What you need to know about the first-time home buyer tax credit extension
If you’ve been waiting and hoping that the federal government would extend the first-time home buyer tax credit, your patience has paid off. The bill, which was set to expire on November 30th, provides a tax credit of $8,000 to home buyers who have not owned their primary residence for at least 3 years.
ADDITIONALLY…
- Now home owners who have lived in their primary residence consecutively for five of the past eight years are also eligible for a tax credit of $6250 if they buy a new home.
- The current income limits to get the full tax credit are $75k for a single person and $150k for a married couple. With the new bill, income limits have been raised to $125k for a single person and $225k for a married couple. The purchase and sale agreement must be signed by April 30, 2010 and the property must change hands by July 1, 2010. The cost of the home must be less than $800k.
- The new bill also adds an anti-fraud rule. Buyers must attach documentation of the purchase to their tax return. To see a chart with a comparison of old and new tax credit ruling, click here.
The extra money from tax credits can help finance the little changes that a new homeowner wants to make the house their own or can be used toward the down payment. Every little bit helps in these economic times.
The team of professional agents at Phoenix Realty can help you find that perfect home and ensure that you get all the tax credits and incentives possible. If you’re not sure whether this is the right time to move, we’re here to help. We’ll do a free appraisal of your existing home for both sales and rental potential and help work through the pros and cons of your various options. We’re also there to help you find your next great home. It’s easy when you have the right help!
Help Finding an Apartment in Boston
Feeling overwhelmed by your apartment search? You’re not alone! Navigating the real estate market of any city can be daunting and Boston has its own challenges.
Here are a few FAQs that should make the process a bit easier:
What is a no fee apartment?
A no-fee apartment means that the fee is being paid by someone other than you, namely the landlord. It can also mean that the person showing you the apartment is the owner or his/her employee and will not be compensated for renting you the apartment.
BEWARE: if the landlord is paying the fee, they may have simply amortized the fee into the monthly rent, meaning that you’ll actually be paying the fee monthly – and you’ll be paying it again if you stay for another year. Sometimes it’s cheaper in the long run to pay the fee up front or to shop for a fee apartment and then negotiate with the landlord. Then you can be sure that the fee is not hidden in the monthly rent.
What is a guarantor and why does my landlord want me to have one?
A guarantor or cosigner is a person who will agree to take on the financial responsibility of the rent if you do not pay. They usually have to make at least 4x the monthly rent and have great credit. In Massachusetts, each cosigner takes on the full responsibility of the lease even when there are multiple cosigners. So you rent an apartment with 3 friends and all four moms cosign, then one friend moves back home, leaving you and your other roommate unable to make the full rental payment. Your Mom, along with the other 3 cosigners, will be asked to pay the rent and her credit will be adversely affected if the rent is not brought current – even though you have continued to pay your portion. Each cosigner is jointly and severally responsible for the lease. The landlord will request a credit report for each cosigner.
A saw an ad for a 1/2 split – what does that mean?
A split is an apartment where the living room has a door, allowing it to be used as a bedroom if you can deal with not having a living room. This can be a real cost savings. A 1/2 split, for example, is a one-bedroom apartment with a door on the living room so you can use it as a two-bed. 1/2 splits usually rent for just slightly more than a one-bedroom apartment so you can share the cost of rent with someone without sharing your bedroom.
The real estate agent told me that I need a deleaded apartment because my daughter is 3 years old. What does that mean?
Most property built before 1978 contains lead paint. Children under 6 years of age are not legally able to live in a rented apartment that contains lead paint. Even if the parent and the landlord agree that they don’t mind the child living in a leaded apartment, it’s still illegal and can cause lots of trouble for both parties.
The good news is, landlords are legally obligated to “delead” the apartment, making it safe for children under 6.
The bad news is, it’s time-consuming and expensive. It can take a month or more to delead an apartment and can cost upwards of $10k. The landlord doesn’t have to pay for your housing while the work is being done so you have to make sure that your moving date is somewhat flexible.
Also because of the cost, landlords are kind of looking for any excuse to avoid doing the work so if your credit is not great or you have a bad landlord reference, it’s best to look for an apartment that is already deleaded. Because these are the more modern apartments, they tend to be a bit more pricey.
Deleading is required even when the children do not live in the home all the time, like in a parental custody situation.
Would you like answers to your questions? The rental experts at Phoenix Realty are here to help!
Give us a call or email us and we’ll help you navigate Boston’s choppy waters.
Use our apartment rental search to find your perfect apartment.
Brace yourself for the winter market
“Should we talk about the weather?” From your next door neighbor to the band R.E.M., everyone is obsessed with the weather. Especially in New England we never seem to tire of the topic and for anyone thinking of buying or selling a home, watching the weather is important for more than just knowing what shoes to wear.
Home sales are very seasonal. Starting in September or October every year, home sales begin a cycle of decline that won’t start heading up until April. Home buyers get busy with the holidays and only the most hardy souls will venture out to look for a home in the cold and ice of a New England winter. 
So what does this mean to you? If you’re thinking of selling your home, your best bet is to wait until things pick up again in March and April. If that’s not an option for you, the sooner you can get your house on the market, the better. This year, many buyers are still hoping to be able to close by the November 30th deadline and get the $8000 tax credit so you have a small window of opportunity.
Use an aggressive pricing strategy. Introduce your home to the market during a weekend open house, preferably one with a favorable weather forecast. Your realtor will help you to price it at just under the selling price of comparable homes. If it is handled correctly, you could have an agreement to sell the house at on or near your asking price in just one weekend!
It’s important to listen to your real estate professional and to take her advice. Many buyers insist on putting their homes on the market during the cold weather for too high of a price and end up selling them in the spring anyway – for well under the original asking price.
