Smart Girls Own Real Estate Blog

The basics of the first-time buyer tax credit before they were revised in the American Recovery and Reinvestment Act.

If you bought your first home last year after April 9, 2009 you are eligible for the lesser of $7500 or 10% of your purchase price in the form of a tax "credit."

You can not have owned a home in the three years previous to the purchase. The credit reduces the tax liability, and if there is a balance after taxes are collected, it is paid out as a refund to the home buyer. The adjusted gross annual income to receive the full credit can be no more than $75,000 for individual, $150,000 for joint filing, and there are reduced credits for first-time home buyers above those income levels.

Read everything about getting the tax credit at Philadelphia and Bucks County Real Estate Blog

Mortgage Rates went up a little, but every little bit counts.

Fixed rate Conventional 30 year mortgage is 5.125% with zero points

Purchases - mortgage amounts of $250,000.00 with credit scores of 720

OR

Fixed rate Government 30 year mortgage is 5.375% with zero points

Purchase - mortgage amounts of $200,000.00 with credit scores of 620

Compliments of:

Lisa Sozio
Wells Fargo Home Mortgage
215-801-2949 Tel
Lisa.Sozio@wellsfargo.com                                       

Don't wait for rates to go up. Find your dream home in Northeast Philadelphia or Lower Bucks County.

At last! the much anticipated changes to the the first-time homebuyer tax credit are in.

The most noticable difference from the last $7500 tax credit is that it does not require repayment if the house is not sold within 3 years.

Beginning January 1, 2009 until December 1, 2009 first-time homebuyers will be lucky enough to get this boost from the government.

See the updates in writing here.

Ready to buy? You'd be smart not to wait. After all, it's a buyer's market, rates are down and you're getting a "rebate." Renting just got so much more expensive this year.

Search the MLS and see every home for sale on the Map! www.SmartGirlsOwn.com

Call the McCarthy Group at 215-757-6100 ext. 173

Visit my Philadelphia and Bucks County Real Estate Blog at it's new address:

PhillyandBucksBlog.com 

Featuring Northeast Philadelphia and Lower Bucks County Real Estate. As some of you know I usually blog here at SmartGirlsOwn.info. Although both blogs may at times contain the same info, you will find more info on Philly and Bucks there.

Thanks for your support and, as always, if there's anyone that you would like to refer to me, please give me a call at 215-531-1305 or email me at sellwithstacey@comcast.net.

I recently applied for a job as Real Estate Editor for an online women's magazine. The editor did not think a Realtor would be a good hire for the job and is looking elsewhere.

The editor asked me a couple very thought provoking questions and I thought it would be great to blog the question and answer here.

Q:   I am wondering if you'd mind giving me your opinion on something though - just out of curiosity. I know you created a group on Maven called Smart Women Own Real Estate.  Can you tell me if you believe that is really the case for all smart women?  I'm asking because I'm not sure I agree obviously, but also because of everything that has gone on in the past few years.  For example - a young professional woman who is single and is not intending to live in a particular home or condo for more than 5 years MAX because of life changes she will go through.  Someone who may get married and want to buy a bigger house and need to sell or rent out her current home.  Someone who may want to move to a new city for work.  Would these women be smart to buy real estate considering how long it takes to sell a home these days and how horrible the rental market is to attempt to keep a property as an investment? 

A:   First let me be clear: I don't think anyone can make a sweeping generalization about any subject or any demographic without agreeing that not everyone or everything fits neatly into any generalization. Not everyone (or every women in this case) should or can own real estate. That said, it is a fact that the homebuying public is made up of 20% single women. You can double check this statistic from the National Association of Realtors website. In fact, in their studies they found that more women than men lived alone. Among these, women were more likely than men to own their homes (56% vs. 47%).  

