The Fabuless Life » Real Estate

Cash For Appliances

L.Jay — Thu, 11 Feb 2010 19:31:07 +0000

You’ve heard about Cash for Clunkers, but you may not have heard about Cash For Appliances, another government-run rebate program that is geared toward saving your household money.

Backed by an initial $300 million in funding from the American Recovery and Reinvestment Act, the goal of the program is to help make American homes more energy-efficient while stimulating the economy. Some states already have a rebate program – in that case, federal money will supplement funds currently being distributed.

Rebates should range from $50 to $200 per appliance depending on the state and what you’re buying. The Department of Energy wants the cash focused on heating and cooling equipment, appliances, and water heaters, since these products offer the greatest energy savings potential.

Qualifying appliances that have earned the Energy Star rating from the DOE are eligible for rebates including: central air conditioners, heat pumps (air source and geothermal), boilers, furnaces (oil and gas), room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heaters.

More good news: You don’t need to trade in an old appliance to get a rebate on a new one. And in fact, your state may offer additional rebate money for recycling your used appliance.

If you are in the market for a new appliance, don’t hesitate. Many states have just kicked off their programs, but Kansas ran out of funds in ten days, handing out $2.6 million in rebates already! Starting this month, Georgia, Indiana, Maine, Michigan, New Jersey, New York, Puerto Rico, Rhode Island, and the U.S. Virgin Islands have begun offering rebates. Stay tuned for other states joining the giveaway.

And speaking of the federal governments “Cash For…” programs, another one might be headed our way. The details of the plan aren’t finalized, but President Obama has called on Congress to “provide incentives for consumers who retrofit their homes to become more energy efficient”. If the plan (dubbed “Cash For Caulkers”) goes through, you could possibly earn a credit of up to $12,000 on the cost of labor and materials to weatherize your home. We’ll be tracking this rebate for you as well!

Home Buying Tax Credit

L.Jay — Thu, 29 Oct 2009 12:26:10 +0000

Time is running out to take advantage of the home buying tax credit, which expires at the end of November. But a tentative agreement in the Senate may extend the deadline and expand the pool of eligible participants.

Right now, the tax credit deadline is Nov. 30, but that may soon change.

Under the existing plan, qualified first-time home buyers purchasing a principal residence on or after January 1, 2009, and before December 1, 2009, are eligible for a tax credit of up to $8,000.

Senators have reportedly reached an agreement to extend the deadline to April 30th and the credit would be expanded beyond first-time buyers to those who have lived in their home for five consecutive years. Repeat buyers would get a credit of $6,500 instead of $8,000. Closings must take place by June 30th.

Eligible individuals can make up to $125,000 a year and couples can earn up to $225,000 per year, which is higher than the current income limits of $75,000 and $150,000, respectively.

The tax-credit measure may be attached to a bill that would extend unemployment benefits, but it hasn’t yet passed the Senate… or the House.

The extension comes amidst a slew of stimulus proposals by Congress and the president, intended to prop up a slumping housing market, and the economy in general. The popular home buying tax credit spurred many purchasers to close the deal, and without it, legislators fear the real estate market could go back into free fall. According to the New York Times, this possibility is even more likely as the Federal Reserve may cease its buying of mortgage-backed securities, causing interest rates to possibly drift up to 6 percent, from 5 percent, turning off potential buyers.

Experts are predicting another chill in housing sales as winter approaches, despite gains this summer that many hoped were an indication of a turnaround. The NYT says defaults and distress sales are rising in the middle and upper price ranges, as the buyers out there look for bargains.

Reports show that the only hot sector of the real estate market has been – foreclosures.

Luxury Real Estate For a Steal

L.Jay — Sun, 27 Sep 2009 14:10:51 +0000

Buy Your Dream Home

The real estate boom and bust has left a trail of foreclosures, short sales and desperate home sellers in its wake.

When the economy crashed and layoffs soared, many well-heeled and nouveau riche found themselves unable to make their mortgages and unable to sell their overpriced homes. In addition, the subprime lending market allowed people to buy homes well above their means. High demand, house flipping, and inflated prices blew up the housing bubble, and now excess inventory is dragging down prices, meaning – there are bargains to be had!

If you are in the market for a new home, and you do have the money, it’s the best time to buy luxury real estate in years. The peak demand for homes over $1 million was four years ago, and sales of these high-end properties has dropped by more than 50 percent in the 20 largest metro areas, according to the Associated Press.

According to the National Association of Realtors, nationwide, overall home sales are down about 27 percent. In the month of August, sellers with homes priced above $2 million were cutting prices by an average of 14 percent, compared with the national average of 10 percent, as reported by Trulia.com.

But who can afford these million-dollar homes? A buyer would need to earn at least $200,000 a year, and be able to afford a $4,900 a month mortgage (not including property taxes). Only about 4 percent of Americans fall into that tax bracket in these economic times.

Bankrate.com shows the average interest rate for a 30-year “jumbo loan”, which is a mortgage over $729,750, at 6.18 percent, while a conventional fixed-rate mortgage is about a point lower. That means the mortgage payment for a $1 million home (with a down payment of 20 percent) would run about $4,900 a month, not including property taxes.

Of course, the value you can expect depends on where you live. For example, in Michigan, formerly million dollar homes can be purchased at bargain basement rates. Luxury real estate in Florida that was way overpriced to begin with hit the bubble and burst wide open, and prices have fallen off a cliff.

Expensive homes in other cities that didn’t experience the same price inflation show a more incremental reduction in prices.