My New Blog

Tax Credit Extended and Expanded

With tax season approaching, I decided to share information I received on a few tax incentives I think you definitely want to discuss with your tax professional. 

Up first is the popular $8,000 tax credit for the first-time home buyers.  Originally scheduled to expire on November 30th,2009.  This valuable tax credit of up to 10% of the purchase price or up to $8,000 was extended into 2010 (purchase agreements must be signed by April 30,2010, and closings must be final by June 30,2010).  The new program was also expanded to include a tax credit of up to $5,500 (or up to 10% of the purchase price) for qualified buyers of a second or "replacement" home under the same deadlines.  To qualify, home purchasers must have owned and occupied a primary residence for five consecutive years during the last eight years.  Most importantly, the new program  significantly increases previous income requirements.

There are other important guidelines to meet in order to qualify, so be sure to discuss your situation with a tax professional.   And don't forget, you can still buy a home before April 30th and qualify - even you've already filed your 2009 taxes - so don't hesitate to give me a call.

Veronica Taylor,

(804) 254-0895

Pride in Ownership

There are a few events in one's life that create indescribable feelings of joy.  The birth of a child, your team winning the World Series, and being handed the keys to your first new home.  Even Without serfs, you'll feel like a king.

Creating Equity

Real estate is such a good investment that people buy homes they don't even live in. Go figure.  Over the long haul, real estate is an appreciating asset, meaning that your home will be worth more in the future than it does today.  Every mortgage payment that you make forces you to invest in your home's equity.  And though the housing market has its ebbs and flows, most people do come out ahead.

You can see the effect of this using the HotPads Buy vs.Rent calculator.

Tax Breaks

And how.  The government encourages home ownership by dishing out tax breaks like Brett Favre slings the football.  Homeowners can deduct the interest they pay on their mortgage, their local property taxes, and money spent for certain upgrades or repairs.  They also get favorable treatment on the profit they make when they sell their home, getting up to $500,000 in profit tax-free in the case of married couples.  (other criteria also needed to qualify)

When you rent, the only tax break you get is being able to use a shorter form.

Control

Renters are at the whims of their landlords for how the property is maintained, and how long they can live there.  Buy your place and you answer only to your mortgage company and your ability to pay you home loans.

It's no secret that the Richmond housing market is in the midst of a painful correction.  The causes and characteristics of these cycles vary, at least in some respects, but the implications for homebuyers, home sellers and homeowners remain remarkably reliable as the cycles roll by.

Housing cycles aren't all alike, yet over long periods of time a basic pattern can be discerned, say Mark Dotzour, Chief economist of the Real Estate center at Texas A&M University.

A cycle doesn't really have a start or a stop, but to pick a point at random, we might say that a housing cycle "starts" when economic activity heats up and interest rates rise.  Higher interest rates make housing less affordable, so demand decreases and home prices fall.  Then, as economic activity slows and interest rated decline, housing again becomes more affordable and, consequently, demand and prices go up.  Then the cycle repeats.

The Richmond market has had a different type of cycle because interest rates are low.  To find out how this may affect you, please give me a call at (804) 254-0895 or email veronicataylor@msn.com

Richmond has a great Downtown Master Plan

I just received a revised draft version of the Richmond, Va. Downtown Master Plan.  It is available for review at:

     - City's Web Site

        (www.richmondgov.com)

There you will find pictures of how the plan changes the look of downtown.  I think the changing of one way street to two way will be great for the businessess and new development. 

A public hearing on the plan will be held in front of the City Planning Commission on Monday May 19,2008 at 1:30pm in the conference room on hte 5th floor of City Hall.

Veronica Taylor,Realtor

(804) 254-0895

www.crumpproperties.com