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The next wave of home buyers is forming

April 17th, 2009 7:51 AM

The next wave of home buyers is forming
Reported by Elia Powers, St. Louis Beacon

St. Louis - The online news publication, The Beacon, a non-profit organization dedicated to bringing news that matters to our region, reported this week about a positive trend affecting the local real estate market.

Reporter Elia Powers suggests that "people in their 20s and 30s are enthusiastic about the housing market and the prospect of home ownership." Demographers have labeled this group Generation Y. One of the first major surveys to identify this positive trend was conducted by the Concord Group, a real estate consulting firm.

The study's goal was to identify what will motivate members of Generation Y as they enter the home buying market. A sample of 200 people in the 20-to-34 age range was taken. Most of them live in urban areas, work in service-based professions, are college graduates, have a household income of less than $100,000 and currently rent.

From the Concord Group's survey, the Beacon reported that "most respondents see real estate as a good financial investment. Half of the young professionals say they are 'very likely' to buy a home within the next three years. Also, half of those surveyed said tax credits or lower interest rates would motivate them to buy a place sooner."

The Obama administration and congress agree that this type of first-time homebuyer can be the engine that will help drive the real estate market out of its present slump. The $8,000 tax credit provided by the American Recovery and Reinvestment Act of 2009 is one major incentive for first-time homebuyers. But the current real estate market's historically low interest rates, depressed home prices, coupled with a large home inventory available, could motivate Generation Y into buying.

"While current homeowners have seen their property values take a nose dive," offers reporter Powers, "the upshot could be that more young people will have a chance to buy houses that just last year seemed out of their price range."

The study revealed the most popular answer for the question, "How old will you be when you buy your first home?" was 25-30. Generation Y's cash strapped parents will be happy to know only 40 percent of young people say they are planning on receiving help for a down payment on the purchase of their next home.

St. Louis Beacon: The next wave

Posted by Customer Service on April 17th, 2009 7:51 AMPost a Comment (0)

Options for first-time homebuyers to maximize their tax credit

April 3rd, 2009 6:00 AM

Options for first-time homebuyers to maximize their tax credit

Washington – As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service (IRS) has begun a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer tax credit for 2009 home purchases.

“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they have already filed their tax return.”

The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchased a home before Dec. 1 receive up to $8,000 or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Here are the filing options you should consider:

File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days after their electronic submission with direct deposit.

File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who are considering buying a house in the next few months can file their return now and claim the credit later in the year with an amended return.

Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.

Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file their 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. Typically this would affect people who have less income in 2009 than in 2008 because of factors such as a job loss or a drop in investment income.

Source Link: Options for Filing

Recovery Link: Recovery.gov

Posted by Customer Service on April 3rd, 2009 6:00 AMPost a Comment (0)