New Housing Market

The days of fast money and anybody and their mama getting into the real estate business and hitting it big is over obi one kenobi...

And you know what I say?

Thank God!  The reason is we need a marketplace of professionals; leaders; trend setters; and customer service oriented champions who know what they are doing and can take their business to the next level.

Don't mean to be so harsh here (actually I do and I hope the wannabe's feelings are hurt) but this industry suffered greatly by people being able to get in so easily, and do to all the fast money, booming economic conditions, title companies, brokers, realtors, everybody was just jumping in for the quick buck, ran around and caused a muck.

See my post on building a brand or chasing a check because I dig into this by talking about what kind of value you bring to the marketplace and pose the question are you just in it for the money or are you in it to build a brand and a presence or chasing a check?

The new housing market; the new economy; the new way of doing things will be far different than what it was before. We'll be in a wet, sloshy, and muddy waters for some time to come. Call this cycle the "cleansing"...

Because while the wannabe's are going to be stuck in the mud, trying to figure out why the same things; the same talk; marketing schemes, advertising; and using old tricks that work in a booming economy where EVERYONE gets a piece... are not working anymore.

The Champions are flying above looking down for just a second then back up focused on achieving their next level.  See there are walkers and talkers ladies and gentlemen and their are people who talk a lot of "stuff" but are not getting the results.

What are you going to do in this new housing market?  Are you going be those stuck in the mud or are you going to build your brand and following, and create your own economy out of the ashes and prosper for the next year?

Ignore the governments numbers - people will always need housing.  Ignore the FED and the news talking about interest rates - interest rates can't and won't go anywhere for a while.  Stop focusing on where the market is everyday - unless you're a stock broker; investment adviser or something because that's just  a distraction...

What you need to do are these simple steps:

1. Have a clear vision
2. Decide on a strategy
3. Simplify and implement the strategy at the same time building value
4. Take MASSIVE freaking action.

Want to know the secret?....

That's it, there is no secret... YOU are the secret...

Clock's ticking....every second you let pass by with indecision is another second lost that you could be working on becoming the person you want to be. 

So in conclusion; we are in a new housing market, a new economy, but the best part is WE make our own economy.. so lets get to it.

Questions and Answers to $7,500 Tax Credit

$7,500 First Time Homebuyer Tax Credit

1. How does a tax credit work?

Reduces income tax liability.
Credits are claimed on an individual's income tax return.
Maximum credit amount is $7500.

2. Who can use the new tax credit?

First-time homebuyers or individual who has not had an ownership interest in a principl residence in the previous three years.

3. What if my taxes due on my return are less than $7500?

The difference would be treated as an overpayment and the purchaser(s) would receive a tax
refund.

4. Is there an income restriction?

Based on tax filing status.
Single or head of household < $75,000.
Joint filing < $150,000.

5. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

No, individuals making up to $95,000 and joint filers making up to $190,000 are eligible for a partial tax credit.

6. Is the amount of the credit tied to the price of the home?

Yes, credit is 10% of the cost of the home, maximum credit of $7,500.
Amount of credit is same for all taxpayers, married or single.

7. Are there property location restrictions?

Property must be located within the United States.

8. How do I apply for the credit?

Claim the credit on the appropriate IRS form 1040, or any special forms the IRS requires.
No pre-purchase authorization, application or similar approval process.

9. Can I use the credit amount as part of my downpayment?

Cannot claim the credit any earlier than the 2008 tax return that will be filed in 2009.

10. What is the repayment feature of the credit?

There is no precedent for repayment of a tax credit created for individuals at this time.

11. Terms for repayment?

Repaid in increments of 6.67% of the amount over 15 years.

12. When do I make a repayment?

Credits taken in 2008 will not be repaid until 2010.

13. Can the IRS put alien on my property for the amount of the credit repayment?

The statue does not grant the IRS that authority.

14. What if I sell my home before the 15-year repayment period?

Any amount of the unpaid credit will be reduced from any proceeds.
If there is a loss or the gain from the sale is less than the amount of the repayment then the liability is forgiven.
15. Any other exceptions to repayment?

If the person dies before credit is repaid the amount is disregarded
There are special adjustments to people who sell as part of a divorce and/or homes that are part of an involuntarily conversion.

16. If I received a refund of a portion of the tax credit because my total tax liability was less than the amount of my tax credit, do I have to repay the amount of the refund?

Yes

This should cover most of the questions. I do not see anything on the IRS website as of yet regarding this but you can call the IRS directly.