Article about $15k Home Buyer Rebate

"WASHINGTON, D.C. - With the housing industry facing its greatest crisis since the Great Depression and the economy teetering near recession, the National Association of Home Builders (NAHB) called on Congress to move quickly to enact a second round of economic stimulus directed squarely at the housing sector. Specifically, NAHB believes the best policy is to create a tax credit for the purchase of a home.

"The biggest bang for the buck most likely would be provided by a temporary home buyer tax credit," NAHB Chief Economist David Seiders told the Senate Finance Committee. "Tax credits for the purchase of a home are a means of eliminating excess inventory, relieving some of the pressure on falling housing prices and ending the waiting-on-the-sideline strategy some potential buyers have adopted in response to overly negative media stories concerning the future of the housing market."

The recently enacted Economic Stimulus Act of 2008 could fall short of achieving its intended results because it does not address the problems posed by the housing contraction that are at the root of today's economic and financial market problems, he said.

"The U.S. housing market now is in the contraction phase of the most pronounced housing cycle since the Great Depression," said Seiders. "Single-family housing starts are already down by 60 percent from their peak at the beginning of 2006 and the bottom is not yet in sight. Congress can, and should, do more."

There are many models that Congress can look to when designing home buyer tax credits. The District of Columbia, for example, offers a $5,000 tax credit to first-time home buyers for the purchase of a new or existing home. A national first-time home buyer tax credit would stimulate buyer demand for households who do not have a home to sell, who are waiting on the sidelines until prices stabilize and who now face greater housing affordability than a year ago. Furthermore, those who sell their existing home to a first-time home buyer will in turn purchase another home and spur additional economic activity.

A similar version of a home buyer tax credit was used successfully in the mid-1970s when Congress established a temporary tax credit for the purchase of a newly-constructed home to help clear off a then-record number of unsold homes on the market.

NAHB applauds the efforts of several senators who are seeking similar solutions. For example, Sen. Debbie Stabenow (D-Mich.) has introduced S. 1988, legislation that provides for a temporary, one-time refundable tax credit for first-time home buyers of 10 percent of the purchase price of a principal residence.

Additionally, Sen. Johnny Isakson (R-Ga.) introduced S. 2566, a bill creating a one-time $15,000 tax credit for purchasers of a single-family principal residence that is a newly constructed home or a home in default or foreclosure purchased within a one-year time period.

"What is common among these tax credits for the purchase of a home is that they represent policies that increase housing demand, thereby enabling home purchases for families and fight falling housing prices, which threatens the economy as a whole," said Seiders. "We recommend a targeted home buyer tax incentive in order to maximize induced purchases."

Seiders also urged the Senate Finance Committee to consider the following changes to tax policy in order to get housing moving again:

- Expand the mortgage revenue bond program to be used for either home purchases or refinancing of existing mortgages to help strapped borrowers. This would be especially helpful for communities experiencing the possibility of a wave of foreclosures or an extreme excess of inventory, he said.

- Allow businesses to carry back net operating losses for five years. For home builders large and small, the importance of the ability to claim and carry back net operating losses deductions to years when significant taxes were paid cannot be overstated, said Seiders. "The inability to do so will result in the need to either increase high-cost borrowing or further liquidate land and homes, which will only compound the existing inventory problem." Expanding the carryback of net operating losses to five years would help the home building sector, as well as all businesses, to weather the economic downturn.

- Designate housing as an eligible investment for tax-preferred retirement accounts. A downpayment remains the single largest hurdle for most first-time home buyers. Congress could increase capital available for a downpayment for the purchase of a home by allowing a downpayment to qualify as an eligible investment from tax-favored retirement accounts. This would enable buyers to use IRAs or 401(k) accounts to purchase a home without suffering tax penalties."

Courtesy of http://originatortimes.com

Tax Credit Increased to $15,000 for Home Buyers!

"WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.

The tax break was adopted without dissent, and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider scaling back spending.

"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."

Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week, and they concede privately they will have to accept some spending reductions along the way.

Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only.

Isakson's office said the proposal would cost the government an estimated $19 billion."

-Source unknown at the moment

Secrets to Updating your Home-What Buyers Want

Sandi Bates is a trusted Real Estate Agent that I know and from time to time, she sends out some advice for the market. I thought I'd share this with you:

"In today's uncertain market many homeowners are updating their homes verses buying new. Whether you are planning on putting your home on the market this spring or not here are some key secrets to updating your home.

The two rooms that consistently make the biggest impression on buyers are kitchens and bathrooms. So you may want to start there especially if you have a limited budget to work with. In the February 2009 Realtor magazine here is what they recommend:

*Stainless Steel Appliances-Essential today at almost every home price point *Add Under Counter Lighting-This improves safety and creates ambience *Change the Hardware-Install new knobs and pulls or reface the cabinet doors *Separate Shower-Install a separate shower enclosure in the master bath *Granite Countertops-Highest priority in the kitchen and if budget allows needed in the bathrooms too *Kitchen Island-Ideally one that's not a boring square and also incorporates lots of storage space

For other helpful tips and suggestions please feel free to give me a call. I would love to talk with you or any of your friends that have any questions about updating or real estate in general!"

Sandi can be reached at sandi@xmission.com

Hope that helps!

