The Success of Real Estate Atlanta Blog

Tax Incentives Benefit Younger Households
by Carla Hill


Younger Americans may now have added incentive to enter the housing market. New research reported by the National Association of Home Builders (NAHB) shows that certain mortgage tax deductions may decline with age, and thus favor the younger set of the nation, specifically those aged 18 to 45.

Recently released Statistics of Income (SOI) data from the Internal Revenue Service (IRS) shows, according to the NAHB, that "the descriptive statistics ... demonstrate that the housing-related tax deductions, the mortgage interest and real estate tax deductions, strongly benefit younger households who tend to be recent homebuyers with larger mortgage debt."

These findings could affect how tax codes changes are proposed in coming years, as an ailing housing market needs first-time and Generation Y homebuyers to enter the market.

"Opponents falsely argue that the [mortgage interest] deduction is only for the wealthy but it is clear that the mortgage interest deduction is also of great value to younger homeowners," said Robert Dietz, Assistant Vice President for Tax and Policy Issues for NAHB. "Any tampering with this deduction would have a disproportionate impact, as a share of household income, on younger homeowners who have relatively higher mortgage interest payments. These are households who have growing demand for homeownership due to marriages and children."

According to the research, the average mortgage interest deduction was highest for the 35 to 45 age group, and then declined with age. Those under the age of 35 had the second largest deductions, at around $12,000 average.

The same trend is seen for mortgage insurance deductions. NAHB research shows "as is expected, the largest shares for this deduction, associated with homebuyers with less than 20% of the home price as a downpayment, are for those aged 18 to 45."

These tax advantages, along with more affordable pricing and historically low interest rates are even more reason that new buyers should consider entering the market at this time.

Published: October 13, 2010

Not only is it the perfect time to buy a home, but it’s also an excellent time to purchase an investment property. If you already own and are not interested in moving – or you can’t because of the 3-year occupancy requirement to keep your home buyer tax credit – but still want to take advantage of the market, investing can be a great way to do so.

In the current lending situation, lenders often require investor buyers to have six months reserves of mortgage payments and a 25% down payment. This stipulation keeps many would-be investors out of the market.

Here are some little known tips to help investors purchase, regardless of the tighter lending environment:

1. Investors can purchase a Fannie Mae HomePath investment for 3% down.
2. Any investor, not just veterans, can purchase a Veterans Affairs(VA) foreclosure with VA’s Vendee Financing for 5% down.
3. Investors purchasing a VA foreclosure with Vendee Financing can use 75% of anticipated rent to offset the monthly payment if the investor has experience managing rental properties.

Sources: The Wall Street Journal, Inman News, KW Research

Like a car dealership at the end of its model year, Fannie Mae is offering special incentives exclusively for owner occupants that purchase property from its sizable inventory of foreclosures, also known as HomePath properties.

Owner occupants that purchase a Fannie Mae HomePath property by December 31 will receive up to 3.5% toward closing costs and a home warranty. These incentives for foreclosures are unheard of – banks typically sell foreclosures “as-is” without incentives, warranties, or repairs. This could help buyers to view a HomePath property more like a traditional sale, not a foreclosure, during their search process.

Owners and investors can purchase HomePath properties for 3% down and no mortgage insurance. For homes that are not in tip-top shape, Fannie Mae also offers the HomePath Renovation financing, which works similarly to FHA’s 203(k) mortgage by allowing the cost of light renovation to be included in the mortgage. Furthermore, owner occupants get a 15-day “first dibs” on HomePath properties through the First Look program.

Fannie Mae is also offering agents an additional $1500 for representing owner occupants who purchase these properties, helping to compensate them for the extra paperwork and other potential obstacles that come along with foreclosure transactions.

Buyers should be sure to take a second look at Fannie Mae’s HomePath properties before settling on “the one.” It could mean not just a great deal but an excellent one.

To see Fannie Mae’s HomePath homes, check out HomePath.com

The housing market continues its slow recovery without the aid of the now expired tax credit. Sales are slower but growing, and prices remain on par with last year’s levels. Interest rates also hit a new historic low, a major factor in helping keep mortgage payments low, which is expected to spur sales.

The economy shone a bit brighter in September. It grew faster during the second quarter than expected, and companies continued to hire. Experts believe there is now less risk of a double-dip recession. Now, the Federal Reserve Board’s challenge is not if the economy will grow but how fast.

Experts anticipate both the economy and the housing market will continue their path on the way to a complete recovery. This march back up provides excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates.

Home sales began to rebound in August. This increase follows a large drop caused by the expiration of the Federal tax credit in July. Sales are expected to slowly rebound as the market finds its footing without leaning on the government for support. First-time buyers fell from 38% to 31% in August from July. Over the same time period, investors rose from 19% to 21%. Overall home prices fell slightly in August compared to July, but major markets appear to be bucking trend as the Case-Shiller Index shows an increase of 3.2%.

Distressed properties accounted for a slightly larger proportion of sales in August compared to July. The discount in distressed properties helps explain the slight decline in August prices.

Total inventory came back below 4 million to 3.98 million in August, representing 11.6 months of inventory. While still at a relatively high level, months of inventory dropped by nearly a month in August from the 12.5 month’s supply in July.

Housing remains highly affordable, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The ratio now stands at 14.9%, growing closer to the record of 13.6%.
Source: National Association of Realtors

Don't miss out on the opportunity to take part in this great event!!! I will see you on the 16th!!

