Is Homeownership Right for You?

With the end of the federal government's short-term tax incentives for first-time home buyers, now could be a prime moment for others to make their move and buy that new home they've been considering.

In this video, National Association of Home Builders Chief Economist David Crowe explains the positive factors for home buyers in today's marketplace. Good reasons to consider homeownership abound -- including mortgage rates that are near historic lows, attractive home prices that appear to have stabilized in many markets, and an excellent selection of new and existing homes on the market.

MODNR: Consumer Tips for Getting an Energize Missouri Appliance Rebate

Five things consumers need to know about the program

JEFFERSON CITY, MO, APRIL 14, 2010 via the Missouri Department of Natural Resources – A federally-funded home appliance rebate program is intended to improve energy efficiency and stimulate the economy using funds from the American Recovery and Reinvestment Act, or Recovery Act. States around the nation are giving rebates to consumers to replace inefficient home appliances with energy-efficient models. Every state has specific energy needs, so rebate programs may look different from state to state.

Missouri’s $5.6 million Energize Missouri Appliance Rebate Program starts April 19 and will fund rebates for five appliance categories - space heating, space cooling, water heaters, clothes washers and dishwashers. The Recovery Act funding for the program equals approximately $1 per Missouri citizen. Consumers can qualify for rebates from $75 to $500 with a maximum of $575 for multiple appliances.  The department anticipates issuing 48,000 rebates during the program. Rebate reservations are available on a first-come, first-served basis. Experience in other states shows the program is very popular, and the funds will go fast.

Missouri has scheduled its rebate program to coincide with the “Show Me Green” ENERGY STAR® sales tax holiday. Consumers who wish to take advantage of the rebate program and the state sales tax holiday must purchase the ENERGY STAR appliances between April 19-25 in participating retail and installation contractor businesses.

Consumers should plan ahead and be ready to buy the qualified appliance when the programs begin next week.  Here are five ways to maximize consumer savings:

1. Learn more about the Energize Missouri Appliance Rebate Program.

Consumers must purchase ENERGY STAR appliances to replace older, less efficient models. Consumers must recycle the old appliance to qualify for a rebate.  Consumers may want to consider the following steps to help during the rebate program. 

• Step 1 – Make a Purchase: Starting April 19, consumers may visit a participating retailer or installation contractor partner to purchase ENERGY STAR-qualified appliances and reserve a rebate. 

• Step 2 - Reserve a Rebate: Starting April 21, a limited number of rebates will be available for consumers to reserve directly online at www.MissouriApplianceRebate.com or via telephone at 877-541-4848. The program’s online reservation system will enable consumers to quickly and easily reserve a rebate and print out their rebate application directly from a web-enabled computer.  Participation in this program is expected to be high.  This could mean longer wait times if consumers try to reserve a rebate on the phone instead of at the store or online.  Consumers will have 60 days after reserving a rebate to purchase a qualified appliance from a participating retailer or installation contractor. 

• Step 3 – Recycle: Most participating retailers and installation contractors will collect and recycle the old appliance when they deliver the new appliance. Consumers can also recycle their old appliance at a recycling facility or turn-in event. Consumers must show proof of recycling. Visit the Web site at MissouriApplianceRebate.com for details on recycling. 

• Step 4 – Document and Mail: Consumers must sign and mail their completed rebate application form along with the proof of purchase, residency and recycling to Energize Missouri Appliance Rebate Program, Dept 21282 P.O. Box 3688, Medina, OH 44258-3688 within 60 days of making a reservation. Consumers can expect to receive a rebate check(s) for valid claims within 4-6 weeks from the day they mail in their rebate application. 

2.      Meet the Eligibility Requirements – Consumers will qualify for a rebate only if they meet all of the following conditions: 

• Must be a Missouri resident and 18 years of age or older. 

• Own the property where the appliances will be installed, with the exception of clothes washers.  Renters are eligible for clothes washer rebates. 

