The popular first-time homebuyer tax credit that was scheduled to end in November 2009 has been extended. President Barrack Obama signed legislation that extends the deadline on the first-time home buyer tax credit and adds a smaller tax credit for other home buyers. For example, if you are looking to buy your first home in Carmel Valley, the bill extends the up to $8,000 tax credit for first-time homebuyers for seven months. If you own an existing home in La Jolla, a $6,500 tax credit may benefit you if your primary residence has been owned, used, sold, or is being sold within at least five consecutive years of the previous eight years.
The extension and expansion gives home buyers a tax incentive to buy a home until at least April 30, 2010. For qualifying military personnel the deadline is April 30, 2011. The extension of the first-time home buyer tax credit will help clear out unsold inventory, especially bank owned inventory that has yet to hit the market.
California Association of Realtor studies tell us that for more than 75 percent of home buyers this year, the tax credit was very important and more than 40 percent of the home buyers would not have been able to buy without the credit. A new tax credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they owned their existing home for five consecutive years over the last eight years. Second homes don't qualify for the credit.
Home buyers have to repay the credit if they live in their primary residence less than 36 months and are not members of the military. The new rule also raises the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, from the current $75,000 and $150,000. The maximum allowed home purchase price is $800,000, which may not be as useful to move-up buyers in high-cost areas such as Del Mar.
Both first-time home buyers and others must contract to buy a home by April 30, but close escrow by June 30, 2010. Buyers can claim the credit on their 2009 taxes, even if the purchase is made in 2010 by filing an amended return. Buyers who don't owe taxes can have the credit refunded to them as a rebate. For San Diego residents, more information is available online from the Internal Revenue Service (IRS}, including a question and answer page.
It's all good news for the housing market. The National Association of Realtors says as many as 400,000 resale transactions (1.2 million for both new and resale homes) were completed specifically because of the first-time home buyer tax credit, since it began, and that put a dent in the housing inventory. Home sales also add property and sales tax revenues to the coffers of local governments as reduced inventory helps boost prices and home values.
If you’re thinking about selling or buying a new home please contact Nick Alameddin at Nick@mypfgroup.com , or call 760.802.4166.
Monday, December 21, 2009
Wednesday, December 16, 2009
What San Diego Homeowner's need to know about Insurance
Homeowners insurance is a contract between a homeowner and an insurance company. People want to protect the value of their property. This insurance exists because your home is a huge investment, typically the largest purchase a person makes in a lifetime. The insurance company guarantees to reimburse the owner for losses that occur due to human-caused damage or natural disasters as long as the owner meets policy requirements and pays the required premiums.
Homeowners insurance is almost universally required by mortgage companies with the purchase of a home. This is because the investment is almost as big for them as it is for you. They want to make sure your home in La Jolla is protected from major damages so that if you are ever unable to keep up with your payments, the lender can then reclaim ownership and be able to sell it fairly easily. And even if you own your home outright, a good insurance policy is still the best way to protect the value of your home in the face of the unexpected.
A basic homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. It will also provide for motel and food costs if you are forced to leave your home while such damages are repaired.
A typical policy, however, does not cover flood or earthquake damage. Because these issues are usually specific to certain regions of the country and can cause extreme damage, these can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line like San Diego you may be required by your mortgage company to carry these protections.
A basic policy will also cover your home in Del Mar against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. It will also provide for something that many people may not normally associate with home protection – liability coverage for lawsuits brought against the owner by people who were injured on the property. This includes the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.
Here are some tips on saving money on homeowner’s insurance:
Raise your Deductible: Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. For example if you can afford to raise your deductible to $1,000 if you own a home in Encinitas, you may save as much as 25 percent.
Maintain a good credit record: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
If you’re thinking about selling or buying a new home please contact Nick Alameddin , or call me at 760.802.4166. I specialize in San Diego Coastal Homes.
http://www.premieresd.com/
DRE License #01426515
Homeowners insurance is almost universally required by mortgage companies with the purchase of a home. This is because the investment is almost as big for them as it is for you. They want to make sure your home in La Jolla is protected from major damages so that if you are ever unable to keep up with your payments, the lender can then reclaim ownership and be able to sell it fairly easily. And even if you own your home outright, a good insurance policy is still the best way to protect the value of your home in the face of the unexpected.
A basic homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. It will also provide for motel and food costs if you are forced to leave your home while such damages are repaired.
A typical policy, however, does not cover flood or earthquake damage. Because these issues are usually specific to certain regions of the country and can cause extreme damage, these can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line like San Diego you may be required by your mortgage company to carry these protections.
