HOUSING AND ECONOMIC RECOVERY ACT OF 2008
First‐time Homebuyer Tax Credit
FEATURE
H.R. 3221
Housing and Economic Recovery Act of 2008
Amount of Credit
Ten percent of cost of home, not to exceed
$7500
Eligible Property
Any single‐family residence (including condos, co‐ops) that will be used as a principal residence.

Refundable
Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

Income Limit
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively).

First‐time Homebuyer Only
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

Recapture
Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale.

Impact on District of Columbia Homebuyer Credit
DC credit not available if purchaser uses this credit.

Effective Date
Purchases on or after April 9, 2008
Termination
July 1, 2009
Interaction with Alternative Minimum Tax
Can be used against AMT, so credit will not throw individual into AMT.

Wilmington, NC ranked #7 by CNN


37% Projected gain in home prices (5-year)*

Median home price: 2006 $217,000 2011 $297,000

Population: 2006 325,000 2011 361,000

Per capita income: 2006 $30,500 2011 $38,300

*Metro region statistics

Nestled between the Cape Fear River and North Carolina's Inner Bank beaches, Wilmington has great golf, mild weather, natural beauty, and a relatively cheap cost of living, all of which make it popular with both permanent residents and second-home vacationers.But it hasn't always been this way.

It was an isolated backwater until 1990, when the final 120-mile stretch of I-40 opened. Now the Research Triangle's well-heeled tech workers can be at the beach in three hours.

As the only city of any significant size on the North Carolina coast, Wilmington may be just at the beginning of its boom. It has a seaport, an international airport, and a UNC campus. But it has also maintained its "historic" ambience, bringing it another revenue stream: Hollywood has filmed 180 features here during the past two decades.

The North Carolina Coast Has Something for Everyone

The North Carolina coast – it's adventure, romance, history, and a whole lot more! This is the perfect location for retirement or vacationing, and the good news is, NC coastal properties are ready and waiting right now for the retiree, a second vacation home, or an investment in your future. Come to the North Carolina coast for a few days and you'll be certain to fall in love with this recreational paradise.
People love to come home to the Carolina Coast because it's easily accessible from many East Coast locations, there are activities galore, and the area is simply stunning, there's no other way to describe it. Fishing, boating, golf, beaches, museums, the area is rich in all these things and more. When you discover the Carolina Coast, you discover a wealth of outdoor and indoor delights for the entire family. You'll also find upscale dining, marinas just waiting for that boat you've always wanted, hiking and biking trails, and just about any kind of recreational activity you can think of.
Brunswick County has been rated one of the top 10 beach vacation spots for families. Why? Because there's something for everyone here! The Intracoastal Waterway abounds in family activities, Holden Beach is a great family beach waiting for discovery, and the area is chock full of parks, museums, shopping, and outdoor activities for every member of the family. Visit just once and you'll be drawn back again and again. There are still great opportunities to buy vacation property in the area, so the entire family can retreat, regroup, and relax any time you choose.
Nearby Wilmington and the Cape Fear coast offer even more recreational opportunities. Enjoy a round of golf? You're in luck. With nearly 50 public courses in the area, Wilmington's courses are rated the eighth best metro golfing area in the nation because these area courses offer value, accessibility, and quality all rolled into one. Even if you're not a golfer, you'll find an overabundance of outdoor and indoor activities in the area. Tour historic districts, museums, and a Civil War battlefield if you're a history buff. Shop 'til you drop at the many stores, boutiques, galleries, and craft shops in the area. Take in a show, cruise the river, rent a kayak, bike, hike, or just kick back and relax. You can do it all on the North Carolina Coast!
Now, picture yourself retiring to this glorious area in North Carolina. The golf, the sun, the beaches, and the cities beckon. You'll never run out of activities here, and it's becoming a favorite spot for baby boomers looking for the perfect retirement location. You'll be close to all the services you desire, but still have room to breathe in the salt air. What could be better? In addition, Brunswick County has the highest price appreciation in the Carolinas, so your investment today will reap even more rewards in the years to come.
Why invest in real estate in coastal North Carolina? First, it's an investment that will last a lifetime. Whether you choose to retire to the Carolina Coast or use your home as a second vacation destination, your investment will grow with time. Real estate prices have increased all over the country, but they are still reasonable in this area. In addition, the second home marketplace is actually even healthier than the primary home marketplace. People are investing in second homes; it's as simple as that. In addition, the Carolina Coast is a baby boomers paradise, which is why more people are choosing this area to celebrate their golden years. If you buy now, your second home could turn into your retirement paradise in a few years. Top that off with one of the top five second home markets in the nation and you've found the perfect location to enjoy for years to come, and you can be assured your investment will only grow with time.
So, what are you waiting for? Check out the Carolina Coast! You may find your dream vacation home just waiting for you, and you're certain to enjoy the activities, surroundings, and adventures that await every time you return.

Good News for Investors in the Carolina's

"The Carolinas are faring better than the rest of the country in terms of price appreciation" - "Lifestyle factors & strong demographics remain positive for the vacation home market." "Sales (are) returning to pre-boom activity" - according to Lawrence Yun, Chief Economist for NAR (National Assn. of Realtors) reported April 21, 2008.

The average home sale prices in NC INCREASED by 4% in 2007! - NAR

Not only have homes become more affordable with prices correcting themselves, but with historic low interest rates, buying a home in Brunswick County is now more affordable than ever.

A recent article in the Charlotte Observer reports “NC passed NJ to become the nation’s 10th most populated state.” The article continued, “That’s a more than decade-long trend of the Northeast being a net exporter of population to the South.” The population growth is attributed in large part to retirees. In the 1990s many people who moved to Florida initially moved half way back to the Carolinas. Now more and more retirees are coming straight to Carolinas and bypassing Florida altogether, according to the report. For investors that’s great news. Although you may have heard of recent “market corrections” in housing, the coastal Carolina’s continue to be a very attractive investment opportunity. As the trend continues and as more of the population reach retirement age, investments here have the greatest potential for lucrative returns.
When Warren Buffet ($62 Billion) said something to the effect of "When people are fearful be bold" he was referring to the stock market but the same holds true for real estate investments.

Top Ten Reasons to Buy Now

The Top Ten Reasons It's a Great Time to Buy Real Estate!
From Broker Agent News

Dee Roe’s Note: Although the author is talking about a market in Arizona, virtually all of the points he makes are relevant to the New Hanover, Brunswick County Real Estate Market.

1. Selection, selection, selection. There are about 57,000 resale homes on the market in Maricopa county(Phoenix). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 5,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
   
2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
   
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
   
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
5. 
   Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
6. 
   There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. Builders have thousands of specs ready for immediate occupancy.
7. 
   Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
8. 
   Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
9. 
   Location, location, location. Today it’s, Price, Price, Price
10. 
    Real Estate Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!
    
    
    Please feel free to call upon me for all your Real Estate, and relocation needs!
    
    Yours truly,
    
    Dee Roe
    Exclusive Buyers Agent/Relocation Expert
    New Homes Realty, NC
    Office 910 363-4255
    Cell 910 477-0691
    dee.roe@newhomes.com