• Buy only one appliance per appliance category per address. Rebates range from $75 to $500 with a $575 maximum rebate allowed for multiple appliances. 

• Purchase an ENERGY STAR-qualified appliance from a participating retailer or installation contractor. 

• Mail in the rebate application form along with all required support documentation postmarked within 60 days of making the reservation.

3.      Be Ready to Buy on April 19. 

1. Research before April 19 – Visit the Web site -MissouriApplianceRebate.com and locate participating retailers and installation contractors to learn about the eligible appliance categories and models. Choose the make and model of the appliance(s) and take the information to the participating retailer or installation contractor. 

2. Buy on April 19 or 20 - Consumers best chance for securing a rebate is through a participating retailer or installation contractor. The funds may go quickly.  If a particular retailer or installation contractor is not currently registered as a partner in the program, consumers may contact them to participate. 

3. Don’t give up – A limited number of reservations will be available directly to the consumer on April 21 and unclaimed rebates may be available later in the program. All ENERGY STAR purchases from April 19-25, even those without a rebate reservation, will benefit from the “Show Me Green” ENERGY STAR sales tax holiday, and other “green” rebates may apply. 

4. Keep a Copy of the Paperwork – To secure a rebate, consumers are required to mail in a copy of their completed and signed rebate application (with unique ID#), proof of purchase, proof of residency and proof of recycling.  Consumers should make sure to save copies of all of the paperwork! 

5. Enjoy the Savings - ENERGY STAR qualified appliances are designed to use 10 to 50 percent less energy than standard appliances, resulting in savings for the consumer, as well as reduced emissions of greenhouse gases and pollutants.

To learn more about the Energize Missouri Appliance Rebate Program, please visitMissouriApplianceRebate.com.

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VIDEO: Investing in Your Future: Is Home Ownership Right for You?

Thinking of buying a home? Wondering if owning a home is a good investment? In this video, National Association of Home Builders (NAHB) Chief Economist Dr. David Crowe explains the benefits of home ownership, and explains why now might be the very best time to make your move.

LET THE 2010 HBA HOME SHOW INSPIRE YOU

Dream. Plan. Improve. Build.

Whether you want to dream, plan, improve or build – the HBA’s 2010 Home Show has everything to inspire your home improvement or building project under one roof. Attendees of the 2010 HBA Home Show, which runs from Friday, January 29 through Sunday, January 31, will have an opportunity to visit with approximately 225 exhibitors occupying more than 450 booths in the Springfield Expo Center. Cost of admission is $6. Children under 12 are admitted free. Show times:
-Friday, January 29 – Noon to 8 pm
-Saturday, January 30 – 10 am to 8 pm
-Sunday, January 31 – 11 am to 5 pm

“The Show continues to be the best ‘hands-on’ way for people to experience the outstanding craftsmanship, products and resources that are available for their specific home remodeling or building project,” said Matt Morrow, CEO of the HBA of Greater Springfield. “The home professionals are immediately available to answer questions, look at plans and connect people with up-to-date information about trends in home design and improvement.”

This year’s Home Show will also feature informative seminars and demonstrations. “You can learn more about numerous home-related topics including the latest in house plans, how to take advantage of energy efficiency tax credits, and which home improvements add the most value to your house,” said Morrow. (For a full schedule of Seminar titles and times, visit SpringfieldHBA.com and click on Events, and then click Home Show icon.)

When the HBA polled its member “style experts” about what’s hot in home design, they all agreed that outdoor living and more universal, functional design are driving forces in the industry. Some of their other insights:-Check out improvements in lighting options so you can enjoy your outdoor space at night;
-Expect to see brighter and bolder color choices – navy and gray will also make a comeback;
-More minimalistic looks, less elaborate designs;-Wallpapering one wall with a big pattern or textured paper to create a focal point in the room;
-Ergonomically correct fixtures will be attractive, not institutional looking: handles and fixtures for doors, bathrooms and kitchens will be beautiful and easier to use.

