Extend the Tax Credit!!!

Life has been good the last year or so for first time buyers. With an extra $8000 in their pocket, the prospect of investing hundreds of thousands of dollars in a new home has been a lot better. For those who have waited or weren't ready, what does the future hold? Will the tax credit be extended?

The National Association of Realtors chief economist, Lawrence Yun sure hopes so. He believes an extension of the tax credit is essential to preserving the incentives for financially qualified buyers. Speaking of which, I have noticed that becoming financially qualified is much more difficult than it was a couple of years ago. Banks and other lending institutions are tightening restrictions on mortgage loans to the point that us realtors are pulling our hair out! For those of us who have been in the business more than 15 years, it's simply back to the old days. This is how it used to be. "You mean you actually need to have money for a down payment?!" Uhhh... yea, you do. You also need to prove where that money came from. 100% financing and no documentation loans are all but over. That's what got us into this housing crisis in the first place.

So, back to the real issue... will we see an extension of the tax credit? I don't know, but I sure hope so too. In Omaha, we have seen an impressive surge of first time buyers come into the market. I have even seen a few competing offers on a few listings. I didn't see that happening in a down economy! Those new homeowners are excited about using their tax credit to add on to their home, put in a new kitchen, or invest/save. We have also seen the Omaha metro's inventory go down by 17% in the last year or so, and the entry level market has seen pending sales go up by nearly 50%!!! That's huge people. I'll keep you posted on the tax credit news....

Stay tuned...

Oh By the way... I'm never too busy for any of your referrals!

Check out this OWH article discussing the Omaha City Council's battle over how to balance the budget. Homeowners, this definitely affects you! They say... "a 10% tax hike" is inevitable.
http://tinyurl.com/lkyakf

Oh By the way... I'm never too busy for any of your referrals!

Mortgage Interest for Homeowners

Ahhh, it's my favorite time of year, tax season. As I become more seasoned as a Realtor, I am coming to the realization that taxes are inevitable, and it's up to us to take advantage of every opportunity that we can. As a homeowner, I rely on deducting my mortgage interest each year. It takes a big chunk off of my tax burden, and it is one of the reasons I own a home today. For those of you who are self-employed, you can understand that we need all the deductions we can get! Self-employed or not, mortgage interest deduction is a big part of your tax return.



Some lawmakers are threatening to take away mortgage interest deduction. This talk must be stopped. It will affect us all adversely. Cutting out MID will most certainly lower property values that are already at lows that homeowners are struggling to cope with. Even if only the top level mortgages lose MID, it will most certainly have a trickle down affect on all housing markets. Each market segment is affected by all market segments and vice versa. In terms of property values, at a minimum, homes would lose in value what is equal to the present value of the tax burden being taken away. That value is currently estimated at $90-130 Billion! Losing that much in consumer dollars would be catastrophic to an already fragile economy. I will keep you all in the loop with further developments, but let's fight to keep mortgage interest deduction.



Oh By the way... I'm never too busy for any of your referrals!