Invest in Your Future...

If you are a first-time home buyer, there are some outstanding opportunities. Unlike the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit recently enacted by Congress does not have to be repaid. The credit is 10% of the purchase price of a principal residence up to a maximum of $8,000 for qualified first-time home buyers. To find out more about buying a home, the first-time home buyer tax credit and other programs available to first-time home buyers, contact me today. It’s an investment in your future.

Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

http://www.ithaca-homes.com/

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Ithaca...a thriving engine of high-tech business

In my November 1, 2008 blog entry I spoke about Ithaca’s eclectic cultural traditions, natural beauty, and the many accolades it has received from leading magazines. In the February 2009 issue of US Airways Magazine, there is a Business Outlook article on Ithaca’s Economic Development by Mike Sharsky. He writes “This small town in upstate New York is a thriving engine of high-tech business and intellectual capital where a spirit of cooperation prevails.” To find out more about business and quality of life in Ithaca, read the entire article on-line at usairwaysmag.com or read it this month on your US Airways flight to Ithaca or other destinations


Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

www.ithaca-homes.com
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The Time to Buy a Home IS Now

What a year it’s been. We’ve seen oil prices skyrocket to over $4/gallon with predictions of heading to over $7/gallon and then drop back to their current lows of under $2 per gallon. We witnessed a tough primary fight in the democratic primary followed by an historic election. The housing industry has experienced the worst slump since the great depression and the U.S. auto industry began falling apart.

However, all the doom and gloom we’ve experienced over the past year is beginning to be overshadowed with hope and promise as we approach 2009. A controversial $700 billion bailout of the financial industries was approved, the Federal Reserve cut its benchmark federal funds rate to a record low of 0 to .25% this past week, and the auto industry received an even more controversial lifeline to the tune of $17.4 billion. A major bill to assist first-time homebuyers was signed in July 2008. And this week we’ve watched mortgage rates continue to drop.

The local economy and housing market in Ithaca and Tompkins County have weathered the financial turmoil. According to an article by Elia Kacapyr in the 12/20/2008 issue of The Ithaca Journal, holiday retail sales in Tompkins County are predicted to be about 3.2% higher than 2007 based on the fact that retail sales are running about 3.2% ahead of last year’s pace through October. The drop in mortgage rates at some of the local Ithaca lending institutions this past week to under 5% will continue to spur the local housing market and economy as we enter 2009.

With the low mortgage rates, local median home prices still under $180,000, and most of the financial crisis beginning to appear in the rear-view mirror now IS the perfect time to consider buying a home or moving up. Don't miss the opportunity...contact Dennis today via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with all your real estate needs.

http://www.ithaca-homes.com/

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October Home Sales in Tompkins County and Ithaca, NY

As Franklin Roosevelt once said, “The only thing to fear is fear itself.” And it is fear that often leads to procrastination or as Mark Twain once said, “Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do.” Even though the national media has portrayed doom and gloom, the local housing market in Tompkins County and Ithaca, NY has maintained a steady pace. In fact, the local statistics for the month of October 2008 actually show an improvement. The average residential selling price is the highest reported for an October since 2003 and one of the highest reported in any given month since 2003. The average median selling price is also the highest for any October since 2003. It is still a buyer’s market, but waiting for the cyclical bottom may provide short term gains for homebuyers and at the same time there is also the risk of remaining on the sidelines too long.




Looking closer, we notice the number of closed sales the same as last October but the total dollar volume to be above average for the month although the average yearly total dollar volume is down about 6% since last year. These numbers indicate that more higher end homes are being sold. People moving up would be the typical buyer for these types of homes. Therefore, we can assume that current homeowners realize this is a good time to buy, are not showing fear, and are taking advantage of the local market.


According to the National Association of REALTORS®, homeowners who bought 6 years ago have seen the value of their homes rise on average 24.3% during that time despite recent price declines. In a recent survey of leading economists, 8 out of 10 believe home prices will increase over the next five years. The economists surveyed also agreed by better than 5 to 1 with the statement “A person can increase their long-term wealth by purchasing a house rather than renting.”

It may be too early to tell if the local market stats for October are the beginning of an upward trend. Although I don’t wear rose-colored glasses, the fact that it did not follow the downward trend that some markets took is a good indication at this point that this is the beginning of an upward trend in the local housing market. Historically, home prices have always increased and proven to be one of the better investments.

