If you live in the State of Missouri, you must watch this. Period.
If Amendment 3 does not pass (and the State of Missouri opts to add a "transfer tax" to every sale within our state), it will have detrimental effects on our already-feeble real estate market and economy. Period.
When the real estate "bubble" burst a couple of years ago, it took with it thousands of dollars of equity from the average homeowner. In a real estate climate laden with short sales and foreclosures where inventory is at an all-time high, Buyers remain conservative, and Sellers are struggling to walk away from their properties with any cash in their pocket after inspection predications and standard closing costs ... an additional 2-4% fee at closing would be devastating. On an average $200,000 sale, that is 8K of YOUR home equity going to the Missouri government in taxes. Period.
I beg that you vote "YES" on Amendment 3 in November and that you spread the word about this initiative. It is vital to the continued growth and rejuvenation of our local economy and real estate market. If it doesn't pass, it will affect all of us in a negative way. No one in the State of Missouri will be immune.
Showing posts with label Government. Show all posts
Showing posts with label Government. Show all posts
Thursday, September 30, 2010
Thursday, August 19, 2010
Still falling!
I said it a few weeks ago, but wanted to reiterate...
If you have been considering a loan refinance OR your current interest is at 5% or above... the time is NOW!! Do not wait. The rates are at historical lows, yet again, and they will not last.
According to the latest Freddie Mac survey, the average interest rate for a 30-year home loan dropped to 4.4% last week.
I have received almost a 1/2 dozen phone calls and emails from past clients over the past 2 weeks, all inquiring the same thing: Is a refi worth the hassle at this point? Here is a basic interest rate calender...
That being said, there are many other factors to consider during the loan restructuring process, as well: your current rate, how long you plan to stay in the house, how much equity you have, and the fees associated with the loan restructuring.
My best piece of advice on how to proceed to ensure a refinance is favorable to your current financial situation? Make a call to your lender, crunch the numbers, and see how the cards fall. It can't hurt and you can always change your mind. If it works out in your favor, however, it could save you a LOT of money.
If you have been considering a loan refinance OR your current interest is at 5% or above... the time is NOW!! Do not wait. The rates are at historical lows, yet again, and they will not last.
According to the latest Freddie Mac survey, the average interest rate for a 30-year home loan dropped to 4.4% last week.
I have received almost a 1/2 dozen phone calls and emails from past clients over the past 2 weeks, all inquiring the same thing: Is a refi worth the hassle at this point? Here is a basic interest rate calender...
That being said, there are many other factors to consider during the loan restructuring process, as well: your current rate, how long you plan to stay in the house, how much equity you have, and the fees associated with the loan restructuring.
My best piece of advice on how to proceed to ensure a refinance is favorable to your current financial situation? Make a call to your lender, crunch the numbers, and see how the cards fall. It can't hurt and you can always change your mind. If it works out in your favor, however, it could save you a LOT of money.
Friday, July 2, 2010
Savings alert...
Considering a purchase or refi?
The time is NOW, NOW, NOW! Lock in your rates/loans quickly.
This week, mortgage rates plummeted to their lowest point in 40 years. The average for a 30-year fixed-rate loan sank to a ridiculously low 4.69 percent. Rates for 15-year and five-year mortgages hit record lows, as well.
That means MAJOR savings and more house affordability. If you have any questions regarding the rates and the pros/cons/logistics of refinancing and/or purchasing a home in this market, email me at cdnandthecity@charter.net.
The time is NOW, NOW, NOW! Lock in your rates/loans quickly.
This week, mortgage rates plummeted to their lowest point in 40 years. The average for a 30-year fixed-rate loan sank to a ridiculously low 4.69 percent. Rates for 15-year and five-year mortgages hit record lows, as well.
That means MAJOR savings and more house affordability. If you have any questions regarding the rates and the pros/cons/logistics of refinancing and/or purchasing a home in this market, email me at cdnandthecity@charter.net.
Thursday, November 19, 2009
Thursday, November 5, 2009
Tax Credit Legislation update...
The Senate passed a bill to extend the tax credit.
The House will need to vote on it and then the President needs to sign it.
Senate throws a lifeline to the jobless
Lawmakers pass bill extending unemployment benefits by up to 20 weeks. Legislation also extends homebuyer tax credit into next year.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: November 4, 2009: 6:25 PM ET
NEW YORK (CNNMoney.com) -- After weeks of partisan debate, the Senate voted on Wednesday to lengthen unemployment benefits by up to 20 weeks and to extend the $8,000 homebuyer tax credit.
The closely watched legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.
The measure would apply to those whose benefits will run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round. The vote was 98 to 0.
"With 15 million Americans still unemployed and vying for just three million available jobs, we did the right thing today by passing this bill and doing it in a fiscally responsible way," said Sen. Max Baucus, D-Mont., who helped craft the bill. "Today, we gave unemployed Americans the chance they need to get back on their feet, get through this tough time and get working again."
The measure now moves to the House, which passed its own benefits extension in September, giving an additional 13 weeks in high-unemployment states. The two bills must now be reconciled, though the House is expected to support the Senate's version.
"Now that this legislation has passed the Senate, I will bring it to the House Floor for a vote as early as tomorrow," said House Majority Leader Steny H. Hoyer of Maryland.
The bill would then move to the White House for the president's signature. Last week, the administration said it supports extending benefits.
