Register Real Estate Advisors

HOUSTON (Houston Business Journal) – Ten developers that are constructing or rehabilitating affordable apartments in the Houston area are set to collectively receive $14.6 million in incentives from the Texas Department of Housing and Community Affairs.

The developers will receive tax credits in exchange for charging lower rental rates on a portion of a property’s units so they are affordable for low-income individuals and families.

The following developments are the local recipients of this year’s tax credit program:

• Cypress Creek at Fayridge ($2 million for 148 affordable units)
• Cypress Gardens ($1.4 million for 100 affordable units for seniors)
• Golden Bamboo Village III ($1.6 million for 130 affordable units for seniors)
• Mason Senior Homes ($1.5 million for 120 affordable units)
• Perry Street Apartments ($921,000 for 160 affordable units)
• Parkway Ranch II ($963,000 for 44 affordable units)
• Tarrington Court Apartments ($2 million for 153 affordable units for seniors)
• Travis Street Plaza ($1.4 million for 192 affordable units)
• Zion Gardens ($954,000 for 70 affordable units)
• Tuscany Place ($2 million for 152 affordable units in Kingwood)

Lately, many of my sellers want to know if it makes sense to move up right now. Answer these questions below to help you decide whether moving up makes sense for you.

1. Have you lived in your home for at least 5 years so you can qualify for the $6,500 move up tax credit?
2. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
3. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
4. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
5. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
6. How is the home market? If it’s good, you may get top dollar for your home.
7. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

Did you know you can save money with tax credits for energy-efficient natural gas equipment? Tax credits are available for both the installation and purchase of natural gas-powered furnaces and tankless water heaters. Energy efficient natural gas equipment helps you use less energy and save money now and in the years ahead.
The tax credits are offered through the American Recovery and Reinvestment Act of 2009 and are available for your primary residence. In additions to saving energy and money, you have the satisfaction of knowing that you’re helping the environment by choosing products that use efficient, clean-burning natural gas.
The tax credit is equal to 30% of the installed cost of a qualifying product. You can receive a maximum of $1,500 in tax credits. If your credit for a single purchase is less than $1,500 you can combine several qualifying purchases. All purchases must be completed by December 31, 2010.

To learn more about federal tax credits for energy efficiency, visit http://www.energystar.gov .

For more information on the benefits of energy-efficient natural gas appliances, visit http://www.CenterPointEnergy.com/gasisbetter .

If you intend to pay off your mortgage as quickly as possible, then you’re in the majority; a survey released in 2008 by the Canada Mortgage and Housing Corporation claims that more than 75 per cent of survey respondents who bought a home in the last year said being mortgage-free sooner was their goal.

Of course wanting to be mortgage-free sooner is easier said then done, but there are some tips that can help you along the way to reach your goal quicker.

Make the largest down payment you can afford.

Fact is, the more you put down the less you’ll have to pay back; not just in the principal but in interest too.

Make more mortgage payments.

There are two ways to go about doing this; both will save you some money along the way but one more so than the other.

Your first option is to pay twice a month (or whatever frequency works best for you) the total you would normally pay on a monthly payment plan. For example, if your monthly mortgage payment is $1,000 you can opt to make two payments a month of $500 each. You’re not paying any more than you have to each month, although you will save on interest by making part of your monthly total payment early.

Your second option is to pay weekly or bi-weekly payments in lieu of a monthly payment. Why does this save you money? Well, not only will you save money on interest like you would with the first option, but it’s also a way you might not notice that you actually are making a couple of extra payments each year. Let’s say for example, your monthly mortgage payment is $1,000 for a total of $12,000 per year. If instead you decide to pay $500 every two weeks, you’ll actually end up putting $13,000 a year against your mortgage.

Make pre-payments or anniversary payments.

Even if you have a closed mortgage, most mortgages allow you to make “extra” payments, once a year, for up to 20% of the mortgage owed. This money is applied to the principal, saving you money in annual interest costs.

When interest rates drop, keep your payments the same.

If interest rates decrease when it is time to renew your mortgage, consider keeping your payments the same; since less money will go towards paying interest, more will go to paying down the principal.

Choose a shorter length of time to repay your loan.

Look at all your amortization options to see how choosing a 15-year period versus a 20-year period versus a 25-year period will affect your payments and interest costs. Your mortgage payments will be higher, but you’ll pay far less interest over the course of the loan. Do this exercise at the end of each mortgage term as what may have worked for you 5 years ago, might not be the best option for you now.
This article is a guest post from http://www.kanetix.ca

I have been asked by many first time home buyers, “What is the difference between the $7,500 Tax Credit and the $8,000 Tax Credit?”  

Steve Kaufman is a CPA that published an article titled FREE MONEY in the Houston Realtor Magazine that explained the tax credit in detail.  He included a helpful chart that parallels the differences between the two tax credits, but that magazine is not available to the public.  Using the facts from his article, I would like to explain the difference between the two tax credits to my readers.

Both tax credits can only be used by first time home buyers.  The $8000 tax credit is referred to as the American Recovery and Reinvestment Act of 2009.  This has been defined as someone who has not owned a primary residence during the last three years.  Once you buy the home you must occupy the house as your primary residence for at least three years or the tax credit you receive will be owed back to Uncle Sam.  Both of the tax credits apply to new construction homes, resale homes, manufactured homes, Townhomes, and Mobile homes.

The $7,500 Tax Credit was more of an incentive than a tax credit because it has to be paid back within 15 years, interest free, starting in 2010.  It applies to first time home buyers that purchased their first home between April 9, 2008 and January 1, 2009.  It must be filed with 2009 tax returns for credit to be received. 

The $8,000 tax credit is for first time home buyers that purchase between January 1, 2009 and December 1, 2009 and it never has to be paid back.  It’s just free money from your Uncle Sam.  It can be claimed on your 2008 or 2009 tax return.  So if you are a first time home buyer you will need to close by December 1st which means you should be house hunting now.  It takes atleast 30 days to close on a home unless you are paying cash.

When you file your annual tax return you can claim this credit using IRS Form 5405.  If you claimed the $7,500 and are eligible for the $8,000 tax credit you can ammend your tax return by using IRS Form 1040X.  The maximum credit allowed for the $8,000 tax credit is 10% of the sale price up to the $8,000.  The maximum credit calculation for the $7,500 tax credit is 10% of the sales price up to $7,500.  To receive the maximum credit your income must be below $150K for married couples or $75,000 for individuals. 

Rather than waiting until tax filing for the $8,000, an advance on the credit is available on the credit from the U.S. Dept. of Housing and Urban Development (HUD).  The advance is available for first time home buyers using FHA-Approved lenders.  As an advance, the funds can be applied toward the down payment or closing costs.

Steven offered a great tip in his article.  If you are a first time home buyer and are sure you will purchase by December 1st and qualify for the tax credit, you can go ahead and start taking advantage of the tax credit by adjusting your payroll tax withholding with your employer by filing an updated IRS Form W-4 which will reduce your income tax withholding and will increase your take home pay which can be saved for your down payment.  I consulting with your tax accountant is recommended.

If you are a first time home buyer, what are you waiting for?  Now is the time to buy!  Interest rates are not high, there are first time home buyer tax credits, sellers are paying for a lot of the closing costs and warranty packages.  There is so much inventory on the market that you are going to find the right home for your housing needs and chances are, you’ll get it at a bargain price!  Call me today to find out if you qualify for cash back at closing.  I can help you find a great home at a low price today.