Enjoy a green lifestyle while living in a trendy neighborhood at Oakland Park. As Atlanta’s first LEED Silver certified condominium, homeowners can contribute to sustainability while taking advantage of Oakland Park’s affordability. However, with up to $35,000 in down payment assistance available, homes starting at just $119,900 and FHA approval with only 3.5 percent down, homebuyers must hurry to secure one of the 65 condominiums available.

Oakland Park condominium interiors include 10-foot ceilings, granite countertops, bamboo floors, Energy Star stainless steel appliances and a large, private balcony. Plus, residents will enjoy the amenities including a rooftop sundeck, outdoor grill and fitness center. In addition to these great amenities, residents can savor the breathtaking and expansive views provided by the Atlanta skyline.

This boutique community is located in East Atlanta, within walking distance of popular shopping, dining and entertainment.

15 Million in Down Payment Assistance Still Available in Atlanta
Warren Buffet said it best, "When there is fear in the market be greedy, and when others are greedy be fearful."

I would have sent you a happy Fourth of July message but was certain that you would not be reading emails on your Holiday - right?
Want to share a few things with you that may benefit you or someone you may know. These items come from the questions that you, our clients, family, and friends - ask most often of us.
1. "I owe more on my home than it is worth and I MUST sell this house". You may qualify for a SHORT SALE. What is a short sale? A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
We have people who can help you! Call 404-732-2656 or email LaMarkw@gmail.com RIGHT NOW - time is of the essence.
2.Special Note for Overseas Military Personnel and Federal Employees (thank you so very much for serving our incredible country) Military personnel and some federal employees serving overseas may still be able to claim the credit on home purchases made before April 30, 2011. Consult the IRS web site for more information on the Extended Home Buyer Tax Credit provisions for qualified military personnel and federal employees. - if this link does not work, please cut and paste the following in your web browser: http://www.irs.gov/newsroom/article/0,,id=215594,00.html

We have partnered with the Atlanta Development Authority to help bring you great opportunities in Home Ownership.!!
If you have a minimum Credit Score of 620 and currently make less than $72,000 p/y you may qualify for up to $60,000 in Down Payment Assistance at some of the great downtown Atlanta Townhomes and Condomiums. If the address is in Atlanta the property qualifies here are a few examples..
Great Downtown Condos available for up to $60,000 in Down Payment Assistance
Castleberry Point
Twelve Centennial Park
Studio Plex Lofts
Tribute Lofts
Central City Condominiums
Historic Westside Village

LaMar C Campbell ABR MBA
Residential-Commercial -Investment-Downpayment Assistance
Your Circle Of Success Real Estate
Solid Source Realty GA
O.678-886-0874
C.404-732-2656
F.404-492-7156
LaMarKw@gmail.com
www.thesuccessofrealestate.com
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$20,000 Available from the Atlanta Housing Authority
ahaWhy stop at $60,000 when you can potentially have $80,000? That is correct! You may use the Atlanta Development Authority Downpayment Assistance of $60,000 combined with the Atlanta Housing Authority Downpayment Assistance amount of $20,000 for a total of $80,000. Look at this Video of how one young lady took advantage of the BeltLine Program Click Here Do not miss out on this great opportunity to become a homeowner. Visit our website for all your Atlanta Real Estate Information www.thesuccessofrealestate.com


FREE HOMEBUYER WORKSHOP!

Homebuyer Education Workshop
& Walking Tour
Saturday, July 10, 2010
8:30 am - 5:00 pm
Carver Family YMCA
1600 Pryor Road SW
Atlanta, GA 30315


Space is limited!
Please RSVP to Tracey Powell at (404) 614-8280 or
tpowell@atlantada.com. Reservation is required for free admission.
On-site registration on July 10th is $25.
National Real Estate Needs Serviced

Your Circle of Success Real Estate prides itself on our relationships nationwide and world wide. If you have a family member or friend in another state or even country we can connect them with a great real estate professional or mortgage consultant that will take great care of them!!
Real Estate Needs ANYWHERE in the United States and Bermuda, Panama and Jamaica! Really, we have someone who is uniquely qualified and extremely capable of handling all of your real estate needs - wherever they exist. Give the referral network of Your Circle of Success Real Estate a try: email your requests to LaMarkw@gmail.com
Financing - Mortgage rates hit new records for the second week in a row, with 30-year fixed-rate mortgages averaging 4.58 percent during the week ending July 1. Rates on 30-year fixed-rate loans are down from 4.69 percent last week and 5.32 percent a year ago, and at a new all-time low in records going back to 1971. Down Payments are as low as 3.5% of the sales price. Let me know if you need the name of a Mortgage Consultant - I can help ycosre
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Thank you again for taking the time forward out my emails, calling me for up to date information me or for just being a friend. We service Fulton, Dekalb , Cobb, Gwinnett ,Henry, Clayton,Douglas Counties as well as all Metro Atlanta Don't forget to take a look at my Special Offer Below we can possibly be at a Housewarming party soon!! Stay cool out there everyone and "always have the perfect state of mind for success.."
Sincerely,


Lamar C. Campbell
Your Circle Of Success Real Estate
Free Housewarming Party!!Your Circle of Success Real Estate would like to thank all of our supporters and referrals! If you close a home with us between now and December 2010 we will throw you a HOUSEWARMING PARTY for you and 25 guests completely catered at no charge to you! This coupon must be printed and presented in person. This coupon is non transferable? Please feel free to share the offer with friends and family members.


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Offer Expires: December 2010