Why NOT to be Scared of Homes with Oil Heat

Oil Heat vs. Natural Gas Heat

There are many misconceptions out there about oil heat I’d like to clear up because it does get a bad rap from a lot of the mis-information flying around is contagious and seems to be coming from the Natural Gas companies and the wannabe conservationist who really aren’t as educated about the matter as they’d have you believe.

I’d just like to say first that there are pluses and minuses for each type of heating fuel system and overall found that taking all points into consideration oil vs gas get an equal grade from me.

NEWER oil furnaces are as clean burning and as efficient as natural gas furnaces. If you notice any "Soot", whether it be from an oil burner or a gas burner, it is an indication of a possibly cracked "Heat Exchanger".

Don't let anyone try to convince you that all oil furnaces are "Dirty". It's just not true. Sometimes there can be an odor of the fuel oil itself, but that usually occurs when filling of the oil tank takes place.

As far as prices go, oil and gas can both fluctuate and certainly have been trending up.

heating oil is almost the same as #2 diesel fuel that trucks use, except heating oil has none of those additives or detergents that diesel has.

If the oil tank is located outside, than you will need to use #1 heating oil. It has an additive in it so that it does not "Gel" up in cold weather. And radiant heat (the old radiators) are indeed a most pleasant, even heat. Much nicer than "Forced Air" systems which tend to have temperature swings however that is another topic, there are Forced Air oil heated systems available.

• Oil heat burns hotter
• Oil heat is Safer than Gas which is explosive!
• Oil lasts longer and is generally cheaper than natural gas
• Better local service from Oil company over Gas unless there is an emergency gas leak!
• Oil company’s offer service contracts to maintain your equipment just like gas companies.
• Oil heat can be used in locations where gas lines have not been or ever will be routed.
• Oil is versatile and you can have a Forced Air oil heating system just like gas.
• Oil heat systems are not more expensive to maintain when serviced regularly and properly, this can be done with an inexpensive service contract.

The Oil Heat Advantage

Oil heat has always provided efficient and affordable warmth, but it’s gotten even better in recent years. Here are some surprising facts about the “new” oil heat.

Oil heat is highly efficient

• Many oil heat systems now display the prestigious Energy Star label, which signifies that they are technologically advanced and clean burning. Some oil heat systems have efficiency ratings that exceed 90%.
• Compared to 25 years ago, homeowners now need an average of 500 fewer gallons of oil to heat their homes each year.
• Oil heated homes heat up quickly and provide even and efficient heat. For every gallon of oil burned, a whopping 140,000 Btu's are produced. That's 40% more Btu's of heat than an equivalent amount of natural gas produces.

Oil heat is environmentally friendly

• Particulate emissions have been reduced significantly and new oil heat systems now burn fuel 95% cleaner than 25 years ago. Average soot emissions for properly adjusted flame retention burners are less than .003 pounds for every 7 gallons of oil burned. This works out to about 6 ounces of soot per year (approximately equal to natural gas burners).
• The industry is moving toward the wider use of fuels that will burn even cleaner than conventional heating oil. Test studies have already shown that BioHeat®, a blending of conventional fuel with biological products like soybeans, have reduced equipment service costs for oil heat users.

Oil heat remains a good value

• Heating oil prices, when adjusted for inflation, actually dropped 23% during the 1980s and 1990s. More recently, the price of heating oil has increased—but so has the cost of natural gas and all other heating fuels.

Oil heat is versatile

• Oil-fired water heaters provide virtually unlimited hot water at low cost. Not only does an oil-fired water heater save huge amounts of money over its lifetime, it is also perfect for homes with high hot water demand (growing families, homes with hot tubs, etc.).

Oil heat is safe

• Heating oil cannot explode. If you dropped a lit match into a barrel of oil, the match would go out as if you dropped it in water. Oil must first be turned into a fine particle mist before it will ignite and burn, typically at a temperature of 130-140 degrees.
• Oil heat poses an extraordinarily low risk for carbon monoxide poisoning.

