“World's Most Complete Neighborpedia”
Explore:   What's happening in your neck of the woods?

John Foster

First Time Home Buyer Tax Credit

03-02-09
John Foster

FIRST-TIME HOMEBUYER TAX CREDIT -

Information from the American Recovery and Reinvestment Act of 2009

Up to a $8000 tax credit to First Time Homebuyers

The provisions in the bill pertaining to the tax credit for first time home buyers are as follows:

The $8000 tax credit is available only for first-time home buyers (Definition of a "first-time home buyer" is a buyer who has not owned a principal residence during the three-year period prior to the purchase)

  1. There is a $75,000 adjusted gross income limit for tax filers filing separate and $150,000 limit for joint return filers.
  2. The $8000 tax credit is available only for primary residence purchases.
  3. The tax credit does not require a repayment for most cases.
  4. The tax credit has a repayment provision if the homeowner does not occupy the property for a minimum of 3 years from the closing date.
  5. The home buyer must purchase a home between January 1, 2009 and December 1, 2009.
  6. The $8000 tax credit is received when you file your tax return.

How does the credit affect the taxes you owe and the refund you get? It will reduce your tax liability, that is, the amount of taxes you are required to pay. Depending on your tax withholdings, you could get a bigger refund or owe less in taxes when you file. With a lot of inventory on the market (lots of Supply), there is a lot of homes to choose from. Additionally, with the tax credit available to First Time Home Buyers it is a great time to buy. Call me today at 770 722-7010 - I will be happy to help you find the home you are looking for and introduce you to some great mortgage people.

Cumming Real Estate Update - Could the market be turning?

02-27-09
John Foster

This past week I have seen a lot more activity in the Cumming Real Estate Market than in the prior 6 months. One buyer I represent put an offer on a home in the Highlands at Sawnee Mountain and that home had two other offers on it. Then this morning I started calling to set up my showings for tomorrow (Saturday). I called to check the availability of 14 homes I want to show tomorrow and 4 of them went under contract yesterday or this morning. I am glad to see some positive news. Additionally, one of my listings in Chattahoochee River Club went under contract last night. Looks like the market is strengthening to me.

This activity will turn into March closings and will be reported in April - this activity is really positive. The main reason I think these homes are selling is Sellers have become much more reasonable in their pricing - and when a home is priced right it is selling. If you are considering buying a home, email me at JohnFoster@remax.net, tell me the area you want to live in, the price range and what you are looking for in a home and I will send you my best buys list of homes that match your criteria. Or just call me at 770 722-7010.

See what Johns former clients are saying about him at www.FosterHomeInfo.com

What is a good investment?? - Try real Estate

02-24-09
John Foster

Today I was comparing recent rental rates compared to purchase prices for property in Alpharetta - just off Holcomb Bridge Road. Here is one example I what looks like a pretty good investment to consider

Asking Price on a Condo - Great Location $69,900

Rental rates in the community $900 - 1000 per month or 10,800 - 12,000 per year.

Here are the annual expenses:

Taxes 1017(yearly) HOA fees are 210 per month - includes swiming pool and a park on the river.

Those expenses work out of a cash on cash return of over 12%- that is before any debt service and assumes a full list price in the payment.

Let me know if you feel like this is a good investment or if I have missed anything (such as a decrease in property taxes because this home is listed for less than the property tax asessment).

If you want to look at this home call me at 770 722-7010 - it I will watch to see how long this home stays on the market.

To see John's listings visit www.FosterHomeInfo.com

Buying a home in Alpharetta Just got better

02-06-09
John Foster

Wow - this is a great time to buy a home - and it is getting better. Today there is already a lot of inventory on the market, which has driven prices down. Additionally, interest rates are below 5%. Now, the U.S. Senate unanimously approved an amendment to implement a $15,000 tax credit to individuals who purchase a home as part of the Economic Stimulus Bill. Details outlining the amendment still have to be finalized by Congress but here are the highlights of the proposed amendment. Implementation of the amendment (as part of the Economic Stimulus Bill) is targeted for February 16, 2009.

  1. Limited to $15,000 tax credit or 10% of the purchase prince (whichever is less).
  2. Applies to homes purchased between 1/1/2009 and 12/31/2009.
  3. The home must be principle residence.
  4. Total tax credit may be divided over two years starting with purchase year.
  5. Buyer responsible for repayment of tax credit should they transfer ownership within 24 months of purchase. Certain restrictions apply.

This bill was introduced by Johnny Isakson and a unanimous approval is amazing. This will help the housing market.

How does this help - if you buy a home for $150,000 or more the government is basically paying the first $15,000 - this is a great incentive to buy a home in 2009.

You may ask why is the government doing this - the reason is because they realize it is cheaper to do this than to contine to watch the real estate market suffer. As the value of homes goes down the value of the assets on the banks books goes down, which causes the US to sink deeper and deeper into recession or worse. If they fix the housing issues, then the banks will recover and lead the economy out of this recession. I think this is a great step - assuming it passes.

Pending home sales are Up in December!!

02-03-09
John Foster

The national association of Realtors just released that the Pending (homes under contract) home sales for the end of December increased 6.3% - that is great news. The buyers were primarily buying homes at steep discounts, and one of the areas was in the south.

This is consistent with what I have been seeing as I have been showing homes the last month. Last week, out of 11 homes selected to show my buyers, 4 had gone under contract, another buyer submitted an offer on a home that already had 4 offers on it, a third buyer submitted an offer on and home that went under contract the morning we submitted the offer. All these properties had several things in common such as:

  1. All were foreclosures
  2. All were deeply discounted
  3. One sold for 346K in 2005 and the asking price was 199K
  4. One was in a community where a similar home next door was listed at 325K, and it was listed at 199K
  5. All the homes were similar in that they needed new carpet, paint and in some cases a dishwasher, range and sheet rock repairs. All of those repairs/appliances cost 6-8K and they were buying at a discount of 50-60K.

These sales help all Sellers because as soon as the foreclosures and short sales are no longer a significant portion of the inventory, pricing will stabilize. NAR estimates 40-45% of all sales in 2008 were foreclosures/short sales. For example, the home next door to the 199K foreclosure would never sale as long as the foreclosure was on the market. That home seller will benefit by it selling.

If you want to get a list of great deals in Alpharetta or great deals in Cumming, call me at 770 722-7010 and I am happy to provide you a list of best buys.