If you’ve been thinking of buying for the first-time or moving up but nervousness has been causing you to procrastinate, maybe it is time to begin discussing your situation with a REALTOR®, stop fearing, and start doing so that 20 years from now you won’t be disappointed.

*Charts developed by Herbert Dwyer, Warren Real Estate and the data relating to real estate sales comes from the Ithaca Board of REALTORS® Multiple Listing Service. Information deemed reliable but not guaranteed.


Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

http://www.ithaca-homes.com/

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First-Time Home Buyer Tax Credit

In a post on October 22, 2008, it was mentioned that it is a buyer’s market. There are many favorable contributing conditions such as plentiful housing inventory; mortgage rates are near an historic low; weak median home prices, and don’t forget the first-time home buyer tax credit. The tax credit is making home ownership more affordable and is available for a limited time only.

First-Time Home Buyer Tax Credit at a Glance

· The tax credit is available for first-time home buyers only.
· The maximum credit amount is $7,500.
· The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
· The tax credit works like an interest-free loan and must be repaid over a 15-year period.

The first-time home buyer tax credit of up to $7,500 is available to first-time home buyers – new or resale – with a closing on or after April 9, 2008 and before July 1, 2009. For new construction, these dates apply to date of first occupancy. Certain income limits apply as indicated above and it is recommended to check with a tax advisor for specifics.

Some basics of the tax credit are that it is a refundable credit of up to 10% of the purchase price, with a maximum credit of $7,500, and not a tax deduction. A refundable credit means that you get the full amount applied towards your tax liability. If your liability is less, the IRS will send you a check for the balance. A deduction means you get to lower your taxable income by the amount of the deduction and only realize a percentage of the deduction. For example, if you are eligible for a $7,500 tax deduction and are in the 15% tax bracket with a tax liability of $5000, your tax liability would be lowered by $1,125 and you would still owe $3875. With a refundable tax credit of $7500 and a tax liability of $5000, your tax liability would become $0 and the IRS sends you a check for the $2500 balance.

One thing to keep in mind is that the tax credit is repayable. It is basically an interest free loan with a repayment period of 15 years. If you sell the home prior to 15 years, the balance is due up to the amount of profit you make on the home. For example, if you sell the home after 5 years and still owe $5000 towards the credit but only make a profit of $2500, you would only owe the difference of $2500. If you sell and break even or show a loss, the balance would be forgiven.

One may ask what the benefit is if the credit is repayable and why was it set up this way. The repayment requirement was set up to reduce the effect on the Federal Treasury and to stabilize home prices. It was also assumed that with stabilized home prices and increases in home prices in the future, you as a home buyer will benefit by the amount of the credit and probably more by allowing one to purchase more home for their money. If you bought a home for $100,000 and realized an increase in home price of 10%, you would have a home with a value of $110,000. With the tax credit, you now buy a home for $107,500. Assuming the same 10% increase, you now have a home with a value of $118,250. In the first example, you would have a profit of $10000. In the second, the profit would be $10750. And as time goes on and home prices continue to increase as they historically have, the higher priced home would show a larger increase in profit.

For more info on the first-time home buyer tax credit visit:
http://www.federalhousingtaxcredit.com/

Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

www.ithaca-homes.com

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This Land...

...can be your land!

This large, level, and open 48+ acre parcel in Lansing is perfect for a commercial business or the developer looking to build a small subdivision, the horse lover looking for space for a riding arena and home, or the organic farmer. Distant views and Sunsets included with municipal water, cable and telephone available. 373 feet of road frontage and additional access off Emmons Road. Short drive to schools, shopping, and Myers Park and Marina on beautiful Cayuga Lake in Lansing and just a short drive to Ithaca.


For more information on this or any other properties contact:

Dennis H. Mogil
Licensed Real Estate Associate Broker, ABR®
Warren Real Estate of Ithaca, Inc.
“The Best in the Business”

Email Dennis or call (607) 227-6422

http://www.ithaca-homes.com/
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VOTE!!!