Oil heat gives you service choices

Oil heat companies aren’t large monopolies, so homeowners can choose a company that best suits their needs and personalities. Most oil dealers are locally owned and operated with deep roots in their communities.

What about old oil heat systems?

Most homeowners have the attitude that if their heating system works, it doesn't need replacing. The trouble with that logic is that many heating systems still in use are 40 years old or older! The efficiency of a system that old is so low that the owner is probably using, and paying for, twice as much oil as he or she would need with a modern oil heat system. With today's heating oil prices, that's a tremendous waste of money.

Save clients money!

According to the nonprofit Consumer Energy Council of America, the best way to cut heating costs is to improve system efficiency. This means real estate agents who encourage clients to switch away from oil could be wasting thousands of dollars of their clients' money due to conversion costs. But if clients stay with oil heat, they don't have to pay those conversion costs. Plus, with a modern oil heat system, it can cost up to 40% less to heat a home than with a system made only 30 years ago!

Peace of mind

Explain to your clients that replacing an old clunker of a heating system will save them stress for several reasons:

• New systems are less likely to break down.
• Most new systems come with extended warranties.
• Modern heating systems can vastly improve the comfort throughout the home.
• Today's super-efficient systems provide more heat from less fuel.

If you have clients who are thinking about switching away from oilheat, give them the PRO$ "Homeowner's Guide to Heating with Oil" (see FREE materials page) and encourage them to talk with several local oil dealers first. It could save them thousands of dollars and earn you valuable referrals!

© 2009 Warm Thoughts Communications, Inc.

Grant Money Available for Replacing Oil Tanks Even Without Leaks

NJ Grant Program for Underground Tank Replacement has been increased! Qualified homeowners can now get from $3,500+ to upgrade their underground oil tank. Qualifications are liberal.

The Petroleum Underground Storage Tank Upgrade Remediation and Closure Fund was first established in 1997, but only applied to tanks that leaked. Money for the fund, administered jointly by the New Jersey Economic Development Authority (NJEDA) and the New Jersey Department of Environmental Protection (NJDEP), comes from corporation taxes levied by the state.

On August 2, 2006, Governor Corzine signed legislation that enacted important changes to the fund. The change gives a homeowner the power to be proactive. You can now apply for a grant to upgrade a tank BEFORE it leaks.

 

Heating Oil Storage Tank Issues

Modern heating oil storage tanks are marvels of contemporary engineering. They have leak-proof inner walls of plastic or fiberglass and an outer wall of corrosion-resistant metal (for aboveground models) or a plastic/fiberglass outer wall (for underground models).

There are presently no federal or state laws regulating active underground tanks. However, if your clients are replacing a tank, make sure they check with their municipality for local replacement regulations and options.

Older underground tanks

For many years, home builders installed bare metal tanks for underground heating oil storage. Unfortunately, because metal corrodes, those tanks occasionally leak. Some tanks last 50 years or more, while others need to be replaced after 20. There is no set rule for metal tank longevity because so much depends upon how they were installed, the surrounding soil, water tables and salinity.

We recommend that every homeowner replace metal underground tanks with new, leak-proof plastic or fiberglass models. Encourage your clients to contact local oil dealers for estimates or recommendations on tank replacement options.

When selling a home, a new oil storage tank can make a huge difference in how quickly the home sells. It can also have a positive impact on the price.

Replacement options

If your current tank needs to be replaced, you have two good options.

1. Replace an old underground tank with a modern, corrosion-resistant underground tank. With today's technology, a new tank can be isolated from the ground, making it worry free.

2. Replace an underground tank with an aboveground tank. Aboveground tanks are normally smaller (275 gallons) and they can be customized for hard-to-fit places indoors. They can also be installed outside the home and hidden in a tank enclosure.

Many homeowners now have aboveground tanks installed inside tank enclosures, such as the one pictured here.

Guidelines for replacement

If a homeowner decides to replace an underground tank with an aboveground tank, the buried tank must either be removed or properly closed and abandoned. To close the tank, it needs to be emptied, cleaned and then filled with an inert material such as sand or foam.