A basic policy will also cover your home in Del Mar against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. It will also provide for something that many people may not normally associate with home protection – liability coverage for lawsuits brought against the owner by people who were injured on the property. This includes the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.
Here are some tips on saving money on homeowner’s insurance:
Raise your Deductible: Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. For example if you can afford to raise your deductible to $1,000 if you own a home in Encinitas, you may save as much as 25 percent.
Maintain a good credit record: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
If you’re thinking about selling or buying a new home please contact Nick Alameddin , or call me at 760.802.4166. I specialize in San Diego Coastal Homes.
http://www.premieresd.com/
DRE License #01426515
Sunday, October 18, 2009
Six Tax Breaks Every Homeowner Should Know
Benjamin Franklin once said, "In this world nothing can be said to be certain, except death and taxes." More than 200 years later, this certainly holds true. And while being a homeowner won't add years to your life, the modern tax code has a number of benefits certain to make your tax bill lower. The following are a few ways your CPA or Tax Preparer can help you save:
Take an interest in your mortgage interest – Statistics show that only about half of homeowners claim this valuable deduction. Make sure you're one of them. On average, qualified American homeowners save about $2,000 per return by deducting mortgage interest. And when added up over the life of the loan, this can make a big difference in your retirement savings. This is a huge break that renters don't get! So take advantage of it. Don't forget about the points – Points paid to refinance your home are also fully deductible throughout the life of the loan. For example, let's say in February of this year you refinanced your home for a new 20-year loan (or 240 months) and you paid $3,000 in points. By the end of this year, you can write off $125.00 for those 10 months (March through December). Beginning next year, of course, and each year thereafter, you can write off the full $150.00 until the points have been fully deducted. It's important to note that buyers can also deduct mortgage points that are paid by the seller, as long as the cost basis of the property is reduced by the amount of the seller-paid points. Old points are as good as new – Unamortized points from old refinancing are deductible in the year of a new refinance.
Using the above example, let's say rates dropped again and you refinanced again in February of the next year and paid $2,400 in points. The remaining balance of the points on the old loan, $2,875, is fully deductible – plus the money you could deduct for any qualifying mortgage payments made toward the new points. Sell Your House – While points are not deductible for sellers, you can exclude as much as $250,000 in gain ($500,000 on a joint return) when you sell your primary home (your principal residence for two of the last five years). If you don't qualify for the two-year rule, you can get a partial exclusion if the sale of your home is the result of either qualifying changes of employment, health reasons, or other unforeseen circumstances.
Casualty deductions – Floods, forest fires, hurricanes, earthquakes and other natural disasters can be devastating, especially to homeowners. Ask your CPA how you can take deductions on casualty losses, even if you collected insurance. In addition, if the President declares your area a disaster area, you have even more options. New $7,500 tax credit for first–timers – The government has created a temporary monetary incentive, a tax credit for first-time home buyers (that's anyone who hasn't owned a home in the last three years), as a tool to stimulate the housing market. The tax credit (not a tax deduction) will be 10% of the purchase price of a home, up to a maximum of $7,500. In other words, the government is providing first-time home buyers an interest-free loan to help them buy a home! There are, of course, income limits to qualify for this incentive, and other important details, but give us a call, and we'll see if you can take advantage of a tax gift that even Ben Franklin could appreciate. Remember, this, or any article you might read on your own, should never serve as tax advice. Always consult with a qualified CPA or Tax Preparer before making any tax decisions. If you need a referral, give us a call, and we'll be glad to give you the names of the reliable professionals we work with on a regular basis.
Nick Alameddin (760)802-4166
Take an interest in your mortgage interest – Statistics show that only about half of homeowners claim this valuable deduction. Make sure you're one of them. On average, qualified American homeowners save about $2,000 per return by deducting mortgage interest. And when added up over the life of the loan, this can make a big difference in your retirement savings. This is a huge break that renters don't get! So take advantage of it. Don't forget about the points – Points paid to refinance your home are also fully deductible throughout the life of the loan. For example, let's say in February of this year you refinanced your home for a new 20-year loan (or 240 months) and you paid $3,000 in points. By the end of this year, you can write off $125.00 for those 10 months (March through December). Beginning next year, of course, and each year thereafter, you can write off the full $150.00 until the points have been fully deducted. It's important to note that buyers can also deduct mortgage points that are paid by the seller, as long as the cost basis of the property is reduced by the amount of the seller-paid points. Old points are as good as new – Unamortized points from old refinancing are deductible in the year of a new refinance.
