They have a lot of work to do…

Today the US Senate advances the new Stimulus Bill which includes an increase in the current home buyer tax credit.  Currently a home buyer purchasing a home from April 2008 to July 2009 may be entitled to a tax credit up to $7,500.  Currently the credit is to be paid back in increments of $500 each year thereafter.  The new Stimulus Bill proposes an actual tax credit of 10% of the sales price with a maximum of $15,000.  This provision may rid of the requirement to repay the credit, making it a true benefit for the home buyer.

In the article Senate Advances Tax Breaks for Homebuyers, Senator Johnny Isakson said,

“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now”.

“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living.”

The Stimulus Bill that was passed by the house last week will be reconciled with the Bill passed today and may have a final approval as early as Thursday February 5th.

Stay tuned for more information regarding this tax break.  Rates are still great and inventory is beginning to move again!

My wife’s grandfather is an educated, Godly man.  He sends a weekly letter (I get the email version) to his friends, family, and congregation.  He gave me the thumbs up to share his thoughts within my blog.  I’m excited to share some of his words with my readers.

8 February 2009

Dear Bethel Family and Friends: (E-Mail Version)

Common sense, defined as sound judgment, appears to be in short supply. In its purest form, common sense isn’t usually all that difficult. Just identify the problem and then apply the simplest solution. Children do this automatically. Farmers do this or go broke.

If the water’s too hot, cool it down. When an object is too heavy, get help. When it is raining, take an umbrella. If the soup needs flavor, add salt. When the sun is too hot, wear a hat. When your money runs out, stop spending and earn more. Common sense.

If ever America needed common sense it is now. It isn’t that politicians do not know what to do, they just won’t do it. Personal ambitions and greed appears to drive those we have put in high places. We can only hope common sense will rise from the ashes.

…

Just this week I was reminded once again how many unchurched are turned off by showy, glitzy, and jazzy TV evangelists. Sad, but true. This is not the Christianity described in the adult SS lesson this morning. Ephesians 4 shows that humility, patience, and gentleness should typify one’s demeanor as he seeks to live in a manner that witnesses to a lost world. Not easy, but God’s way.

Ephesians 4:1ff: “I implore you to walk in a manner worthy of the calling with which you are called, with all humility and gentleness, and patience, showing tolerance for one another in love, being diligent to preserve unity in the bond of love.”

May this be a good week for each one. Love…Larry Buhler

Boise Cascade "triangle" building on Front St. in downtown Salem.

Today the demolition of the Boise Cascade “Triangle” building in downtown Salem is now underway.  This morning Mayor Janet Taylor and a small crowd gathered as the demolition team took a back hoe to the side of the building.  According to the Statesman Journal the demolition project will take approximately 8 months.  Developer Dan Berrey stated construction of the redevelopment should begin soon after.

The triangle building can be seen from just about anywhere in downtown Salem.  I am personally dissapointed the building couldn’t be renovated in some form or another.  I think the old cement building has plenty of character.  I’m sure the useability of the structure is more of an issue than anything.

Next time you’re driving down Commercial Street or Front Street take a look at the demolition project!

A word from the wise:

15 February 2009

Dear Bethel Family and Friends: (E-Mail Version)

Is the cycle beginning anew? When there is no work to be had, any job looks good. Any house/food/money/car is better than none. In today’s climate, such a picture seems far-fetched, unlikely. Riches to poverty is a hard road. Only the strong can handle it.

People now in their 80’s can remember when a shoe without a hole was of great value. A warm coat was essential. Oatmeal was thinned with water, not milk. Bread was eaten plain. Every penny counted. You had to go to a bank to get change for a twenty.

One cannot spend his way out of debt. Nothing short of work and production creates wealth. Someday, perhaps in the next twenty years, we will learn this again. Until then, theories will be tried, will fail, and be rejected. Where are today’s Volkers or Trumans?