Morrow said that while national information about housing sends many mixed messages, our local economy shows very real signs of strength and that’s always positive for home building, buying or improving. “The latest labor statistics show we’re up 1,600 jobs here. Plus, we don’t have the burden of being overbuilt – our market research shows we are closing on about twice as many homes as we are starting. It projects demand will begin to outpace supply in the first quarter of 2010,” he said.

Morrow also mentioned the fact that people are beginning to understand and respond to the new home loan requirements. “The extension of the Housing Tax Credit beyond just new home buyers is also helping more people take advantage of great values in housing, materials and low mortgage rates,” he said.

What’s New This Year? Home Show2 Squared
This year, there’s another home-related event in the downtown area for Expo attendees to enjoy. Home Show2 (Squared), sponsored in conjunction with Urban Districts Alliance (UDA) and the Urban Neighborhoods Alliance (UNA), is an Urban Living Tour that will feature five downtown condos and five single family homes in the West Central neighborhood. Tour-goers will experience the diverse, innovative housing options being developed in the central part of the city. A shuttle will pick up for the tour at the Expo Center and make a loop to the Tour sites, returning attendees to the Expo, (or people are welcome to drive themselves to see the homes on tour.) The Tour is scheduled for Noon to 4 p.m. on Saturday, January 30 and Sunday, January 31. The cost is $8 or a combined ticket for the Home Show and Tour can be purchased for $10. For more information contact the UDA at 831-6200.

“While people are already in the downtown area for Home Show, they can spend part of the day touring urban condos/homes and enjoy all the other great amenities located in the vicinity such as outstanding restaurants and unique shops,” said Morrow. “You’ll be able to attend two very different but equally entertaining ‘Home Shows’ downtown during the last weekend of January.”

Maintenance Tips for New Home Owners

As a new home owner, you are excited about getting your house in order — setting up furnishings, rearranging and decorating.  But once you have place for everything and everything in its place, it’s time to get a handle on the routine maintenance you’ll need to perform to help ensure that you and your family live comfortably in your new home for years to come.

Maintaining a clean home is one way to ensure its longevity. Here are some tips for properly maintaining some of the systems in your new home:

Heating and Cooling Systems

• Late summer or early fall are the ideal times to do an annual inspection and cleaning of these systems.
• Change or wash the filters every three months.
• If you have a gas furnace, keep your pilot light burning during the summer to help keep the furnace dry and prevent corrosion.
• Registers help regulate the flow of air and maintain the desired temperature in your home.  Keep registers closed in rooms you don’t use to save on cooling/heating costs.

Plumbing

• Every member of your family should know where the intake valves are located.  Label each one.
• If any of your appliances develop a leak, inspect your drain trap.  A partially clogged drain can cause overflow. Use a plunger or a plumber’s snake to unclog the drain. If you need to, use boiling water to help unclog a partially opened drain. Call a plumber if these techniques don’t work.
• A worn washer, a loose part in a faucet or steam in a hot water pipe are generally the causes of a noisy pipe.  Do not hesitate to repair the noise — vibrations can follow the noise and lead to leaks.

Gutters and Downspouts

• Clear away leaves, tree limbs and other debris from gutters and downspouts.
• Turn the downspouts away from your home’s foundation.
• Every four to six years, paint gutters that are not made of aluminum or vinyl to help prevent rust. 

Remember to read the instruction manual for every appliance in your new home.  The manuals provide recommended cleaning and maintenance schedules. Also familiarize yourself with any warranties you have on both the house and its systems. Some warranties may be voided if problems arise because of failure to perform routine maintenance.

For more information about taking care of your new home, visit www.nahb.org/forconsumers, or contact your local home builders association via e-mail by clicking here.

With Most Buyers Now Eligible for Limited-Time Tax Credit, Is This the Best Time to Buy a Home?

