Not So Fast Folks - First Time Home Buyer Credit Not Extended

By Cristina Callegari Kanellopoulos

There was a misleading media frenzy this morning reporting that the First Time Home Buyer Credit has been extended. Unfortunately, this isn't accurate.

Here are the facts:

• The tax credit extension is NOT currently a stand alone bill. It is being packaged in as part of a compromise on the EI (Employment Insurance) Bill currently in the Senate.
• Democrat and Republican Senators alike are in the process of negotiating the EI Bill with the tax credit included as an amendment. If they agree on the proposed amendments to the EI Bill, it is possible that the Tax Credit Extension Bill could pass the Senate as early as this week.
• The House of Representative has released a statement that they will agree to whatever the Senate decides. If that is the case the Tax Extension could be passed as early as next week in the Senate and House of Representatives.
• If the Senate does not agree to the amendments in the proposed EI Bill, a separate stand-alone Bill will need to be introduced to the Senate. This Bill will likely be introduced by Senators Johnny Isakson (R-GA who is also a Realtor) and Chris Dodd (D-CT).

While there is no guarantee that the EI Bill will pass with the First Time Tax Buyers credit as an amendment, I remain hopeful that it will.

I will continue to keep you updated on the subject.

HUD Funding to Assist Homeless Vets

by Cristina Callegari Kanellopoulos

The Department of Housing and Urban Development (HUD) recently announced that they will provide the NY State Division of Housing and Community Renewal (DHCR) with $1.4 Million in additional funding for a program to help homeless veterans find the housing and clinical services they need.

HUDVASH, the Veterans Affairs Supportive Housing Program, is a new and highly successful program that combines the HUD Housing Choice Voucher rental assistance for homeless veterans with case management and clinical services provided by the Department of Veterans Affairs.

In New York, DHCR utilizes local administrators in Westchester and Suffolk counties to administer two VASH contracts - one in partnership with Montrose Medical Center in Westchester county, and a second with the Northport Medical Center in Suffolk County. In Suffolk County, 30 veterans have found homes with the program, and another two are said to be finalizing their leases.

New Construction vs. Existing Home?

by Cristina Callegari Kanellopoulos

New houses offer many advantages over existing homes. They are designed to accommodate the wishes and needs of today's homeowners as opposed to features that were popular many years ago. They will include the most requested features, such as Central Air Conditioning, Walk-in Closets, Open Living Space, Family Rooms, more Bathrooms and larger Bedrooms, for example. New homes are more energy efficient than older homes, and since everything is new (and usually under warranty), in the short-term there is less of a chance that the home buyers will spend money on costly repairs.

However, the quality and character of higher-end older homes simply cannot be compared to new construction. The craftsmanship, architectural details and materials that were used is superior to that of new/current construction.

Potential home buyers who prefer the idea of a new home, but do not have the time or budget for custom building, can satisfy their needs by purchasing a home built by a developer with a pre-determined design and specifications. Designs and specs are based on the developer's choices (not the buyer's). Depending on the developer the buyer may have some flexibility when selecting finishes, and cabinetry, etc.

In many parts of the country developers build large scale communities, in New York, however, this is extremely rare as there is very little undeveloped land left in the 5 boroughs (NYC, Queens, Brooklyn, Bronx and Nassau). In Queens and Nassau counties, for example, builders will often times buy homes in poor condition, tear them down, and re-build, or remodel and expand an existing home to the point where it is no longer recognizable.

Home buyers should not make the mistake of assuming that new construction is sound construction. You should do your homework, just as you would when buying a previously owned home. Investigate the builder, evaluate the location, get a through inspection, and negotiate for upgrades. Home buyers should feel comfortable with the builder before committing to a purchase. Whether through referrals, or personal research, the reputation of the builder should be checked carefully. A smart home buyer will visit other homes built by the same builder and should interview the homeowners, as durability of construction and homeowner satisfaction are extremely important.

From time to time you will find a group of homes, or a small-scale development in New York. However, they are often built on the developing edge of a neighborhood, so it is warranted to check the future plans for the community. Local zoning and planning departments may have a master development plan for the future development of an area. You should verify the school district and find out the general tax rate of the neighborhood.

It is also important to note that most new homes come with minimal landscaping, and it can cost the homeowner thousands of dollars to landscape. Most new homes also come with a basic level of finishes for carpeting, cabinetry and window treatments - do your research, sometimes it is cheaper to upgrade these features directly with the builder.

If you are considering a new home purchase give me a call today at 917-921-5397!

Tax, Mortgage and Credit Card Fraud - Oh My!

by Cristina Callegari Kanellopoulos

According to a press release from the Queens district attorney's office, former Queens resident Rafael Vascones plead guilty to charges of tax, mortgage and credit card fraud. He was sentenced to six months in jail AND more than $400,000 in restitution and penalties.

Vascones, who is 54, was operating two businesses, Integrated Business Communications and NA Networking Group from Queens and was simultaneously maintaining false identities, forging documents, and evading taxes, among other crimes.

Queens District Attorney, Richard Brown, said that Vascones falsified documents in applying to refinance his property in Whitestone with Washington Mutual in order to receive cash payouts from the loan. After serving his jail time, he will serve five years probation.

Fire Safety and Prevention

by Cristina Callegari Kanellopoulos

Fire safety in your home is extremely important. Below find some common sense tips on how to prevent fires:

1. Keep all stove vents free of grease and be sure to clean them regularly.
2. Don't fill tanks of gas powered tools like, snow blowers or lawn mowers while the engine is running, and don't fill those gas tanks in your home or garage.
3. Store oily rags in closed metal containers so that they won't combust spontaneously, and be sure to dispose of them as hazardous waste as soon as possible.
4. Store flammable liquids in closed containers AWAY from sources of heat.
5. Never, ever leave anything unattended on the stove, and keep pot handles turned inward so they don't get accidentally knocked into.
6. Make sure that lightbulbs are not touching lampsades, and do not drape scarves or fabrics over lamps.
7. Store matches, and lighters away from a child's reach.
8. Always use a fire screen while using your fireplace.
9. Don't overload electrical circuits, and only use properly rated fuses.
10. Don't allow rubbish to pile up in corners of the basement or the garage.
11. Keep all appliances, large and small clean and free of debris and in good working order.

Common sense should prevail when it comes to fire safety. However, should there ever be a fire in your home, do not attempt to put it out. Grab your family and your cell phone and evacuate immediately. Call the fire department when safely outside.