Feb 27 2009
Now is a great time to build!
Today I want to visit the question of whether or not now is a good time to build or buy a new home. As you might have guessed, my answer is a resounding YES, and here is why:
1. For first-time home buyers the new tax credit provides an unprecedented opportunity! The newly enacted stimulus law contains an $8,000 tax credit that is good through the end of November, 2009. This tax credit does not have to be repaid, unless the home is sold within three years. The credit is fully refundable, so if for example you only owe $1,000 in taxes, you will receive a $7,000 tax refund! Please contact me if you would like more information about this new first-time home buy tax credit.
2. Mortgage interest rates are near 5 percent which is the lowest level for fixed-rate loans in decades.
3. There is plenty of mortgage money for qualified home buyers. The government takeover of Fannie Mae and Freddie Mac in September of 2008 should increase the liquidity in the nation’s mortgage markets. Plus the stimulus package passed by Congress helps borrowers by restoring the Fannie Mae and Freddie Mac loan limits back to $729,750.
4. All housing markets are local and Vermont is in pretty good shape! There are very few foreclosures in Vermont compared to the rest of the country and the value of existing housing stock has dropped very little. It won’t take long before values come roaring back.
5. Prices to build are currently better than they have been in a long time. Material prices have eased and trades people are hungry for work, so prices are very attractive right now for people wanting to build.
6. Owning a home is still a solid investment. It is a great way to build equity and overall wealth and over the long term real estate values have always appreciated. Another way to look at it is that owning a home is like investing in an automatic savings account. You accumulate savings in two ways. First you are paying down the principal each month and thus building equity and second, the value of the home will appreciate over time.
7. Owning a home will help you save on taxes in many ways. In most instances, all of the interest and property taxes you pay in a given year can be fully deducted form your gross income to reduce your taxable income. Also there is a tax break when you sell your primary home and make a profit. As long as you have lived in the home for at least two years, you can keep up to $500,000 of the profit you make tax-free!
8. The best reason yet for people thinking about building a home in the greater Burlington area is that Bickford Construction Corporation currently has openings in their schedule for 2009, so please give us a call!
1. For first-time home buyers the new tax credit provides an unprecedented opportunity! The newly enacted stimulus law contains an $8,000 tax credit that is good through the end of November, 2009. This tax credit does not have to be repaid, unless the home is sold within three years. The credit is fully refundable, so if for example you only owe $1,000 in taxes, you will receive a $7,000 tax refund! Please contact me if you would like more information about this new first-time home buy tax credit.
2. Mortgage interest rates are near 5 percent which is the lowest level for fixed-rate loans in decades.
3. There is plenty of mortgage money for qualified home buyers. The government takeover of Fannie Mae and Freddie Mac in September of 2008 should increase the liquidity in the nation’s mortgage markets. Plus the stimulus package passed by Congress helps borrowers by restoring the Fannie Mae and Freddie Mac loan limits back to $729,750.
4. All housing markets are local and Vermont is in pretty good shape! There are very few foreclosures in Vermont compared to the rest of the country and the value of existing housing stock has dropped very little. It won’t take long before values come roaring back.
5. Prices to build are currently better than they have been in a long time. Material prices have eased and trades people are hungry for work, so prices are very attractive right now for people wanting to build.
6. Owning a home is still a solid investment. It is a great way to build equity and overall wealth and over the long term real estate values have always appreciated. Another way to look at it is that owning a home is like investing in an automatic savings account. You accumulate savings in two ways. First you are paying down the principal each month and thus building equity and second, the value of the home will appreciate over time.
7. Owning a home will help you save on taxes in many ways. In most instances, all of the interest and property taxes you pay in a given year can be fully deducted form your gross income to reduce your taxable income. Also there is a tax break when you sell your primary home and make a profit. As long as you have lived in the home for at least two years, you can keep up to $500,000 of the profit you make tax-free!
8. The best reason yet for people thinking about building a home in the greater Burlington area is that Bickford Construction Corporation currently has openings in their schedule for 2009, so please give us a call!
Office Location: 600 Blair Park Road, Suite 235, Williston, VT 05495 