It was long overdue but well worth the wait! Re/Max Access moved to the Piazza in Northern Liberties this past Thursday. The office space is gorgeous, so boasts our guests that we welcomed to our grand opening party just a few days ago.  The move was from E Tioga and Aramingo Avenue, where it had resided as a prime real estate company for several years predominately serving, the Northeast, Port Richmond, and Fishtown and in recent years Northern Liberties; so when the opportunity presented itself to move to The Schmidts Piazza my brokers couldn’t resist.  And I am so glad they couldn’t resist because myself along with my colleagues are in love with the new office. The panoramic views are magnificent,  from just the 5^th floor Center City seems a literal stone’s throw away…in fact there isn’t a bad view in the office, which did I mention takes up the entire floor of the Rialto Building?  The natural light is awesome, stop by and I’ll take you for a personal tour!

The tax credit deadline is fast approaching, only 74 days left to the end. Optimists are hoping for an extension, but aren’t we all?  It’s very uncertain whether the tax credit will be extended.  Everyday we are confronted with the reality that the government is tapped dry; though this hasn’t stopped some home buyers from accomplishing their dream of owning a home.  According to Trend MLS, the Philadelphia Housing Market for single family homes was up 1.4% in June and 4.4% in July over 2008 home sales.  That’s definitely a reason for optimism, even if the tax credit does not get extended.

Keep in mind that it’s still a buyer’s market. Interest rates are low, and FHA financing requires just 3.5% down.  If your credit score is ultra low, I can’t say you’ll be getting a loan just yet but with credit repair, by next spring you may just be calling your friends and family over to celebrate your house warming!

After a sticky situation, debating on whether a proposed $8K tax credit could be used toward the down payment of a home purchase without conflicting the requirements for first time home buyer’s already set forth by federal standard, HUD has manifested a plan.

A first time home buyer can use their tax credit toward their down payment, if a buyer is using FHA insured financing. The credit will be considered a tax advance, in which a nominal fee will be charged to the home buyer at settlement. This charge is not to exceed 2.5% of the advanced amount. For example if an advance is $6,000 the fee should only be $150.

The advance tax can not exceed closing costs; therefore a buyer can not walk away from settlement with cash in hand. Buyers also can not establish a second mortgage that would exceed the amount of their down payment, closing costs, and prepaid expenses. Basically what FHA wants first time home buyers to know is that they are not purchasing a home “Scott Free,” 3.5% of the purchase amount of their home is still required.

For additional information please visit www.irs.gov and www.hud.gov.

In an address yesterday to The National Association of Realtors^®, Secretary of the U.S. Department of Housing and Urban Development, Shaun Donovan announced, “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment.”

How the current $8K tax credit for first time home buyers work, is that they would file an amendment to their 2008 tax returns, and in a few weeks following settlement they'd have an $8K check in hand or 10% of the purchase price; $8K being the maximum return.  Unlike the year prior, when the $7500 credit was offered, this tax credit does not have to be repaid. To take advantage of this tax credit you must settle on a home prior to December 1, 2009.

Since the news is fresh, no set date as to when this new tax credit will take effect and what rules will apply.  And just so you know, the law defines a first time home buyer, as being one that has not owned a home within 3yrs prior to purchase. 

 Would you like to own a new home? Call me!

The Fed announces today that it will commit $800 Billion Dollars, to help ease tension for consumers, and small business.   This is a glimpse of light at the end of a long tunnel for home buyer's and all who have suffered losses to their jobs, and failing business's that have  been unable to keep up with their loan payments, as a result of troubling economic times.   

Here is the breakdown, the Fed will purchase $100 billion of debt from Freddie Mac, Fannie Mae, and the federal home loan banks. Another $500 billion for mortgage-backed securities backed by Fannie, Freddie and Ginnie Mae. The remaining $200 billion is just the starting point it will lend that amount on a non-recourse basis to holders of AAA rated asset-backed securities backed by “newly and recently originated” loans, such as for education, automobiles, credit cards and loans guaranteed by the Small Business Administration, the Fed said.

This will be a trickling down effect, no huge impact at this time, but certainly a step forward in the right, and necessary direction. For all consumer's looking to make a house purchase, refinance, or to take out a college loan, it is absolutely the optimum time to take advantage of a much cheaper payment than you would have had all year long, as the interest rates on credit have dropped considerably over night.

