Some experts are saying that the next big real estate problem could be a shortage of homes.
Only 672,000 new homes were started in April. That’s less than half the number needed to meet the country’s average population growth.
In the past, an average of more than 1.3 million households have been built each year, creating demand for 1.5 million new homes. In 2009, only 398,000 new households were formed, according to the Census Bureau.
“The decline in household formation is artificial,” says James Gaines, a real estate economist with Texas A&M. “The young are moving in with their parents. There’s even doubling up among working-class people. There’s a pent-up demand coming if and when the economy recovers.”
Some economists believe this analysis fails to take into account the changing economy or the large inventory of vacant properties. But Gaines and others say these factors are unlikely to significantly drive down demand.
March 25, 2010 – As the April 15 deadline to file 2009 federal tax returns approaches, the National Association of Home Builders (NAHB) is providing answers to some of the questions home buyers are most frequently asking about the home buyer tax credit.
“NAHB’s Web site that provides information about the home buyer tax credit, www.FederalHousingTaxCredit.com, has received more than 8 million visits,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. “We are doing everything we can to make sure home buyers are informed about this outstanding opportunity to benefit from buying a home before it expires April 30.”
Some of the more commonly-asked questions, and the answers, include:
How does a home buyer claim the tax credit?
The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.
In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).
Does the home buyer have to sell their current home in order to qualify for the $6,500 repeat home buyer tax credit?
A home buyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay the credit.
Do married couples both have to meet the eligibility requirements in order to claim the credit, even if they file taxes separately?
Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6,500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.
Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?
There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between January 1, 2009, and April 30, 2010.
NAHB’s Web site www.FederalHousingTaxCredit.com provides information including eligibility requirements for the $8,000 first-time home buyer and $6,500 repeat buyer tax credits, detailed question and answer sections, and links to additional home-buying resources for consumers.
Disclaimer: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Realtors in Northern Kentucky will have an area wide OPEN HOUSE April 10th and 11th. Visit these new BOLD Homes and this BOLD Listing during National Open House Days. Hurry to get the details on these homes before the tax credits expire!
I discovered many years ago it’s a mistake to save the paint in the cans from the paint store. Not only do you have to deal with lots of air in the cans, but you also have an issue with rust at the lid lip. The excess air in a paint usually causes a nasty skin to form on top of the paint.
What I’ve discovered that works best for me, and you may have an even better idea, is to use the inexpensive food-storage containers you can buy in the grocery store. They come in different sizes and the trick is to fill one nearly to the top with the leftover paint.
If the paint is water-based, I always add an ounce or two of water at the top of the paint before sealing the lid. This prevents the skinning effect. Using a permanent marker, and I do this before, filling the container, I write on the side of the container the room the paint was used in, the mfr., paint type, paint name, formula if available, etc.
Yesterday I had to touch up many spots in my living room. I painted this room about ten years ago. If you were here with me today, I’d bet you $100 you couldn’t find one spot where I touched up the walls. The paint matched perfectly and it’s consistency was just like the day I opened the original can. Suffice it to say I store this leftover paint indoors at about 65 F.
A tribute to our father, grandfather, father-in-law and friend.
This was my Dad:
Dad was the zoo, Coney Island, parades, sled riding,
Picnics, drive-in movies, and vacations in the car.
Dad was blue jeans complete with a hammer, wooden ruler, and a long sleeve work shirt.
Dad was the smell of lumber, hammering of nails, wet concrete.
Dad was three eggs, bacon or sausage, and a bowl of cornflakes; coffee with cream.
Dad was a bulldozer, moving dirt, digging foundations
Dad was horses and ponies, cows, pigs, and 50 chickens that needed slaughtering.
He was planting trees, fertilizing the yard, fixing the roof, and trimming the roses.
Dad was a to-do list that never ended.
Dad was Barq’s root beer – not those other brands
He was a white straw hat and a bushel basket filled with apples, plums, peaches, pears and cherries.
He was strawberry shortcake, ice cream, and lemon meringue pie.
Dad was poison-ivy (always in it; never got it!)
Dad was roast beef, mashed potatoes and gravy, and creamed peas.
