Schwarzenegger proposes tax credit to spark new home building

It looks like Arnold Schwarzenegger is working on reissuing the $10,000 tax credit for first time buyers of new construction. This can be used in conjunction with the already being offered $8,000 tax credit. See the article below:

Schwarzenegger proposes tax credit to spark new home building
Published: Thursday, Jan. 7, 2010 - 12:00 am Page 6B

More than 20,000 California homebuyers could get state tax credits of up to $10,000 this year under a new stimulus proposed Wednesday by Gov. Arnold Schwarzenegger.

The governor's plan to allocate $200 million in credits to buyers of new or existing homes is part of a job creation strategy. It goes now to state lawmakers for consideration.

"This is about helping eliminate extra housing to get construction back on tap," said Victoria Bradshaw, Schwarzenegger's secretary of labor and workforce development, in a call with reporters.

It's unclear how fast legislators might act. But last year, they handily approved $100 million in tax credits for buyers of new, unoccupied homes. The credits, claimed by 10,600 buyers from March through June, proved popular and ran out faster than expected.

Wednesday's announcement in the governor's annual State of the State address won praise from the state's struggling real estate sector.

"Wonderful," said Barbara Harsch, president of the Sacramento Association of Realtors. "Anything that will bring more buyers into the market, that allows more people to buy a home, is good for getting us out of the real estate slump. That eventually will get us out of the economic slump."

Building industry representatives said they wouldn't oppose extending tax credits to existing homes. But Allison Barnett, a lobbyist for the California Building Industry Association, said using credits for new home construction creates more jobs.

Would-be buyers hoped for quick passage.

"This has taken me from being on the fence to really wanting to take action," said Chris Harris, 32, of Roseville. "That can make a huge difference."

The tax credits – which would provide up to $3,333 off state taxes for each of the next three years – could be combined with an $8,000 federal tax credit. That credit for first-time buyers ends April 30.

Schwarzenegger administration officials said conditions of their proposal would be similar to last year's credit. That had no income limits, made all buyers eligible and required that buyers live in their homes. No dates have been set yet for eligibility. Buyers qualified last year by closing escrow after the credits became available on March 1.

The proposal has its critics. Some renters object to subsidizing homebuyers, and some economists think $200 million in a deficit-plagued state is better spent elsewhere.

"Housing isn't all that important of a driver of jobs," said Chris Thornberg, head of Los Angeles-based Beacon Economics. "Somehow, that the state should be spending its money to subsidize people to buy homes is nuts."

Thornberg said there is enough incentive with the federal tax credit and low interest rates.
But building industry officials think otherwise.

"We've been so hard-hit by this recession," said John Orr, president and chief executive of a builder trade group, the North State Building Industry Association in Roseville. "Our area needs jobs, and new home construction means very good jobs for the region."

Home builders counted 3,398 closed escrows in the eight-county Sacramento region during the first 11 months of 2009. That was just 9 percent of all area sales, according to San Diego County researcher MDA DataQuick. In 2005, new homes were 25 percent of sales.

© Copyright The Sacramento Bee. All rights reserved.
To go directly to the article click HERE

Thoughts? Questions? Let us know!

Signing off, "R Team"

Hot Property! LA Times Article

Fun Facts from the LA Times today...

Jeremy Renner, Kristoffer Winters' Hollywood Hills area home sells for more than $4 million

"No bomb here. Actors Jeremy Renner, who played the leader of an explosives disposal unit in the critically acclaimed film "The Hurt Locker," and co-investor Kristoffer Winters found a buyer for their restored 1924 Greek Revival in the Hollywood Hills area after five months on the market. It sold for more than $4 million.The four-bedroom, 4 1/2 -bathroom two-story has a library with a bar, a wine room, an eat-in kitchen with two islands and a screening room in 5,800 square feet. There is a two-car garage, additional parking for nine cars, a swimming pool with spa and a 1,000-square-foot guesthouse with a kitchenette and office. Plus, the gated property comes with a one-year tenant paying $25,000 a month.Oscar-hopeful Renner, 39, starred in the Iraq war drama, which recently won the top Producers Guild of America award, and in the dark comedy series "The Unusuals" (2009). He also played the title role in "Dahmer" (2002). Winters, 31, was also in "The Hurt Locker" and has appeared on television shows including "Criminal Minds" (2007), "CSI: Crime Scene Investigation" (2005) and "Crossing Jordan" (2004).
The actors bought the property in 2008 for $1.55 million, according to public records."

