Expanded Tax Break Available for 2009 First-Time Homebuyers
IR-2009-14, Feb. 25, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
Wednesday, April 8, 2009
Wednesday, March 25, 2009
WELCOME SPRING!!!
We all know that “spring market” is typically the best time to sell a home. The flowers are in bloom, curb appeal is at its best, and many people prepare to move over the school summer break.
This year there are new reasons why the spring market is best for both buyers and sellers. We have seen some interest rates as low as 4 5/8% which may be a historic low. Home prices are once again at more realistic numbers and the recent Stimulus Package created new opportunities for First-Time Buyers by providing up to an $8,000 tax credit.
While this sounds like all good news for the buyer….it is actually great news for the home seller as well. In February the National Association of Realtors said there has been an increase of 5.1% in existing homes sales, the largest jump since 2003. It takes both a buyer and a seller to make every transaction occur. More buyers equal more opportunities and better offers (when your home is priced aggressively). Remember…it is all relative so while your home value may have gone down, so did the value of the home that you will be buying. You may also be upgrading or downsizing to a new lower interest rate as well, or just eliminating unmanageable mortgage payments altogether.
Call your local area expert at Coldwell Banker Township Realty when you are ready to buy or sell a home.
This year there are new reasons why the spring market is best for both buyers and sellers. We have seen some interest rates as low as 4 5/8% which may be a historic low. Home prices are once again at more realistic numbers and the recent Stimulus Package created new opportunities for First-Time Buyers by providing up to an $8,000 tax credit.
While this sounds like all good news for the buyer….it is actually great news for the home seller as well. In February the National Association of Realtors said there has been an increase of 5.1% in existing homes sales, the largest jump since 2003. It takes both a buyer and a seller to make every transaction occur. More buyers equal more opportunities and better offers (when your home is priced aggressively). Remember…it is all relative so while your home value may have gone down, so did the value of the home that you will be buying. You may also be upgrading or downsizing to a new lower interest rate as well, or just eliminating unmanageable mortgage payments altogether.
Call your local area expert at Coldwell Banker Township Realty when you are ready to buy or sell a home.
Friday, March 13, 2009
Foreclosures fall sharply in southern New Jersey
Foreclosures fall sharply in southern New Jersey
By KEVIN POST Business Editor Press of AC, 609-272-7250
Published: Thursday, March 12, 2009
The broad easing in southern New Jersey of the national foreclosure crisis continued in February, a sign that the region may be getting past the worst of the real estate slump.
The rate of foreclosure filings fell by a quarter or more in Atlantic, Cape May, Cumberland and Ocean counties, even as such filings increased 6 percent nationally, according to RealtyTrac, the Irvine, Calif.-based provider of foreclosure market information.
Atlantic and Ocean counties each saw filings fall 24 percent in February.
One in every 815 homes in Atlantic County was subject to a foreclosure filing in February, an improvement from the one in 617 homes in January. In Ocean County, the rate fell from one in 785 to one in 1,027 homes.
Cape May County foreclosures dropped 27 percent, from one in 1,133 to just one in 1,544.
Cumberland County, which had seen the worst of the foreclosure crisis locally and was last to show improvement, cut its foreclosures 52% in February. The rate dropped dramatically from one foreclosure for every 481 homes to just one in 1,005 in February.
Foreclosures reached one in 440 nationally, a 6 percent increase and more than RealtyTrac Chief Executive James Saccacio expected. He said various government and bank programs to delay or suspend foreclosures were in place, but large ones expired in Florida and New York, which saw increases of 14 percent and 24 percent respectively.
The hardest-hit state continued to be Nevada, with one foreclosure for every 70 homes, a 9 percent increase. Las Vegas was the foreclosure capital, with one home in 60 affected.
Arizona, California and Florida remained with Nevada at the epicenter of the crisis. The four states together accounted for 55 percent of all foreclosures in the nation in February.
New Jersey was 29th among states with one filing per 1,067 homes, a 34 percent drop from the month before.
By KEVIN POST Business Editor Press of AC, 609-272-7250
Published: Thursday, March 12, 2009
The broad easing in southern New Jersey of the national foreclosure crisis continued in February, a sign that the region may be getting past the worst of the real estate slump.
The rate of foreclosure filings fell by a quarter or more in Atlantic, Cape May, Cumberland and Ocean counties, even as such filings increased 6 percent nationally, according to RealtyTrac, the Irvine, Calif.-based provider of foreclosure market information.
Atlantic and Ocean counties each saw filings fall 24 percent in February.
One in every 815 homes in Atlantic County was subject to a foreclosure filing in February, an improvement from the one in 617 homes in January. In Ocean County, the rate fell from one in 785 to one in 1,027 homes.