On November 6, 2009 President Obama signed into law new legislation that extends the first-time home buyer tax credit beyond its Nov. 30 deadline and expands it to a wider group of home buyers. Combined with historic low interest rates, competitive home prices, and affordable materials and labor costs, the newly extended and expanded tax credit could make this the best possible time to build or buy your next home. Below is a video that explains the facts and answers many of the most frequently asked home buyer questions regarding the tax credit. Highlights of the extended and expanded credit are detailed below. You can also get even more information by visiting www.federalhousingtaxcredit.com

Highlights

• The unemployment extension bill that was signed into law on Nov. 6 by President Obama has major benefits for both new and existing home buyers.
• It extends the $8,000 tax credit until April 30, 2010, for first-time home buyers.
• Further, a new $6,500 tax credit has been created for repeat buyers who are purchasing a principal residence during the same period.
• Repeat buyers can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight.
• Both categories of home buyers have until June 30, 2010, to close on the home after signing a contract prior to May 1, 2010.
• In more good news, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for couples.
• Single taxpayers earning between $125,000 and $145,000 can claim a partial credit of less than $8,000 for a first-time home buyer and $6,500 for an existing buyer, while the phase-out for married couples ends for those earning above $245,000.
• Buyers can claim the tax credit on their 2009 or 2010 income tax return.
• The tax credit does not have to be repaid. However, home buyers must use the residence for at least three years or face recapture of the credit amount.
• Since tax credit is fully refundable, it means that the home buyer can claim the credit even if they owe little or no federal income taxes. In other words the government would write you a check.
• For example, if a home buyer owes the government $3,000 in federal taxes and qualifies for the $8,000 home buyer tax credit, the taxpayer would receive a $5,000 refund check from the IRS ($8,000 minus the $3,000 owed).
• Homes over a purchase price of $800,000 do not qualify.

Act Soon to Take Advantage of the Home Buyer Tax Credit

• Like all good things in life, the tax credit won’t last forever.
• Even as the bill neared passage, proponents of the home buyer tax credit made it explicitly clear that the extension would have a limited shelf life and not be extended again when it expires next year.
• Sen. Johnny Isakson (R-Ga.), a long-time champion of the home buyer tax credit, said, "This is the last extension of the home buyer tax credit. Tax credits like this only work by creating the sense of urgency to take advantage of it, and to bring the market back."
• On the floor of the Senate, Finance Committee Chairman Max Baucus (D-Mont.) said: “It is important that this tax credit does not become a permanent fixture in the tax code.” Baucus added that the seven-month extension of the tax credit would be “long enough to encourage home buyers to buy homes, but it’s short enough to remain fiscally responsible.”

A Great Home Buying Opportunity

• Current market conditions are excellent. With the home buyer tax credit now available to a much broader group of consumers, it adds up to an unprecedented opportunity for home buyers.
• Mortgage interest rates are near 5 percent – the lowest level in decades.
• There is a great selection of homes to choose from.
• Home values in many markets are at the lowest level since 2003.
• Many builders have inventory that is “move-in ready,” and they may offer upgrades or other incentives to seal the deal.
• Likewise, owners of existing homes who are looking to trade-up or relocate are ready to bargain.
• Add it all up and there may never be another buyer’s market as good as today’s.

Time is Running Out to Receive $8,000 First-Time Home Buyer Tax Credit

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. But time is running out. This unprecedented incentive expires on December 1, 2009. Buyers considering purchasing their first home would be wise to act sooner than later.

With building materials and labor costs at historically low prices, today already is a great time for first time home buyers to consider making that leap. Add to that an $8,000 tax credit, monetized so it can be used as a part of the down payment on that first home, and it is hard to imagine a better opportunity to become a homeowner.

The 7-minute video below gives a complete overview of the tax credit, who qualifies, how it can be utilized, etc. It also answers some of the most frequently asked questions about the first-time home buyer tax credit. And, lots more information also is available at federalhousingtaxcredit.com.