…

Let’s not neglect to pray for our nation and leaders. Love…Larry Buhler

100 Million – 150 Million.  Check out this video I came across.  With the new stimulus package approved and checks currently being written it’s fun to see some of the stuff that’s actually in the Bill.  Stay tuned for President Obama’s announcement of his additional housing recovery plan.  He is in Phoenix today, one of the foreclosure capitals of the country, to announce the highlights of the plan…

Below is a Video that I caught on MSNBC.  It’s interesting to hear Fed Chairman Ben Bernanke come out and say that he really doesn’t know why rates are not as low as they said they would be.  The Fed is purchasing up the mortgage backed securities which has definitely helped rates come down, just not to the level was forecasted.  With the constant announcements from the Feds that they will continue to pour money into our system it’s safe to say that we may not see the rates come down any more drastically than they have already.

Fed Chairman Bernanke went on to speak about our national plan to spend more money, but in the long term we need to “repair our balance sheet”.  He did make a call to action to citizens to repair their personal budgets and savings goals.  The lack of savings and increase of spending has such a large affect of our current economic state.  We must all focus on these simple goals of spending less and saving more if we want to see a change from our current state of chaos.

Photo courtesy of Jeff Gordon.

A word from the wise (Larry Buhler, my wife’s grandfather):

Dear Bethel Family and Friends: (E-Mail Version)

I’m as confused by the recent “Stimulus Plan” as the next guy. In fact, although I’ve tried, I have yet to find anyone that can explain it in a meaningful, understandable way. The first stumbling block is that it’s hard to imagine how much even one trillion is.

One million seconds are 11 days. One billion seconds are 32 years. One trillion seconds would be 31,546 years. That is 5 times as many years as from Adam and Eve until now. Change seconds to dollars and you wind up with a huge, Texas-sized pile.

America has had recessions before. By injecting unimaginable amounts of money into the system you upset the normal cycle. Governmental bureaucracy always adds layers of difficulty and waste. It looks as if our country is in for a fun, bumpy, and scary ride.

…

Application: Accept God’s salvation while there is time. Would that our own country could see this. Love…Larry Buhler

After running some errands with Kari and M (N went to grandma’s house) I was able to catch President Obama’s speech on the White House’s blog – www.whitehouse.gov.  It was not much of a surprise to hear more the common theme about our plan to “rebuild” from the newly elected president.  In fact, as I was listening, I was wondering (mostly knowing the answer) if the markets would react in a similar fashion the next day.  Without much change to the recent trend, the markets did finished down with the Dow closing -80 points following a speech by President Obama.

The speech to congress and the citizens of the United States laid out much of what his administration has in store for the recovery of our current economy recession.  I can’t help, but be among the millions who are waiting, hopeful, that what he says will actually come to fruition.  The countless billions ($1,000,000,000) pouring out of the Federal Reserve make me very nervous.

President Obama said the first step to recovery in the “American Recovery and Reinvestment Act” is the focus on our banking system:

1. Pour money into banks – directly correlating with easing credit for Americans via auto loans, business loans and mortgages.
2. Help those families with trouble mortgages who have been responsible and have continued to pay on time.
3. Bank accountability – “stringent” requirements to make strong viable (public) institutions.
   • Will require banks to show how tax dollars are going to create lending liquidity for the American tax payer.
   • Costs will likely exceed what’s currently budgeted.
   • “It’s not about helping banks, it’s about helping people.”

Details about the new plan are available at www.recovery.gov.

So, I say, we should compare President Obama’s 3 step plan to Oscar Roger’s 3 step plan.  My vote is for Oscar.  Watch the video and cast your vote with a comment.

If you missed last night’s address you can click here to view it The President’s Address

The “American Recovery and Reinvestment Act” updated the first-time homebuyer tax credit.  After rumors processed through the mill about a potential increase to $15,000, the Act came clear with the facts of the increased tax credit.  The tax credit for 2008 was $7,500 and will have to be paid back to the federal government beginning in 2010 or 2011 depending on when the credit was claimed.  The updated tax credit was increased to $8,000 and will not have to be repaid if the home is owned for three years.

This is an exciting opportunity for first-time homebuyers in 2009 and a frustration for those that purchased in 2008.  I hope to see some of my clients take advantage of this “gift” from our government.

For details contact me today and click on the PDF from realtor.org updated-first-time-homebuyer-tax-credit