Homebuyer Tax Credit Passed!

Tax Credit Extension Passes Senate and House, Now Awaits President’s Signature

By votes of 98-0 and 403-12 respectively, the US Senate and House each passed the Unemployment Insurance Bill, which contains the homebuyer tax credit extension and expansion.  After receiving broad bi-partisan support the bill now heads to the President for his signature.

Over the last two weeks, National Association of Realtors (NAR) and Senator Isakson have worked extensively with Senate leadership to expand the current first-time home buyer tax credit to include buyers in the “trade-in” or “move-up” market.  The bill establishes a new $6,500 tax credit for “move-up” buyers so long as the home they are leaving has been their principal residence for five years or more.
 
Both the $8,000 first-time home buyer tax credit as well as the $6,500 tax credit for “move-up” buyers would sunset on April 30, 2010. However, individuals who have contracts as of April 30, 2010, would still qualify for the credit so long as they complete the transaction within 60 days. The bill establishes income limits of $125,000 for an individual or $225,000 for a couple for both credits. The cost of the home being purchased may not exceed $800,000 in order to be eligible for the credit.  Click here for a breakdown of the final provisions.
 
REALTOR® members in Georgia and across the country highlighted the power of speaking with a unified voice and engaging in the political process.  REALTORS® Including myself  responded to the NAR Call For Action in record numbers, with Georgia represented as a national leader.  Over 25% of GAR members responded to the Call For Action, and your willingness to engage made a difference.  To learn more about NAR’s efforts visit www.realtoractioncenter.com.

New Listing!

This is a fantastic updated ranch ready to move in!  This home has too many new features to list!  New Paint, Carpet, Roof, Bathrooms… the list goes on!  Don’t miss your chance to get a great home at a great price!  Under $120K !!!

Would you like more information on this home? Schedule your showing today! 

James Dudley ERA Sunrise Realty 678-781-7418

Tax Credit Extension

WASHINGTON — The Senate and House are poised to agree on a compromise measure to extend unemployment benefits that also would expand a popular $8,000 tax credit for homebuyers, despite a recent government report on extensive mistakes and suspected fraud in the program.

The Senate might pass its version as early as Wednesday, and aides to Congressional leaders say the House could accept it this week, sending the bill to President Obama to sign into law. After weeks of partisan delay in the Senate, Democrats are eager to show progress before Friday, when the October jobless report is again expected to show high unemployment.

The homebuyers’ credit — enacted last year, expanded this year and scheduled to expire Nov. 30 — would be extended to cover homes under contract by April 30. Also, it no longer would be limited to first-time buyers; people who have owned a home for at least five years could get a $6,500 credit on a new residence. Income limits for eligibility would be raised, making many more people qualify.

Extending and expanding the credit would cost an estimated $11 billion, on top of the $10 billion spent so far. It would be a big victory for the housing and real estate lobby and for the Senate majority leader, Harry Reid, Democrat of Nevada, who faces a tough re-election race next year in the state with the most claims for the credit per capita.

Critics complain that most of the credits go to taxpayers who would have bought their homes anyway, which even the industry acknowledges. Also, a Congressional subcommittee released a Treasury Department report last month about suspected criminal and civil abuses of the program.

Government officials testified, however, that many of the problems may be due to confusion among taxpayers and the Internal Revenue Service about the overlapping 2008 and 2009 versions of the tax credit. With Congress likely to change the eligibility provision again, the new measure could present further administrative problems for the I.R.S., although the measure does include several new safeguards.

“It’s not unreasonable to think that this is going to provide some further challenges for them, both in terms of implementing a third version of it and in terms of ensuring taxpayers’ compliance,” said James R. White, director of tax issues for the Government Accountability Office.

The Treasury Department report said that as of Sept. 30, the I.R.S. had identified 167 suspected criminal schemes and was examining nearly 107,000 cases of potential civil violations. The first person to be convicted of defrauding the tax credit program was a tax preparer in Jacksonville, Fla., who was sentenced last month to 30 months in prison. According to the Justice Department, he claimed the credit for ineligible clients, many of whom were unsuspecting, and electronically paid himself $1,000 of the credit’s value each time.

