Reasons to Buy

I wanted to share with you a website that California is using to track the $10K tax credit and also how to apply for it. Remember this is for new homes only and is allocated to the first 100K people who apply for it. Currently looks like no one has received the credit but $25.5M people have applied for it. They started accepting applications on March 1^st but they will begin mailing credit notices on May 1^st. The credit is given over 3 years on their state income taxes. http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

Remind your clients of the Federal $8K tax credit for this year. Even if they already filed their 2008 taxes they can send in a amended return to get the credit. This credit is given all at once not over a period of time and they do not have to pay it back. Here is some information from the IRA on the credit: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

The $7500 tax credit from last year is paid back after 2 years over a 15 year period. Here is the IRS information site for the 2008 $7500 tax credit and the needed form 5405: http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Other Reasons why to Buy now!

FHA: only 3.5% down up to purchase price of $729,950

VA: 0% up to $417K with no mortgage insurance

Payment for a home probably less than payment on Renting. Owning gives you tax benefits too!

Home prices lowest since early 2000's

2^nd homes are great right now! Rates are just as low as primary residence rates AND low low prices

Lowest Rates now don't wait for the inflation to hit!: This cannot hold forever. With the Trillions of dollars being put into the economy by the government inflation will have to introduce itself and that will mean increased interest rates. Rates are being artificial pushed down right now but that will all come to end at some point.

See Rates are going down and the lowest since 1994 and you can go back even further to see they are the lowest since 1975...

Jan 09: 5.05

Feb 09: 5.1

Mar 09: 5.07

Apr 09 so far avg: 4.85