Arn Cenedella

Archive for the 'Inspiration' Category

State of California $10,000 home buyer credit

The State of California has just passed a $10,000 home buyer tax credit as part of the recent state budget bill.

This credit is in addition to the $8,000 federal tax credit.

However, the CA tax credit is different than the US tax credit.

The CA credit applies ONLY to NEW houses or condos purchased as primary residences.

The credit is limited to 5% of the purchase price or $10,000 whichever is lower.

The credit will get applied over a 3 year period and the buyer must live in the property for at least 2 years or they lose the credit.

The state tax credit is limited to $100M so time is of the essence.

There are lots of new projects on the Peninsula and in San Francisco.

Let me know and we can find the right one for you.

RIS Media Jim Wasserman provides more details.

Details on home buying real estate tax credit

Per NAR, here are the details on tax credit.

This credit is effective for puchases made after January 1, 2009 and before December 1, 2009.

Maximum credit is $8,000 or 10% of the purchase price.

Full amount of credit available to individuals with adjusted gross income of no more than $75,000 ($150,000 on joint return) Phases out above $95,000 individual and $170,000 joint incomes.

First-time buyer personal residence only. First-time buyer defined as no ownership for prior 3 years.

If home sold within 3 years of purchase, entire credit is recaptured.

Effective date January 1, 2009.

Here is chart comparing prior credit to current credit.

 Good news for home buyers.

It appears $15,000 tax credit for home purchases may not include income limits.

The current $7,500 tax credit for first-time buyers has income limits of $95,000 for individuals and $150,000 for couples. Due to our high housing prices, this credit has done little to spur our local market.

It appears the proposed $15,000 credit will not have income limits and will apply to all home purchases – personal residences only.

Calculated Risk gives good info on the details of the $15,000 Senate approved tax credit.

Bloomberg reports this credit will benefit higher income earners unlike the current $7,500 credit.

First-time buyers – this may be your opportunity to buy!

Yes, the economy is weak and yes, we may not have seen the worst.

But if you feel your employment is secure, if you buy within your financial means, and if you wish to make the San Francisco Peninsula your home, this is a good time to buy.

Long-term, I think we can have confidence that the economy will recover and that our area will continue to be a major employment center.

Prices are down in many areas – especially the more affordable entry-level neighborhoods.

30 year fixed rates are around 5%.

The Senate has passed a proposal for a $15,000 tax credit for home buyers. This is promising. But I caution everyone that this is NOT LAW. The House and Senate will need to agree on the bill and we need to see the exact final form of the bill. Will there be income limits? The current $7500 credit has a $95,000 limit for individuals and a $150,000 limit for couples. Will the new bill contain income limits? This issue will make a big difference in our area.

This is all good but I would like to bring it down to a personal level.

Some former tenants of mine (Rick and Beth) moved to LA a few years ago. Rick and Beth now want to move back and I met with them on Saturday January 17 to look at homes in East Palo Alto and east Menlo Park. We looked at 5 homes and found a real cute 2 bedroom 1 bath at 2230 Poplar Ave. listed at $199,950.

There were several offers and Rick and Beth went above list price a little but we had seller – a bank – pay all their closing costs.

Their total cash outlay to purchase will be about $10,000 and their monthly payments will be $1255 loan, $50 for insurance, $234 property taxes, and $100 mortgage insurance – total monthly payment $1639 per month.

So $10,000 plus $1639 per month buys a 2 bedroom 1 bath single family home on a 5000sf lot.

This house has fresh paint, carpet, vinyl, and new windows.

So basically with little cash outlay (I mean it costs $4000 to move into an apartment around here) plus basically a rent payment, Rick and Beth will become homeowners.

I believe it is reasonable to assume that in 5 to 10 years, this house will be worth more than the $225,000 paid for it. Do you agree? And even if it isn’t, they will be owners instead of renters. They can fix the house and yard up the way they want and enjoy living in this house.

If East Palo Alto isn’t for you (my first home was in East Palo Alto, BTW), then there are other areas where you can buy single family homes for under $500,000.

A home just closed in White Oaks San Carlos where I have lived for 23 years for $680,000.

That is a great price!

So first-time buyers, get moving to take advantage of the current opportunities.

I am confident – if you buy now - in 5 years you will be grateful – you did. 

One of my favorite loan agents, Linda Lunsman of Princeton Capital, handled the loan for Rick and Beth. Linda helped get their offer accepted since she knew the listing agent and got Rick and Beth’s FHA 3.5% down loan approved in 8 working days.

