Homebuyer Tax Credit Repayment to be Eliminated?

This just in from the Greater Piedmont Area Association of Realtors:
"The House Ways and Means Chairman has voted out the tax portion of the economic stimulus on a party-line vote, 24 - 13. It contains a provision that would eliminate the repayment feature of the $7500 first time homebuyer tax credit for purchases between 1-1-09 and 6-30-09. An amendment that would have significantly modified the credit was offered, but failed on a party line vote. During the course of debate on the Heller amendment, however, senior Committee member John Lewis offered vigorous support for extending the effective date of the credit through year-end. The National Association of Realtors continues to push to have the credit extended and expanded. A vote on all the parts of the economic stimulus (tax and non tax) is expected in the House on 1-28-09."

Since most potential buyers didn't realize that the tax credit had to be paid back, this isn't likely to bring a collective sigh of relief. However, this step IS important. I want to make sure my Buyers get as much help and encouragement as possible and if the credit isn't extended or expanded, it is set to expire in July of this year.

Foreign Investors to Boost US Commercial Investments by 73% in 2009

While we usually offer information based on residential sales, an article provided by the Commercial real estate service, CoStar, recently caught my eye.

Despite the slowdown of foreign investments towards the end of 2008, the US commercial market may see a significant increase in foreign investors this year. The Association of Foreign Investors in Real Estate (AFIRE), which represents 200 members holding $1 trillion in real estate, released the results of a recent survey that found 73% of foreign investors plan to increase their commercial investments in the US in 2009. This will be supported by an expected 58% increase in financing through foreign lenders.

Why the US?

• Stability & Security. 53% of respondents said that the US is the country with "the most stable and secure" real estate investments. Our laws protect and promote property ownership.
• Attractive Opportunities. "Respondents reported that finding attractive U.S. investment properties is becoming less difficult, with fewer than 20% describing it as "very difficult" -- the lowest percentage holding that opinion in the last five years."
• Asset Appreciation - "37% of those surveyed ranked the U.S. as the nation providing the best opportunity for asset appreciation."
• High Expectations. Most importantly, foreign investors and lenders are eying the US with the expectation that it will be the first global financial power to recover.

What about our area? Our metropolitan area is, according to the article, to be THE hot spot for investors.

"With the excitement over the incoming Obama Administration and the renewed demand for space that comes with a change in government, Washington, D.C., has emerged as the belle dame among U.S. commercial real estate markets in most product types, and foreign investors ranked the Nation's Capital as the top city in the world for foreign investment. For the first time in two years, D.C. topples New York City, which falls to third behind London in the wake of the Wall Street meltdown. "

What will they be looking for? The investors responded that they will be looking for the following (ranked according to popularity):

1. Multifamily
2. Office
3. Industrial
4. Retail
5. Hotel

Read the whole article here.