It is important to work with a licensed experienced professional when closing and abandoning an underground tank.

Before proceeding with a tank abandonment, homeowners should contact their municipal governments or local oil companies to find out about any codes or regulations that may affect the removal or abandonment of an underground tank.

How to tell if an oil tank
has been closed properly

The best resource is your town building inspector's office, which will have a record of the tank abandonment on file. Additionally, if a tank has been legally and properly abandoned, there will be no vent or fill pipe.

Underground tank testing

Frequently, a home buyer or seller is faced with a requirement from a lender or insurance company to have an underground oil tank tested. If this happens, here are two things to keep in mind.

• There are several tests that can be conducted on an underground tank, and the need for one test or another can vary. Often, a combination of tests is appropriate. To avoid confusion and to get a reliable assessment of which tests are best for your situation, consult a local oil heat dealer.
• Any testing on an underground tank should be conducted by a company that is certified to do tank testing.

Aboveground tank inspection

Here are some things to check when listing or selling a home with oil heat:

• Make sure the oil tank's fill pipe and vent pipe are metal, not plastic, and that they have caps.
• Look for leakage from and around tank fittings, valves, filters or the tank's gauge.
• Make sure the tank legs are in good condition and that the tank belly doesn't touch the ground.
• Look for signs of corrosion.

For more information about oil tank options, call your local oil heat dealer.

© 2009 Warm Thoughts Communications, Inc.

 

Understanding Heating Oil Prices

Oil prices have been in the news lately — and the news has been good. Recently, crude oil prices dropped to their lowest point in five years. As a result, oilheat dealers have been able to lower their heating oil price back down to a normal level. This will make marketing an oil-heated home much easier for you.

A great value

Historically, heating oil prices have delivered great value for homeowners. And while energy prices rose in the first half of 2008, as expected, the spike was followed by steep declines. So oilheat consumers can rest assured that heating oil at $4 a gallon is the exception and not the rule. So what causes price spikes? A number of factors affect oil prices — economic conditions, world energy supplies, unchecked market speculation, global events and the weather, to name a few. The chart shows how those factors have affected oil prices in the past.

What does the future hold?

The best news of all is the future of oil prices. According to the U.S. Department of Energy's Short-Term Energy Outlook, crude oil prices are expected to hold at normal levels, around $50 a barrel. This means that oilheat will continue to be a great value to homeowners. And no matter where oil prices are headed, the commitment of oilheat dealers to their valued customers will never waver.

When your clients have questions for you about oil pricing, here are some things to remember:

Local heating oil dealers don't control prices. In fact, many dealers have programs specifically designed to help their customers control costs and even out their fuel payments.

Energy prices tend to track one another. That's why the Consumer Energy Council of America says, "It makes no economic sense to switch heating fuels."

Thanks primarily to the U.S., Canada and Mexico, about three-quarters of the heating oil used in the United States comes from outside the Persian Gulf. This means our energy costs are much less dependent on the Middle East than people think.

© 2009 Warm Thoughts Communications, Inc.

Additional Information Resources:

• FAQ about the Grant http://www.newtanksnj.org/faqs.aspx
• American Council for an Energy Efficient Economy http://www.aceee.org/consumerguide/heating.htm
• Oil Heat America http://www.oilheatamerica.com/
• Fuel Merchants Association of America http://www.fmanj.org/
• Fuel Merchants Association of New Jersey http://www.newtanksnj.org

Link for Realtor Education www.nj.oilheatpros.com  
Toll-Free Phone: (866) 807-PROS (7767)

NJ companies that replace oil tanks and remediate old tank leaks:

• Meridian Environmental Services (Ed Golub) 732-281-1900 x 102 http://www.meridianenvironmental.com/ ProTank http://www.protankservices.com/ 908-851-0057
  1 Rahway River Parkway • Union, NJ 07083
• Mike Hoensch 973.390.5356 http://www.mhtankco.com/

A more comprehensive list of vendors can be found here
Fuel Merchants Association of America http://www.fmanj.org/

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

No matter where in the country or the world you’d like to live, call us and we will either personally assist you or match you up with an experienced agent in your area that would be happy to assist in your search, obtain financing, etc.

