Exit Plan Revisited

YES- I am revisiting this topic as I have a special announcement to make: I have scheduled a FREE dinner Seminar on Tuesday, September 15 , 6PM at Mirabella Cafe in Cherry Hill. I have planned an exciting evening with an expert panel of professionals to discuss the logistical and financial effects of downsizing or perhaps rightsizing. Over 50 with kids out of the house? Do you have parents who should move from their current home? This is a seminar you don’t want to miss!! Come meet the expert panel to answer any financial, investing, tax, or real estate  related questions. Please RSVP to me by September 1o to bonniejoffe@gmail.com Bring yourself, your spouse and  your parents. Maybe its not something you will do right this minute, this week, this month or this year. But why not have your ducks lined up to make sure you are approaching this in the most pragmatic, financially sensible manner? Again- A FREE dinner seminar Tuesday, September 15, 6PM. Don’t ignore your exit plan!

Do you have an “Exit” plan?

Do you have an “exit” plan for your home?
Some of you may be thinking “what’s that?”
Some of you may be thinking- Do I really have to think about that?
And many of you may have parents who actually need to address this ever so  sensitive issue.
Downsizing/Rightzing can seem like a daunting task and a scary one at that. However, whether it is for you or your elderly parents, it something we all must think about at some point in our lives.

Here are some questions to ask yourself:  When is the right time? When is it time to simplify? Where would I go? How do I even start the process? How do I protect myself and family financially? Will my money last? How would downsizing/rightsizing affect my lifestyle?

With the overwhelming number of baby boomers, 72 million to be exact, the housing market, as we push forward, will be flooded with your stereotypical, 4 bedroom, 2.5 bath homes in the burbs.

So your next question may be- Do I want to be ahead of that curve?  OR- Can I be ahead of that curve?

You may also want to take into consideration your taxes, exterior and interior maintenance costs, potential replacement of roofs, heating and air conditioning systems, windows, and appliances. What about the utility bills? Does it make sense for you or your aging parents to stay put?

How about this- Is there a health or physical issue that keeps you or your parent(s) unable to manage the demands of the home?

As a daughter and daughter-in law of aging parents, this subject is near and dear to my heart. And certainly as my children continue to grow up and leave the nest for college- 2 down, 2 to go- I contemplate this issue frequently.

Just a thought….

Can we “Tawk”?

There has been much confusion surrounding the $8,000 tax credit for first time home buyers. I would like to take this opportunity to clear up this confusion as well as answer questions you may have. Here are the facts…

1) In order to qualify for this tax credit, you must be a first time home buyer or haven’t owned or  purchased a home in the past 3 years. If you are married, and one of you is not on the mortgage and/or deed, you DO NOT qualify as the government views married couples as ONE in this matter.

2) The tax credit must be used by November 30, 2009 (closed transaction).

3) The tax credit is equal to 10% of the purchase price up to $,8000.

4) Yes- there are income limits: Single individual can make up to 75k/ year and married couples up to 15ok/year. There is a ”phaseout” clause in this program that does allow for some credit if you are over the limit. Check with your tax professional for full details. 

5) This tax credit DOES NOT need to be paid back!! However, you must reside in the residence for a period of at least three years.

6) The tax credit will refund money to buyers if there is no other outstanding tax liabilities.

7) This tax credit IS NOT a deduction. It is a dollar for dollar reduction which comes right off your  income tax. A deduction is income related.

8) Approved FHA lenders have the ability to give first time home buyers, who are eligable for this program, short term loans of up to $8000. This, in turn, can go towards the downpayment and/or closing costs.  Check with your trusted lender for details or visit www.nahb.org for more details.

9) You can apply the 2009 tax credit to your 2008 tax returns! If you have already filed, then you may file for an ammended 2008 return. Again, speak to a tax professional for more information.

10) SERIOUSLY FOLKS! — If you know someone who has been sitting on the fence on whether to purchase, NOW is the time. Great pricing, lots of inventory to choose from  and incredible interests which are still in the 5%+ range, AND the $8000 Tax credit.

Any questions? Please call or email me and I will be happy to assist you. Also, if you know someone who may find this piece of information worthwhile, please feel free to send it along. You just may be helping someone.

Something to Chew on!

Do you  believe that change is the only constant?

Once quoted by Pliny the Elder, ” the only certainty is that nothing is certain.”

If nothing ever stays the same, then how can we be sure that we are making the right choices now for the future?

So why did we think and act like the good times were going to be with us forever?

Can we make lemonade out of lemons?

Where do we put our money? Stock market? Bonds? Under the mattress? Real Estate?

I think asking ourselves these questions are important in order to move forward and remain productive.

Let’s hear it for health AND prosperity!

The Agony and the Ecstasy!

