^[1] RISMEDIA,
July 14, 2010—(MCT)—Courtney Zinter doesn’t have a big house with
rooms full of stuff, a fancy car or a manicure habit. But she still has
it all. Just not how the Joneses next door would define it. With a
well-paying job, Zinter had no problem paying the mortgage on her
1,600-square-foot townhouse in Chaska, outside Minneapolis. But at 29,
she sold it and moved to a $590-a-month studio apartment that overlooks
a freeway on the outskirts of downtown Minneapolis.

She could have certainly afforded a rental that had at least a bedroom
and separate living space in a hipper part of town. But she didn’t
because she’s realized something that it takes many people decades, if
not a lifetime, to figure out: Money and stuff don’t equal happiness.

Growing up in Silver Bay, Minn., with a dad who worked as a financial
associate for Thrivent Financial for Lutherans, Zinter was schooled
early on about the value of a dollar. And when she graduated from
college in 2002, she followed in Dad’s footsteps, starting as a
financial representative for the company. With a job in place, she
checked off the next thing on the ‘you’re an adult now’ to-do list:
homeownership. “I thought the thing to do was buy a house as soon as I
could. You grow up thinking that’s what you do,” she said.

The townhouse she found was spacious, complete with a wet bar and patio.
But over the years, her two-hour bus commute to downtown Minneapolis
gave her plenty of time to think “What am I giving up for this place?”

Then a trip to El Salvador in November 2008 for a Habitat for Humanity
project made her realize just how many things she owned and how little
most of it meant to her. “I decided I had to make some changes in my
life,” she said. So she sold her townhouse last fall for a bit less than
she owed, found a good family for her piano and gave away a lot of her
things.

Zinter set a goal to find an apartment for $500 per month—$1,000 less
than her old mortgage payment. (The new place isn’t quite that low, but
she no longer needs a bus pass). And that’s on top of her already
impressive savings habits. She has more than $130,000 in retirement
accounts, despite starting to invest during a decade when the stock
market hasn’t been kind to aggressive young investors like herself. Her
emergency savings is fully funded as well.

Many of us only realize after we buy the big house and the closets of
clothing and toys that we have too much stuff and too many financial
obligations. Unwinding ourselves from the financial burdens of a big
house payment or car lease can be difficult, especially in this economy.

*If you’re inspired by Zinter’s decision to downsize at a time in life
when most people are trading up, how should you start?*

-Make incremental changes. Zinter didn’t chuck all of her stuff at once.
“I would often take laps around my house and ask myself ‘what I could
get rid of without regretting my decision?’ If she realized she was only
keeping something for sentimental value—like that large collection of
T-shirts from high school that she never wore—she took pictures before
chucking the stuff. She admits that she sometimes misses the oversized
chair that went with her couch. “But I can only sit in one place at a
time,” she said.

-Think about what you want, not what you think you’re supposed to want.
When she decided to sell her townhouse, “It felt like in society’s eyes
I was going backwards. I went from owning a nice place to renting this
very small space.” Even today, she feels as if she needs to explain
herself. Otherwise, people assume she’s forced to live below her means
because she’s deep in debt.

-Save your money. “Even if you earn little interest, at least you saved it.”

-Fewer fixed expenses equals more freedom. “In my mind, if I get
dependent on spending money every week or two on something, it becomes a
fixed expense and I try to minimize those as much as possible. I guess
it’s the freedom issue again. I’ve minimized what I have to spend each
month, and the rest is mine for whatever I want to do with it.”

(c) 2010, Star Tribune (Minneapolis)

This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.

“The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up,” said James M. Weichert, president and founder of Weichert, Realtors, one of the nation’s largest independent real estate companies. “Not only can you receive a large sum of money from the government, you’ll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.”

To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.

There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.

“Typically, it takes three months or longer to sell a home. That’s why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline,” added Weichert.

2009 Tax Credit Form

First Time Homebuyers The current law is extended until April 30, 2010. Buyers have until that date to have a signed purchase agreement. There is an additional 60 day grace period to complete the financing. More first time homebuyers are eligible because the new law raises the annual income limits from $75,000 to $125,000 for singles and from $150,000 to $225,000 for married couples.

Current Home Owners Over 60 percent of current home owners will be eligible for a tax credit of up to $6,500 if they purchase a home by April 30, 2010. These homebuyers must have lived in their home for five consecutive years over the previous eight years to qualify. Qualified homebuyers can get the credit if they purchase a home for $800,000 or less as their primary residence between November 7, 2009 and April 30, 2010. The income limits are the same as the First Time Homebuyer listed above.

Please see the links below for details regarding the new legislation:
Frequently asked questions regarding the new Homebuyer Tax Credit.
A chart comparing the original Tax Credit with the new, expanded Tax Credit.
Press Release (11/06/09) Washington REALTORS & the new Tax Credit.
REALTORS helped State Leaders Express Support

Thousands of WA REALTORS® urged Congress to extend the tax credit Nearly 5000 REALTORS® in Washington (more than 27% of our members) helped convince Congress that the home buyer tax credit is critical to the nation’s economic recovery. Washington REALTORS® was recognized by the National Association of REALTORS® because it had the fifth largest state association response rate to the Call for Action in the country.

This victory helps the economy, helps put more Washington residents into homes and helps generate transactions for our members. This is a major benefit of being a member of the REALTOR organization.

Please pass this information along to members in your office, to your clients and even to Non-REALTOR licensees to let them know they should be REALTORS too!