Thanks ladybugbkt for the flickr photo.

We have been transacting some amazing deals in this market! Prices have fallen and interest rates have remained very low for the time being. Qualified home buyers looking to enter this market are getting the best of both worlds. 

There has also been much discussion about the stimulus package circulating in our office lately. Out of the entire package we have found the $8,000 first time home buyers tax credit to be the most important to Bay Area buyers.

Below is more information about what you need to qualify for this credit…

- You must either be a first time buyer or have not owned a home in 3 years

- The property you purchase must be your principle residence

- You must make the purchase between January 1 through December 1 of 2009

- Your yearly modified adjusted gross income must not exceed $75,000 for singles and $150,000 for married couples

- There is no cash exchange or payout for closing costs or down payment – you must file your tax return to get the $8,000 credit

- If the house you buy costs less than $80,000 you will receive only 10% of the purchase price in credit

- You must live in the property for a minimum of 3 years, or you will have to pay the credit back

- There is STILL time to use the credit on your 2008 tax return! Alternatively you can claim the credit on 2009 taxes.

The above information is provided for informational purposes only, and believed to be accurate. For legal or tax advice, please consult an attorney or tax adviser.

 
Thanks Kristie Wells for the use of this Flickr Photo.

I just had a heating specialist look at a heater replacement for one of my clients. It appears that the new stimulus bill is going to create an opportune time for home owners to replace old appliances. Specifically speaking, ABC heating and cooling just broke it down for me on an average 2000 square foot home. They showed me how an 80% low efficiency furnace is still the cheapest product. Yet, the $1500 credit will make the highest efficiency furnace (95% efficient) so that it is only $20 more than the mid-range model (90% efficient).

Below is a summary of the changes to the energy efficiency tax credits.

On February 17, 2009 President Obama signed a stimulus bill that made some significant changes to the energy efficiency tax credits.  The highlights of the American Recovery and Reinvestment Act of 2009 are the following:

- The tax credit has been raised from 10% to 30% for 2009 and extended through 2010.
- The tax credits for a specific dollar amount have been converted to 30% of the cost.
- The maximum credit has been raised from $500 to $1,500.

Note, there do seem to be income limits to these tax credtis and it is worth checking with your tax advisor before making purchases. For a more complete explanation of the tax bill and  the products that it covers go to the Energy Star website.

Looking for a great heating and cooling specialist in the Bay Area, contact Jeff Cecchin with ABC Cooling and Heating at (925) 250-0202.