I will try to respond directly to your comments:  

Everything that has gone on in the past few years.We are in the midst of a market correction from extraordinary circumstances. Based on the past few years I wouldn't discount real estate as still being one of the best investments you can make. You can still touch real estate. You can still live in a house. It works for you like no other investment. Your car doesn't appreciate - it depreciates 100% of the time. And stocks can't keep rain off your head unless you're smart enough to buy low, sell high, and then go buy a house (or rent, whichever). At the end of the day, if you own real estate, it's still worth something.  

A young professional woman who is single and is not intending to live in a particular home or condo for more than 5 years MAX because of life changes she will go through? The real cost of renting at $800 a month, with an average 6% increase per year is $126,536 over 10 years without ownership. Owners have the advantage of property tax deductions and mortgage interest write-offs. Owners have the benefit of appreciation potential- it's possible to build equity in 5 years. In Philadelphia, the average five-year annualized appreciation is 6% compared with 3.4% nationally. I would add, you don't ALWAYS control when life changes will take place. When I was 18, I knew what I wanted to be when I "grew up" and I intended to be married by 23. I didn't get married until I was 33 and I've changed careers twice since then.  

Someone who may get married and want to buy a bigger house and need to sell or rent out her current home.  I don't see any reason why this person shouldn't buy if she wanted to. I know women who have had the down payment for their marital home because they bought single.  I am currently selling a duplex for a woman who just had a baby and moved in with her fiance. She lived in that duplex virtually rent-free for seven years and will be getting a check for $12,000 when it closes. You can't compare that to renting in the same 7 years. In that time she took out a home equity loan - you can't get a home equity loan from your rental. This is the reason I love to help single women - there's a payoff for owning. I am currently living with my husband and raising my son in the home I bought single. It has appreciated 17% since 2002 even with the market corrections.  

Someone who may want to move to a new city for work. It would depend on how long she was planning on staying or how stable her job would be. I don't think I would advise someone to buy if their company was planning on relocating them unless they intend to be a landlord. In fact, I have advised to rent first to see if they even like an area in certain cases.  

Would these women be smart to buy real estate considering how long it takes to sell a home these days and how horrible the rental market is to attempt to keep a property as an investment? Philadelphia sale and occupancy rates are much higher than the rest of the country. In fact, Forbes Magazine ranked Philadelphia 4th in best long term housing bets. See: http://www.forbes.com/2008/12/16/cities-ten-homes-forbeslife-cx_mw_1216realestate.html.    

Not all women are smart. Not all smart women can own or should own real estate. Not all of the women who own real estate are smart. Men are smart too. Agree, or disagree on the statement "Smart Girls Own Real Estate," it doesn't change the fact that single women do own real estate. Smart girls own real estate just sounds cooler than single women own real estate : )  

Join my Smart Girls Own Real Estate Group on MavenMagPhiladelphia.com

www.SmartGirlsOwn.com - The Smart Girl's Guide to Real Estate

www.SmartGirlsOwn.net  - Smart Girls Network 

Parkwood Year-End Home Sale Report for 2008


The average sold price was $189,000 in 2008

We are currently back down to 2005 prices in value. 2006 and 2007 were an all time high for Parkwood.

In 2008 home values dropped 3.5% from 2007, which was the highest average sold prices of all time at $196,000.

The number of sales slipped 14% in 2008 with 82 Parkwood homes sold down from 96 in 2007. The highest number of homes sold was in 2004 at 122.

6% of homes that sold last year were forclosures in Parkwood which affected the average value.

Looking forward we should expect home prices in our neighborhood to continue to fall through 2009, stabilizing in 2010. This is due to the projected forclosures this year.

www.BigJoeMcCarthy.com

*This information is based strictly on row homes in Parkwood. No single homes, townhomes, or condos were used in this analysis. Homes sold that were not labled in the Multiple Listing Service as Parkwood were not used in this analysis, so there may be a small margin of error.

Don't Even Think About It
We have had a Holiday present from the government. Yes, the Federal Reserve Board has lowered short term rates close to zero.  Yes, the government continues to facilitate the lowering of rates on mortgages by declaring their intention to support the markets for mortgage by purchasing mortgage-backed securities. However, don't even think about it. As much as we have said that the rates on mortgages must fall in order to facilitate a housing and thus economic rebound, they are not going to zero percent. They are not going to two percent. They are not going to 4%.  Why not?

