Real Estate Information

With all the news about financial crises, stock market volumes and bailout plans lately, we’ve been hearing some pretty big numbers thrown around. It’s one thing seeing them written out (that’s a LOT of zeroes), but seeing a physical representation of that much cash is a lot different. Pagetutor.com decided to show us exactly what a trillion dollars looks like in bundles of hundred dollar bills…and it’s absolutely mind-blowing!

Maybe a move isn’t in the cards for you right now, but it’s never a bad time to do a little redecorating. But some people are really daunted when it comes to choosing new paint colors — with so many choices, how do you figure out what you want? And how do you know what it’ll look like once it’s up? The sites below can give you a hand with that. Some of the services are free and some require a subscription, but all three are great tools for picking out a new look for your home. Explore color schemes, wall and trim colors, special paint effects and more…before you commit!

Bob Vila’s site features an Exterior Designer that’s your best bet for envisioning new paint, trim and accent colors for your exterior.

Benjamin Moore’s Personal Color Viewer lets you try on paint and trim colors in a variety of sample rooms in different styles. 

The Behr Paints site has a number of ways to explore and try out new colors. You can see your selected shades on sample photos for free — but for only $4.95 per year, you can not only try on paint colors *and* color wash, sponge and rag effects, but you can also upload your own photos and try them out in your very own rooms. Go to the Behr site and click on “Start ColorSmart.”

But maybe you need a little direction to get you started? Take the Style Quiz at Sproost and see what your room preferences say about your own personal style.

Village for sale: British village on block for $32 million

I believe investors will pull us out of this housing problem. Investors provide affordable options and can single handedly bring home prices up. In addition to the ideas that Kelly has outlined, Congress should look at relieving capital gains and allow for more deductions. Obviously there are lots of ideas and solutions but allowing investors to go back to 10 properties is a step in the right direction.

Investors are an integral part of the U.S. economy in several ways.  Not just the you and me investors who purchase shares of stock through our 401k’s, or the power house investment banks ( of yore ) that gobble up billions of dollars of mortgage backed securities or U.S. Treasuries.  No. I am talking about Real Estate Investors. They can make a market stand up and get noticed in today’s fast paced world (think about the States of Florida or Arizona going up 20% or more yearly in value with second vacation homes on everyone’s mind that doesn’t live there in the early 2000’s).

Real Estate investors are the harbinger of good times.  When investors start buying, you should be too.  They have done the market research, the due diligence that makes an investment profitable.

So it only stands to reason the best way we can climb out of this real estate funk we are all in is by making money easier to obtain for the investor.  Quickly an investor in my mind is someone purchasing a home or multifamily home that will not be occupying the property.  That simple.  And the Federal National Mortgage Association (FNMA or Fannie Mae) has recently announced that beginning March 1st they will begin accepting applications for investor properties wherein the investor may own 9 other properties with financing on it.  That is BIG news!  Previously, is was 10, but with the mortgage meltdown in 2007 the pendulum swung to a more conservative side and that policy was restricted back to only 3 properties can be financed.  Re-opening the door will allow capitalism reign once more.

One caveat: mortgage cos. (GMAC, Wells Fargo, Chase) have the right to adopt the new rules or not.  We have found them to be very conservative recently due to their pipeline of foreclosures filling up.  While the Government might issue a new ruling, they do have the right to not include that in their underwriting guidelines.  Let’s hope mortgage services are as anxious as we are to kick start our economy and get purchases rolling once more.

To sell or not to sell - Now That IS the question! This might help you decide!

The Washington Post takes a look at the pros (and cons) of leasing out your property in today’s market, rather than selling. The article makes a number of good points about how to find and screen tenants, whether to use a leasing management company, and tax advantages you can gain from an investment property. One thing we’ll take exception to, though, is the idea that you should shelve your plans to sell your existing home and buy something larger (or that otherwise better fits your needs) until prices rise again. For one thing, you can’t know exactly how long it’s going to take for the value of your home to rise above what it was when you purchased it — and why put your life and needs on hold indefinitely? Second, and equally important, is the fact that though you may be selling your existing property for less than what you perceive as its “value” — you’ll also be buying your new home at a far lower value as well — so that when home prices do rise again, your net gains would be higher on the higher-priced home.  The bottom line — do what’s right for you!

If you have interest in leasing out your property, don’t hesitate to contact me.

British actuary Ross Russell and his wife Sally decided to leave behind their hectic London lives and move to the countryside. They wanted to build a home that was a little unconventional, but the local planning council was apparently more traditionally-minded. The end result — an interesting fusion contrived by Russell and a childhood friend who grew up to be a successful architect — is a fairly rustic-looking timber-clad shell that slides all the way back to reveal a modern glass and steel structure completely open to the land and the sky above. (The sliding shell, by the way, does have skylights cut out.) We always talk about “bringing the outdoors in,” but a wall of French doors just can’t compete with this. Read the whole story here.

Understanding housing tax credits.  It’s that time of year again - tax season.  Here is a useful article that breaks down the details of the housing tax credits .  Please feel free to call me at 845-598-5083 or email me with any further questions.

From The IRS : The First-Time Homebuyer Credit Form

As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 -- better known as the First-Time Homebuyer Credit Form.

True to tax code standards, the 10-field form is accompanied by 3 pages of instructions.

Form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit.

For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term "first-time home buyer".

In addition, Form 5405 highlights the math behind the tax credit.  In general, the First-Time Homebuyer Credit is equal to the lesser of:

• $8,000 for homes bought in 2009
• 10 percent of the home's purchase price

Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the "main home".

Form 5405 is a comprehensive reference.  However, be sure to check with your accountant for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances.  There is no substitute for professional, paid advice.