Real Estate for Real People

Wednesday, October 8, 2008

Kristin LaVanway
The Realtor Gal
Prudential Arizona Properties
3701 E Baseline Rd #F102
Gilbert Az 85234

Call me! 480-282-7464
Write Me! kristin@theRealtorGal.com
Visit Me! www.kristinlavanway.com
Read my Blog!

First Time Home Buyers Tax Credit

Prior to the $700B Bailout Package, Congress passed a sweeping bill that addressed some of the troubles facing the mortgage industry. Specifically, it provided funds to shore up Freddie Mac & Fannie Mae, but it also, also provided some additional features that affect homes buyers.

On the down side, the legislation eliminated the Down Payment Assistance Program, a tool used to assist buyers provide down payments when using FHA loans. In exchange, the bill created $7500 tax credit for first time buyers.

This credit is available for home buyers who have not owned a home within the last three years and who closed escrow on or before April 9, 2009. The home must be a principal residence.

But there is a catch - the credit must be paid back over 15 year period. For more information, visit the First Time Home Buyer Tax Credit FAQ .

Vote Yes on Prop 100 to Prevent Real Estate Transfer Tax

What is the Real Estate Transfer Tax?A real estate transfer tax is a state or local government imposed tax,like a sales tax, that is imposed when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at anytime.

The Citizen's Initiative will provide protection from the real estate transfer tax and prevent:

• Double Taxation. Governments already collect taxes on your property based on the property's value. This new tax would unfairly impose a second tax to impact your home or property.
• Loss of Equity. Since the tax is assessed against the total value including the amount you owe on your mortgage(s), the overall equity earned by the seller is decreased.
• Damage to the Real Estate Market. In an already burdened housing market where people are struggling to sell their homes, the overall higher costs will only make it more difficult to initiate a successful sale, not to mention making it less attractive for commercial real estate to recruit business to the area.
• Punishment of Homeowners. People who move from one house to another should not be punished while others choose not to move; in fact, this is considered discriminatory and harms access to the "American Dream" of home ownership.
• A Negative Impact on Lower-Income Arizonans. A real estate transfer tax would impose a higher tax burden on lower income households that typically spend a larger percentage of their income on their home.   For more information, visit: http://www.protectourhomes.com/home/