The Surge of the Decade!

I made this sound really exciting, I know. As we all know by now, the first time homebuyers tax credit has really helped boost home sales as of late. According to an article in the Richmond Times-Dispatch, it seems that the tax credit has given the housing market its biggest surge in a decade (a 10.1% increase in the past month). I don't know about you, but I'm pretty excited that Congress decided to extend the tax credit deadline and open it up to other buyers. I'm hoping this means good things to come for real estate in 2010.

Of course, the economy is still slow to recover due to other factors-- job creation being one of the biggest. The building of new homes contribues to job creation, but that area has slowed significantly recently. So we still have a ways to go before the economy can fully recover but the boom in home buying definitely helps!

Be on the Lookout!

Housing Virginia and the Virginia Board of Realtors are coming out with a tool to help consumers figure out how much they can afford when it comes to owning (or renting) a home. This index will be available in January on a quarterly basis, so be on the lookout. I'm hoping people can use this valuable tool to measure how much they can afford ahead of time, so we don't see the same kind of mortgage/credit/debt/foreclosure crisis we saw before. Only buy what you can afford, people!

Check out the story from the RTD:
http://www2.timesdispatch.com/rtd/business/local/article/B-INDE21_20091120-221604/307045/

Some good, some not-so-good news

I have attached an article from the Richmond Times Dispatch addressing the current foreclosure rate in Virginia. Looks like foreclosure filings in the area have declined compared to a year ago, but foreclosure rates across the nation are still up. Check out the article here.

Hooray for Home Buyers Tax Credit Extension!

That's a mouth full! In case you haven't heard, that wonderful Congress of ours has just signed the bill to extend the tax credit for home buyers. This will extend the current credit of $8,000 to first time home buyers or those who haven't owned a home for at least three years. However, a new group will also benefit! Buyers who have owned their home for five years or more will be eligible for a tax credit of up to $6,500.

The credit is available for the purchase of principal homes costing $800,000 or less, and will be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

And good news for those brave people serving our country. The credit will be extended an additional year (until June 30, 2011) for members of the military serving outside the U.S for at least 90 days.

President Obama is expected to sign the bill so fingers crossed that everything goes smoothly! I'm really hoping this will continue to turn around the real estate market and boost the economy. I'm also really hoping that the friendly finger-printing/background checking people will let me know that I have passed so I can get on with this real estate career thing! Times a tickin'.

The Beauty of a Self-Directed IRA

What is this, you ask? An opportunity to invest your money in any way you want! Ok, maybe it's not that flexible. The IRS does have a few guidelines on what you can and can't invest with your IRA, but many people don't know about Self-Directed IRAs because there are some custodians and brokerage firms who don't offer the option, meaning you are only allowed to invest in stocks and bonds and the like. There are other things you can do with that IRA though...





Of course I am talking about investing in real estate, what else? If you invest your IRA in real estate, it is fully secured by a Deed of Trust and insured, which makes it fixed, secured, insured and tax free! It's really the best of both worlds.





As I mentioned, most custodians don't offer self-directed investments, so in order to do this an investor will need to roll their current IRA into a new account with a company who offers a self-directed IRA. This could be a long process (no one wants to lose business!) but well worth the wait.





We know of a couple of companies and resources that can help you invest in a self-directed IRA. If anyone you know is interested, please visit our site http://www.richmondreinvesting.com/ and we will be sure to get in touch to begin this process, or at the very least talk to you about it.





**On a side note, we are wrapping up the renovation process on yet another great property so stay tuned for an update and some before and after pictures!