Rick and Beth will be moving into their home before the end of the month. Trust me, they are ecstatic!

I have been in the real estate business since 1978 and I have plenty of professional contracts that help my clients in all aspects of a purchase or sale. These allied professionals would include several excellent lenders, contractors, inspectors, accountant, landscapers, painters, and flooring contractors. I also offer property management.

Contact me if you wish to get started in a low-key no-pressure but professional manner.

Get moving you will not regret it.

$15,000 tax credit passed by Senate

Yesterday the Senate passed a $15,000 tax credit for home buyers.

For some preliminary information, please review this MSNBC article.

Of course the details may change once the House looks at this piece of legislation.

My questions are:

credit for all home buyers? or just first-time buyers?

credit retroactive? I have seen some proposals to make credit retroactive to July 1, 2008 so buyers who bought last year may benefit.

stay tuned, let’s see what the House and Senate work out and then we can determine the final exact form of the bill.

this bill will not help cure all of the RE Market ills but it will help and especially for those first-time buyers.

Did you know you can buy real estate with your 401(k) or IRA funds?

With real estate values down, there are excellent buys in real estate for long-term investment – both here on the San Francisco Peninsula and elsewhere in the country. I have developed experienced real estate contacts in other areas of the country like Sacramento, San Diego, Phoenix, Dallas/Ft. Worth, Kansas City, Raleigh, NC, and elsewhere.

There are solid long-term investment opportunities available on the San Francisco Peninsula.

Would you prefer to have greater control over your retirement funds?

Would you prefer to invest your retirement funds in real estate – a tangible asset that people need for shelter?

Yes, real estate values in most areas of the country are down.
But I would submit that stock portfolios are down even more.

If you would like more information on investment opportunities and/or purchasing real estate with your 401(K) or retirement funds, please contact me for a FREE 50 page Q&A about self-directed IRA real estate investing.

I am happy to meet with you for a NO OBLIGATION consultation and explanation of the process.

Buffini Mastermind – the Referral Brothers are back home

Got home last night after 4 super days and nights down in San Diego at the Buffini Mastermind Conference and one of the highlights was Brian’s take off on the Blues Brothers – aka the Referral Brothers. A video was also shown where Carrie Fischer playing the role as a frustrated seller tried to blow up Brian Buffini and Joe Niego with a bazooka. 

Check these out.

http://video.google.com/videoplay?docid=7150290705901326399&hl=en

http://video.google.com/videoplay?docid=2694290112177979120&hl=en

Will write more about the conference later!

Buffini Mastermind Conference in San Diego – Sunday night

It was opening night at this year’s Mastermind conference.

I am sitting on a roof top bar 22 floors up overlooking the San Diego Marina and Petco Park.

Tonight’s opening guest was Paul Potts – an inspirational story if there ever was one.

A mobile phone salesman 15 months ago, Paul won last year’s Britian’s got Talent by wowing Simon Cowell and everyone else with a fantastic operatic voice. Paul now has sold over 3,000,000 albums, sang for the Queen, and just came from a performance at Wembley for 75,000 people.

He sang for us tonight. No other US appearances.

Check out these Utube videos and you will see an ugly duckling turn into a beautiful swan.

http://www.youtube.com/watch?emb=0&eurl=http%3A%2F%2Fvideo.google.com%2Fvideosearch%3Fq%3Dpaul+potts&v=DelJrP3P7tA

http://www.youtube.com/watch?emb=0&eurl=http%3A%2F%2Fvideo.google.com%2Fvideosearch%3Fq%3Dpaul+potts&v=rDB9zwlXrB8

Check it out !

When I am not selling real estate I may be golfing

At the recent Palo Alto Men’s Golf Club Match Play tournament, the ReGuru won 4 matches and his flight.

The ReGuru won his first 2 matches on the 19th hole after going into 18, 1 down in each match. The next two matches were won a little easier 3 and 2 and 2 up. 

I will play the semi-final round this Thursday April 17 at Calippe Preserve Pleasanton.

Please wish me luck!

San Mateo and San Francisco Counties are doing just fine !

USA Today published a fascinating study of local economies throught the nation.

Most states are doing just fine !

Here’s the map:

Most of California is at risk or already in recession.

Only Bakersfield, Santa Cruz-Watsonville, and San Francisco-San Mateo-Redwood City are in expansion.

Very interesting !

Is it only a matter of time before San Francisco-San Mateo-Redwood City join the rest of California? Or is this precious sliver of land between the Pacific Ocean and the San Francisco Bay immune?

Only time will tell but my sense is that we will continue to do just fine.