Investigators found that more than 500 claimants of the tax credit nationwide were minors as young as 4, so the new measure will require applicants to be at least 18. Homes cannot be acquired from relatives, and taxpayers must submit a settlement statement as proof of purchase, though officials acknowledge that could be a problem for those who file tax returns electronically.

While real estate groups and some economists say the credit has helped stabilize the housing market, critics say it is too costly a subsidy when low interest rates and home prices are incentives enough for most.

Of the 1.4 million claimants of the credit, fewer than a third — about 350,000 to 400,000 — are believed to have bought their homes because of the credit, according to independent and industry-affiliated economists.

Under the new legislation, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. The current income limits are $75,000 for individuals and $150,000 for couples. Under both the House and Senate versions, smaller amounts are available to people of slightly higher incomes until the credit phases out.

The expanded homebuyers’ tax credit was attached to a bill intended to extend unemployment compensation for up to 20 weeks for people who have been out of work for long periods. Another amendment would sweeten a tax break for businesses with net operating losses in 2008 and 2009.

A version of this article appeared in print on November 4, 2009, on page A16 of the New York edition.

Just Listed! Cumming,GA

Want more information on this home?  Just Click Here ->  2865 Tattersall Court

Free Kids Fishing Events June 6th

Take your kids fishing this weekend!!  There are multiple free events for kids to go fish this Saturday.  Take advantage of good weather and have a great time outdoors!  Did I mention it’s free!! 

 

AmicalolaStatePark

Kate Ruka       Program Staff706-265-4703

June 67-11

Little            Amicalola Creek

Dawson

15 m NW of Dawsonville via GA 183 & 52, follow signs

Ages: 15 years & under. “To Temp a Trout” event; $3 park pass required.Pre-registration @ 7am.

USFS

Jim Wentworth706-745-6928

June 69 – Noon

Winfield Scott Lake

Union

On Hwy 180 between Suches & Vogel State Park

Ages: 16 years & under; Trout Fishing

USFS

Mike Brod        706-782-3320

June 69 – Noon

Tallulah      River

Rabun

Hwy 76, turn on Persimmon Rd at fire station, 4 miles turn left on Tallulah River Rd, 2 miles to campground

Ages: 2 – 15 years old; Trout Fishing; Prizes and refreshments

 A little closer to home…  I also just heard Jones Bridge Park is having a kids fishing event on June 6th as well.

Go to www.gofishgeorgia.com for more info.

Higher Taxes in Gwinnett County Pros/Cons

From the Gwinnett Daily Post

PRO: Board of Commissioners decision key to doing the peoples buisness

By Charles Bannister

“Government is the people’s business,” Ronald Reagan remarked. “And every man, woman and child becomes a shareholder with the first penny of tax paid.”

Reagan’s comment dates back 42 years to his inauguration as California governor. But it describes pretty accurately how we approach managing Gwinnett County government and its $1.7 billion annual budget.

Our county commissioners, administrators and department directors run county government like a business – and we focus every day on the fact that we are accountable to 800,000 resident shareholders.

I think Reagan would be particularly proud of our conservative spending and the fact that the county has rolled back property tax millage rates over the past 12 years by 3.98 mills, or 26 percent. The other commissioners and I are proud of this record as well, and we are united in a commitment to continued fiscal prudence.

Earlier this year, in fact, we made $40 million in budget adjustments – including cuts and fee increases – and implemented the first reduction in work force in county history. We’ve also worked hard to create a rational plan for Gwinnett County’s future, developing and adopting our 2030 Unified Plan.

But we have known for several years now that 2009 would be the year when the county’s operating costs would outpace our revenues – and that was before the economic downturn. As a result, the Board of Commissioners is considering the extent to which the property tax millage rate should increase to fund county operations in 2009 and beyond.

The county’s overall property tax rate is 31.77 mills. More than two-thirds of that amount goes to the school system and state government and to retire various bond issues. Less than one-third goes for county operations, including police and fire services, courts, parks and recreation, transportation, health and human services, libraries, and planning.

To continue funding those operations at appropriate levels, we need to raise county taxes between 2.87 and 3.31 mills, depending on where a property is located. As a result, the average tax bill (based on a $200,000 home) would increase about $16 a month, or about $194 annually.