I usually say this about having children! When they leave the home’s nest- what agony! And having the joy of children- What ecstasy! But in this instance, I am referring to any one of our positions in the real estate marketplace. If you are a buyer or potential buyer- what Ecstasy!! If you want to sell- What Agony! Let me try to put a different spin on this age old expression for you real estate enthusiast- or not! Gary Keller, one of the co-founders of Keller Williams Realty was posing the question in the Realtor trade magazine, (I will paraphrase) as to why buyers are sitting on the fence and waiting to buy? He commented on how interesting it is that during this past real estate boom, buyers were willing to overpay for a home by several thousand dollars, yet we are now in a climate where the housing prices are as low as 2003 pricing, interest rates are 5.1% for 30 year fixed and 4.7% for a 15 year fixed and the available inventory is huge. Yet the buyers continue to wait to see if the market will continue to drop. So, Let me pose this question- why would one overpay for a house 2-3 years ago, but now a qualified buyer is just waiting? Let me see- Is that agony or escatasy? NOONE- I repeat NOONE knows if the market in this area will see another dip in value! The overall sentiment is that it could but by how much? Is it worth waiting ? If the mortgage rates go up at all, it could eat up that savings you think you will be getting by waiting. And to anyone who may be wanting to sell in the near future- Don’t let it be your agony- whether you are upsizing, downsizing or making a lateral move- You will make it up on the other end! The reality is – in a seller’s market- you pay more and sell for more. In a buyer’s market, you sell for less, but purchase for less. What  a thought- Getting  more for your money! Who wouldn’t want that? Either way, which one appeals to you more?

It’s all in the credit!

Are you credit worthy? Maybe not!~ When was the last time you checked your credit? I recently spoke with a friend of mine who had not checked her credit in years and just found out that there was a potential situation that could have undermined her excellent credit status. So what does this all mean? If you do not check your credit yearly, you are at risk for major headaches and financial frustration. Here are 4 reasons why: 1) IDENTITY THEFT- as we all know, this is prevalent in our society today. None of us are immune. If someone were to open up accounts in your name, charge it up to max and of course, never pay the bill- this will hurt your credit. 2) If your credit score suffers, banks, credit card companies, etc., can increase your interest rates up to a ridiculous rate costing you several thousand dollars.  Not only that, you may encounter major difficulties in obtaining loans. 3) If you find that there is a problem on your credit report, you can legally dispute the report with the three different credit bureaus at which time,  the problem should be put on hold until the dispute is resolved. 4) How about medical bills? How many of us have had a medical bill show up that shouldn’t be there? Well- checking your report yearly will help you to alleviate this  potential aggravation. These yearly reports are FREE!  The 3 credit bureaus are Experion, Equifax and TransUnion. You can click on the following link to start the process today. https://www.annualcreditreport.com. I would love to hear your stories or comments on this. 

How do we overcome?

The latest news about  the unemployment  rate and jobs lost yesterday has most people unnerved, and rightly so.  It  is no secret that our economy is struggling to stay afloat, as well as individuals themselves. But I have to ask- does this  mean we should retreat into our own corner of the world and just stop living and doing what we need to do for ourselves and our families?  I, for one, choose not to get swept up in all the negativity and panic that seems to be seeping into our world. I  am not saying that we shouldn’t be very careful how we spend our money and that we shouldn’t reevaluate our priorties. Of course we should! But what I would like to do, is send off an upbeat message that maybe we can all embrace.   President Obama has injected a sense of hope and unity into our country and most people, despite their party loyalty are truly rooting for his success.  And like Monty Python says-  ”Always look on the bright side of life!”  Move forward. If  you think you want to make a move- do it now! Prices ar fantastic, interest rates are low, there is money to lend and there is SO MUCH inventory to choose from. Whether you are a first time home buyer, someone that wants to invest, downsizing or upsizing- the time is ripe! Also- please feel free to contact me if you have any questions at all about your current real estate situation. If I don’t have the answer- I will be sure to find it out for you.

The Mortgage Myth

There isn’t a day that goes by that I am not approached by someone asking  me about the Real Estate industry. Everyone knows- there has been a dramatic shift from a “Sellers Market” to a “Buyers Market.” The issue is- Where are all the buyers? Why is there such fear to purchase?  What I have finally realized, is that most of the problems stem from the misconceptions that the general public  has about the current real estate conditions. This is directly related to the information that the media sends out to the world at large. Truth be told- THERE IS MONEY TO  BE HAD! In September 2008, the federal government bailed out the two big lenders, Freddie Mac and Fannie Mae. Since this time, money has become available to borrowers at unbelievable rates and guidelines.  It used to be that FHA  would only loan up to $270,050. This has changed to a $729,750 limit depending on one’s geographic area. Not only that, rates are at 5% for a 30 year fixed, the down payment required is only 3.5%, a buyer can receive up to 6% on closing costs assistance from the seller and the  borrower can have a credit score starting at 580. S0- Why does the world not know this? I wish to try and spread the word. What a wonderful time to purchase. Tons of inventory, low interest rates, lower prices and increased loan amounts. The next big challenge will be to educate sellers on the reality of the market and proper pricing in order to sell at the highest price possible in the shortest amount of time. I will cover that on another blog. But in the meanwhile, if you know anyone renting, ask them why. If you know someone who wants to move up in size, whats holding them back. The money is there!

Welcome to Your Money, Your Home

Welcome to Your Money, Your Home. On this site, you will find comprehensive and updated information about the Real Estate market. You will  find many tips, such as, but not limited to,  how to prepare your home for sale, how to obtain the best possible mortgage and how to invest properly in this ever-changing market.

Being both a real estate agent and investor for over six years has enabled me to acquire knowledge that is pertinent to today’s real estate climate. My primary goal is to offer sound information and advice to those who need a reliable, educated real estate professional/ consultant. While reading my blogs, if you have any comments, questions or observations, please feel free to email me at bonniejoffe@comcast.net.