Longfellow Nokomis Real Estate Guide

New Homebuyer Tax Credit Bill To Be Signed Today!

What are the specifics?  Well you'll be able to use the $8000 on contracts through April with some expanded income qualifications.  And you'll be able to qualify for up to $6500 even if you're NOT a first-time buyer.  You will have to have owned your current home for 5 years.  This leaves some people out who could really use the $6500, but hopefully it will lead to better inventory for all the first-time buyers.

Check out this news brief from the National Association of Realtors for a break down of changes from the old bill:  http://www.mnrealtor.com/AM/CM/ContentDisplay.cfm?ContentFileID=2950&MicrositeID=0&FusePreview=Yes

City of Minneapolis Owes Those that Protect

Photo from Flickr

City Pages ran this story yesterday:

Minneapolis government knew there was a problem with the pension for retired police officers and fire fighter in 2004, but have just now put a plan into place. The shortfall of 22.7 million dollars (gulp) is from the pensions closing, and back when these contracts where negotiated, the city agreed to make up the shortfall. Whoever made that decision should be the one to cough up the money.

The plan, as it stands, is to raise our property taxes 11.3 percent next year, 61 percent of which will go toward the firefighter and policmen's pensions. If your property taxes are currently about $2500 per year, you'll be paying an additional $282.50 next year. Really over a year this isn't terrible. What makes me so angry is the rest of our budget that is already in the red, and this is money that could have gone for education or infrastructure.

It's one of those complicated situations where you know the men and women that have served the city deserve their pensions. You and I, who didn't have anything to do with the horrible contract that was put in place by the Ryback administration are the ones who will have to pay, and pay, and pay.

What Can I Do To Help With the Economical Crisis?

Well if you have lots of money and job security, go on a shopping spree!  And try to by local products at local shops.

But if you're just doing okay and have a stable home environment, adopt a pet.  They are the silent victims of the foreclosure crisis.  Many families have had to give up their dogs and cats in order to find a new place to live.  There have even been stories of families visiting their beloved pets at the shelter until they were adopted.

If you are looking for a animal companion, please consider adopting a pet from a humane society or other shelter instead of from a breeder.

www.animalarkshelter.org

www.midwestpetfinder.com/minnesota_shelters.htm

What's Up With This $7500 Tax Credit?

Good question.  Congress has been passing laws faster than the industry knows what to do with them.  The current law, as was passed last year, gives a $7500 credit on your tax return for qualified first-time buyers who purchase a home between April 9, 2008 and July 1, 2009.  Except it isn't a credit.  It's a zero interest loan that must be repaid on your future taxes over the next 15 years.

As you can imagine, this did little to stimulate the housing market.  It doesn't increase your ability to purchase a home.  It just makes expenses easier to handle once you're there...eventually...when you get a refund...that you pay back.

The new stimulus plan that passed the house on Wednesday turns that credit into a...CREDIT!  If the bill becomes law, that $7500 would become a straight-forward credit on your 2009 returns.  It would retroactively include purchases made since January 1, 2009 and extend through either June or August (depending on the bill). 

Will this simply be a windfall for the qualified first-time buyers who were going to buy anyway?  Or will this be enough incentive to convince someone on the fence to buy?  It still won't give you $7500 to use towards your down payment.  But knowing it's there in 2010 may just be the assurance you need, that you can afford to buy in this well priced market.