Cape May County foreclosures dropped 27 percent, from one in 1,133 to just one in 1,544.
Cumberland County, which had seen the worst of the foreclosure crisis locally and was last to show improvement, cut its foreclosures 52% in February. The rate dropped dramatically from one foreclosure for every 481 homes to just one in 1,005 in February.
Foreclosures reached one in 440 nationally, a 6 percent increase and more than RealtyTrac Chief Executive James Saccacio expected. He said various government and bank programs to delay or suspend foreclosures were in place, but large ones expired in Florida and New York, which saw increases of 14 percent and 24 percent respectively.
The hardest-hit state continued to be Nevada, with one foreclosure for every 70 homes, a 9 percent increase. Las Vegas was the foreclosure capital, with one home in 60 affected.
Arizona, California and Florida remained with Nevada at the epicenter of the crisis. The four states together accounted for 55 percent of all foreclosures in the nation in February.
New Jersey was 29th among states with one filing per 1,067 homes, a 34 percent drop from the month before.
Monday, February 23, 2009
Financial Assistance available in New Jersey
We just wanted to share a bit of information that may help you or someone that you know..
During what may be difficult economic times for many, it is helpful to know that assistance may be available.
Here are links to services available:
http://www.nj211.org/ This website will provide many different resources from counseling to financial assistance to employment training.
http://www.energyassistance.nj.gov/ The NJ Dept. of Community Affairs website has a link to an Energy Assistance Program which could assist with home heating bills this winter.
http://www.njshares.org/ The NJ Statewide Heating Assistance and Referral for Energy Services is a not for profit organization that may provide up to $1000 for energy assistance to qualified individuals.
http://www.nj.gov/health/seniorbenefits/lifelinedetail.shtml 1(800)792-9745 Lifeline Program may offer up to $225 to people who meet the criteria for PAAD (Pharmaceutical Assistance to the Aged & Disabled) or who receive SSI payments.
http://www.njcleanenergy.com/residential/programs/comfort-partners/comfort-partners Provides free analysis of energy efficiency in your home along with direct installation of some energy efficient items. (Based on income levels)
http://www.newtanksnj.org/about_the_program.aspx This program may provide up to $3000 to upgrade your Heating Oil Tank, leaking or non-leaking, underground or above ground (according to the website).
http://www.mynjhelps.com/ will link you to many of the above resources and more.
While the above items may not apply to you, we would all like to reduce our energy costs. This link will provide you with some cost saving measures that you can take in your own home. http://green.yahoo.com/blog/huddlergreenhome/27/how-to-save-energy-around-the-house.html
Should you need additional information please call our office at 609-390-3400.
During what may be difficult economic times for many, it is helpful to know that assistance may be available.
Here are links to services available:
http://www.nj211.org/ This website will provide many different resources from counseling to financial assistance to employment training.
http://www.energyassistance.nj.gov/ The NJ Dept. of Community Affairs website has a link to an Energy Assistance Program which could assist with home heating bills this winter.
http://www.njshares.org/ The NJ Statewide Heating Assistance and Referral for Energy Services is a not for profit organization that may provide up to $1000 for energy assistance to qualified individuals.
http://www.nj.gov/health/seniorbenefits/lifelinedetail.shtml 1(800)792-9745 Lifeline Program may offer up to $225 to people who meet the criteria for PAAD (Pharmaceutical Assistance to the Aged & Disabled) or who receive SSI payments.
http://www.njcleanenergy.com/residential/programs/comfort-partners/comfort-partners Provides free analysis of energy efficiency in your home along with direct installation of some energy efficient items. (Based on income levels)
http://www.newtanksnj.org/about_the_program.aspx This program may provide up to $3000 to upgrade your Heating Oil Tank, leaking or non-leaking, underground or above ground (according to the website).
http://www.mynjhelps.com/ will link you to many of the above resources and more.
While the above items may not apply to you, we would all like to reduce our energy costs. This link will provide you with some cost saving measures that you can take in your own home. http://green.yahoo.com/blog/huddlergreenhome/27/how-to-save-energy-around-the-house.html
Should you need additional information please call our office at 609-390-3400.
Friday, February 20, 2009
How Will the Stimulus Package Affect The Housing Market—and You?
This is a monumental piece of legislation that will directly affect the housing market. I want to share my insights on how I believe it will affect the market so that you can make informed buying and selling decisions.
Homebuyers: Part of the stimulus package gives first-time homebuyers who purchase in 2009 an $8,000 tax credit. "First-time homebuyer" is defined as someone who has not owned a home for the past three years. Combined with the fact that foreclosure filings during January decreased 10% from December 2008 and that some sales in December of 2008 rose 6.5%, we will see prices at the lower end of the price spectrum stabilize. All the really great deals will be snapped up in the next month or two and we should see a price increase in December of 2009 as those who wait will rush to buy before the $8,000 credit is gone.