If you've already cast your ballot...Thank You. If not, please make sure you get out and vote! This will be an historic election and every vote is important. Regardless of who you choose, there will be change and hope. Thank you!
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Ithaca is Gorges

The bumper stickers proclaim "Ithaca is Gorges"...but it is so much more. Located in central New York State at the southern tip of Cayuga Lake, the largest of the Finger Lakes, Ithaca is known for its eclectic cultural traditions and natural beauty, and has garnered a long list of accolades from leading magazines such as "American Values-Where to Buy a Retirement Home," Smart Money Magazine, February 2002; "Best Places to Vacation," Money Magazine, April 2002; and "25 Terrific Places to Bring up a Family," Mothering Magazine, July/August 2001 to name a few. Ithaca was also ranked in the top "12 Great Places to Retire" by Kiplinger's in 2005. Click here to view the complete list.

With average winter temperatures in the low 20's and average summer temperatures around 80 degrees, the area offers the splendor of a superb four-season climate and no shortage of things to do. In addition to a 40 mile long lake, the area boasts of over 150 waterfalls within a 10 mile radius of Ithaca and the area provides hours and hours of enjoyment from fishing, hiking, hunting, golfing, spectator sports and cultural events, and more than 100 area wineries and fine dining.

To quote Andrew Zepp, executive director of The Finger Lakes Trust on his recent Good Morning America appearance: "What I appreciate is that on a given day, I can start out with a hike through these wonderful gorges, spend time sailing on a beautiful lake, visit a winery in the afternoon, and through one of the institutions of higher learning, hear a world leader speak at night." (Read complete article from ABC's Good Morning America.)

Ithaca has many of the amenities and flair of big city living without the noise and confusion of a big city. Ithaca is the hub of Tompkins County where you will find unique boutiques and malls with larger anchor stores. Eateries abound from small specialty delicatessens to larger restaurants with many specializing in ethnic cuisine such as Thai, Chinese, Greek, Italian, Indian, and Vietnamese to name a few. Visitors can find lodging by the day, week or month at lake cottages, small inns to larger motel chains, and a choice of many bed and breakfasts. One can find higher education opportunities at Ithaca College, Tompkins Cortland Community College, or one of the top Ivy League schools in Cornell University. Visitors will see many bumper stickers proclaiming Ithaca is Gorges...and they soon come to understand why…from Taughannock Falls with a greater vertical water drop than Niagara Falls to over 150 other waterfalls in and around Ithaca.

Travel just a short distance and you will find yourself in the country... where the air is clean, the people are friendly, and the views can be spectacular! The centerpiece of the area, Cayuga Lake, is one of the largest Finger Lakes. At 40 miles long and containing an amazing 2.5 trillion gallons of water for your recreational pleasures, the lake offers a wide variety of water sports and activities.

Ithaca is located about midway between New York City and Toronto (less than 5 hours) and by car within an hour of Syracuse and Binghamton and less than two hours from Rochester.

Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

www.ithaca-homes.com

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Should You Consider Buying a Home in the Current Market?

By Deanna Sletten

The current real estate market is definitely a buyer's market. With the high availability of homes on the market and interest rates at historical lows, this is an opportune time for buyers to purchase the home of their dreams at an affordable monthly payment.

If you have been saving to purchase a first home and have a good credit score and very little debt, then this is the perfect time for you to buy a home. Not only will you have a variety of homes to choose from, some that may not have been affordable if the market had been different, but you will also be able to obtain an affordable loan payment at a low fixed-rate interest rate.

Be cautious, however, not to buy beyond your means. Consider all the costs of home ownership, such as upkeep, and taxes and insurance, before you buy.

This is a great time for renters with a stable income to consider purchasing a home. With so many homes on the market, many due to foreclosures, you may be able to find an affordable home that requires very little down. You could even look into purchasing a small home, holding it until the market turns upward, then selling it so that you can move up into a larger home.

Newly retired couples, who have their home paid for and a good retirement, may find this is a good time to purchase a vacation home. With the good interest rates and the lower home prices, they may find a good deal that they otherwise may not have been able to afford.

For those who have money to tie up, this may be a good time to purchase a home as an investment or rental. As a precaution, it is important that you can afford to hold on to the property for a while. Use your purchase as a rental property for a few years. When you're ready to sell it, you'll find you've made a good investment.


Contact Dennis via email or call (607) 227-6422 for more information on becoming a homeowner or to assist with your real estate needs.

www.ithaca-homes.com


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