Kensington, situated just North of Fishtown is a neighborhood that is sure to see a turnaround, just as Northern liberties has in the past 5 years. Investors have turned to this area because quite frankly the homes are cheap, due to urban blight, and crime. However there is not a shortage of families needing good quality homes, stable communities, and affordable rents. So, if one is looking to invest in a rental property, with positive cash flow, and steady equitable growth Kensington is a sure bet.

With that said Graduate Hospital, known to native Philadelphian’s as just South Philly was an area known for blight and criminal activity. Look at it today, homes have sold for over a half a million dollars and the people there new and old appreciate it’s growth and diversity. That’s a far cry from 6 years ago, when a close friend of mine who lived their referred to it as, well…….she didn’t use the most constructive words. I was anxious to drive her back to her old stumping grounds not long ago, and she was amazed that the home she had rented was transformed, into a gorgeous, freshly brick pointed brownstone. There were new side walks, potted flowers, and whole blocks aligned with new townhomes. Needless to say she was impressed.

Take Northern Liberties as another prime example, not long ago, just along 2^nd Street between Girard and Spring Garden was desolate, now this section of the city is buzzing, with new restaurants, a bowling alley, condos, a state of the art gym, and bar and grills to host a lively northern liberties crowd. Still, much more is expected to come.

10 yrs ago a home for under $90K was typical, in these neighborhoods. In 2008, finding a shell of a home for under $90K, is a steal…literally! If you find one please call m e!

Other areas that have boasted growth due to investor involvement , real estate investors, community groups and business owners(some with the encouragement of the city, who provided special tax breaks and perks to those business’s that opened shop in struggling communities) can be seen in Brewery Town, Parkside, and Fishtown

It’s important to note, that the city spreads from the inside out. Center City is that sweet and expensive core, so you can be sure that anything immediately surrounding Center City mimics close in price, although sq footage is usually always more than the core. The Center City District does not include Graduate Hospital, Bella Vista, Queen Village, or Northern Liberties as part of Center City. So as you can conclude, it pays to surround the core, and to surround the area that surrounds the core.

Since the announcement Sunday, Sept 7, 2008 regarding the U.S Government bailout of Freddie Mac and Fannie Mae, the nation awaits an enlightened turnaround.

The goals are simple, the government is to guarantee Freddie and Fannies debt, therefore calming investor frustration and securing their investments so that they become confident in investing more money into the Financial Institutional Giants. What this means for the consumer is more affordable mortgages, availabilty of mortgage financing, lower interest rates(short term), and a stable real estate market! We have already witnessed banks coming down on their interest rates, for many 5-6 month lows.

Since the announcement REIT’s (real estate investment trust), bond insurers, and the regional bank sector index experienced notable gains.

Like all things time will tell; however the news thus far is great!

Treasury Announcement

Gathered below are just some important tax credits that should be taken into account when filing your 2008 tax returns. The end of the year is fast approaching.

I. CURBING THE RISING COSTS OF OWNING A HOME

Additional standard deduction for real property taxes. The bill would provide home owners

for joint filers). This proposal applies for tax year 2008. This proposal is estimated to cost

Provided from www.hud.gov

Homeowner’s find value in their home often times more than a buyer, or Realtor® and why shouldn’t they? It’s their home. Seller’s value in many circumstances however is driven by emotional attachment and not completely on market values occurring in their immediate neighborhood. Selling it for all its worth is an awesome concept and holds true if the price is set right. Over price your home and fail to give way to negotiations can cause a seller to loose out on a qualified and ready buyer.

Selling your home? Here are some tips:

Between the politics, and the ferocious resistance of neighborhood associations Foxwood Casino's investment of a $170 Million dollars has been for an ill cause. They have decided, quite surprisingly to consider other sites. Those sites are unknown to the public and to government officials.

The Delaware Neighborhood Alliance proposed the former Whiskey Yard, Bartram Gardens, Philadelphia International Airport Area, The Navy Yard, and Philadelphia's Northeast Airport to consider for the casino move. I can't foresee other neighborhood associations not rallying together to oppose a casino in their back yard as well. Sugar House Casino at this point hasn't decided whether to uproot their plans just as Foxwood.

Stay Tuned.