Ashley Brinson Cusak

Archive for the 'Tips for Buyers' Category

Now’s the Time to Buy!

I read an article recently in BusinessWeek by Marc Roth titled “If You Don’t Buy A House Now, You’re Stupid or Broke”.  He raises a very good point about why now is a great time to buy a house, and I thought I’d share some of his key points with you.  For those of you who would like to read the full story, please email me (ashleymia@aol.com) and I will send you a copy.

 

Interest rates are at an all time low.  As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. This is the lowest interest rate we have seen in almost 40 years!  These rates have been all over the charts in the past several years, soaring as high as 18% in 1981, and just in the past few years, they have fluctuated anywhere from 5% to 7%.

 

But history has proven that rates are changing all the time, and based on where they are right now, we are much more likely to move farther upward than downward.  And historically, once rates get high, it takes a long time to get them back down to where they were.

 

Consider this.  Many people are holding off on buying homes today because they think prices are still coming down.  While that might be true, you aren’t necessarily helping yourself because interest rates will be going up.  And here’s the truth: if house prices drop 10% more but interest rates rise just 1%, your monthly mortgage payments stay the same!  And we know that interest rates are going to go up.  But we don’t know that prices still have 10% more to come down.  

 

So the message is this – there is no better time than RIGHT NOW to buy a home.  If you are even contemplating becoming a home-owner or buying a bigger home, now is the time to do it, while interest rates are LOW.  We may never see these interest rates again!

Tags: buyers, mortgage, real estate, sellers

Exciting News for Buyers and Sellers!

If you haven’t heard already, I’m thrilled to share two pieces of exciting news with you!  First of all, the $8,000 first-time-home-buyer tax credit has been extended!  And secondly, they have added a new program for sellers – a $6,500 tax credit to sellers who have owned their home for at least 5 years!

Here are the details of the two programs.  A first-time home-buyer is someone who hasn’t owned a primary residence for at least the past three years.  The credit applies to all home purchases up to $800,000, as long as the home is under contract by April 30^th, 2010 and closes by June 30^th, 2010.  Buyers will qualify for the full tax credit as long as they make at most $125,000 per year, or if married, a total of at most $225,000 per year – this is an increase over the program that expires on November 30^th!

For sellers, this is a new program that they are just introducing.  If you have owned and lived in your home for five consecutive years, you qualify for a $6,500 tax credit upon selling your house!  This applies only to homes priced at $800,000 or less.  This credit is available for homes purchased after November 6^th, 2009 and on or before April 30^th, 2010. However, as long as you are under contract by April 30^th, 2010 and close by June 30^th, 2010, you still qualify for the credit.  The same salary requirements exist – single taxpayers must have an income of less than $125,000 per year, or if married, less than $225,000 per year in order to qualify for the full tax credit.

Credits may either be applied to your 2008, 2009 or 2010 taxes – it’s up to you!

A Message to First Time Home Buyers

Are you looking to purchase your first home? Or are you looking to buy again after having not owned a home in 3 years or more? If so, I have great news for you! There is a wonderful incentive right now for you – an $8,000 tax credit paid for by the federal economic stimulus plan. However, the clock is ticking – this offer is only good on houses that close before December 1st.

Here are the details. Individuals making less than $75,000 annually, or married couples making less than $150,000, receive a credit of $8,000 toward their income tax. The credit is subtracted from your overall tax bill – so if you owe $12,000 in taxes, this would bring your amount due down to $4,000, or if you don’t owe anything, you actually get a refund of the full amount from the government. Individuals making $75,000 to $95,000 (or couples making $150,000 to $190,000) can qualify for a lesser amount.

After closing on your new home, you can either amend your 2008 tax return to get the refund as soon as possible (however, 2008 filings are required to pay that money back over 15 years – $500 per year) or you can file it with your 2009 taxes (and you are not required to pay it back, as long as you live in the home for at least 3 years).

If this sounds interesting to you and is something you would like to pursue, please call me and we can get your home search underway! Because it expires so soon, it is important that you take advantage of this great opportunity now!

Waterfront Living in Coral Gables

Looking to live on the water? There are some remarkable homes to choose from right now in Coral Gables, and this post will look at the ones in the $10 million+ range.

There are currently 10 active listings, most of which are in Gables Estates. They range in price from $10,900,000 to $49,500,000. All of these homes have at least 1 acre of land, and many are more than 10,000 square feet inside. Here’s a look at some of these listings:

6 Bedrooms / 5 Bathrooms / 3 Half Bathrooms / 3-car garage / 8,310 square feet / 46,243 square foot lot

Listed for $11,000,000 with Polly Schiff, Coldwell Banker

Tags: Coral Gables, Gables Estates, Leucadendra, Snapper Creek, waterfront

Buy! Buy! Buy!

There is no denying – I am a realist. I’ll be the first to admit that we are in a terrible market right now. It’s likely that prices will continue to decline throughout this year. But here is the reality. We won’t know when the bottom has hit until we’ve already started to come out of it. So in actuality, there was never a better time than right now to buy a house, if you are planning to buy and live in it for at least two years. For the next two years, you can live in a new house, take advantage of the tax breaks that we receive as homeowners, receive an incredible interest rate on your mortgage (they are as low as 4.75%!) and be poised to take the rise in values that we will undoubtedly begin to see in the next few years. There has never been a better time to buy!

Also, keep this in mind. If prices go down by 10% but interest rates rise by 1%, the monthly payment stays the same. So any advantage you might receive by the loss in purchase price was just negated by the rise in interest rates.

Tags: investment, mortgage, real estate, tax breaks