Using the above example, let's say rates dropped again and you refinanced again in February of the next year and paid $2,400 in points. The remaining balance of the points on the old loan, $2,875, is fully deductible – plus the money you could deduct for any qualifying mortgage payments made toward the new points. Sell Your House – While points are not deductible for sellers, you can exclude as much as $250,000 in gain ($500,000 on a joint return) when you sell your primary home (your principal residence for two of the last five years). If you don't qualify for the two-year rule, you can get a partial exclusion if the sale of your home is the result of either qualifying changes of employment, health reasons, or other unforeseen circumstances.
Casualty deductions – Floods, forest fires, hurricanes, earthquakes and other natural disasters can be devastating, especially to homeowners. Ask your CPA how you can take deductions on casualty losses, even if you collected insurance. In addition, if the President declares your area a disaster area, you have even more options. New $7,500 tax credit for first–timers – The government has created a temporary monetary incentive, a tax credit for first-time home buyers (that's anyone who hasn't owned a home in the last three years), as a tool to stimulate the housing market. The tax credit (not a tax deduction) will be 10% of the purchase price of a home, up to a maximum of $7,500. In other words, the government is providing first-time home buyers an interest-free loan to help them buy a home! There are, of course, income limits to qualify for this incentive, and other important details, but give us a call, and we'll see if you can take advantage of a tax gift that even Ben Franklin could appreciate. Remember, this, or any article you might read on your own, should never serve as tax advice. Always consult with a qualified CPA or Tax Preparer before making any tax decisions. If you need a referral, give us a call, and we'll be glad to give you the names of the reliable professionals we work with on a regular basis.
Nick Alameddin (760)802-4166
Tuesday, October 6, 2009
What Homeowners Assistance Are Available In San Diego?
Public homeowner assistance programs may be unavailable or hard to get. With budget constraints and San Diego tax dollars not coming in as fast as some officials has expected, struggling homeowners are having a harder time taking advantage of programs. Even when they are behind on their mortgage. Assistance dollars from the public sector are scarce. Homeowners that apply for assistance programs may wait weeks and months for answers.
Privately, there are ways you can get help. While public programs vary in terms of funding, an experienced San Diego realtor can help homeowners with their problem. It's called a "Short Sale" and an experienced agent can walk you through the process of selling your home and erasing the balance of the mortgage. Even if the home doesn't sell for close to what you owe, in most cases, you still can walk away.
Local and national Banks are working out short sale agreements with customers. In order to not go through with the costly foreclosure process, banks are letting troubled homeowners put their home on the market and accepting the best offer that the homeowners get in most circumstances. Banks save money by not foreclosing and generally get a little more from a lived in home in La Jolla than an abandoned home. No cost to look and see how to see if this is possible
Homeowners can leave their home even if they owe more than it's worth if they are no longer able to make their payments.
Homeowners don't have to pay anything to get this done. What's important is that they contact a Realtor that has short sale training in the past, and has experience negotiating offer with banks. A short sale may be a good answer if your San Diego home is underwater. A short sale also provides homeowners financial dignity by not having to go through the foreclosure process which includes an auction and an eviction process by their lender.
One of my recent short sale clients was able to stay in the home for an extra 9 months and save up for a deposit to rent another home. By cooperating with the lender, maintaining the home and doing a short sale. Homeowners are able to buy another home in about two years, versus seven if that home went into foreclosure.
To get more information, please call me at 760-802-4166, or go to the contact page.
Privately, there are ways you can get help. While public programs vary in terms of funding, an experienced San Diego realtor can help homeowners with their problem. It's called a "Short Sale" and an experienced agent can walk you through the process of selling your home and erasing the balance of the mortgage. Even if the home doesn't sell for close to what you owe, in most cases, you still can walk away.
Local and national Banks are working out short sale agreements with customers. In order to not go through with the costly foreclosure process, banks are letting troubled homeowners put their home on the market and accepting the best offer that the homeowners get in most circumstances. Banks save money by not foreclosing and generally get a little more from a lived in home in La Jolla than an abandoned home. No cost to look and see how to see if this is possible
Homeowners can leave their home even if they owe more than it's worth if they are no longer able to make their payments.
Homeowners don't have to pay anything to get this done. What's important is that they contact a Realtor that has short sale training in the past, and has experience negotiating offer with banks. A short sale may be a good answer if your San Diego home is underwater. A short sale also provides homeowners financial dignity by not having to go through the foreclosure process which includes an auction and an eviction process by their lender.
