Economic Stimulous Legislation

American Recovery and Reinvestment Act Overview
It’s been all over the news that Congress and the White House have reached a deal on a $789.5 billion stimulus bill. Unfortunately, the $15,000 home buyer tax credit that we had been fighting so hard for was removed from the legislation in its final stages. Economists predict the bill to be voted on and passed within the coming days. While the $15,000 home buyer tax credit has been removed, there is a lot of legislation in the bill, known as the American Recovery and Reinvestment Act, that will affect the home building industry. Specifically, the legislation will try to improve the environment and create new jobs by enforcing green building regulations.

Smart Grid/Advanced Battery Technology/Energy Efficiency

Provides a total of $30 billion for such initiatives as a new, smart power grid, advanced battery technology, and energy efficiency measures, which will create nearly 500,000 jobs. Transforms the nation’s electricity systems through the Smart Grid Investment Program to modernize the electricity grid to make it more efficient and reliable. Supports U.S. development of advanced vehicle batteries and battery systems through loans and grants so that America can lead the world in transforming the way automobiles are powered. Helps state and local governments make investments in innovative best practices to achieve greater energy efficiency and reduce energy usage. Spurs energy efficiency and renewable energy R&D. Tax Incentives to Spur Energy Savings and Green Jobs

Provides $20 billion in tax incentives for renewable energy and energy efficiency over the next 10 years. Includes a three-year extension of the production tax credit (PTC) for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, waste-to-energy, and marine facilities (through 2013). Provides grants of up to 30 percent of the cost of building a new renewable energy facility to address
current renewable energy credit market concerns. Promotes energy-efficient investments in homes by extending and expanding tax credits through 2010
for purchases such as new furnaces, energy-efficient windows and doors, or insulation. Provides a tax credit for families that purchase plug-in hybrid vehicles of up to $7,500 to spur the next
generation of American cars. Includes clean renewable energy bonds for State and local governments. Establishes a new manufacturing investment tax credit for investment in advanced energy facilities, such as facilities that manufacture components for the production of renewable energy, advanced battery technology, and other innovative next-generation green technologies. Landmark Energy Savings at Home

Provides $5 billion for landmark provisions to improve the energy efficiency of more than 1 million
modest-income homes through weatherization. This will save modest-income families on average $350 per year on their heating and air conditioning
bills. Repairing Public Housing and Making Key Energy Efficiency Retrofits to HUD-Assisted Housing

Provides a total of $6.3 billion for increasing energy efficiency in federally-supported housing programs. Specifically, establishes a new program to upgrade HUD-sponsored low-income housing (elderly, disabled, and Section to increase energy efficiency, including new insulation, windows, and frames. Also invests in energy efficiency upgrades in public housing, including new windows, furnaces, and insulation to improve living conditions for residents and lower the cost of operating these facilities. Do you think these regulations will have as a big of an impact on the economy as the home buyer tax credit would have?

We received this information off of a fact sheet from Nancy Pelosi/From Atlanta Real Estate Forum

 

Tax Credit Info

Web Site Launched for Home Buyer Tax Credit
The National Association of Home Builders (NAHB) has launched a newly-designed web site that provides detailed information about the $8,000 tax credit for first-time home buyers that is a key measure in the sweeping economic stimulus legislation signed into law today by President Barack Obama.

“The new tax credit provides a great opportunity for first-time home buyers,” said Joe Robson, NAHB chairman and a home builder from Tulsa, Okla. “Combined with today’s near record low interest rates, the large selection of homes on the market, and very competitive pricing, the tax credit should be the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.”

In addition to being limited to first-time home buyers, the tax credit:

Is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Does not have to be repaid. Has income limits of $75,000 for single taxpayers and $150,000 for married couples. The web site at www.federalhousingtaxcredit.com includes basic information about the tax credit and a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

 

MAR Response to Obama

You may have seen news reports about President Obama’s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.
As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.
As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.
This communication is the first part of our response, we will continue to update you as the situation and events warrant.
Charles McMillan, CIPS, GRI
2009 NAR President

 

Liquid Chinese Finding U.S. Real Estate a Bargain

This was found on the internets this evening, something to think about. At least the recreation and views are better in MT than in NY or LA. I think the schools are better here too.

BEIJING – Beijing lawyer Ying Guohua is heading to the United States on a shopping trip, looking not for designer clothes or jewelry, but for a $1 million home in New York City or Los Angeles.

He expects to get a bargain. Ying is part of a growing number of Chinese who are joining tours organized especially for investors who want to take advantage of slumping U.S. real estate prices amid a financial crisis.

