Real Estate, A Matter of Timing

Investing in real estate is a matter of timing. Many home buyers across the Country are sensing that now is a great time to buy a home, since many factors are keeping purchasing real estate affordable for the time being. Low mortgage rates, tax incentives and low home prices all add up to one great deal for the person who can afford to buy a home.
The end of last month marked the end of the government’s involvement in purchasing mortgage-securities and the end of this month marks the end of the home buyer tax credit. The government has helped to make buying homes incredibly affordable for many people and when it pulls out of real estate the deals may not be as sweet.

Likewise, home values have remained low for quite some time, dropping dramatically when foreclosures began springing up all over. Can home prices keep dropping? In some parts of the Country real estate values appear to have stabilized, some areas are even showing small increases in home prices. Home prices are likely to stabilize and stay level for some time before heading upward, but it is likely that they will stop dropping much more.

Timing is everything. It is pure luck to time anything perfectly, whether you are playing the stock market, roulette, or investing in real estate. Nothing lasts forever, and that includes low home values. Now might be the time to start looking if you have been considering purchasing a new home, before interest rates rise and home values do as well.

Read a recent article from Realty Times on the current state of the US real estate market.

For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com
or email me at: carole@caroledelacruzrealty.com

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied.

For more information please contact me at 818.269.5550.

You may also visit my wesbite: http://www.caroledelacruzrealty.com/

or email me at: carole@caroledelacruzrealty.com

To Sell or Rent, That is the Question

For homeowners across the United States who need to sell their homes the question arises, should I sell or rent? There is no doubt about it, many sellers are in a tough position and they need to sell their real estate. Home prices in most areas are far from their peak prices and selling at a loss, or a significant step down from what could have been a large profit, is discouraging to say the least.

To avoid losing money many homeowners are leaning toward renting their homes when they stay on the market for a given time period. The rental option is chosen as an alternative to dropping the price.

The flip side of keeping a home and renting it is the costs involved. Are you prepared to fix problems that arise with the property? How long are you prepared to hold on to the property? There is no guarantee that home prices will increase any time soon, and you may end up holding on to the property for much longer than expected.

There are many things to think about when deciding whether to sell or rent a piece of real estate.

Read this recent article before you decide to RENT or SELL from Smart Money Magazine

For more information please contact me at 818.269.5550.

You may also visit my wesbite: http://www.caroledelacruzrealty.com/

or email me at: carole@caroledelacruzrealty.com

Tax Benefits of Owning a Home

The internal debate of whether or not to own a home as opposed to continue to rent a home brings many questions about owning a home to the surface. Along with the cost and responsibility of owning a home comes the tax benefits and write-offs that can come with home ownership.
Mortgage interest is one positive of buying a home. The mortgage interest paid each year can be written off at tax time. Property taxes are also deductible from federal and state income taxes.

If you decide to sell your home you can deduct any home improvement or renovation costs, which in a round-about way makes improving your home a tax deduction, albeit a time-delayed tax deduction.

There are other benefits that come with hard times as well. If you rent a home chances are you are out of luck should a natural disaster strike. If you own a home the damage and losses incurred from a tornado, for example, can be written off come tax time.

Home ownership has many benefits. Today’s real estate market offers low mortgage rates and home values, as well as a variety of different tax incentives to take advantage of.

Read an article from Smart Money about TAX BREAK that come with home ownership


For more information please contact me at 818.269.5550.
You may also visit my wesbite: http://www.caroledelacruzrealty.com/
or email me at: carole@caroledelacruzrealty.com