My Marin Blog

The Incentive for Greening American Homes

Green is good, and the Obama Administration and Congress believe it should be an integral part of pulling America out of its economic doldrums. According to the National Association of Home Builders, expanded tax credits for energy-efficient home improvements in the new economic stimulus package puts more money in consumers' pockets by providing financial incentive for home owners to go green on their renovation projects in 2009 and 2010. While more efficient homes save on water and energy bills, these tax credits will make such home upgrades even more affordable.

The Internal Revenue Code section 25C tax credit for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Homeowners could be rewarded for installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps. But remodelers found that the terms of the 25C credit -- equal to only 10 percent of the cost of each product and with a lifetime cap of $500 -- weren't strong enough to push enough homeowners off the fence and into action.

Now, the credit rate and lifetime cap have been tripled – to 30 percent and $1,500, respectively – the list of eligible improvements expanded, and the deadline for applying has been extended through the end of 2010. Congressional estimates indicate that the new rules for the tax incentive will increase aggregate remodeling activity by more than $6 billion.

"The new tax credit also aligns with industry research indicating that even the most aggressive efficiency goals for new homes won't make a dent in overall energy consumption. Instead, remodeling and retrofitting the nation's older homes is by far the more efficient solution," said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson (AZ).

"These new tax credits are another way that home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes," said Miedema.

A 2008 California study revealed that 70 percent of the greenhouse gas emissions related to single-family envelope energy consumption can be attributed to homes built before 1983.

The bottom line: Retrofitting existing homes with energy-efficient features is four to eight times more carbon, and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed.

Details on qualifying improvements are available at the IRS Web site at www.irs.gov. It is expected that homeowners will need to complete Form 5695 (Residential Energy Credits) and submit as part of their 2009 income tax returns to claim the credit. Further, homeowners should retain for their own records information that includes:

· Name and address of the manufacturer

· Identification of the component

· Make, model or other appropriate identifiers

· Statement that the component meets the 25C standards

· Climate zones for which the criteria are satisfied

· Additional information for storm windows, if applicable

· A declaration that the certification statement is true.

Due to the efforts of nonprofits like NAHB, the National Association of REALTORS and its affiliate organizations like the CCIM Institute, more and more businesses and individuals alike understand that 'green' is good for our economy, for our health and for the sustainability of our nation's communities.


VICTORIA WELLS/ Broker Associate, SRES, e-Pro, eco-Broker, Bradley Real Estate, 851 Irwin St. Suite 104, San Rafael, CA 94901. 415-209-9020. e-mail: vawells@comcast.net

Http://www.GoinGreenMarin.com

Why Buy a Home Now?

If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter."

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider.

How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you.

How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.

Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income and a substantial down payment will make you a better candidate for the better mortgage rates.

Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.

Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

Tax credit benefit. The American Recovery and Reinvestment Act of 2009 provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.


VICTORIA WELLS/ Broker Associate/SRES, e-Pro, Eco-Broker, Bradley Real Estate, 851 Irwin St., Suite 104, San Rafael, CA 94901, 415-209-9020, vawells@comcast.net

Http://www.GoinGreenMarin.com

WCR Marin Presents:

Nationally Acclaimed Green Architect

Eric Corey Freed

A Roadmap to Greening Our Buildings

Creative -Thought Provoking -Entertaining

* Learn to educate clients on the need for greening our buildings.
* Develop an understanding of the problems & issues surrounding our current lifestyle.

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Discover hidden opportunities in our environmental problem areas.
Drawn from the most advanced research in Green Building, you will
learn a roadmap for our buildings for the next 50 years.

Principal of organicARCHITECT, a San Francisco architecture and consulting firm,Eric Corey Freed is a recognized pioneer in the tradition of Organic Architecture, first developed by Frank Lloyd Wright, and a lifetime proponent of individualism and sustainability.

Over 15 years experience in green building.
"Best Green Architect" in 2005 -San Francisco Magazine.
"Green Visionary" -7x7 Magazine -2008.

Developed the Sustainable Design program at University of California Berkeley.
Founding Chair of Architecture for The San Francisco Design Museum.
One of the founders of ecoTECTURE: The Online Journal of Ecological Design.

Monthly column at GreenerBuildings.com.
Syndicated in over a dozen other publications.
National Lecturer at 40+ conferences a year.
Featured in Dwell, Metropolis, Town & Country, Natural Home and Newsweek
Appeared on HGTV, The Sundance Channel and PBS.

Author of "Green Building & Remodeling for Dummies" (John Wiley & Sons),
"Sustainable Schools," his next book, will be released in 2009.

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When

Tuesday, March 24, 2009 from 11:30 AM - 1:30 PM (PT)

Where

The Club at McInnis Park
350 Smith Ranch Road
San Rafael, CA 94901

Hope to see you there!