The relief of the extension of the tax credit

I closed on a home yesterday and saw first hand what effect the extension had on all the parties to the transaction. The buyer on this deal was able to purchase using this incentive. He could buy the home knowing that when he does his taxes he will have all the extra money to do all the repairs as well as upgrade where he wanted. He might not have bought this home if not for the incentive because of his finacial undertaking he would have had to take on.
Secondly my sellers in this distressed market might have had the property foreclosed on. My sellers were relieved that this ordeal is over. They did not know that the property value was going to drop as significantly as it did and they would be unable to move to a different state where better opportunities existed.
Finally the title company , the realtors as well as the mortgage person and the inspectors and the appraisers all benefited from this closing. I think it was a win win situation all around and I for one am quite pleased that the extension was granted. I do not have any other deals that are lingering because of the extension but I am sure like me there are quite a few thousand people that will benefit from this extension. For this I am grateful.

Great time to buy a home?

In one word, absolutely. I know that some are not sure where the prices are heading and
where they end up. That does not change my opinion one bit. There are a few things to
remember about a purchase for your own living or as an investment. If you look at the
interest rate and the prices that homes are selling now you cannot go wrong even if we have not hit the bottom. Remember it costs more to build it than you can buy it for now.
Try to get a quote on building on a lot with all the costs that go into having a home built.
Then look at what you can walk into the home for in less than 45 days. The interest rate we are all using is now a 30 year fixed so we know where the payments are going to be over the next 30 years. Some prices I am seeing are the prices that were being sold in the
1980’s and the 1990’s. We are in 2010! In the 1980’s there was a double digit interest rate. We are in the 5% range. If you are in a position to buy now I suggest you do.

What about investors? Well is you look at your bank statements with what you are earning(Keep tissues nearby) then you can see that there has to be a better way to make that money grow. I have buyers now that are making between 8-15% return on their financial investment. Yes they have to be a landlord but at that rate who wouldn’t . In 6-7
years the renters pay off your whole investment and then when the market has turned and it is a good time to sell you sell. There are tax write offs that you can also deduct. Keep your money in one of those accounts and see what % you get now a days, less than 2% I would bet.

Great time to own some real estate, I would say. Of course I am a Realtor and would say that, but you tell me why this in not a good time to buy.

$8,000 Tax Incentive Extension Passed

Orlando Regional Realtor Association (ORRA) reports

Extension of the 8k Tax Credit and National Flood Insurance Program
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law.

NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.