Don’t forget - - - Part of the Housing and Economic Recovery Act of 2008 includes a $7,500 tax credit for any first-time home buyer who purchases a home before July 1, 2009. Past homeowners don’t count yourself out yet! Even if you have owned a home in the past, remember that a first-time home buyer is someone that has not owned a home in the last 3 years. Better yet, interest rates are near record lows and intenvory is better than it has been in years. If you have been thinking about purchasing a home, now is the time to make your move!
2008 was a hard year for many, but according to an annual survey by MSN Money, life in South Dakota was pretty darn good. MSN Money’s “Misery Index” measures the number of bankruptcy and foreclosure filings aganist the number of households in each state. With only 0.4% of households in South Dakota facing bankruptcy or foreclosure, we tied with Vermont for dead last in the ranking of all 50 states. Compare that to top ranking Nevada where 4.8% of households face one of these hardships. Some days you just have to say it, life is good!
As the New Years celebrations wane, it is time to start thinking about taxes once again. If the amount you owe isn’t what you’d like it to be, remember that home ownership carrys a significant tax deduction. Under federal law, homeowners can deduct the interest they pay on their mortgage loan. For many, this means saving thousands. For those individuals who rent, it may ofset the difference between the cost of renting and the cost of owning their own home. If you’d like more informational on the benefits of homeownership or details on how you can save money on your taxes, please contact me at suzanne@properties-unlimited.com.
Statistically, most of us have abandoned our new year’s resolutions by now. The most common new year’s resolutions pertain to health, financial, or relationship issues. In today’s state of economic transition, resolutions pertaining to finance couldn’t seem anymore fitting. Below are a couple new year’s resolutions from Inman News that will help you build your credit and most the most of home ownership.
- Pay your bills on time.
- Save your change.
- Contribute the maximum to your retirement plan.
- Resist the temptation to use your 401(k) or IRA as a piggy bank.
- Consider refinancing or a loan modification when interest rates drop or your credit improves.
- Keep up with your home maintenance.
Check out the full article to see how to make these steps a part of your life and why you will be so glad you did!
If your plans for the new year include a new home, you need to take a look at this one! New construction, this custom home is located in Sturgis newest neighborhood enjoying beautiful views of the city and the Black Hills. Crown molding, recessed lighting, hardwood floors, and built-ins are just some of the upgrades this home has to offer. The open floor plan allows for main level living with 2 bedrooms, 2 baths, kitchen , living, dining, and laundry all on one level.
2571 Camaro Drive, Sturgis
Offered at $206,900
Call Suzanne at 347-1488 or Dixie at 347-1289 for more information and to schedule your personal tour!As we begin 2009, it hard to forget that 2008 was one of the most difficult years in real estate for many people across the country. Here in South Dakota , we have been lucky to see only a fraction of the number of foreclosures that some markets elsewhere have been plagued with. Still, South Dakota ’s Homeownership Education and Research Organization (HERO) is looking for ways to help residents that find themselves in this unfortunate situation and in doing so, has recently announced a toll-free helpline to connect homeowners directly to certified default and foreclosure counselors across the state.
This hotline is aimmed at helping individuals in nearly every step of the foreclosure process. Those who have not yet fallen behind, but fear they will, those who have already missed a payment, and those who have received notice of foreclosure and facing the consequences. By calling this hotline, homeowners will be able to speak with counselors providing free confidential services and plan the best way out of a foreclosure situation.
Western South Dakota residents can call 1-877-832-0161, while Eastern South Dakota residents can call 1-877-832-0163. Oftentimes, the best possible solutions can only be reached before you miss a payment, so take advantage of these free services early and call if your mortgage might be in trouble.
Following the national news that our local market is going strong, Properties Unlimited Realty has just released their latest sales numbers for November. Below is a pie chart to illustrate the results. Visit properties-unlimited.com to see more complete numbers on the number of sales, average days on market, and median selling price.
Click on the image to enlarge!
The national housing news can be scary lately, bit there is not reason to fret in our neck of the woods. According to the Federal Housing Finance Agency, real estate prices in South Dakota gained 3.9% last year, taking only second in the nation to North Dakota where prices rose 4%. In terms of cities, Rapid City ranked 3rd at a 5.4% rate of growth behind number one Austin, TX, where prices gained 5.6% and number two Augusta, GA, where prices gained 5.5%. This certainly gives us a lot to be thankful when considering home prices in communities like Stockton, CA, have dropped as much as 42%.
Click here to read more at RapidCityJournal.com
As a homeowner myself, I realize some of the benefits of home ownership - I can paint walls and do home improvement projects without asking for permission. I need not worry about filing a complaint with a landlord about neighbors that are too noisy or a faucet that refuses to quit leaking. And on a less superficial level, my home make me feel a sense of accomplishment for looking toward my future and making an investment.
As a Realtor, I realize the more sensible benefits of home ownership. The basics are always quick come to mind - the tax benefits and an actual place of shelter and security for a family. But it’s easy to forget the others that can slip through the cracks of your memory between one tax season to the next or between home purchases. Here’s a quick recap -
Did you know….
- Dollar for dollar, the rate of return on an individual’s cash down payment on a house is substantial? And that repeat buyers are able to put19% more down on a new home due to appreciation?
- Home owners move less often and are more likely to vote and volunteer time for political and charitable causes than renters?
- When you own a home you can deduct the property taxes and mortgage interest from your income taxes?
- The gains that you make on a primary residence that you’ve occupied for two years out of 5 can be tax free?
- A homeowner’s net worth is 46 times the net worth of the average renter, according to the Federal Reserve?
These are just a few of the benefits of owning your own home. If you are looking to buy, now is an ideal time. Despite the negativity in the housing market we hear in the news media, 2007 was the 5th best year on record for existing home sales. If you’d like to start looking or just explore your options, give me a call or send me an email!
Suzanne Olson
605.347.1488
Broker Associate for Properties Unlimited Realty, LLC
If you haven’t been living under a rock for the past year, you know about the mortgage crisis that is causing heartache and sleepless nights in homes across the country. While we are fortunate to live in an area that is insulated from deflating home prices and job lay-offs, we are not immune. There is help available, and much more than you might think.
This morning CitiMortgage joined many other nationwide banks in announcing a new program that assists homeowners in staying out of the foreclosure process. This program will reach out to 500,000 borrowers and will immediately impact over 130,000 customers and over $20B in loans. Citi’s program will assist those facing difficult financial times by adjusting the amount of principle owed, extending the term of the loan, or reducing the amount of interest. In some cases, payments may be temporarily reduced by as much as 40%. Visit Citi’s website for more details on this program.
JP Morgan Chase and CitiBank aren’t the only banks with programs designed to help remedy the mortgage crisis. If you or someone you know is facing hardship in making the monthly mortgage payment, the most important and beneficial thing you can do is to contact your lender.