Saturday, February 14, 2009

How the $789 Billion Stimulus will help me buy Portland Real Estate

I ran across this article and liked her quick synopsis - and thought I'd share it here. Dawn Lind is with Mortgage Trust in Portland.

"We are obviously in an incredibly financially challenging time. The government is adding and revising to the last stimulus bill to further help our economic life. The latest is that it is now a $789 billion dollar package that has more tax cuts and spending programs that are anticipated to spur on our economy. It’s a “wait & see” plan.

The first time home buyer tax credit is now at $8000 or 10% of the value of the home. It affects first time home buyers who have purchased a home from the beginning of 2009 until the end of November. If the home is sold within 3 years that money has to be repaid. There are income limitations to individuals earning $75k and couples that earn $150k. The details have not been all hashed out yet so expect to hear more about this.

Perspective: Even though the media is crying about the unemployment rate being so high (7.6%) keep in mind that 92.4% of Americans have work. In 1980 unemployment was at 6.3% and minimum wage was a mere one dollar an hour!** For Oregon, the minimum wage adjusted in January to $8.40 an hour.

For those who have multiple rental properties Fannie Mae changed their guidelines back to the 10 maximum that it was before October of 2008. They realize that investors play a key role in the housing recovery and want to help where they can. Keep in mind that if this applies to you they are being much more stringent on the loan to value.

This is the year for opportunities! Make the most of what you have and remember that we will get through this… "

** corrected by a reader...Actually, the minimum wage in 1980 was $3.10. (thanks!)

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