President Bush signed into

law a legislation that helps 400,000 homeowners facing

foreclosure and extends a lifeline to Fannie Mae and Freddie Mac.

The law is aimed at stemming foreclosures and

halting a free-fall in housing prices by providing

federal insurance for refinanced 30-year mortgages

for homeowners struggling to make their monthly payments.

The new housing law is chock-full of tax breaks 

for homeowners.

Property taxes can be deducted in 2008, 

even if you don’t itemize.

The one-year-only break is capped at $1000 

for couples and $500 for singles.

A tax credit for first-time home buyers is 

also included in the bill. The credit, which 

is in effect an interest free loan of up to 

$7500, is phased out for high-income taxpayers 

and must be paid back over 15 years beginning 

in 2010.

Some taxes were raised to help offset the 

cost of these and other credits...

about $12.4 billion over 10 years. 

One change for some taxpayers restricts 

a break on the sale of a second house 

that has been converted into a primary residence. 

Conversions after 2008 won’t be eligible for a 

100% tax free profit upon selling.

Tightening the rules on car donation 

deductions is paying off handsomely.

Write-offs dropped 80% in 2005, the first 

year that tougher rules applied. 

Taxpayers claimed $470 million on 300,000 

returns reporting vehicle donations.

That’s down from $2.5 billion on 900,000 

returns a year earlier under the old rules.

Upper-incomers are bearing a record share 

of the U.S. income tax burden. The top 1% 

of filers paid 39.9% of all federal income 

taxes for 2006, up half a point from 2005. 

That group reported 22% of adjusted gross 

income. The top 5% of earners paid 60.1%. 

The lowest-earning 50% paid just 2.99% of taxes.

 Even though nationwide,

many experts and the media continue to

report, “The housing market is at an all time low!”

“Prices have hit rock bottom and will continue to do so!,”

and “The mortgage industry is in such a turmoil that

homeowners are losing the battle with their homes

and are being foreclosed on!”

What’s the silver lining? Read on….

There are MANY OPPORTUNITES out there.

What are the smart people doing?

They are taking advantage of a market like ours.

You know how we all wait at the beach shore

line and tip toe into the water because at first

we think its too cold. Once we are in we figure

that its ok. The next thought is of course how

foolish to take an 10-15 extra minutes just to get in!

Don’t wait till the water gets warmer!

What does this have to do with real estate?

There is an easier answer than you think.

You’re the buyer, (swimmer waiting at the

beach shore line) you creep up to the edge

and slowly make your way in. Small wave

after wave comes and and you insist on

taking your time. By the time you get in all

the way, all the waves are gone. Now its really

not all that much fun like you thought it would be.

The waves, OPPORTUNITY. On the other hand,

the other swimmers(buyers). They boldly go in

and enjoy the waves, (OPPORTUNITIES). They

have made the decision to get what they came for,

to get WET and have fun! By the time you are in

they are on their way out. You have lost the

OPPORTUNITY

You see the real estate market is correcting itself.

Just like all sectors of any market. There are highs and lows.

Most buyers SIT and WAIT until the curve goes up. They buy on the

high side. The smart buyer, buys when the curve is at the bottom. Why?

Well think of it this way. A 3 bedroom 2 bath house in 2000 would cost an

avergage buyer $106,000 in the Four corners area. That same house in

2004 would sell around $206,000. By 2005 the same house would go for

most likely around $225,000 to $235,000. In a period of just 5 years we

saw a HUGE increases in values. This has the law of supply and demand

written all over it. When there are less homes out in the market and lots

of buyers wanting the same properties the prices goes up.

 I believe that most buyers would rather say that they bought their

current home at $206,000 and within the next 5 years their house

has still SHOWS appreciation.

Currently property values in the Four Corners area are still going up

by 4.5 to 6% per year. This is an OPPORTUNITY. For most of us,

which includes me, our homes are our biggest assets.

Being smart once we get this assest is another article but getting

the assest (your house) is what this article is about. Most stock

investors will tell you over and over that the time to buy is when the

stocks are under valued. This way you get more for your dollar.

An investor gets in when things look as though they are about to fall apart.

When the curve goes up and they decide to sell it’s a win,

win for that investor!

Ask a professional to look at your current situation.

Together you can find many opportunities.

Interest rates are still at historical lows. The mortage industry is

weeding out and forcing predatory lenders out of the business.

The processing and underwriting is a bit longer. But with new

systems in place you can assure yourself that you will receive the right

and most comfortable mortgage program for you and your family.

Remember……

NOW IS THE TIME TO INVEST IN YOU AND

YOUR FAMILIES FUTURE.

Ask me how I can be of help?

Call me at 407-234-6525 or e-mail me at:

juan.sanchez@erainternational.net