Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Tax Credit Seminar

536 views

Published on

Presentation details the current federal tax credit for buyers and sellers.

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

Tax Credit Seminar

  1. 1. “ The New, Improved Tax Credit” A complimentary Market Update Seminar hosted by Weichert, Realtors ® Each WEICHERT® franchised office is independently owned and operated. Learn about the new, improved Federal Tax Credit and why experts believe now is the time to buy. Weichert, Realtors ® Princeton Office 3/11/10
  2. 2. Welcome! <ul><li>Whether you are interested in the new tax credit… </li></ul><ul><li>Whether you have ever owned a home… </li></ul><ul><li>Whether you are planning on buying, selling or both… </li></ul><ul><li>We’re here to answer any questions on your mind. </li></ul>
  3. 3. You Might be Thinking . . . <ul><li>What is the tax credit all about? </li></ul><ul><li>What are the financial advantages of homeownership? </li></ul><ul><li>Is now the right time to buy a home? </li></ul><ul><li>How much house can I really afford? </li></ul><ul><li>What will a real estate agent do for me? </li></ul><ul><li>What will a real estate company do for me? </li></ul>
  4. 4. Josh Wilton, Manager Is Now the Right Time to Buy a Home?
  5. 5. What are you hearing about the real estate market? Is Now the Right Time to Buy a Home?
  6. 6. <ul><li>Home affordability has never been better, interest rates remain historically-low and there are plenty of homes to choose from. </li></ul><ul><li>What does that mean for you? </li></ul><ul><ul><li>More opportunities to find the home you want </li></ul></ul><ul><ul><li>Less competition for your dream home </li></ul></ul><ul><ul><li>More negotiating power </li></ul></ul><ul><ul><li>Financing solutions that will fit your needs </li></ul></ul>We’ve Heard That Too, But . . . There is Good News!
  7. 7. Is Real State a Smart Investment ? <ul><li>Yes! </li></ul><ul><li>Over the last 35 years, home prices nationally have appreciated by an average of 6% per year. </li></ul>Source: National Association of Realtors®
  8. 8. A Great Time to Buy a Home First-time homebuyers can receive a tax credit up to $8,000! NEW TAX CREDIT Current homeowners may be eligible for a tax credit up to $6,500!
  9. 9. Tax Credit Overview <ul><li>In 2008, Congress created a tax credit for first-time homebuyers. </li></ul><ul><li>The tax credit was extremely successful in generating home sales and stimulating the overall economy. </li></ul><ul><li>Realizing the importance of homeownership for individuals and the greater economy, the government enhanced and extended the homebuyer tax credit. </li></ul><ul><li>On Nov. 6, President Obama signed a bill that extended the existing tax credit for first-time buyers and created a new provision for eligible move-up buyers. </li></ul>
  10. 10. The NEW First-Time Buyer Tax Credit Amount 10 percent of the cost of the home, not to exceed $8,000 Property Any home that will be used as a principal residence including single-family homes, condos, townhomes and co-ops; not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns INCREASED (Effective Nov. 7, 2009) ! First-Time Must not have owned a principal residence in three years prior to purchase Limitation If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010 EXTENDED ! Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010 EXTENDED !
  11. 11. The NEW Current Homeowner Tax Credit Amount Up to $6,500 Eligibility Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years Purchased Home Any home that will be used as a principal residence including single-family homes, condos, townhomes and co-ops; not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns Recapture If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010 Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010
  12. 12. Tax Credit FAQs
  13. 13. What Are the Deadlines for Claiming the Credit? <ul><li>A written binding contract to purchase must be in effect no later than April 30, 2010 . </li></ul><ul><li>The purchase transaction must close by June 30, 2010 . </li></ul>
  14. 14. What if You Exceed the Income Limits? <ul><li>Individuals with adjusted gross income of up to $125,000 and married couples with income up to $225,000 can claim the full credit. </li></ul><ul><li>The amount of the tax credit decreases as incomes reach the maximum limits of $145,000 for singles and $245,000 for couples. </li></ul><ul><li>Singles earning more than $145,000 and couples earning more than $245,000 are not eligible for the credit. </li></ul>