Click here for Door to Door Directions

Think You’re Living Space is Small and Cramped?

Think you’re living space is small, feeling a little cramped like a sardine in a tin can or squeezed into a cardboard box? You just may have it a lot better living in a mansion compared to these people

  Warning, Not for claustrophobe's!

I suppose “city living” is for those not so attached to personal possessions either. I don’t know about you but I for one couldn’t live in the city just because I have so much “stuff”, little things that would break the bank to keep if living in NYC like… a car, automotive tools, ladders and other large tools, all my furniture, my atv and motorcycle, a snow blower, all my electronics toys a pool and so on.

Granted if living in the city some of these items would not be needed like the snow blower, a ladder and so on but I like my stuff, I like having a yard and I like having my space. Sure, city living has it’s advantages but if you examine them they are more beneficial for either older folks (if it weren’t for the cost) or the young party crowd,  I’d say the city favors them a bit more. I can’t see any advantage to living in the city other than there is a store outside your front door, you live blocks from bars, clubs and entertainment and….um… yeah, that’s about it.

The point of my rambling here is actually an amusing one, check out how this couple lives, personally I think their nutz paying $150,000 to buy this place plus pay a $700 monthly maintenance fee.

That being said, I’d like to introduce you to New York City’s Smallest Apartment - $150K for 175 Sq Ft., yes you heard that right, my dining room is about that size!

I can understand staying in the city one or two nights a week
hobnobbing in the neighborhood, networking, promoting one’s self and business or for entertainment purposes but to live like this is just a bit strange in my book.

I’m not claustrophobic or anything but imaging this apartment would not be a safe place for those who are to live. I would go absolutely crazy having to live in such cramped quarters alone forget about with another person and two cats! Oh, they also need to take an elevator and then the stairs to get to nicely tucked away apartment. I would be afraid of fire in this building seeing that it’s hard enough to get to under normal conditions.

Not many couples could live in complete harmony in a space the New York Post calls the “smallest apartment in the city,” but Zaarath and Christopher Prokop — plus their two cats — live in a 175-square-foot “microstudio” in Manhattan’s Morningside Heights.

Purchased for $150,000 three months ago, the co-op is 14.9 feet long and 10 feet wide and is on the 16th floor of a building on 110th Street, but, get this — it’s only accessible by a staircase from the 15th floor.

The couple has:

• a queen-size bed (about 1/3 of their living space)
• mini-fridge and hot plate (they don’t eat in very often)
• one kitchen appliance (a cappuccino maker)
• closet-sized bathroom with shower with sink and toilet (no long, luxurious baths here)
• kitchen cabinets that are used for their clothing (they don’t eat here, remember?)

With a space this small, they jog to work, picking up their clothes along the way at various dry cleaners around the city and some clothes are kept in their offices.

Curbed figures they spent about $857 per square foot in one of the priciest cities in the world. The Zillow Home Value for Morningside is $641,600 and the median value per sq ft for Morningside is $726.

The Prokops plan to pay off their mortgage in two years and then plan to remodel by installing a Murphy bed and larger windows. Their only cost at that point will be a maintenance fee of $700 a month.

Reference Source: Read the full story and see the comments of others on zillow.com

If you agree with me or not on what living comfort means, that’s a personal choice and either way our agent’s would love to help you find your mansion or tiny love nest to call home.

No matter where in the country or the world you’d like to live, call us and we will either personally assist you or match you up with an experienced agent in your area that would be happy to assist in your search, obtain financing, etc.

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

If You Don't Buy a House Now, You're Stupid or Broke

Have you read this article yet? It was featured in Business Week. 

My first thought, wow! That’s blunt and kind of rude, a very harsh statement. But the writer, Mark Roth, uses this  head turning title to get your attention to make excellent points for those who are on the fence.  Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%!