-Gregory Brown-
http://www.legacyhomedesign.com

What are we working on?

Right now, things have been pretty slow in the Real Estate world. This has given us time to work on our website lately. The plan is to create a searching system on our site that will help our clients locate the perfect plan more easily. In this "listing system", we'll also have a list of great deals on lots that we know of and prices of the plans. This will help people know what to expect as far as pricing is concerned for constructing a new home.

Gregory D. Brown
www.legacyhomedesign.com

Greg's Architectural Experience

I've been in the Architectural Industry since 1996. I started off as an intern working for the Architectural Coalition and quickly got hired on. With them, I worked on everything from single family homes to large student housing projects to office buildings to Zermatt Resort in Midway, UT. It was a wonderful experience to be able to work under Guil Rand, the owner of the Architectural Coalition. Even to this day, I still consider him a mentor and someone I want to be like.

In 2003, I started to break off and started working with Brad Olsen who owned Legacy Builders. My primary role was to design custom homes as part of our marketing package for new home buyers. It was a great fit. I brought the buyers in and designed their dream home with them. Then Brad, a licensed General Contractor and my partner, built the homes. Unfortunately, due to family obligations that Brad had in the Spring of 2004, we decided it would be best for me to do my own thing for time being.

In 2004, I started my first business, Legacy Design Group. My goal was to provide the same kind of service I had with Legacy Builders to clients and work with multiple General Contractors rather than just one. Since working with Legacy Builders, I had already put together a small home plan book and was able to re-use a lot of work. I learned a lot of things the hard way since my main focus of training had been in designing rather than in owning a business, but I've managed to survive so far.

Along with Designing Homes, I found an interest in Land Development. In fact, when I broke off from Brad, I already had my first development lined up and almost approved with the city. By the time I met Michael Porter, (General Contractor, Real Estate Broker, MIA Appraiser, and Property Investor) a little later in 2004, I had another potential project all lined up. I pitched my two projects to Michael and although he didn't feel to comfortable with the first one, we ended up doing the second one called Sandhill Court together. Unfortunately, I ended up losing the first project and watched another developer walk in and make an obscene amount of money. I ended up getting to know him quite well, however, and was able to learn a lot from him.

Once I was able to get Michael to see the vision of what Land Developing could do for us, we proceeded forward with many more projects. Once you get a taste, you never look at an empty field or an old house on a bigger lot the same way. Land Developing became the focus of my work. While my 2 brothers ran Legacy Design Group, I proceeded to create a second company called Great Oak Development to keep the taxes separate. I found that my home designing and CAD skills were extremely beneficial to subdivision layouts and finding the highest and best use of property. With the Real Estate boom, we had a great run with the things we were doing.

Currently, my focus has come back to Legacy Design Group. Land Developing isn't quite a feasible with the over abundance of available property. I've come back to my roots and my current focus has been designing and building affordable homes. The only way to survive is to adjust with the market. Our product is a new home that competes in both size and price with existing older homes. Unlike the older homes, our new homes appraise with 80% or better loan to value which eliminates the need of mortgage insurance. This means that our new homes can actually have a lower payment than older homes.

In addition, I still do consulting work for developers and am looking into some property investments while the market is ripe for buying in.

Gregory D. Brown
www.legacyhomedesign.com

About Legacy Design Group in Utah

Legacy Design Group is an unprecedented collaboration of professional architectural design and contracting in one company. Owner and Designer, Gregory D. Brown along with his brother Geoffrey H. Brown, bring a refreshing and innovative concept to the local Utah home market. While working with Legacy Design Group, you are treated to an affordable custom home experience beginning with the complete design and drafting of your future home.

While many custom home builders have draftsmen to draw houses plans, what most of them lack is a sense of singular design and seamless coordination between the entire building team. We have highly recommended contractors to build your home, or you can bring your own contractor to the team. Either way, we at Legacy Design Group work closely with the contractor throughout the entire design and construction process, guaranteeing affordability and absolute satisfaction.

Greg and Geoff bring years of experience in smart and stylish architectural conception and are your personal consultants throughout the design phase of your new home. Our philosophy at Legacy Design Group is every home is a “custom” home. “Custom”; however, doesn’t have to mean expensive and overpriced. With Legacy Design Group, “custom” means every client gets to be highly involved in the design process ensuring the novelty, individuality and especially the affordability of their new home. Whether you’re looking for an indoor basketball court or you have a really tight budget you need to work within, we can help make your wants and needs a reality.

Although we have beautiful home plans in stock, with most of the people we work with, we encourage our clients to do some research on floor plans and exteriors that they like. While we’ve had many people come to us with one specific floor plan that might require a few personal touches, we often adapt up to three or four floor plans into one perfect plan, or work completely from hand-drawn sketches. Custom truly means anything is possible.

So whether it is a “starter home” or a “final home”, let Legacy Design Group furnish you with the most unbelievable custom home designing and building experience available. To set up a free consultation, call Greg Brown at (801) 735-6314 or e-mail him at greg@legacyhomedesign.com. Alternately, you can call Geoff Brown at (801) 706-5929 or e-mail him at geoff@legacyhomedesign.com.

Visit our website at:
www.legacyhomedesign.com