  15. 15. What Properties are Eligible? <ul><li>To claim the tax credit, the property must be used as a principal residence. This is generally considered to be the home where you spend 50 percent or more of your time. It can be a condo, single-family detached home, co-op, townhouse or something similar. </li></ul><ul><li>The home must be located in the United States. </li></ul><ul><li>Vacation homes and rental properties are not eligible. </li></ul><ul><li>For new construction, the purchase date is the date you occupy the home. As a result, you must move in by June 30, 2010, to claim the credit. </li></ul>
  16. 16. When Can You Claim the Credit? <ul><li>Buyers purchasing homes on or before Dec. 31, 2009, may claim the credit on their 2009 tax returns. </li></ul><ul><li>Buyers purchasing in 2010 will have the option to: </li></ul><ul><ul><li>Claim the credit on their 2009 return, even if the purchase is completed after Dec. 31, 2009; </li></ul></ul><ul><ul><li>File an amended return for 2009 if their purchase is completed after April 15, 2010; or, </li></ul></ul><ul><ul><li>Claim the credit on their 2010 tax returns. </li></ul></ul>
  17. 17. Any Other Questions?
  18. 18. Benefits of Homeownership <ul><li>Investment </li></ul><ul><li>Tax Benefits </li></ul><ul><li>Enjoy Life </li></ul><ul><li>Freedom </li></ul><ul><li>Family </li></ul><ul><li>Community </li></ul>
  19. 19. Homeownership is an Investment <ul><li>Long-term wealth and equity </li></ul><ul><li>Income Taxes </li></ul>But for most, it’s much more than that.
  20. 20. Home Ownership is… <ul><li>A place to live. </li></ul><ul><li>Everyone has to live somewhere. </li></ul>
  21. 21. Home Ownership is… <ul><li>Freedom to do what you want with your home. </li></ul>
  22. 22. Home Ownership is… <ul><li>A place to start a family. </li></ul><ul><li>People want to raise their children in a secure environment. </li></ul>
  23. 23. Home Ownership is… <ul><li>A way to belong to a community. </li></ul><ul><li>People like the feeling of being a part of something. </li></ul>
  24. 24. Jeff Smith How Much House Can I Really Afford?
  25. 25. Your Buying Power Today Higher supply of homes on market Historically low interest rates + = Your best opportunity in years to afford your dream home Many financing solutions available +
  26. 26. Houses Priced Right are Still Selling Fast <ul><li>You should know . . . </li></ul><ul><li>Recent sales in the area indicate that buying your dream home may still require you to act promptly. </li></ul>
  27. 27. <ul><li>Buffett Says U.S. Housing Will Recover by 2011 on Lower Supply </li></ul><ul><li>March 1 (Bloomberg) -- Billionaire Warren Buffett said the U.S. residential real estate slump will end by about 2011, predicting that’s how long it will take demand for homes to catch up with the supply. </li></ul><ul><li>“ Within a year or so, residential housing problems should largely be behind us,” Buffett wrote Feb. 27 in his annual letter to shareholders of his Berkshire Hathaway Inc. ” </li></ul>‘ Yoda has spoken…’
  28. 28. Town 07 Inven Count 07 Pending Sales (prev 30 days) 07 Absorb Rate 08 Inven. Count 08 Pending Sales (prev. 30 days) 08 Absorp. Rate 09 Inven. Count 09 Pending Sales (prev. 30 days) 09 Absorp. Rate (months) 10 Inven. Count 10 Pending Sales (prev. 30 days) 10 Absorp. Rate (months) Pton. Boro 38 3 12.6 50 1 50 44 2 22 27 1 27 Pton. Twp. 107 5 21.4 111 13 8.53 107 6 17.8 95 9 10.5 W. Windsor 134 21 6.3 125 14 5.95 135 9 15 108 23 4.7 Lawrence 185 10 18.5 191 17 5.35 157 16 9.8 207 31 6.7 East Windsor 187 19 9.84 196 22 8.09 191 15 12.7 117 16 11 Ewing 199 11 9.84 235 15 15.6 205 12 17 227 31 7.4 Hopewell Twp. 168 11 15.2 134 14 9.57 123 7 17.5 148 9 16 Cranbury 19 4 4.47 35 0 99 26 1 26 24 1 24 Plainsb. 121 12 10.08 104 15 6.93 86 8 10.7 70 14 5 S. Bruns. 201 26 7.73 192 22 8.75 206 14 14 148 14 8 Montgom 141 22 6.4 122 17 7.17 128 8 16 113 18 5 Hamilton 433 63 6.8 552 50 11.04 519 49 10.5 511 68 8 Franklin 379 72 5.2 453 58 7.81 347 32 10.8 404 23 9
  29. 29. Closed Homes Snapshot: 2007 2008 2009 Princeton Boro 87 72 61 Princeton Twp. 211 163 157 West Windsor 371 299 303 Lawrence 383 285 305 Hopewell 226 191 153 Plainsboro 273 214 231
  30. 30. Open House Traffic Snapshot by Town/ Price
  31. 31. Interest Rates Remain Low Source: Freddie Mac Average annual rate (30-year fixed-rate mortgage)
  32. 32. The Effect of Interest Rates on Buying Power Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 20% down payment.
  33. 33. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 10% down payment. The Effect of Interest Rates on Buying Power
  34. 34. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 20% down payment. The Effect of Interest Rates on Buying Power
  35. 35. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 10% down payment. The Effect of Interest Rates on Buying Power