Can you ever imagine buying a house at 18%?  I  can't fathom the thought however not all too long ago in the grand scheme of life my parents did it, as probably yours depending on your age, as of this writing I’m 37.

Most of my friends and people buying homes in this generation either bought a home using an FHA loan in the 6%-9% range depending on how good or bad their credit was. Imagine having excellent credit and only being able to fetch a best rate of 17-18%, that’s just nuts, but possible to happen again in the not too distant future. 

In the 80s rates dropped from 12% to 9%, many people were thrilled, while most peoples reaction today today would be more like WHAT!!!! Well if you were previously at 17% or 18% you’d be dancing in the streets at the opportunity to refinance at those low by comparison rates. We’ve had it pretty good for so long now that most people can’t imagine rates so high these days.  

Generation X'ers probably would never dream of purchasing a home above 7% given all we’ve ever known are super low rates between 5% – 6%. Mr. Roth points out the history of previous interest rates as well as their impact on purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation as it wildly spins out of control thanks in part, a big part due to out of control government borrowing and spending. Heck even our country’s credit rating is in danger of losing its triple AAA credit rating.  I’ll make the prediction that by this time next year, rates will have risen at least 1%-2% higher than today.

Now let’s keep in mind if rates go up as expected, refinancing at a lower rate should not be counted on given the history and how long it may take in years for rates to even begin to fall without further government intervention.

These numbers are just examples but lets just say the average sale is $250,000. Assuming a 5% down payment at 5% interest on a 30 year fixed, your monthly principal and interest payment would be $1275.  If rates rise to 7%, your payment increases to $1580/month. 

Some buyers may be on the fence because they fear prices may drop further. Consider this. If there is a 10% decrease in price and the $250,000 falls to $225,000 in one year, but you wait to purchase and the interest rate rises to 7%, your payment will be $1422.  You spend more money per month plus at the higher interest rate, you pay more interest over the life of the loan.  Real estate appreciation is always a cycle and as the economy stabilizes, values will level out. 

Data being analyzing by many of the trend trackers are having the experts already saying this is happening in many markets and that this will occur by 2014 in many states. Making a home purchase is still a decision that should be weighed carefully, being a home owner is not for everyone. Some people with poor credit and personal financial habits or others with other reasons should probably remain renters. One important consideration will depend on how long you plan to stay in the home.  

Mark Roth summed up the article, "What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime." Depending on where you live I’d also have to add that you should also take into consideration funds from additional sources such as local government down payment and closing cost grants as well as the federal home buyer tax credit currently being offered while it lasts and not wait until last minute this time. The government will not be extending it again, this time they will actually have a phase out plan giving people plenty of opportunity to take advantage without just yanking the offer away.

Marivic GMAC Real Estate specializes in helping families make good decisions. We do NOT think you are stupid or broke if you don't buy a house right now.  But if you are considering purchasing a home and would like a FREE consultation, we'd love to sit down with you and help you weigh your options and direct you to a qualified, caring mortgage professional that will help you with the numbers.

www.MarivicRealty.com
2056A Lincoln Highway
Edison, NJ 08817-3330
Office: 732-650-9911
Toll Free: 1-866-745-4622

Located Across from The Pines Manor & Crowne Plaza Hotel in the Nixon Plaza Shopping Center where the Labonbonniere Bake Shoppe

Click here for Door to Door Directions

Home Buyer Tax Credit Extended and Expanded

Good news for home buyers, Not just a first time buyer credit anymore. Once again Uncle Sam is firing up the printing press to give home buyers money as incentive to purchase a first home or to move and buy another (not for investors). The federal housing tax credit (H.R. 3548) for buying a home has been extended from the November 31st deadline to June 30, 2010 and now expanded to offer the credit to current home owners looking to move.