Even with the increase, the county portion of property taxes will be lower than it was 12 years ago. And there are not many things you can say that about. Consider a trip to the grocery store a decade ago compared to today.

We recognize that we’re going through one of the most difficult economic periods of our lifetimes and that any millage increase will be tough.

But the alternative is tougher: making even deeper cuts in the budget would weaken many of the services, programs and infrastructure that make Gwinnett a great place to live and work.

The millage increase being proposed will:

• Enable much-needed police, fire and emergency department staff increases that will keep Gwinnett County safe by putting 372 more police officers on the streets and cutting ambulance and fire response time by staffing five new stations through 2013, which will save lives and save residents money on home insurance.

• Continue our model economic development program and fund infrastructure improvements along the Interstate 85 corridor that will increase property values and encourage businesses to locate in Gwinnett – a return on the county’s investment that helps keep residential taxes low over the long term.

• Help us maintain our commitment to preserving greenspace and move ahead with long-range plans for a park system that the National Recreation and Park Association named the best in the nation.

These actions position Gwinnett County to bounce back quickly from the recession and lead the local recovery.

We will be conducting public information forums and public hearings on these tax increases over the next couple of weeks, and we strongly encourage you, as taxpayers and shareholders in Gwinnett County, to attend, learn more, and let us know what you think.

Gwinnett County is strong because of the businesslike and fiscally conservative way we’ve managed government during prosperous times. We have made great advances, but we now must find a way to sustain that progress.

CON: Higher taxes hurt during recession

By Dave Williams

As mayor of Suwanee, I can attest firsthand that local governments are profoundly affected by these challenging economic times. I can also promise that the Suwanee City Council is doing everything in its power to hold the line on taxes.

People are hurting. Many have lost jobs or taken pay cuts. Businesses are facing unprecedented challenges. Nonprofits are trying to survive. Everyone seems to be doing whatever they can keep costs down. Well, not everyone.

Earlier this week, our Gwinnett County Commissioners announced their plan to raise your property taxes by more than 25 percent – 30 percent if you live in a city – so they can expand their 2009 budget by about 10 percent over their 2008 budget. We don’t have the exact figures because they still won’t publish the budget they adopted March 3.

You see, even though we’re nearly halfway into the fiscal year, without their budget document, the public is being kept in the dark. Our commissioners are ballooning county government in the worst economy anyone can remember.

Forty-three million of this enormous $87 million property tax increase isn’t even planned to be spent in 2009 – they’re socking it away in something called “working capital reserve.” Our commissioners have decided it’s better to overtax you and hoard those dollars than for you to pay your mortgage, health care or for your kids’ education.

Under the guise of public safety, our commissioners have hatched a curious plan to hire 170 more officers to start patrolling inside cities that are already policed effectively by the cities. This wasteful and dangerous duplication will require another $17 to 20 million of your money in new taxes – can’t know for certain without the budget. Sheriff Butch Conway calls their scheme a “terrible mistake.”

Growing the size of government in these economic times is exactly the wrong thing for any elected body. It’s quite obvious that our commissioners are oblivious to the reality that the rest of us face. We’re cutting back, yet they’re expanding their county largesse and sending us the bill. And it’s going to be a whopper.

State law requires our commissioners hold three public hearings at the Gwinnett Justice and Administration Center before they set these new tax rates. Two are scheduled for Tuesday, the day after Memorial Day. The third is June 2, after which the county will vote on the new tax rate.

I plan to attend all of them, and hope you will, too.

Have we learned anything from the county’s recent “trash plan” episode? This time, will we make our voices heard to our elected commissioners before they take action on this outrageous tax hike?

If not, brace yourself for a doozie of a county tax bill.

Dave Williams is the mayor of Suwanee.

For more information about Gwinnett County’s property tax millage and the public hearings, visit www.gwinnettcounty.com.

 

Rates on the Rise!

This week mortgage rates crested to their highest levels since Dec. 1, 2008.  This means that any of you that have been on the sidelines just lost 5% purchasing power.

Any home buyer that has been ”waiting ” on interest rates to drop further have made a poor decision.  Rates in the 4’s are gone, and now all we can do is sit back and watch to see how far they will go up and how quickly they will increase.

