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NAHB - Opportunity Knocks for Home Buyer\'s


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NAHB describes the many unprecedented opportunities in today\'s housing market, including ample inventory, attractive pricing, near-record low interest rates, tax incentives and more. The extended deadline for the $8,000 first-time home buyer tax credit, the new $6,500 credit for repeat buyers and the increased income limits in the legislation enacted on Nov. 6, 2009.

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NAHB - Opportunity Knocks for Home Buyer\'s

  1. 1. National Association of Home Builders INFORMS 6WWVY[UP[` 2UVJRZ -VY /VTL )`LYZ Homeownership is an important part of the American way of life, and there may never be a better time to buy than today.
  2. 2. An Exceptional Window of Opportunity For those whose hopes have been dampened or temporarily derailed by the housing downturn and economic recession—the people wondering if this is a good time to buy a home—the answer is simple: Yes. It’s a very good time to buy. Today’s market, coupled with a tax credit of up to $8,000 for qualified first-time home buyers and up to $6,500 for qualified repeat buyers, low mortgage interest rates and ample inventory, provides an unprecedented window of opportunity for prospective home buyers. In fact, there may never be another buyer’s market as good as today’s. Time is of the Essence for married couples. Partial credits In its ongoing effort to create jobs and are available for individual taxpayers stimulate the economy, Congress has with incomes up to $145,000 and for provided outstanding opportunities married taxpayers with incomes up to for home buyers with enactment $245,000. of a tax credit of up to $8,000 for But time is of the essence to qualified first-time home buyers and take advantage of this exceptional up to $6,500 for qualified repeat opportunity. Only homes purchased home buyers. Income limits for after November 6, 2009 and on or receiving the tax credit are $125,000 before April 30, 2010 are eligible for for single taxpayers and $225,000 these tax credits. However, in cases ;`WPJHS -LKLYHS 0UJVTL ;H_ :H]PUNZ ;OYVNO [OL -PYZ[ -P]L @LHYZ VM /VTLV^ULYZOPW )`LYZ *SHPTPUN [OL -PYZ[ ;PTL /VTL )`LY ;H_ *YLKP[ FILING STATUS: Married Mortgage Amount couples filing jointly. TAX RATES: In effect during calendar year 2010. INTEREST RATE: Average for 30-year fixed-rate mortgages in 2010. (NAHB forecast) AVERAGE TAXABLE INCOME: Borrower income minus average personal Borrower Income exemptions and itemized deductions. (Data from IRS Average Taxable Income Statistics of Income) Interest Rate Marginal Tax Rate Proportional savings would apply to repeat home buyers claiming a home buyer tax credit.
  3. 3. where a binding sales contract is near record lows, but rates don’t signed by April 30, 2010, a home have to go up much for a monthly purchase completed by June 30, mortgage payment to increase from 2010 will qualify. comfortable to unaffordable. And even though interest rates Great Selection remain low, lenders are looking more An outstanding selection of homes is closely at borrowers today than in another reason that it’s a good time recent years, so prospective buyers to buy. An ample inventory provides might want to consider pre-qualifying prospective buyers with a great for a mortgage to ensure that the choice of homes. Many builders have increased the most during the boom purchasing process goes smoothly. homes that are “move-in ready,” and that occurred in many parts of the they may offer upgrades or other country. Greener and Better incentives to seal the deal. Likewise, In other areas, prices may not have With energy costs near the top of owners of existing homes who are declined as much, but for the most consumer concerns, it’s good to looking to trade up, downsize or part, they didn’t rise as high or as fast know that new homes today are relocate are ready to bargain. as prices in the hottest markets. more energy- and resource-efficient than ever before. Through the use Attractive Pricing Low Interest Rates of new materials and construction If there’s a silver lining to the housing Like inventory and pricing, mortgage techniques, today’s homes are built downturn, it’s that homes are more interest rates are at favorable levels. twice as energy efficient as new affordable. Prices have moderated But rates can, and do, change quickly. homes a generation ago, making significantly in many areas, especially No one is predicting that rates will them more affordable to own and in major markets where they suddenly surge upward from today’s operate. ;`WPJHS -LKLYHS 0UJVTL ;H_ :H]PUNZ ;OYVNO [OL -PYZ[ -P]L @LHYZ VM /VTLV^ULYZOPW )`LYZ OV +V 5V[ *SHPT H /VTL )`LY ;H_ *YLKP[ FILING STATUS: Married Mortgage Amount couples filing jointly. TAX RATES: In effect during calendar year 2010. INTEREST RATE: Average for 30-year fixed-rate mortgages in 2010. (NAHB forecast) AVERAGE TAXABLE INCOME: Borrower income minus average personal Borrower Income exemptions and itemized Average Taxable Income deductions. (Data from IRS Statistics of Income) Interest Rate Marginal Tax Rate
  4. 4. Benefits for Buyers Homeownership also provides important benefits to owners and to the nation. Tax Benefits: $200,000 home and the home’s because it is so much more than For Home Owners Only value increases to $205,000 over just an investment. Not only can Unique tax benefits that apply only time, then the home owner’s equity homeownership be a steppingstone to housing also help lower the cost (the value of the home minus to greater financial security, it provides of homeownership. Both mortgage mortgage debt) has increased from a permanent place to call home and interest and property taxes are $15,000 to $20,000. That’s about a great personal satisfaction. deductible. Moreover, profits of up to 33 percent increase. Academic research shows that $500,000 on the sale of a principal homeownership results in a wide residence (or $250,000 for a single Building range of social benefits. Moreover, owner) are excluded from tax on Personal Resources benefits aren’t limited to individual capital gains. For most Americans, homeownership households. Homeownership is a primary source of net worth and strengthens both the nation’s people The Power of Leveraging an important step in accumulating and its communities. Leveraging is a another advantage personal wealth over the long term. It is truly a cornerstone of the of homeownership. A buyer can While property values have declined American way of life. purchase a home and receive the full in some markets, Americans currently benefit of homeownership with a cash have a total of almost $8 trillion in While NAHB has used its best efforts to downpayment that is only a fraction of equity in their homes, and for most provide accurate information, NAHB makes no representations or warranties with respect the total purchase price. This is called families, home equity represents the to the accuracy or comprehensiveness of leveraging, and it makes the rate of largest share of net worth. this brochure’s contents. NAHB specifically disclaims any implied warranties. The information return on a home purchase much provided in this document may not be suitable or applicable to your unique circumstances. You greater than on another purchase There Really is should consult with a qualified professional when with the same value where the buyer No Place Like Home applying this information to your own situation. NAHB will not be liable for any loss of profits or must put up the entire price. Despite the positive financial aspects damages, including incidental, consequential, For example, if a buyer makes of homeownership, a home cannot special or other damages. a downpayment of $15,000 on a be valued in monetary terms alone Learn more at