TAX CREDIT OVERVIEW

Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

 
What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

Below is a quick overview of the program and the changes, for details or to get the info from the source see these resources.

www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

TAX CREDIT ADDITIONAL RESOURCES
Government Site http://www.federalhousingtaxcredit.com/
NJ Home Buyer info site http://www.realstorynj.com/
Tax Credit FAQ’s - PDF document

ADDITIONAL REAL ESTATE NEWS RESOURCES
Marivic Realty Facebook info page http://www.realrep.com
Realty News Videos http://realtytimes.com/
Inman News http://www.inman.com/
WSJ Real Estate http://www.realestatejournal.com
NJ Real Estate Report Blog http://njrereport.com/
Star Ledger NJ.com Real Estate http://realestate.nj.com/
NJ Business & Economic Issues http://www.njbiz.com/

Why NOW is a Good time to Buy?

Below is a neat little video explaining why it’s a good time to buy real estate now courtesy of Lennar Home Builders.

For any real estate questions and for all your real estate needs contact us any time.

Marivic GMAC Real Estate
www.MarivicRealty.com
Local: 732-650-9911
Toll Free: 1-866-745-GMAC(4622)
Facebook Blog: www.realrep.com

Has the real estate market finally hit bottom?

Is it too late for buyers to get the best deals?
Has the real estate market hit bottom?

Interest rates are at all time historical lows, home prices have bottomed out and now the amount of homes sold are showing signs of being on the rise again.

So did you miss your opportunity to buy at the best time? Probably not, the rates are still low and there are many homes still on the market available for sale and many deals still to be had.

I would not suggest waiting too much longer if you intend on buying, with eminent inflation on the horizon due to Obama's careless spending of money we don't have interest rates WILL RISE AGAIN but how high?

Care to find out?

Read about recent home sales on the rise:
http://www.realtor.org/RMODaily.nsf/pages/News2009032301?OpenDocument

First Time Home Buyer Grant Money Available in NJ

New Jersey Smart Start Program

1st Time Home Buyer Grant Program

Another reason now is the best possible time to be a home buyer in New Jersey.

The State of New Jersey has a grant program called HMFA's 1st Time Buyer Mortgage Program, aka Smart Start Grant Program. This program is designed to be used in conjunction with SMART GROWTH. This means the property must qualify as well as the buyer.

The first time home buyer grant program offers up to 4% of the purchase price in the form of a second loan to first time home buyers or people who haven't owned a home in the last (3) three years.

The loan is actually from grant money from the state of New Jersey at a 0% interest rate for the life of the loan and the best part is the loan is forgivable meaning the longer you stay in the house you don't have to pay it back.

See program guidelines for details, this article is only for meant to introduce you to the program. Program availability is not garanteed and terms must be verified with the source offering the grant, in other words "Don't Shoot the Messenger".

Both the home and the buyer must qualify for the New Jersey Smart Start program.

To see more information on the program and to find out if the community you are buying in is qualified, check out this link: http://sgl.state.nj.us/

For questions on how to obtain HMFA Smart Start down payment and closing cost assistance, please call them directly at 1-800-NJHOUSE and then call our office to help you find your dream home. At least you can work with us after providing you with the info that all these juicy programs are available. ;-)

Marivic GMAC Real Estate

1-866-745-GMAC (4622)

The beauty of this program is that the buyer does not have to repay the 0% interest 2nd loan for money toward down payment or closing cost until they sell the property. The best part is this is a forgiving loan meaning the longer you stay in the property, the less you need to repay, if you stay in the home for 5 years, you don’t need to pay back the 2nd loan at all.

Click here For all the Details about the NJ Smart Start Program

$8,000 First-Time Homebuyer Tax Credit H.R. 3221

UPDATE: The Tax Credit has been Ammended...

Unfortunately with all the So-Called Stimulus spending President Obama has been doing, both him and the reigning Democrats in congress shot down the Republican efforts to put a shot of stimulus directly into the Housing Market. The Republicans suggested changing this tax credit to one that does not have to be repaid and it should be raised to a more stimulating $15,000.