“It’s a great time to buy because of the financial crisis, and houses in large cities like New York and Los Angeles will definitely go up in a few years,” Ying said. The home is an investment, but he’s also planning long-term: He hopes his 5-year-old son might use it if he goes to college in the United States.

Thanks to Ibankcoin, CronKite http://ibankcoin.com/cronkite/?p=974

LR

 

Simple, Affordable Ways to Make Your Room Feel Like New

Often the changes we want to make to any room in our home can be costly. Instead of looking for alternatives to expensive updates, we choose to live with it how it is and do nothing. Before you decide to spend money on unnecessary changes, implement a couple of affordable ideas below into your tired room.
Rearrange
There is probably nothing wrong with the furniture in your home and replacing it can be costly. Instead of replacing your existing furniture, simply rearrange it. Moving the couch or entertainment center to a different wall can complete change the traffic flow of the room. For more of a change trying placing one item diagonally in the corner of a room. Keep in mind not all items need to be placed flush against a wall.
Repurpose
Trying using existing furniture for purposes other than what they were originally designed for. An antique bench or chest can make an interesting coffee table in the living room. One of the extra chairs from your dining room set can be a great spot for a house plant or small stack of books.
Reorganize
You will notice a drastic change in a room simply by eliminating the clutter and reorganizing the existing items. Too many items on bookshelves or tables make a room look messy and unorganized. Try removing a majority of the items on the shelves for a clean, fresh look.
Repaint
A new color on the walls can brighten up and room and actually make it feel larger. If you are short on time or simply afraid of experimenting with a little color, trying painting an accent wall rather than the entire room. Just one wall can completely change the feel of a room.

 

Winter Sunset at Ennis Lake

 

Keep Your Home Organized Year-round

January – Start off the New Year by purging your holiday decorations. Do not wait until the holidays roll around next year to discard lights that no longer work or old, unused decorations you have not displayed for years.
February – Get your paperwork under control. Get a jump start on your taxes and file early. Shred any documents that are no longer needed.
March – Explore a black hole. Pick the one area of your home that needs the most organization.
April – Make this the month for spring cleaning. Get your home sparkling inside and out. Assign each family member a task. Keep a list so you can refer back to it next year.
May – Focus on the outside of your home. Remove any debris that collected in your yard during the winter months. Make sure your lawnmower, weed eater and BBQ grill are in working order.
June – If you are a parent your children have just started their summer vacation. Use this month to get them organized. Help get your kids in the routine by sorting through old, broken or outgrown toys and clothes.
July – Have a yard sale for all the unused items from your home. Whatever items do not sell can be donated to community organizations or given to a less fortunate family.
August – Back to school. Designate a place for the rush of school paperwork. This will also cut down on lost assignments or important announcements.
September – Prepare for the change of seasons. Now is the time store the summer clothes and get ready for winter wear. Use this time to sort your clothes and donate any items that are no long of use to you.
October – Prepare your home for cold weather before the first freeze. Check for drafty windows and doors, put away outdoor equipment and clean your furnaces and stoves.
November – Gear up for the holidays. Preplan meals, prepare gift lists, update your card list and start shopping early. Don’t let this holiday season stress you out.
December – Sit back, relax and enjoy the season. Reward yourself for all the hard work you have done around your home this year.

 

A Few Ways to Tweak It

If your house is for sale currently or if you’re thinking about putting your home for sale in the coming months, there are a few small things you can do to get it ready to show to potential buyers. Currently the market is competitive with lots of available homes and fewer buyers than normal, so gaining a small edge over neighbors is crucial. The most important determining factor on whether or not your home will sell is price. Pricing for the current market is essential and your local real estate agent can offer you additional information and suggestions to get it just right. But there are a few simple changes you can do in addition that might just give your home an extra boost.

When you’ve lived in a home for a while, you grow accustomed to your space and you stop seeing things from an outsider’s point of view. Therefore, it is important to try to take a step back, become more objective, and look for a few small ways to make a big difference. Perhaps you can find a place to add a new houseplant, instantly adding warmth and color to a room. That pile in the family room you’ve been meaning to organize? It’s time to sort, arrange, and organize in a way that eliminates clutter and neatens the room, making it look larger and more inviting. Making small changes to cupboard handles and drawer pulls is a terrific way to update a room without breaking the bank. And certainly taking a critical eye to nicks in the hard wood floor, stains to tile grouting, and other areas can uncover places where a little elbow grease can go a long way into improving a buyer’s first impression.

For more tips and economical solutions for improving your home’s appearance, call Fischer Realty to speak with an agent at (406)682-5352.

 

Madison Valley Sunrise

 

Aerial view looking east across the Madison River prior to flowing into Ennis Lake