Read about more celebs Real Estate Here

Signing off, "R Team"

"This Show Could Save Your Life: America's New Deadly Obsession"

Last week Oprah had a life changing episode about the effects of using your cell phone while driving. The results are remarkable. How far do we push the limits until we realize how dangerous this really is?

Watch the episode below, and please make a personal pledge to quit the deadly habit!!

http://abclocal.go.com/wls/feature?section=news/entertainment&id=7233826

You and the loved ones in your cars are precious cargo. Driving with loved ones while texting is like juggling with glass balls; when you drop them they don't bounce, they BREAK.

To learn more about Oprah's no phone zone pledge and to be a part of the movement click here:
http://www.oprah.com/questionaire/ipledge.html?id=4

Live well and be safe.

Signing off, "R Team"

Median Home Price Rose 4% in Dec

Buyers fear if they don't act now they may miss out!

Recent numbers in the Real Estate market show increasing sales as buyers try to take advantage of the golden opportunity the Southern California Real Estate market has to offer right now. If you are thinking of buying, don't wait any longer, NOW is the time....

"We are getting a little bit of what we had six or seven years ago, where people are worried if they don't get in now they are going to miss out on an opportunity," Green said. "In a decent neighborhood, in the half-a-million-dollar range, we are back to lots of offers."

Click here to see the full article:
http://www.latimes.com/business/la-fi-home-sales20-2010jan20,0,3261823.story

Please let us know if you have any questions or comments!

Signing off, "R Team"

Buyers Gain More Options

Just a quick note:

It looks like HUD may lift the 90 day rule! TEMPORARY dates are 2/1/10 to 2/1/11

Read On...
Portal.hud.gov

This will open up more affordable properties to FHA buyers. Another great step forward by the government in the Real Estate market.

Signing off, "R Team"

Prudential California Realty: High-end Sales Coming to Life

Home sales are percolating around the country with entry-level and move-up transactions gaining momentum. This is attributed to lower prices, favorable interest rates and government tax credits. High-end home sales may also be coming to life considering the flurry of sales generated by Prudential California Realty during the last two weeks of December.

The firm represented sellers and buyers in homes that sold for $20 million, $17.5 million, $13 million and $6.5 million, to name a few. The $13-million property, which had been on the market for about two years, was sold to a Russian businessman and closed in only three days.

According to Jon Cook, president and CEO of Prudential California Realty, affluent buyers have faith in the U.S. real estate market as long as homes are priced right and represent value. "Unique, distinctive properties are selling in top locations," Cook said.

"Sales professionals might rethink taking a vacation in December since we truly had a December to remember," said Tom Dunlap, manager of Prudential California Realty's Beverly Hills office. "We're excited about our success and want to keep the momentum going."

Signing off, "R Team"

The Myths of the Media and the Gift of a Lifetime

Can you feel the Los Angeles Real Estate heat?? The questions, the rumors, the statements…. Is it stable, is it going down, is it a good time to buy? There are plenty of people who want to offer their opinion, but what about the facts? What is really going on? Does anyone really have the answers? But what do we have are the FACTS. Historically, we have seen the value of homes go in a cyclical fashion, repeating itself every few years. Interest rates on the other hand don’t follow any such predictable change and can go up or down at a moment’s notice. Right now they are at the lowest point they have been in 40 years. This combined with lower home prices creates the heat for Real Estate’s most unbelievable deals right now. Those who can afford to buy right now are making smart investments and are on their way to building equity and enjoying the benefits American home ownership has to offer.

To get a more in depth view of why interest rates are creating such fantastic home buying opportunities right now see the article from Business Week below:

"If you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.”

BusinessWeek

“What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

Signing off, "R Team"