos and Land

Waterfront and Golf Course Communities in Martin and Saint Lucie Counties

Singles qualify for full $8,000 tax credit

05.16.09 by

It’s good news for people who are single, divorced or widowed: They get the same income tax credit when buying a home as married couples do.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit for up to $8,000 when you purchase a home before December 1 of 2009. Whether the buyer is an individual or a married couple, they qualify for the same amount.

One exception: If the buyer is married and buying a home as an individual, that person only gets a $4,000 tax deduction.

Couples qualify for the tax credit if they have an income of $150,000 or less. A single buyer has to have an income of $75,000 or less. (If their income is higher, they get only a percentage of the $8,000 tax credit.)

Other provisions of the Act: First, you have to be a first-time buyer. If you haven’t owned a home in three years, you qualify as a first-time buyer.

Second, the amount of your credit depends on the price you pay for the home. The credit is 10 percent of the price up to $80,000. If you buy a place for $50,000, for example, you would get a tax credit of $5,000.

If you buy a house for more than $80,000, you will get the $8,000 tax credit rather than 10 percent of the purchase price.

Get your tax refund right away when you buy

You don’t have to wait until you file your 2009 income tax return to get a tax credit and refund. You can file an amended 2008 return and claim the credit now. You will receive a check for $8,000 (or 10 percent of the home’s purchase price up to $80,000) minus any amount still owed on previous years’ taxes.

The Act can also help you save money to buy a home. If you are certain that you will buy before December 1, 2009, you can reduce or eliminate withholding taxes from your paycheck. Save that amount toward your down payment. File a new W-4 at work.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.