Hello to All! 

Well…it’s been a WEEK!  I know I am not the only one trying to get ahead of the TAX TIME Game.  Our taxes are due at the end of February so it’s been Game On for me.  Any of you that have tried to contact me…thanks for allowing my delayed responses!  My appointment was this morning with my trusty accountant, Jim, and I am back into the real world. 

The big BUZZ is how we are being affected by the HomeBuyer Tax Credit.  I have the short version here, for your reading pleasure… Here's our take on the Stimulis Bill and Treasury announcements made last week. We look at the Stimulis package AND the Treasury's package holistically, in compliment with each other - mostly because that's how the Obama team is looking at it. The Association of REALTORS Board of Directors asked in November to do 4 things (with an unspoken but clearly understood mandate to PRESERVE what we already have). Here they are: 1) get loan limits raised for high cost areas, 2) make the $7,500 tax credit NOT a loan, 3) try to find ways to push interest rates down (which are higher than they should be due to systemic risk right now) by 200 basis points, and 4) help provide solutions to the foreclosure/short sale problem.

So here's what we have achieved: 1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation.

In addition, we preserved what we have - which some tend to forget is always on the table when these negotiations start up again - mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion (an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects).

We did make a run at the $15,000 credit -- and we would have loved to have gotten that or the Homebuilders $22,000 credit idea as well as their 5 year loss carryback deal, but they were considered too rich for this program. What it did do though is totally take the debate off of whether a tax credit should be reinstated at all (it expired last year) and whether it was a true credit or a repayable loan, and kept the conversation on how much it should be. It also kept the debate off of 'what we are willing to give up to get a $15,000 tax credit' and kept the debate again, on how much it should be. It's pretty hard to complain when they give you what you ask for and you lose something you never had.

 For more of this Fun Stuff, check out this Chart – it gives the ins and outs of the whole deal.  Take a look and call me if you have questions.  Or…if you want to buy or sell!

 Be sure to check out our website – updated regularly with our new listings and price changes.  One Major Price Reduction – 184 Mar Joy in Plainview area – reduced a quick $16,000 to $159,000. Excellent Value!

 Call me!

 Keep Smiling!

Ann E. Naylor GRI, ePro

910-385-8000 direct

Naylor Realty

Read our Blog!

403 E. Johnson Street

Clinton, NC  28328

910-592-1200

910-592-0081 fax