Archive for October, 2009

New Home Tax Credit

Friday, October 30th, 2009

Now is the time to act on the new home tax credit. With the latest provisions that are looking like they are going to pass, a new home credit will be available to all buyers not just first time home buyers. Take a look at the info from the New Home Builder’s Association:

Dear NAHB Executive Board Member and Executive Officer,

I am writing to update you on the status of NAHB’s efforts to secure an extension of the first-time homebuyer tax credit (tax credit) and five-year carryback of Net Operating Losses (NOLs) established under the American Recovery and Reinvestment Act of 2009. (more…)

Deal or Steal?

Tuesday, October 27th, 2009

What is the value of your location, convenience and comfort?

I ask because it appears in real estate the Pendulum has swung. Let me explain. From 2000 to 2006 the real estate market was a seller’s market. No rocket science there. During this seller’s market the seller abandoned reason to make the deal and push the product. In pushing product, the seller bought more land and lots than they could physically absorb, should the economy even have a small “blip”.

Sure enough, the law of supply and demand turned into a volatile raucous demon and the sellers were caught, many enduring disaster. Interestingly enough most sellers did not catch on to the changes until 2007 when absorption rates were saturated, stagnate and like over ripe tomatoes, molding on the vine. (more…)

Proffer Tax Exposed

Monday, October 19th, 2009

Many of us have heard the word proffer passed around, but few of us know what a proffer is. Below is an article that does a great job describing what a proffer is and how it is really greasing of the political palm instead of acting as a valuable tax for true improvement. Read on, interesting stuff.

Politics and Proffers

By Tyler Craddock • Oct 14th, 2009 • Category: Feature, Land Use

Recently, the proffer system and its perceived strengths and weaknesses have been the source of much discussion. For the lay reader, the proffer system involves offering certain conditions in connection with a zoning case and is also referred to as conditional zoning.

While the majority of the discussion has centered on cash proffers, the payments that developers are asked to provide in support of a proposed project, and specified non-cash contributions, the proffer system goes further and can actually force choices on consumers, contribute to sprawl, drive up the cost of housing and distort market choices in what should be a free market. You see, the proffer system also involves local governments asking developers to accept a wide range of conditions in connection with a zoning case. While some of the requests are quite reasonable, others are simply driven by politics. (more…)

Fix Housing First

Friday, October 16th, 2009

As many of you know, our country has been in a massive recession for about 3 years now. Housing has played a large role in the down turn being one of the main employers with every transaction employing from just a few people in a re-sale transaction to an entire army of people in all salary ranges when building a home. People affected range from simple unskilled labor to attorneys, lenders, and title companies.

Interestingly enough the current stimulus bill, about to expire, has not significantly improved the conditions in the housing market.

Why? Theoretically speaking, each first time home buyer entering the market will stimulate 3-5 transactions as people move into new housing. Unfortunately, current estimates say that 30-40% of all homes sold through the stimulus program have be foreclosures or short sales in which the seller has not moved up in housing, but down into rentals. (more…)