 
The Fed controls short-term rates. When short-term rates go very low, the threat of long-term inflation increases. And it is this threat of inflation that will keep rates on longer-term loans high. There is no inflationary threat now, but there is the specter of inflation on the long-term horizon. This is especially true because the government is currently spending trillions on fiscal stimulus. In addition, the fact that long-term Treasuries have lowered is a direct result of a flight to safety during a crisis. There is no safer place to put investments than bonds backed by the US government. Mortgages are certainly not considered a safe investment. When the crisis abates, which will be good news, rates on Treasuries will rise. But if the end of the crisis brings a housing recovery, it does not mean that rates on mortgages will rise significantly because they will become a safer investment.

The message? We have the lowest rates in almost half-a century. Don't be waiting for better news!

Current Indices For Adjustable Rate Mortgages
Updated December 19, 2008

This gem in Hidden Valley must be seen! 3 bedroom 2.5 bath townhome with NO assocation dues! Spacious and open floorplan with formal dining room, oversized kitchen area, finished basement, yard with patio, and plenty of storage. Main bedroom with newly remodeled bath, also remodeled hall bath. Very neutral and easy.

How happy will you be to do absolutely nothing here?

• New siding
• New sump pump
• New gutters
• New sliding glass doors
• Replacement windows
• Ceiling fans
• New front sidewalk
• New heat and air, NEW, NEW, NEW!

Great Location - convenient to I-95, Rt 1 and the PA Turnpike.

All this AND a One-Year Home Warranty.

Your search is over!

5141 N Hunters Court: 2 Story "Straight Thru," Bedrooms: 3, Basement: Yes "Finished!" Size: 2,074 sq. ft., Lot Type: Rectangular, Lot Size:  20ft x 100ft, Year Built: 1976, Taxes: $3,417.00 (2008), Condo Fees: $0.00, MLS®: 5461724

Marketed by: The McCarthy Group

www.BigJoeMcCarthy.com

www.SmartGirlsOwn.com

Hi Gang,

I have been getting bombarded with calls about rate, everybody telling me the rates are 4.5%, I heard it on TV, and one guy told me that he heard rates were 3.5% and that banks are charging other banks 0% to borrower money. Yeah, charging 0% - he also just bought a stock in Hong Kong on the internet, I know, that's China, I thought the same thing!

I just wanted to notify everybody regarding these great rates that we have, and to let everybody know it is a great time to re-finance, BUT, be careful of what you hear and see. I can entice you to call by sending you an e-mail with a great rate on it, but you might find out that you don't really qualify for the rate offered. Check out below.

Today I can offer a rate of 4.875% - 30 year fixed - 0 points, if that's all I send, you might be excited, but here's what you need to qualify for that loan.

1. 740 credit score or better if it's a purchase, if it's a refinance it should be a cash out

2. You need to be borrowing 85-95% of the value of your home, which means you'll need MI, if its less then 85% but more then 60% the rate will go up, but just slightly.

3. Expect your rate to change every 10 credit points below the 720 range you are, (it will be slight for the first 10 points, 710 not as bad as 100 points, lower at 620)

4. The bottom line is that not everything is as it seems sometimes, take a closer look before you get yourself, or one of you clients, stuck on something that's not there.

I just wanted to let you guys know, that the rates are at an all time low, but don't be sucked in by ads and e-mails that just send a rate out as if its the same for everybody, and don't forget to always check for fees. If you have any questions, or just want a second opinion on a rate, please feel free to call me or send me an e-mail, I'm always willing to help.

For those of you I don't get a chance to see, have a great holiday!     

Thank you,

Jack Minnig

Pennsylvania District Manager

Franklin American Mortgage Company

Three Greentree Centre Suite 100

Marlton, NJ 08053

215-688-2973 cell

877-562-6119 toll free

215-946-3547 fax

jminnig@franklinamerican.com