This will also help clean up some of the problem loans, short sales and foreclosures that have been a drag on home prices.
Three to six months from now we will see this start to move up to a little higher price range and by the end of the year, prices will stabilize in large mid-priced homes. High-end homes will be the last to stabilize sometime in 2010.
If you are thinking about buying, now is the time. Don’t wait and end up wishing you had taken advantage of this opportunity.
Home sellers: If you are selling in the lower price ranges, you should expect to see increased activity and, if your home is reasonably priced, you will get it sold very close to that price.
If you are not at the low end of the market, and do not have to sell, our advice is to wait twelve to eighteen months, you will get a better price. If you have to sell now, price it right and get it sold now as we could still see a drop in value in the mid and high-end price ranges over the next 3 to 6 months.
If you want to talk further about the impact of this stimulus package, give us a call or drop us an email about your situation and we will give you our recommendation. Also check back here on a regular basis for updates on what is happening in our real estate market.
This is a monumental piece of legislation that will directly affect the housing market. I want to share my insights on how I believe it will affect the market so that you can make informed buying and selling decisions.
Homebuyers: Part of the stimulus package gives first-time homebuyers who purchase in 2009 an $8,000 tax credit. "First-time homebuyer" is defined as someone who has not owned a home for the past three years. Combined with the fact that foreclosure filings during January decreased 10% from December 2008 and that some sales in December of 2008 rose 6.5%, we will see prices at the lower end of the price spectrum stabilize. All the really great deals will be snapped up in the next month or two and we should see a price increase in December of 2009 as those who wait will rush to buy before the $8,000 credit is gone.
This will also help clean up some of the problem loans, short sales and foreclosures that have been a drag on home prices.
Three to six months from now we will see this start to move up to a little higher price range and by the end of the year, prices will stabilize in large mid-priced homes. High-end homes will be the last to stabilize sometime in 2010.
If you are thinking about buying, now is the time. Don’t wait and end up wishing you had taken advantage of this opportunity.
Home sellers: If you are selling in the lower price ranges, you should expect to see increased activity and, if your home is reasonably priced, you will get it sold very close to that price.
If you are not at the low end of the market, and do not have to sell, our advice is to wait twelve to eighteen months, you will get a better price. If you have to sell now, price it right and get it sold now as we could still see a drop in value in the mid and high-end price ranges over the next 3 to 6 months.
If you want to talk further about the impact of this stimulus package, give us a call or drop us an email about your situation and we will give you our recommendation. Also check back here on a regular basis for updates on what is happening in our real estate market.
Saturday, December 13, 2008
Great Interest Rates!
Here are Bank of America's rates as of 12/13/08. Now is a great time to buy or re-finance.
Conforming Loans (borrowing up to $417,000)
30 year fixed, 0 points = 4.875%
30 year fixed, 1 point = 4.625%
15 year fixed, 0 points = 5%
Jumbo Loans (borrowing $417,000 - $1,500,000)
30 year fixed, 0 points = 6%
30 year fixed, 1 point = 5.625%
For more details, call Mike Jamison
609-465-6620 office
609-425-7284 cell
Conforming Loans (borrowing up to $417,000)
30 year fixed, 0 points = 4.875%
30 year fixed, 1 point = 4.625%
15 year fixed, 0 points = 5%
Jumbo Loans (borrowing $417,000 - $1,500,000)
30 year fixed, 0 points = 6%
30 year fixed, 1 point = 5.625%
For more details, call Mike Jamison
609-465-6620 office
609-425-7284 cell
Thursday, November 13, 2008
Beesleys Bridge Co. clears way for takeover
Published: Thursday, November 13, 2008
UPPER TOWNSHIP - The owners of the Beesleys Point Bridge have agreed to return $900,000 in state grants, ending a stalemate that has been partly responsible for keeping the bridge closed since 2004.
Local lawmakers said the Beesleys Point Bridge Co. agreed to repay the 1997 grant, which the state awarded on condition the two-lane drawbridge remain open for 20 years.
The private bridge company closed its toll bridge spanning the Great Egg Harbor Bay in 2004 after a leaning concrete pier threatened to fall into a steel support. The bridge has remained closed to drivers since then.
The Cape May County Bridge Commission and the state Department of Transportation, or DOT, are working on a plan to take over the bridge. Under the proposal, the Beesleys Point Bridge Co. would transfer ownership of the bridge to the county at no cost, making it the county's sixth toll bridge.
The bridge generated about $900,000 per year in tolls when it was open. The state would pay the bulk of the repair costs, estimated at $20 million. The county would repay most of that through toll receipts. These repairs are expected to keep the bridge open for about 15 years.
State Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, has been brokering a deal involving the county, the state and the company to reopen the bridge. But those negotiations languished for months.
Van Drew on Tuesday said the bridge company had to be persuaded the state was intent on repairing the span.
"The bridge company just wanted to see there was a commitment on the part of government to get this done," Van Drew said.
The DOT's cost-sharing agreement with the county remains in place, he said.
Bridge co-owner Stephen Hankin could not be reached Wednesday evening.
The bridge links Atlantic and Cape May counties and provides the fastest route to the nearest hospital for many residents in Upper Township.
"The bridge is still a priority for evacuation purposes," Van Drew said.
According to a state audit, the Beesleys Point Bridge made $876,000 in its last full year of operation, slightly less than the commission's most prosperous toll bridge between Ocean City and Longport.
Upper Township Committeeman Jay Newman said reopening the span is still a priority.
"Obviously we want the bridge back open for public safety purposes more than anything," he said. "There were several instances when it could have been used to help people get to the hospital or relieve traffic on the (Garden State) parkway. There were other instances where the parkway bridge was totally blocked."
Cape May County Administrator Stephen O'Connor said county freeholders are awaiting the results of a small-scale environmental study they funded in August to determine if any environmental problems were documented or witnessed at the site previously.
"Anticipating there won't be any environmental problems, we intend on taking possession of the bridge by the end of this month," O'Connor said.
A deal is also contingent on the project costing less than $20 million, a figure that came from a state Department of Transportation study.
The county's engineer is reviewing the figures to determine if the price tag changed since the study's release last year.
The Beesleys Point Bridge has been a lingering concern for Cape May County officials concerned that its closing blocked one of the county's few evacuation routes.
Freeholders even sued the DOT in 2007, alleging the state had not done enough to reopen the bridge. The county dropped its suit earlier this year following the takeover proposal.
UPPER TOWNSHIP - The owners of the Beesleys Point Bridge have agreed to return $900,000 in state grants, ending a stalemate that has been partly responsible for keeping the bridge closed since 2004.
Local lawmakers said the Beesleys Point Bridge Co. agreed to repay the 1997 grant, which the state awarded on condition the two-lane drawbridge remain open for 20 years.
The private bridge company closed its toll bridge spanning the Great Egg Harbor Bay in 2004 after a leaning concrete pier threatened to fall into a steel support. The bridge has remained closed to drivers since then.
The Cape May County Bridge Commission and the state Department of Transportation, or DOT, are working on a plan to take over the bridge. Under the proposal, the Beesleys Point Bridge Co. would transfer ownership of the bridge to the county at no cost, making it the county's sixth toll bridge.
The bridge generated about $900,000 per year in tolls when it was open. The state would pay the bulk of the repair costs, estimated at $20 million. The county would repay most of that through toll receipts. These repairs are expected to keep the bridge open for about 15 years.
State Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, has been brokering a deal involving the county, the state and the company to reopen the bridge. But those negotiations languished for months.
Van Drew on Tuesday said the bridge company had to be persuaded the state was intent on repairing the span.
"The bridge company just wanted to see there was a commitment on the part of government to get this done," Van Drew said.
The DOT's cost-sharing agreement with the county remains in place, he said.
Bridge co-owner Stephen Hankin could not be reached Wednesday evening.
The bridge links Atlantic and Cape May counties and provides the fastest route to the nearest hospital for many residents in Upper Township.
"The bridge is still a priority for evacuation purposes," Van Drew said.
According to a state audit, the Beesleys Point Bridge made $876,000 in its last full year of operation, slightly less than the commission's most prosperous toll bridge between Ocean City and Longport.
Upper Township Committeeman Jay Newman said reopening the span is still a priority.
"Obviously we want the bridge back open for public safety purposes more than anything," he said. "There were several instances when it could have been used to help people get to the hospital or relieve traffic on the (Garden State) parkway. There were other instances where the parkway bridge was totally blocked."
Cape May County Administrator Stephen O'Connor said county freeholders are awaiting the results of a small-scale environmental study they funded in August to determine if any environmental problems were documented or witnessed at the site previously.
"Anticipating there won't be any environmental problems, we intend on taking possession of the bridge by the end of this month," O'Connor said.
A deal is also contingent on the project costing less than $20 million, a figure that came from a state Department of Transportation study.
The county's engineer is reviewing the figures to determine if the price tag changed since the study's release last year.
The Beesleys Point Bridge has been a lingering concern for Cape May County officials concerned that its closing blocked one of the county's few evacuation routes.
Freeholders even sued the DOT in 2007, alleging the state had not done enough to reopen the bridge. The county dropped its suit earlier this year following the takeover proposal.
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