This suggestion was shot down but after the National Association of Realtors (NAR) launched their political action committee call to action from all Realtors to write their local politicians, the huge response led to the Dems approving a modified version of this stimulus suggestion ending in a lower $8,000 Tax Credit but also amending the provision to one that does not have to be repaid. I suppose it's better than nothing!

$7,500 First-Time Home Buyer Tax Credit

Credit Expires June 30, 2009

Bill Number H.R. 3221

Now is a Great Time to Buy a Home!

The tax credit is only temporary so now is not the time to dilly dally. With prices the lowest they've been in years, the interest rates are still low, the government offering all kinds of incentive to stimulate our economy why wouldn't you want to buy now?

Why now is the Best Time to Buy a Home?

• Low interest rates wont last forgever!
• First Time Home Buyer Tax Credit Expires July 1st 2009!
• Government investing Billions of Dollars to stimulate the economy!
• Programs like NJHMFA 1st Time Home Buyer Grant Program aka NJ Smart Start Grant

Yes now is a great time to be a home buyer, here is just one example of the benefits of home ownership and why it's a good thing.

Overview
The Housing and Economic Recovery Act of 2008 (H.R. 3221) signed into law by President Bush in July 2007 offers first-time homebuyers a tax credit equal to 10% of the cost of their home up to $7,500. This tax credit is available to first-time homebuyers who purchase a home in the United States as their principal residence on or after April 9, 2008, and before July 1, 2009.

To qualify as a first-time homebuyer, you cannot have owned an interest in a principal residence in the past three years from the date of the qualifying purchase.

To qualify for the full amount of the tax credit, you must not earn no more than $75,000 if filing as Single or Head of Household. If filing a joint return, the buyers may have a combined income of no more than $150,000. There is a phase out of the credit if reported income is more than $75,000.

The tax credit allows you to deduct the credit from your total tax liability for the year in which the credit is taken. Also, the tax credit is “refundable,” meaning that the taxpayer can receive a tax refund if the credit is greater than the estimated liability.

This tax credit must be repaid. However, the repayment period is 15 years unless the home is resold before the end of that period, and there is no interest on the amount of the credit that is received. Repayment of the credit begins two years after the credit is claimed and is repaid in increments of 6.67% per year of the credit amount.

Essentially, the tax credit is a 15-year interest free loan from the government. Money today is worth more than an equal amount of money in the future, making the tax credit a fantastic opportunity that any first-time homebuyer cannot afford to miss.

First-Time Home Buyer Tax Credit at a Glance

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and beforeJuly 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

Marivic GMAC Real Estate agents are here to help, call us with any questions you may have no matter where in the United States you may live. We have affiliate offices all over the globe. 1-866-745-GMAC (4622) and have agents on staff specializing in all areas of real estate from Residential to Commercial, New Construction to Vacation & Resort Properties, Pre-Foreclosure, Short Sales, Estate Sales, you name it we do it!

Home Buyer Resources
Buying a home can be complicated, but fortunately a lot of expert advice is available to help people navigate the experience. These online resources can help make the process smoother.

• Buying and Owning a Home Freddie Mac
• Buying a Home Department of Housing and Urban Development
• The Home Buying Process Federal Housing Administration
• FHA Loans Federal Housing Administration
• Homeownership Resources Fannie Mae
• Home Loan Learning Center Mortgage Bankers Association
• Move.com NAHB’s official new homes listing site
• Home Loan Guaranty Services Dept. of Veterans Affairs
• State and Local Home Buyer Assistance ProgramsHousing Publications from the Federal Citizen Information Center Most in PDF format
• Consumer Information from NAHB NAHB.org
• Mortgage information from the Fed Federal Reserve Board
• Home Financing Information from the FTC Federal Trade Commission

Additional Resources:
FAQ - Frequently Asked Questions about the Program
Official Government for the First-Time Home Buyer Tax Credit Program
Download the Bill H.R. 3221 in PDF format

Visit the Library of Congress and search for Bill Number H.R. 3221.

Further information can be found at http://www.federalhousingtaxcredit.com/ or http://www.irs.gov/. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.