As the leaves on the trees finish their glorious metamorphosis and the colored leaves now lay on the cold, damp ground or blowing in the wind. This is a clear indicator that our year is coming to a close. The well known break in the public schools are happening now for “teacher’s convention”. Those school aged kids enjoy a nice break to relax or some families use it as a time for a quick vacation, since it is only Jersey school out at this time.  Also, we turn to thoughts of Thanksgiving creeping up on us.

For those of us who make real estate our career, we feel thankful today after learning that the government has decided to keep the incentives for 1st time homebuyers continuing into 2010. According to Charles McMillan, the 2009 National Association of Realtors (NAR) President, Congress passed a bill today that extends and expands the homebuyer tax credit. The extension and expansion will become effective as soon as President Obama signs the bill. The $8,000 tax credit will continue for 1st time homebuyers. For current homeowners to be eligible for the NEW $6,500 tax credit, they must have used the home, and sold the home or is being sold as a principal residence after living in it consecutively, for 5 of the previous 8 years.

This will hopefully be the boost to the real estate market continue upward in the sales activity for 2009-10. It should help more than just the lower end price points and first time buyers. Even before this positive news for the market, I have been very busy. This has not been a “typical” period, since by November; things typically start to slow down. I am not finding that to be the case this year. With interest rates still so low, the buyers that act now will look like a genius, as rates should only go higher from here. I believe, when we look back at the 2009 market trends next year, we will notice that June/July 2009 was a “low” and considered the right time to buy.

The commercial real estate market is another “bird” and an interesting one to evaluate in this market. Right now if you are a buyer in need of warehouse space in Central NJ, there is a glut of properties on the market. For many investors, the consideration to purchase a commercial property, one my evaluate  the rate of return—positive/negative cash flow. The deals that seem to make sense for people are one that have the buyer paying cash. The more money down, the smaller need for a mortgage payment-as this hurts your cash flow numbers when you need to borrow. And those that have so much cash on hand, would rather make a small positive cash flow, that have your money just sit in accounts making almost nothing.
 
I have a great investment property listed for sale in Bound Brook, NJ. Wonderful opportunity, especially for an “owner/occupier” need – someone who wants to use some part of the property for their own business use. This home is beautiful, fully renovated with the older Victorian charm from the late 1800s. Located in the “non-flood area”, this property could also be converted back to a single family use without need for a variance. The price is $429,000 with 6 units, huge on-site parking lot, and located within walking distance to Municipal Building, Police station, Post Office, Train , Business District(Main Street), Library, Schools, Houses of Worship, Theater, Firehouse, Banks and Route 28. All tenants have 1 year leases, separate utilities plus newer heating and cooling systems.