use the term "tax credit" lightly, because it's really a loan. First time homeowners will be able to take a $7500 tax credit (or 10% of the purchase price of the home…whichever is lower) on their 2008 returns, which must be paid back, interest free, over the course of 15 years. Here are the details:

·        First time homebuyers (those who have not owned a primary residence for 3 years prior to their home purchase) who purchase their home between April 9, 2008 and July 1, 2009 will be eligible for the tax credit.

·        Singe taxpayers with modified gross incomes up to $75,000 and married taxpayers with a joint modified gross income of up to $150,000 are eligible for the full $7500. Above those incomes, the tax credit begins to phase out.

·        This is a tax credit, and not a tax deduction, meaning that it is a dollar for dollar reduction on taxes owed, as opposed to a tax deduction, which reduces the amount of your adjusted gross income that can be taxed.

·        The credit is refundable, meaning if you owe $2000 in taxes and take the $7500 credit, you will receive at $5500 refund.

·        The credit must be repaid to the government over 15 years or when the house is sold. For those taking the tax credit in 2008, the first $500 payment would need to be made when the buyer files their 2010 tax return.

·        This tax credit is basically an interest free loan.

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 Thanks  Ken Dicherson at RWF Mortgage for this info.

Getting Back to Basics

by: Laura Beth Vinson

The City of Chicago's Department of Housing (DOH) will celebrate the event by staffing a

The City of Chicago offers a number of options and initiatives for first-time buyers, including

TaxSmart Mortgage provides a federal income tax credit to qualified first-time homebuyers of single-family homes, condominiums, townhomes and owner-occupied buildings with four or fewer units. The credit is equal to 20 percent of the amount of interest paid on the mortgage

New Homes for Chicago provides new construction single-family and two-flats at affordable prices. Depending on income, the buyer

CPAN enables homebuyers to purchase affordable condominiums or townhouses in market-rate developments. The initiative offers below market prices and up to $30,000 in purchase price assistance to qualified buyers.

Housing Counseling Services help create more successful homeowners. Prospective

Chicago Community Land Trust (CCLT) helps preserve the long-term affordability of homes created through City programs. Under the CCLT initiative, housing units are sold at affordable prices, even though their market value is considerably higher. Subsidies used to make a home affordable for the first buyer stay with the home to keep it affordable for the next buyer.

I am thinking about sending out a marketing letter to get more clients. I have asked some of my past clients to write something about their experience in working with me. Here is what some of them have to say:


Jill’s knowledge of the city was paramount for us in finding a condo for our daughter to live in. We bought a condo without stepping foot in Chicago. We trusted Jill and she didn’t let us down.

After a downturn in real estate in 2007, who is better off: owners of houses or of condos? In Chicago, the clear winners are condo owners. Condos appreciated 7%; single-family homes, 0%.

According to figures calculated from the Multiple Listing Service by ChicagoCondosOnline.com, "The Ultimate Condominium Resource," the number of condo units sold in Chicago in 2007 was 18,120, down 7% from 2006. But the median sales price of those units was $297,000, 7% above the 2006 median. And the combined sales value of those units was $6.3 billion, up 1%.

"Compared to double-digit downturns in home sales in Chicago, and of houses and condos in many other U.S. markets, sales of Chicago condos represent a silver lining," said Jim Kinney, president of Rubloff, one of Chicago's top condo brokers. "Our city's condo market, comprising 64% of all residential sales, is relatively strong," Kinney added. "The key source of that strength is job growth in our diverse local economy. One reason condo sales fell one-fourth as much as home sales is that contracts for many condos that closed in 2007 were signed two or three years ago, when the market was better, which is not true of homes.

"With more listings than a year ago and hundreds of unsold units in new developments," Kinney continued, "this is a great time to buy a condo." For 2008, Kinney predicts a 1% increase in units sold and an appreciation rate of 5%.

The record year for condo sales was 2005, with 21,601 units, followed by 2006, with 19,406. The 2007 sales were just below the 18,544 in 2004, making 2007 the fourth-highest year--16% (3,481 units) below the 2005 peak.

The 36% of the city's residential market made up of single-family homes (and town homes and duplexes) slid 27% in units sold, 22% in combined value. Their median sales price remained flat, at $280,000, meaning zero appreciation.

Of the city's 77 census areas, the top three in condo unit sales were Near North (2,805), Lakeview (2,127) and West Town (1,355). Combined, those three represent 35% of all sales.

Statistics on the city's condo market are updated monthly in Market Overview on ChicagoCondosOnline.com. where you can sign up as my guest.

Below is the exclusive monthly condo report for December. For the entire year of 2007, unit sales of condos in the city were down only 7% compared to 2006 (and compared to a 27% drop in home sales), but median sales price (appreciation) was up 6% and total sales volume was up 1%.

For detailed charts on Month Over Month and Year Over Year: Go now to Market Overview.

Check out my new blog at  jillshicagorealestate.blogspot.com

3660 N. Lake Shore Drive 2001.  We have a new price $429,900.

Go to http://yochicago.com/magazine/city-neighborhoods

to read about lakeview or other great neighborhoods in Chicago

BEAUTIFULLY UPGRADED CORNER UNIT AT THE NEW YORK CONDOMINIUMS. PANORAMIC VIEWS OF LAKE, PARK & DOWNTOWN. BALCONIES OFF LIVING ROOM AND BEDROOM. SPLIT FLOOR PLAN. KITCHEN FEATURES GRANITE COUNTERTOPS WITH STAINLESS STEEL APPLIANCES. UPDATED MASTER BATH WITH STANDING SHOWER, GRANITE AND TILE. PRISTINE UNIT! EXCELLENT STORAGE - PROFESSIONALLY OUTFITTED CLOSETS