The Newman ReportThe Newman Reporthttp://www.newmanreport.com/the-newman-report/2010-03-09T05:47:25ZSquarespaceFirst Time Home Buyer Tax Credit Deadline Ending Soon!http://www.newmanreport.com/the-newman-report/2010/3/6/first-time-home-buyer-tax-credit-deadline-ending-soon.htmlThe Newman Report2010-03-06T14:22:58Z2010-03-06T14:22:58ZMany 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

]]>Re/Max Contributes $100 Million to Children's Miracle Network!http://www.newmanreport.com/the-newman-report/2010/3/2/remax-contributes-100-million-to-childrens-miracle-network.htmlThe Newman Report2010-03-02T17:24:40Z2010-03-02T17:24:40ZAs 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.

]]>Re/Max Access Moves to the Piazza in Northern Libertieshttp://www.newmanreport.com/the-newman-report/2009/12/6/remax-access-moves-to-the-piazza-in-northern-liberties.htmlThe Newman Report2009-12-06T06:16:30Z2009-12-06T06:16:30ZIt 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 5th 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!

 

]]>Tax Credit Deadline Fast Approachinghttp://www.newmanreport.com/the-newman-report/2009/9/17/tax-credit-deadline-fast-approaching.htmlThe Newman Report2009-09-17T19:18:00Z2009-09-17T19:18:00ZThe 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!

]]>$8K Tax Credit Advance with FHA Financinghttp://www.newmanreport.com/the-newman-report/2009/6/1/8k-tax-credit-advance-with-fha-financing.htmlThe Newman Report2009-06-01T05:32:11Z2009-06-01T05:32:11ZAfter 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.

]]>$8K Tax Credit - Used as a Down Payment?http://www.newmanreport.com/the-newman-report/2009/5/13/8k-tax-credit-used-as-a-down-payment.htmlThe Newman Report2009-05-13T15:10:10Z2009-05-13T15:10:10ZIn 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!

]]>Fed to the Rescue and Rates Plummethttp://www.newmanreport.com/the-newman-report/2008/11/25/fed-to-the-rescue-and-rates-plummet.htmlThe Newman Report2008-11-25T17:42:35Z2008-11-25T17:42:35Z  

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, Next Big Investor Swing!http://www.newmanreport.com/the-newman-report/2008/9/11/kensington-next-big-investor-swing.htmlThe Newman Report2008-09-11T13:48:05Z2008-09-11T13:48:05ZKensington, 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 2nd 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.

]]>What Freddie and Fannie's Takeover Means to Youhttp://www.newmanreport.com/the-newman-report/2008/9/10/what-freddie-and-fannies-takeover-means-to-you.htmlThe Newman Report2008-09-10T19:54:51Z2008-09-10T19:54:51ZSince 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!

]]>Housing Assistance Act of 2008http://www.newmanreport.com/the-newman-report/2008/8/26/housing-assistance-act-of-2008.htmlThe Newman Report2008-08-26T04:00:00Z2008-08-26T04:00:00ZGathered 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

who claim the standard deduction with an additional standard deduction for State and local real

property taxes. The maximum amount that may be claimed under this provision is $500 ($1,000

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

$1.537 billion over 10 years.


II. REDUCING EXCESS SUPPLY IN THE MARKET

Refundable first-time home buyer credit. The bill would provide a refundable tax credit that

is equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500)

by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008

and before July 1, 2009. Taxpayers receiving this tax credit would be required to repay any

amount received under this provision back to the government over 15 years in equal

installments. The credit begins to phase out for taxpayers with adjusted gross income in excess

of $75,000 ($150,000 in the case of a joint return). This proposal is estimated to cost $4.853

billion over 10 years.

 

VII. REVENUE PROVISIONS

Modification of exclusion of gain on sale of a principal residence. The bill amends the

current law exclusion of up to $250,000 ($500,000 if married filing a joint return) of gain

realized on the sale or exchange of a principal residence. Under current law, the sale of a home

will qualify for this exclusion if the home is a taxpayer’s principal residence for at least two of

the five years ending on the sale or exchange. This exclusion applies even if the home was

initially purchased as a second home. Under the bill, if a taxpayer moves their principal

residence to a second home, the taxpayer will only be able to utilize this exclusion to the extent

that it relates to the period of time when the home was first used as a principal residence and to

the extent that it relates to the period of time that the home was owned prior to January 1, 2009.

This proposal is estimated to raise $1.394 billion over 10 yrs



Click here to review the entire Housing Assistance Act of 2008

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