I urge any of you who still want to buy a home in this market to contact me about working with a lender who will lock your interest rate without a property.  It could save you thousands of dollars while you continue to look for that great deal!  I would also use this opportunity to make sure you have an updated approval letter.  Due to the recent rise in mortgage rates, many of you may no longer qualify for the amount indicated in your initial approval letter.

Georgia Homebuyer Tax Credit Signed into law!

HB 261 was signed into law on May 11, 2009 by Governor Sonny Perdue! We applaud House Sponsor Ron Stephens (Savannah), House Ways and Means Chairman Larry O’Neal (Warner Robins) and Senate Chairman Chip Pearson (Dawsonville) for their tireless efforts in the passage of this important legislation. Unlike the federal tax credit, the Georgia credit is not limited to first-time homebuyers, and there are no applicable income limits. The amount of the credit is 1.2% of the purchase price up to $1,800 spread over three years. The credit is only available to buyers of eligible single family residences who close between June 1 and November 30 of 2009.

Just one more reason to go out and buy a home!

Family fun for all!

Take advantage of great summertime events provided by our Department of Natural Resouces!

 

JAKES Day
Saturday, May 9, 2009 10 AM – 2 PM
Smithgall Woods Conservation Area and Lodge – Helen, GA
 http://www.gastateparks.org/net/content/go.aspx?s=97.0.0.5

The statewide list of kids fishing events can be found on the website, here:
http://www.gofishgeorgia.com/documentdetail.aspx?docid=413&pageid=1&category=fishing

Get paid to buy your new home!

Many first time home buyers are not aware that you can get paid to buy your first home!

Special Tax credits paired with buying the right home could earn you up to $9,000 just for buying a house. You also have the opportunity to get money to make repairs on some homes you buy that need a little work.

 The American Recovery and Reinvestment Act of 2009.

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

 The New Georgia Incentive for Purchasing a HUD home is a $1,000 Allowance paid to owner-occupant buyers who go under contract on a HUD property within its first 30 days on market.

This Program is only available to owner-occupant buyers; investor buyers not eligible

• Buyer financing type is irrelevant
• Eligible properties are new listings which have a list date of June 4, 2008 or later.
• Please note this incentive is available for new listings only; properties which were/are on market and re-list after June 4 are not eligible for the incentive.
• Contract must be received and executed within 30 days of property’s initial list date

When a HUD Home is listed as “INSURED-Repair Escrow” it means that one can purchase the property with FHA-Insured Financing BUT it doesn’t meet ALL FHA “Minimum Property Standards” (MPS) and that funds sufficient to fix whatever needs fixing to bring the property up to MPS must be Escrowed by the Lender. HUD listings should tell the prospective Buyer what work needs to be done before buying the property and the amount of money that needs to be placed in Escrow at Closing to provide for getting the needed work done within 90 days of the Closing!

The amount of money needed for the “Repair Escrow” is ADDED to the Buyer/Borrowers’ loan amount, so the Buyer/Borrower actually pays for the needed repairs. And the Buyer/Borrower–now Homeowner–gets the work done AFTER closing and pays for it out of the “Repair Escrow” Account! In today’s market its an advantage to be able to finance these repairs into your loan if you don’t have the cash to do it yourself. Take advantage of the low interest mortgage rate instead of paying for repairs with a high interest credit card.

HUD Home purchases are complicated, sometimes confusing, often contradictory! A prospective Buyer/Borrower for a HUD Home needs an EXPERIENCED Realtor such as myself AND Loan Officer to help him/her “through the maze”! By “experienced” I mean a Real Estate Agent and a Loan Originator who has worked a number of HUD Home sales before–and is familiar with the problems and solutions that may occur within each transaction with this government agency!

Taking advantage of these programs can save you thousands, provide money for repairs, give you up to $8,000 that does not have to be re-paid and move you into a home for as little as $100 down! Buying a HUD home at low market prices will also be an investment in your future. It’s all a matter of pairing these programs together to take full advantage of what is being offered to today’s home buyer.

Give me a call today so I can help you take advantage of these great opportunities. Be sure to take a look at some of the HUD listings I have posted under my listings!

Its no scam! Its Uncle Sam!