For buyers, if you’re willing to potentially move during the holidays or in bad weather, the rewards can be huge. Most sellers that can afford to do so, will take their homes off the market before Thanksgiving and put them on again in the spring. The remaining inventory will usually consist of homeowners that need to sell, so the prices will be lower and the sellers potentially more open to offers that are below the asking price.
Right now, both buyers and sellers are racing to do deals before the snow flies. If you’ve been thinking of buying or selling a home, give the real estate professionals at Phoenix Realty a call. We can help you make the decision that is best for your unique situation.
Photo Credit: marci-spokane.com
Tips to Renting in Boston
The Boston rental market is a bit unique and catches many people unaware. Our rents are among the highest in the country and you may be a bit surprised at what you get – or don’t get – for your money. 
Despite that, the market moves very quickly. Often a great apartment will become available and then be rented within a matter of hours. If you see a place that you like, it’s best to act quickly to reserve the apartment. Usually a check for one month’s rent and a rental application is required to take the apartment off the market. Look below for the ‘What to Bring’ section so you’ll be ready to go.
Unless you want to spend your life on Craigslist or driving around the neighborhoods, you will most likely end up working with a real estate agent. Most agents have access to the same group of apartments so it’s best to find one agent that you like working with and stick with them. Even if you have to go out a few times, you have a much better chance of finding a great place once the agent gets to know you a bit. Be sure to tell them anything that’s important to you. Don’t just assume that every apartment will have a nice kitchen, for example. If you love to cook, let the realtor know that a great kitchen is part of your criteria.
Be sure to check and see if the agent is legit. This link will allow you to search for them and be sure that their license is current. It will also tell you if they’ve had any disciplinary action taking since 1993. http://license.reg.state.ma.us/public/licque.asp?query=personal&color=red&board=RE
What’s important – Every LL has his or her hot button, but most are concerned about credit. If the prospective tenant has a low credit score, not only is the LL worried about being paid in a timely fashion, he also has nothing to use to get the tenant to pay. When rent is not paid promptly, the LL can send a letter to the credit bureau. This will impact your credit score. If you already have bad credit. they figure you won’t be worried about one more bad report. Be sure to let your realtor know if your credit is not too great so they can focus on landlords that aren’t as concerned about that. Also speak to your friends and family and see if anyone would be willing to cosign for you.
Income requirements – For professionals, most LLs require that you make 3x the monthly rent, so to rent a $1500 apartment, you’d need to gross $4500 a month. If you don’t, some LLs will allow you to get a cosigner. For students, unless you have a stipend or a good job, expect to have a cosigner. Speak to this person ahead of time so that when you find the right place, you can reserve it.
What to Bring – If you’re meeting with realtors and are ready to rent, be sure to bring the following with you to the meeting: Photo ID, Pay Stub (professionals) or Transcript (students), and Checkbook. Contact info for your job and previous LLs is also required. If you’re having a cosigner, be sure to have his or her contact info handy.
Phoenix Realty has been matching up people and apartments in Boston for many years. We’re experts in navigating the market. Let us help you find the perfect home! 617.731.3311
Photo credit: http://freshome.com/
Buyers must act fast to get First-Time-Home-Buyer Tax Credit
Thinking of buying a home? Act fast and you may save big! The government is offering an $8,000 credit for first-time home buyers. The money comes right off of your tax bill and need never be repaid, unlike some previous home-buying incentives. The home must be your primary residence and you must take possession by November 30, 2009. That means that you’d better start shopping! It takes at least 30 days to close a loan and with the expected rush, it could be even longer.
Even if you’ve owned a home before, you may be a virgin again in the eyes of the federal government. If you don’t own the home where you’ve spent the past 3 years, you’re considered a first-time home buyer and are eligible for the $8000 tax credit. What’s more, if you’re getting a loan from the Federal Housing Administration (FHA), you can even use the $8,000 toward your down payment or closing costs. An FHA loan is a home loan that is guaranteed by the US government and it only requires 3.5% down payment. That means that to buy a house for $100,000, you’ll only need $3,500!
The tax credit is 100% for single people making less than $75,000 or married people making less than $150,000 total gross annual income. The credit is adjusted for those making between $75,000 and $95,000 or between $150,000 and $170,000 for married couples and disappears entirely above $95,000/$170,000.
Here’s a great link with some FAQ’s on the tax credit: www.federalhousingtaxcredit.com/2009/faq.php#2
At Phoenix Realty, we have all the tools to help you locate and purchase your first home. Contact us now or give us a call at 617.731.3311, because now time really is money!
Economy Leads to Increased Boston Apartment Inventory
The economy has had a dramatic impact on the Boston rental market this year. Many people have plunged into home ownership, taking advantage of the $8000 tax credit. Others have opted to commute or live with roommates to save money. All of these factors mean that hundreds of apartments are standing vacant, causing landlords to scramble – making deals and being creative.
“It’s been years since we’ve rented apartments by the room but this year we had several landlords approach us with large properties that were going vacant. We agreed to rent each room individually and the response has been great. It seems that people are looking for any way to save money,” says Ken Glass, owner of Phoenix Realty.
Anyone looking for an apartment now has a lot of options. In a recent search for a client, Phoenix agent Chris McCarron turned up over 100 apartments. “Last year at this time, last-minute tenants had no choices,” says McCarron. “We had a couple of apartments to show them and it was kind of take-it-or-leave-it. This year, they can take their choice of some great apartments at hundreds below last year’s rents.”
If you’re still looking for the right place, give us a call. Phoenix has literally hundreds of listings in the Boston & greater Boston areas – and we love matching people up with the perfect place! 617.731.3311
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