$7,500 Tax Credit Available Through Dec. 31

October 7, 2008 at 9:33 am · Filed under Affordable Housing, Did You Know?, FSBO, Gulf Coast Housing, Pensacola, Realtor, Residential, Selling Your Home, The Mortgage Market

Are you going to take advantage of the home buyer tax credit available through the end of the year?

For those of you interested in buying a home, but you are still on the fence about the current market, don’t forget that the window is closing for the housing stimulus tax credit good through the end of the year.  This tax credit is good for first time buyers (buyers who have not owned a home in the last 3 years), and it is available up to 10% of the purchase price to a maximum of $7500.

While your decision to buy a home should not be based solely on incentives, it is equally important not to ignore those incentives if you are serious about buying.  The difference between buying a home on December 1st and January 10th could mean significant tax savings for your 2008 return.  Be sure to contact your tax advisor for specifics and qualifying criteria.

For more information on qualifying for a mortgage, visit SteveRussellOnline.com or call 850-221-8334.

Comments

Where Do You Keep Your Money Safe?

September 18, 2008 at 10:30 am · Filed under Affordable Housing, Did You Know?, Headlines, Ike, Perdido Key Condo Deals, Residential, The Mortgage Market

In these historical times in the financial markets, how do you know that your money is protected?

Everyday there is a new headline about some other “sky is falling” scenario.  It was only a week ago that history was made when the government stepped in and took over operations of Fannie Mae and Freddie Mac, but that is old news now.  This week it was the nations largest insurer AIG being given an $85 Billion loan from your tax dollars to help keep them out of bankruptcy.  But hidden in all of the negativity are shining pockets of positive news.

If you ever watch CNBC, you may know that Jim Cramer likes to say “there is always a bull market somewhere”, and he is right.  In the constant yin and yang of the financial markets, where there is a loser, there is also a winner somewhere, you just have to know what to look for and where to find it.  For instance, if you bought into gold earlier this week, you are no doubt celebrating as the gold market had the largest dollar gain in history this week.  Equally, as confidence fades in the stock market, investors must forge ahead and put their money somewhere, and guess what just started looking really good…..real estate.  Thats right, real estate.  The dirty word that people have been scouling at for months just became one of the best places to put your money.

Think about it, if you have $1 million in the stock market and you don’t know if you will wake up one day to find that your top holdings are out of business, your money may be better served in a tangible asset that you can see, touch, get a tax break, and live in (or rent out).  At a time when real estate is at historically low prices, you could be getting in at the very beginning of a new bull market.

I find it interesting what an affect the media has on the markets.  They seem to give you just enough information to instill a panic without regard to how people will react.  I know that the AIG issue is big news, but did you know that there are 1000′s of people without homes or jobs in Galveston, TX after Hurricane Ike virtually wiped the town off the map.  Chances are pretty good that you didn’t because no one in the news is saying a word about it.

So back to the topic at hand, is your money safe in the bank?  Yes, if it is less than $100,000 per depositor per institution.  Is it safe in stocks?  I guess it depends on the stock and your level of exposure.

Even if you take away my obvious bias towards real estate (because I am an active mortgage banker), do your own home work in your local market to see if I am right.  If you haven’t looked lately, you might be shocked at the deals available now.  I my area of the Florida Panhandle, there are gulf front condos that can be stolen for prices that compare to 4+ years ago.

Good luck to you, and tell me how things are in your local real estate market.

Comments

Gustav Threatens The Gulf Coast

August 27, 2008 at 8:43 am · Filed under Did You Know?, Gulf Coast Housing, Gustav, Headlines, Hurricane, Pensacola, Residential, Vacation Properties

Here we go again!

Well, we don’t get wildfires or mudslides or earthquakes, but we do stand in the way of nature’s fury in the way of tropical hurricanes.  Just as most of Florida is still wringing out their shorts from the deluge of rain in Fay, we are again squarely in the cross hairs of Hurricane Gustav.  Many didn’t take Fay seriously because it never reached hurricane status, and yet it set records for rain fall and is the only named storm in history to make landfall 4 times in the U.S.

Gustav, however, commands out respect from the start.  Already reaching hurricane status before it even gets into the gulf, Gustav threatens to be a category 3 before making landfall somewhere along the gulf coast early next week.

In keeping with the theme of this blog, we will focus on the potential implications of this storm as it relates to real estate and the economy.

If you are purchasing a home, make sure that you have your insurance in place immediately.  A Citizens policy (in Florida) will not write new coverage, increase coverage, or make any policy changes “when a Tropical Storm or Hurricane Watch or  Warning has been issued by the National Weather Service for any part of the State of Florida.”  Other insurance companies have a map of the Gulf of Mexico and draw a dotted line border around a certain geographic area called “The Box”.  If a named storm (tropical or hurricane) enters that box, they will not write new policies or make changes to existing policies until the storm hits land.  In some situations, this could delay closing for a week or more until the storm runs its course.

If you already own your home, now is the time to prepare.  Even with the number of hurricanes that we are exposed to on an annual basis, there are a shocking number of people that do not prepare.  Preparing your house means:

• Check the trees around your house for dead limbs, these are the first to come down
• Make sure that you have adequate protection for doors and windows.  Taping the windows is a waste of time.  Either board them up, or spend your time on other things.  Tape will not stop debris and it will not keep the glass from shattering.
• Take photos of your property for insurance purposes.  If you happen to be the minority that keeps receipts for everything you own, this may be less important.  Be as specific as possible, and a video recording of everything is the preferred method.
• Pack up anything that can not be easily replaced.  This would include family heirlooms, photos, jewelry, etc.  Also take insurance forms and important paperwork such as deeds and wills.

• Assume that when you get back to your home, there will be no power and no water.  Fill a bath tub full of water to use for flushing toilets and possibly boil for drinking water.

There are many more resources on how to prepare your family and pets at NOAA.gov .

Comments