One of my recent short sale clients was able to stay in the home for an extra 9 months and save up for a deposit to rent another home. By cooperating with the lender, maintaining the home and doing a short sale. Homeowners are able to buy another home in about two years, versus seven if that home went into foreclosure.
To get more information, please call me at 760-802-4166, or go to the contact page.
Wednesday, August 26, 2009
Special Event "Shop Solana Beach First"
On August 29, 2009 the City of Solana Beach is having a special event, “Shop Solana First Day”. Residents and guests are invited to visit the City shops and take part in a treasure hunt. Shoppers can pick up the “treasure”; a free reusable shopping bag with the Shop Solana First logo on it from participating shops, displaying a special decal in their store windows.
Treasure Hunt hours will be from 10am until 4pm. Entertainment will be provided, along with various other special events, such as sidewalk sales, a barbeque and more.
For a copy of this events flyer click http://solana-beach.hdso.net/docs/CM_SSBF.pdf
If you are not a resident of Solana Beach, but would like to take advantage of this fun event next year, as well as other great experiences this fine, beach side city has to offer, call or e-mail me, Nick Alameddin Nick@mypfgroup.com to view some of the fabulous properties available.
Treasure Hunt hours will be from 10am until 4pm. Entertainment will be provided, along with various other special events, such as sidewalk sales, a barbeque and more.
For a copy of this events flyer click http://solana-beach.hdso.net/docs/CM_SSBF.pdf
If you are not a resident of Solana Beach, but would like to take advantage of this fun event next year, as well as other great experiences this fine, beach side city has to offer, call or e-mail me, Nick Alameddin Nick@mypfgroup.com to view some of the fabulous properties available.
Tuesday, August 25, 2009
Interest Rate Outlook
The 30-year fixed-rate mortgage fell by one-eighth of a percentage point this week according to www.bankrate.com . We haven’t seen long-term rate averages below 5.0 percent for the past two months and with treasury yields strongly trending upward, nothing lower than that is anticipated in the near future. In fact, rates are likely to average a bit higher.
If you have been sitting on the sidelines waiting for a lower rate, time to jump in. Lower rates combined with the federal tax credit of $8000 for first time buyers and lower home values in San Diego make the perfect time for buying your piece of the American dream.
Keep in mind, in order to cash in on the tax credit you must have your purchase approved no later than November 30, 2009.
If you have been sitting on the sidelines waiting for a lower rate, time to jump in. Lower rates combined with the federal tax credit of $8000 for first time buyers and lower home values in San Diego make the perfect time for buying your piece of the American dream.
Keep in mind, in order to cash in on the tax credit you must have your purchase approved no later than November 30, 2009.
Nothing quick about getting rich with real estate
Ever watch those late night or weekend infomercials with the promise that you will be a millionaire in one year?
It seems like every day there is a new person claiming that they have “the perfect system” to achieve millions of dollars in income by simply following what they have to say. In the early nineties, there was Tom Vu. With his flashy convertible Rolls Royce full of girls in bikini’s
Now you have a plethora of the same message, maybe little less flashy but full of people promising the same thing. From Carlton Sheets, John Beck and Robert Allen to Dean Graziosi. Each one is different yet they all promise the same thing, send us XYZ and we will send you our magic formula.
Just like stocks if you want to make money in real estate, buy low and sell high. The Market in San Diego County is at an all time low. Discuss your options with an experienced professional real estate agent. Find out what they can do for you.
I recently helped a client buy a 2 bedroom condo in an excellent condition, purchase price $120,000. With a price this low, this property can be used to generate a positive cash flow. Call today to find out what I can do for you.
It seems like every day there is a new person claiming that they have “the perfect system” to achieve millions of dollars in income by simply following what they have to say. In the early nineties, there was Tom Vu. With his flashy convertible Rolls Royce full of girls in bikini’s
Now you have a plethora of the same message, maybe little less flashy but full of people promising the same thing. From Carlton Sheets, John Beck and Robert Allen to Dean Graziosi. Each one is different yet they all promise the same thing, send us XYZ and we will send you our magic formula.
Just like stocks if you want to make money in real estate, buy low and sell high. The Market in San Diego County is at an all time low. Discuss your options with an experienced professional real estate agent. Find out what they can do for you.
I recently helped a client buy a 2 bedroom condo in an excellent condition, purchase price $120,000. With a price this low, this property can be used to generate a positive cash flow. Call today to find out what I can do for you.
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