What are you waiting for?

For all the first time home buyers who sat on the fence and thought they missed out on the $8000 tax credit which expires November 30, you have a 2nd chance! The tax credit has been resurrected and extended through July 1, 2010. So stop crying and complaining that you missed your opportunity by procrastinating, negative self-talk, doubt and fear. You've been redeemed! Go get your 3.5% down FHA loan and start house hunting.

Oh, and current homeowners, don't feel left out. There's some real thinking going on in D.C. and you've been included this time around too! If you've lived in your home for a consecutive five year period in the last eight years, you're eligible for a $6500 tax credit as well!

Okay, so here's the skinny on how the tax credit will work. You need to have entered into a contract, i.e. you've made an offer on a home and it's been accepted, anytime between now an April 30th of 2010 and you need to close on that contract by July 1, 2010. Certainly doable.

Lot's of "oh,'s" but here's another one...the income limits have been increased as well. Singles can now earn up to $125,000 instead of the $75,000 prior limit and the limit on couples has been raised from $150,000 to $250,000! So, if you simply made too much money to take advantage of the credit, you just may qualify this time around.

Don't count on this credit being extended again. There are concerns about about abuse of the program and the cost to the government. With all the inventory available now and more and more coming on the market everyday, jump in now and grab your piece of the pie before it's really too late.

Thinking of buying a condo?

With all the great prices on condo units right now, I found this article timely:

Things Condo Buyers Should Consider
Buyers who are considering the purchase of a condominium should inspect the health of the home owner’s association before they close.

The seller should provide the buyer all financial documents relating to the association in time for an attorney for the buyer to review them before closing.

Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:

Does the association budget include money for operating expenses such as water, lights, elevator maintenance, and landscaping?
Is there extra money set aside in a reserve fund for long-term maintenance? If there is an outside reserve study, that should be provided. If not, there should be adequate money in the reserves right now to cover 50 percent of the estimated cost of repairs over the next 30 years.
Do the condo’s expenses exceed revenues due to a high foreclosure rate or other reasons that owners’ debts go unpaid?
If there is a shortfall, does the association have a plan besides cutting back on services for making it up?

Source: The Wall Street Journal, June Fletcher (10/17/2009)