Brandy Hart

The following is an update for all of you looking to purchase a brand new home (new construction) this year to take advantage of the California $10,000 tax credit being offered. Unlike it's federal counterpart, this credit is not just for first time buyers, it's for everyone who purchases a never been lived in home this year. The state alloted $100,000,000 to this credit and will issue on a first come first served basis. The credit began just three weeks ago and already over 10% of the available money has been spoken for. If you are planning on taking advantage of this one, you may want to act quickly! Read below for the details from the franchise tax board website.

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We will update this information frequently. Please check this page often.

This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.

We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters. We plan to begin mailing credit allocation letters no later than May 1, 2009. This delay is necessary to allow us time to develop a system to capture and verify the application information, allocate the credits, and send the credit allocation letters. Please be patient with us and do not send applications more than one time.

Tax credit amounts

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. Please check this page for updates on the allocated and remaining credits available.

Note: The remaining credit amount displayed above only reflects allocations processed. This amount will be updated once we begin mailing credit allocation letters, which is expected to commence by May 1, 2009. This amount does not include applications that have been received, but not yet processed.

Applications for New Home Credit received, but not yet processed as of 3/18/09

This reflects the total amount of credit reported on applications received as of the date indicated. This amount has not yet been verified and may include duplicate, incomplete, and invalid applications. This amount is provided for informational purposes and does not reflect the actual amount to be allocated. We will update the amount received, but not yet processed, on this webpage each Friday. As we approach the $100,000,000 limitation, we will update the reported amounts on a daily basis. Keep in mind, that all applications will be processed on a first-come, first-served basis, based on the date received by fax only.

California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.

The following is an excerpt from an Article in todays Wall Street journal regarding the Southern California housing market. While it is just one real estate research firms findings, I found it to be very encouraging. We all know that a true recovery will take time, but according to MDA, the bottom near. For those looking to buy a home, it's all the more reason to do so quickly, and for those who have watched their equity disapear over the past two years, the pain may be coming to an end. While it's true that the economist have been kicking that can down the road for a while now (see illistration below) one of these days, the bottom has got to come. Of course, even if we are almost there, much work needs to be done still to repair our wounded economy, but I for one am happy to read some good news for a change!

"For the first time in 10 months, the median home price in Southern California in February didn't decline from the prior month, the La Jolla, Calif., firm said. The median price for a home sold in the counties of Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange last month was $250,000. While that was down 39% from February 2008, it was unchanged from January.

Foreclosures continue to dominate the market. Sales of bank-owned properties accounted for 56% of total home resales in February, MDA DataQuick said.

"I'm seeing some modest, scant evidence that the pace of home price weakness is ebbing" after the intense downward pressure, partly caused by a surge in sales of foreclosed homes, says Tom Lawler, an independent housing economist based in Leesburg, Va. He adds: "Home prices in many areas are highly likely to bottom this year."

So, by now we've all heard about the Federal $8,000 tax credit for 1st time buyers who purchase a home this year. Our lovely state of California (in all it's bankrupt glory) has now sweetened the pot by $10,000. If you are a first time buyer in Ca and you purchase a new (never occupied) home this year, you will receive not only the federal credit of 8K but also will be eligible for the 10K from the state. These are true credits and do not have to be repaid as long as you live in your new home for two years. Let me give you an example.
You find a new home from one of the many local builders who have DRASTICALLY reduced their pricing, let's say you pick up this gem for $200,000.

Now, your payments will depend on your specific loan program, but you'll be looking at something in the ballpark of $1,400 a month. Your taxable income goes down drastically just by purchasing which means more of your money in your pocket every month. (I like to call this, giving yourself the homeowner raise) Now on top of that you get $18,000 back from the IRS. If you break down this $18,000 over the next three years, you just gave yourself another $500 a month raise. Sounds like a no brainer to me guys!
Seeing as how we live in one of the most expensive places one can choose to rent, I'm betting you're already paying $1,400 a month or something pretty close to it towards someone else's mortgage...... What are you waiting for? It doesn't get any better than this! I just pulled from the MLS, a brand new home, in Riverside, 4 bed, 2.5 bath, 2,200 square feet, available for $199,000. If you want to see for yourself, go to my site, www.brandyleon.listingbook.com
Take a look at the HUNDREDS of homes available in Riverside County under $200,000. It's amazing!