Dad was planting the garden, mending fences, putting up the Christmas tree
Dad was the Catholic faith, Mass, the Rosary, and Holy Days.
He was son, brother, husband, dad, grandpa, and friend.
Though the Great Depression hit many families hard in the 1930s, Fred and Katherine Kahmann found reason to smile when they were blessed with the birth of their fifth child: Paul J. Kahmann was born on March 28, 1931, in Kenton County, Kentucky. Paul grew up on the Kahmann family dairy farm, which was where Thomas More College now stands. Paul and his siblings-Katherine, Fred, Rita, Henrietta and Norbert-worked on the farm, waking up at 4:30 a.m. to milk cows and complete their chores before school.
Paul loved living and working on the farm; perhaps that’s where he developed his strong work ethic. No one could out work Paul. His parents, Fred and Katherine, were deeply religious and were sure to instill moral values in their children. The family attended church every Sunday, and Katherine donated eggs and other food they had grown on the farm to the rectory and the convent.
Paul attended Blessed Sacrament Grade School and St. Henry High School. He always said his favorite part of school was lunchtime, when he and his friends could go outside and practice boxing with each other. When Paul was 16, he decided to leave school to help his parents with the farm. His father appreciated the help but reminded his son, “You’re gonna have to work with your back.”
One night at a Kolping Society dance in Cincinnati, Paul met a young woman named Rosemary Erpenbeck. He said Rosemary was the most beautiful girl he had ever seen and that he knew from the moment he laid eyes on her that she was the one. Rosemary was quiet and very smart, and Paul admired her dedication to her faith. They complemented each other perfectly, and Paul knew he would get into heaven just because Rosie was a part of his life.
The young couple was soon separated, however, as Paul was drafted into the Army in 1951 to serve in the Korean War. He was stationed in France and worked as a truck driver. Paul’s best memories of his tour of service were when he chauffeured the chaplain around Europe visiting many religious sites. After serving our country for two years, Paul was discharged and returned home to his fiancé.
Paul and Rosemary were married on May 29, 1954, at Saint Agnes Church. The newlyweds settled into a duplex that Rosemary’s father had built in Fort Wright. The young couple’s home wasn’t quiet for long, because in 1955 their first child, Mary Rose, was born. Paul and Rosemary were blessed with six more children: Paul, Janet, Jim, Dan, Terri and David. Paul was a loving father who worked hard to provide for his family. Paul joined his father-in-law, Anthony Erpenbeck, and Rosemary’s brothers in the construction of fine homes across Northern Kentucky. In 1972, Paul and Rosemary bought a farm in Florence and Paul felt instantly at home. He enjoyed hunting deer, rabbit and turkey, as well as fishing and gardening. Paul was also a dog lover who found his best friends in beagles.
Paul retired from construction in 1979. He developed property and in 1986, Paul encouraged his sons to form their own construction companies – continuing the family home building legacy that still exists today.
Another love of Paul’s was his 15 grandchildren. The kids loved being with their grandpa and appreciated his sense of humor. Paul attended many of their sporting events, dance recitals, band competitions, school events and horse shows. The children adored him.
After 46 years of marriage, Paul’s beloved wife, Rosemary, passed away. Paul endured this tough time by looking to his faith and family for support.
In 2001, while on a bus trip to Washington D.C. for President Bush’s inauguration, Paul met Sarah Blanken. They spent the entire ride socializing, talking politics and discussing Rosemary. Sarah liked that he was a warm and interesting person who could connect with people on a different level. On August 30, 2002, Paul and Sarah were married. Paul was very accepting of his new family and treated his stepchildren, Lynne, Ed, Susan and Barbara, as if they were his own.
On February 18, 2009, while working in his garage, Paul unexpectedly suffered a stroke. He continued working up until the day he died. Paul will be remembered as an “Un-Kahmann” man who had a positive, encouraging spirit. He was an interesting and witty man who always had a joke for his friends and who believed that family and faith were all he needed.
Paul spent a lifetime building a legacy of faith and love that will be cherished forever by all those he left behind. He will be deeply missed.
