Anything and everything you wanted to know about building and buying a new home but were afraid to ask. An open discussion on the current state of new construction and real estate. Hosted by Bob Sorensen of Eastbrook Homes.
Instead of telling you what I think...what do you think?
1) How do you get your news? TV, Newspaper, Internet?
2) Which of those to you have the most confidence in ( rely on)?
3) I am involved in building and selling communities and new homes....where do/ wher would you look when / if trying to find a new home or new community in which to live?
4) What is your general outlook and confidence in the economy? Local and National?
Thanks for considering a reply to the above. Have a great day!
Thanks to Emma for your question pertaining to the Federal Tax Credit for a home purchase (recent Housing Tax Act of 2008 passed on July 28th 2008);
Basically the idea is to stimulate housing sales…
The tax credit works as follows:
Who is eligible?
Any individual or family that has not owned a home in the last three years, or never owned a home.
Income (adjusted gross) limits are $75,000 for an individual and $150,000 for a couple.
Must be a resident of the U.S.
The home must be your principal residence.
The purchase need take place after April 9, 2008 and before June 30 of 2009.
How it works:
The IRS will cut up to $7500 in your tax bill in 2008 or 2009. Example: if you owe $4000 to the IRS on you4 08 tax, the $7500 credit would wipe out everything you owe plus get you a $3500 refund! If your tax bill is less than the credit amount…you get the difference back from the treasury.
Payback:
This is like an interest free loan from the government…it is paid back over a 15 year period. For the $7500 credit…it is $500 per year.
Home Prices have dropped in our area over the last 18 months. While this is no fun to acknowledge or deal with (if you have to sell now) it is a fact. The length of time it takes to sell a home is also longer than we have historically seen.
That said….unless you believe the sky is falling (our economy), the market will change and improve…values will begin rising again……Frankly.. it is the “best time to buy” right now. if you are buying or “moving up” ….why…values are at or near the lowest they will be…..interest rates are at historically low levels (they will go up)…..and now the government is providing a great tax incentive for first time home buyers ($7500 ……it is truly the best time to buy…..and I might add ……. There are more good reasons to “buy new, buy now”.
Why new vs. old?…..
Prices Prices are the best they have been in years.
Sites Sites in new communities are at great pricing. You can purchase a home site in a world class new community at a great value.
Building costs While material costs have not come down across the board…some materials have (law of supply and demand) so costs are reasonable….and … we as builders have improved our efficiencies…to bring even greater value….. and we have sharpened our pencils…best values!
Green Built and Energy Savings A well constructed new home is astronomically better than the majority of homes in the existing home market. Savings of hundreds of dollars a month can be found. Savings in energy, savings in materials….saving money…all are examples of good stewardship of our resources…and is very friendly to the environment…..green…..
Maintenance Maintenance of a new home is much less than old……materials used today are both more durable and almost maintenance free. The amount of work you are required to do (and time to do it) on your home…is less….more time to spend with your family or whatever “trips your trigger”.
We live in a great country. We have a great economy…that works….we have faced tough times in the past…and we have risen to the occasion…overcome the tough times… …always come out better than before…..what do you believe?…
The American Dream Home ownership….it remains a big part of the American dream…and a big part of what makes our country great. We love our homes…for all the great memories created there and the security our home provides.
Don’t attack the dream...
There has been a lot of news recently about real estate and the financial institutions that provide loans and mortgages. Most of the news is pretty ugly.
So….what is the story? The bad (ugly) and the good (American dream).
The bad (ugly) in the real estate world... Values have dropped in many areas of the country. ( 2nd time in last 40 years this has happened).
Foreclosures are high. (highest levels ever)
The news is full of ugly stories about real estate and financial institutions (Banks). The good….the American Dream…
Emotionally there is nothing we can purchase that gives us the memories (Christmas, Birthdays, Summer fun) and pride that a home can. Nothing.
Practically speaking a home is one of the best investments that can be made. Historically, over the long term, homes appreciate more than the stock market or most any other investments And, the tax benefits (interest deduction) can be significant. Plus… you can live in it……How many investments can you make that you can also live in? The perfect investment….
Greetings….thank you for taking the time to read ,view and hopefully participate (you are welcome to ask questions…encouraged to do so in fact) with me. I am hoping to be able to provide some good facts and a forum to talk about new construction and real estate. And hopefully dispel any untruths that exist in the world today (about new construction and real estate…..not world problems….although maybe rocket science or world hunger will be my next subjects).