  36. 36. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 20% down payment. The Effect of Interest Rates on Buying Power
  37. 37. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 10% down payment. The Effect of Interest Rates on Buying Power
  38. 38. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 20% down payment. The Effect of Interest Rates on Buying Power
  39. 39. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 10% down payment. The Effect of Interest Rates on Buying Power
  40. 40. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 20% down payment. The Effect of Interest Rates on Buying Power
  41. 41. Source: Weichert Financial Services. Based on a 30-year fixed rate mortgage, including 10% down payment. The Effect of Interest Rates on Buying Power
  42. 42. Establish Your Buying Power <ul><li>The first step is to meet with Jeff Smith. </li></ul><ul><ul><li>Face-to-face, personalized service </li></ul></ul><ul><ul><li>Mortgage credit decision, usually in minutes </li></ul></ul><ul><ul><li>Hundreds of loan products to meet your unique qualifications </li></ul></ul><ul><li>Weichert Financial Services is a safe, credible mortgage provider and a Top 30 lender in the United States. * </li></ul>* Weichert Financial Services is one of the “Top 30” lenders in the U.S., according to the industry newsletter “Inside Mortgage Finance,” based upon sales to Fannie Mae and Freddie Mac nationally in 2009.
  43. 43. More Advantages of Meeting with Your Gold Services Manager <ul><li>Referrals to our Weichert affiliated companies for your insurance needs at no added cost to you. </li></ul><ul><li>Approximately 90 percent of our customers would refer us to friends and family* </li></ul>*Based on a private survey conducted by Weichert Financial Services in October 2009.
  44. 44. Special First-Time Home Buyer Programs <ul><li>Great first-time buyer programs still available </li></ul><ul><li>FHA/VA </li></ul><ul><li>Home Possible </li></ul><ul><li>My Community </li></ul><ul><li>Various bond programs available </li></ul>
  45. 45. Josh Wilton What Will My Real Estate Agent Do For Me?
  46. 46. <ul><li>Your agent is your guide, simplifying the complex process of finding and purchasing a home. </li></ul>What Will a Real Estate Agent Do For Me?
  47. 47. A Brief Overview of the Process Your Weichert Associate will share this step by step map with you. <ul><li>A few easy steps from thinking about it to owning it </li></ul><ul><ul><li>Establish your buying power </li></ul></ul><ul><ul><li>Find your dream home </li></ul></ul><ul><ul><li>Move in! </li></ul></ul>
  48. 48. Your Weichert Sales Associate Will… <ul><li>Use the Multiple Listing Service to show you homes matching your criteria </li></ul><ul><li>Explain what’s involved in making an offer </li></ul><ul><li>Analyze market data to help you determine an offer price </li></ul><ul><li>Be a resource for all your real estate needs </li></ul>
  49. 49. Your Agent Will Help Find Your Home <ul><li>Keep you informed of available homes that meet your criteria </li></ul><ul><li>Your Weichert Sales Associate has access to ALL the listings </li></ul><ul><li>Set up appointments to view homes </li></ul>
  50. 50. Your Real Estate Agent Will: <ul><li>Present your offer in person </li></ul><ul><li>Negotiate all the terms of the offer in your best interests </li></ul>
  51. 51. We Know the Best Way to Evaluate Pricing <ul><li>Our exclusive Price Trend Analysis is a unique method for helping you determine how much to offer. </li></ul><ul><li>It will also help you set a price if you’re selling. </li></ul>
  52. 52. What Will a Real Estate Company Do For Me? Weichert Family of Companies
  53. 53. Making Your Purchase as Smooth as Possible Buying a home involves the careful coordination of many people. Choosing a real estate team you can count on can make the process smoother and easier.
  54. 54. Your Weichert Team Like trusted friends, your Weichert Sales Associate, Gold Services Manager, and the Weichert Family of Companies will be with you every step of the way!
  55. 55. <ul><li>A full-service team of real estate professionals, focused on providing personalized service </li></ul><ul><li>One-stop shopping to make your experience as easy and hassle-free as possible </li></ul><ul><li>The support and expertise of the entire Weichert Family of Companies working for you </li></ul>The Weichert Difference
  56. 56. We’re Here to Help <ul><li>What questions can we answer for you to get you started? </li></ul>
  57. 57. There has never been a better time to let Weichert help you buy your new home! Lets get started. Schedule your buyer consultation today!
  58. 58. Good Luck with your New Home!

×