Elaine King's Real Estate Blog » Real Estate Tax Info & Credits

A message to East Contra Costa County Investors…

Elaine King — Thu, 05 Aug 2010 21:39:25 +0000

The Antioch, Brentwood, Oakley housing market has been tight, especially if you have been searching for investment property. It has not been easy for investors to find properties that make the numbers work for them. Typically, investors use the 70% of market value as a basis, minus repairs & expenses, to calculate if the home is a good purchase. For East Contra Costa County investors, homes with those criteria have been limited. However, be patient! More homes may soon be coming on the market.

New projections on the rate of homeownership are estimated to go as low as 62% by 2012; a rate not seen since 1960. Homeownership numbers have slid since 2006, and an interesting fact is that the numbers even slid during the recent government tax credit! A new poll predicts that 6 million of the 8 million homeowners behind on their mortgage to lose their homes. This could result in more bargains for investors that are willing to take the plunge, and more prospective tenants for those rental properties. (Click here for complete article)

Buyer Tax Credits – Money in Your Pocket

Elaine King — Thu, 12 Nov 2009 02:25:24 +0000

On Nov. 6, the federal tax credit for home buyers was signed into law. The tax credit has been extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to deadline. The tax credit was also expanded to include existing homeowners who have lived in their primary residences for five (5) consecutive years out of the last eight (8) years.

First-time home buyers are still eligible for a tax credit of up to $8,000, while existing homeowners may receive a credit of up to $6,500. (10% of the purchase price up top the limit.) The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. In both instances, the purchase price of the home is capped at $800,000.

The bill has the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase. This 36 month restriction is waived for active duty military personnel who move due to a military order.