How can you not afford to buy in this market? Bad credit but have good income?  Let’s make a plan that will help you restore your credit standing in 3 months or less.

Here are just a few reasons why buying now is better than not:

• Mortgage Interest Rates are Low!
• Great opportunity to find a home paying just as much or even less than your current monthly rent.

Ex: Did you know $750 per month can afford you a $100K home?

• Buying a home is forced savings!  Why not pay yourself and build equity, instead of helping your landlord build equity?
• Purchase a home with a low down payment.  You need as little as 3.5% of the purchase price of your new home. 

              Ex: $3500 needed to purchase a home for $100K and less if the home is priced lower!

• State Grant is available to those who qualify, which will help with closing costs.
• A full 6% seller’s assist may be obtained, which can drastically reduce your closing costs.

Gentrification, historically and loosely known as the act of the wealthy displacing long term, low income residents in any particular neighborhood where redevelopment looks promising and current conditions for the residents grim.  Gentrification, no doubt builds a community by attracting investors and developers who build homes, retail shops, and restaurants to lure in wealthier homeowners.

Sounds great, right?  Well although building wealth in a community sounds promising; it often leaves out the residents that have long called their neighborhood home.  These homeowners can be offered double for what they paid for their home, sometimes even more by a snazzy and aggressive real estate investor who shows up on their door step and promises the sum in cash and a quick settlement in just a week. It’s often a take it or leave it deal, to build up a good deal of anxiety in the homeowner.  But if they don’t take it...they’ll be back.   

Sure a bulk load of money promised to a family who is just making ends meet, and has dreams of a better life is quite tempting.  True the home in which they reside may be crumbling and the block in which they stay is riddled with blight, however in that blight they share the same dreams, and want the same things as those wealthy investors…a safer, cleaner, and prosperous community.  

I’ll throw the question out there, where does a family go with $40K, $50K or even $100K in cash?  Do they buy back into the neighborhood where their recent home was extensively rehabbed and is on the market for 5x’s what they originally paid for it?  See they either owned their home out right or had a small mortgage paying a couple of hundred dollars a month.  A $100K in retrospect is a lot of money but not really if someone is depending to live on that alone for a lifetime and unfortunately people who are eagerly pushed out of these neighborhoods due to gentrification are not seeking expert financial advice.

Gentrification increases property value drastically, many times by a 100% or more.  The effect that it has on long term home owners, is an increase in real estate taxes as seen in popular cities throughout the country, notably Harlem, NY during the 1980’s and even more so after the unveiling that Former President Clinton would locate his office there. A sharp surge of new business’s and residential developments to accommodate a higher demand of residents flocked in to secure real estate, in a place where years before these new inhabitants had only referenced Harlem with "The Apollo Theater" and "The Harlem Renaissance". 

Locally, in Philadelphia gentrification in the last decade, and in recent years has taken place in Bella Vista, Graduate Hospital, Northern Liberties, and growing concerns by residents are seen and heard in Brewery town, Francisville, and the southern tip of Kensington, closest to Northern Liberties for fear that they’ll be displaced. These residents welcome new development and opportunity but not at the cost of their home. There is growing concern, that they will loose their voice and be overshadowed. It begs the question, can gentrification be established with the support and ideas from the people of a neighborhood in collaboration with the investors and developers who want to establish and build prolonged financial growth.  And if that answer is yes, would that abolish the term "Gentrification"?  In Rittenhouse Square,  the wealthiest neighborhood in Philadelphia, this very thing happens; where developers and investors can't build shop without a significant input and granted permissions from the people of that neighborhood.  We can understand the resaons why, wealth and education are just two reasons but do they lack any less enthusiasm or commitment for their neighborhood, than a low-income, high-school educated resident of Kensington?

No matter what your opinion of Gentrification is,  it is most definitely the PR(Public Relations) of all PR,  it takes a familiar and unlikely place and explodes it into “The Place” to live, work, and play.

Be a little closer to transportation. Make your trek into work that much easier, all while residing in a low key neighborhood.  Just 2 blocks from a transportation HUB, for the Septa Regional Rails and the Subway Line.  This home has had only two owners since it's existence.  There are original hardwood floors throughout the home that make it a wonderful find.  The current home owner has taken such pride in his home, making sure to maintain the mechanics of the house and the overall wears and tears.  You'll find yourself walking through an inviting, and warm home, and it smells good too:).  It is priced at $115K, with 3 Bedrooms, 1 1/2 Bath, and a 1 Car garage. Make your appointment today! 

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Zakiyyah Newman - Realtor®   

(215) 400-2634                                            

Many First Time Home Buyers have begun to spring into action to take advantage of the $8,000 tax credit or 10% of the purchase price whichever is lesser. Home Buyers who qualify can not have owned a residence in the past 3yrs, this means that a buyer could not have been listed on a deed in the last 3yrs.  

The tax credit has also been granted to current home owners.  This tax credit is in the amount of $6500, or 10% of the purchase price whichever is lesser.  Buyers in this case have had to own a residence consecutively for 5yrs in the last 8yrs.  A home owner does not have to buy up to qualify, meaning they do not have to purchase a home more than their current  home is worth. 

Buyer's do have to be under contract to purchase a new home by April 30th, 2010 and the deal will have to be closed by June 30th.  This tax credit is extended to June 30th, 2011 for anyone who has served in the Military for at least 90 days. 

This a great time to buy, and with the tax season ending what better way to use your refund check than investing in a dream!

For More Information on Tax Benefits Visit www.IRS.gov

As if the Re/Max Brand wasn’t already such a stable in communities nationwide and in more than 70 other countries, it’s enormous contributing impact to the CHILDREN'S MIRACLE NETWORK in the past 18yrs has reached $100 Million Dollars.   Re/Max has now become one of three top contributors of all time to the fund.   Out of the $100 Million raised in 18yrs, $7 million was raised in 2009 alone.  That is exciting news for the company, it’s agents who with every closed transaction donate to the CHILDREN'S MIRACLE NETWORK, and to the children and their families it benefits. 

CHILDREN'S MIRACLE NETWORK makes it possible for children who are severely ill to receive the best medical care possible, and most importantly they are not turned away for any reason.  The CHILDREN'S MIRACLE NETWORK is a non-profit organization that funds over 170 pediatric hospitals, and treat over 17 million children a year.  

To get involved in this awarding cause click here,  CHILDREN'S MIRACLE NETWORK.

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.