7,000 a day losing benefits
The Senate has been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.
Millions of Americans are now depending on unemployment benefits, as the unemployment rate continues to soar. The unemployment rate hit a 26-year high of 9.8% in September, and is expected to go even higher when the October numbers are released on Friday.
More than one in three people who are unemployed have been out of work for at least six months, according to the law project. Lawmakers twice lengthened the time people can receive checks to as much as 79 weeks, depending on the state. But at least one Republican warned this would be the final extension.
"The public needs to ... know, this is the last extension," said Johnny Isakson, R-Ga.
Tax break for buying a home. The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The Senate's bill also created a $6,500 credit for those who buy a home after owning one for the last five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The Senate bill would raise the adjusted gross income cap to$125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference." The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.
The credit, however, has also posed many problems. Critics say it's a waste of money because most of those claiming the credit would have bought homes anyway.
It's also been the target of fraud. Some 74,000 people claimed more than $500 million in credits even though they may not be first-time homeowners, according to Treasury officials. And more than 580 children, including some as young as 4-years-old, have claimed the credit.
"Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the Credit and receiving an erroneous refund of up to $8,000," said J. Russell George, Treasury inspector general for tax administration, before a House subcommittee last month.
CNN Radio Capitol Hill correspondent Lisa Desjardins contributed to this report.
The House will need to vote on it and then the President needs to sign it.
Senate throws a lifeline to the jobless
Lawmakers pass bill extending unemployment benefits by up to 20 weeks. Legislation also extends homebuyer tax credit into next year.
By Tami Luhby, CNNMoney.com senior writer
Last Updated: November 4, 2009: 6:25 PM ET
NEW YORK (CNNMoney.com) -- After weeks of partisan debate, the Senate voted on Wednesday to lengthen unemployment benefits by up to 20 weeks and to extend the $8,000 homebuyer tax credit.
The closely watched legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.
The measure would apply to those whose benefits will run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round. The vote was 98 to 0.
"With 15 million Americans still unemployed and vying for just three million available jobs, we did the right thing today by passing this bill and doing it in a fiscally responsible way," said Sen. Max Baucus, D-Mont., who helped craft the bill. "Today, we gave unemployed Americans the chance they need to get back on their feet, get through this tough time and get working again."
The measure now moves to the House, which passed its own benefits extension in September, giving an additional 13 weeks in high-unemployment states. The two bills must now be reconciled, though the House is expected to support the Senate's version.
"Now that this legislation has passed the Senate, I will bring it to the House Floor for a vote as early as tomorrow," said House Majority Leader Steny H. Hoyer of Maryland.
The bill would then move to the White House for the president's signature. Last week, the administration said it supports extending benefits.
7,000 a day losing benefits
The Senate has been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.
Millions of Americans are now depending on unemployment benefits, as the unemployment rate continues to soar. The unemployment rate hit a 26-year high of 9.8% in September, and is expected to go even higher when the October numbers are released on Friday.
More than one in three people who are unemployed have been out of work for at least six months, according to the law project. Lawmakers twice lengthened the time people can receive checks to as much as 79 weeks, depending on the state. But at least one Republican warned this would be the final extension.
"The public needs to ... know, this is the last extension," said Johnny Isakson, R-Ga.
Tax break for buying a home. The legislation also would extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The Senate's bill also created a $6,500 credit for those who buy a home after owning one for the last five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The Senate bill would raise the adjusted gross income cap to$125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference." The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.
The credit, however, has also posed many problems. Critics say it's a waste of money because most of those claiming the credit would have bought homes anyway.
It's also been the target of fraud. Some 74,000 people claimed more than $500 million in credits even though they may not be first-time homeowners, according to Treasury officials. And more than 580 children, including some as young as 4-years-old, have claimed the credit.
"Some key controls were missing to prevent an individual from erroneously or fraudulently claiming the Credit and receiving an erroneous refund of up to $8,000," said J. Russell George, Treasury inspector general for tax administration, before a House subcommittee last month.
CNN Radio Capitol Hill correspondent Lisa Desjardins contributed to this report.
Saturday, October 3, 2009
Interest rates plummeted...
Still more good news for 1st time home buyers: the 8k tax credit, record low prices, and now super low interest rates...
If in need of a refinance... the time is NOW!
If in need of a refinance... the time is NOW!
Sunday, September 13, 2009
Deal Alert...
Though perhaps at the expense of financial hardship for many, this market is a Buyer's dream. With the current government Buyer incentive, 1st time home buyers have their pick of the crop and are making AMAZING investments with instant equity.For those who already own a home, this is not the ideal time to move and upgrade for everyone. That being said, in the case where a home owner has plenty of equity, all projects are complete, the home shows well, and the location is decent... this is an AMAZING time to upgrade to a larger and/or more expensive home.
The deals out there are endless. I try to convey this phenomena to clients and friends everyday, but it's almost impossible to illustrate the extent of the percentage of listing price markdown as compared to 5-10 years ago. Daily, as I pull and tour listings city wide... I STILL can't believe some of the current prices. For example, I showed this listing to a Buyer almost a year ago:
This 4 bedroom, 2.5 bath, 3000 sq foot property is in the Brook Hill subdivision in Chesterfield (Parkway West school district)...
3- 5 years ago, listings in Brook Hill were comfortably selling above 850K. Homes in more ideal locations within the neighborhood and/or with higher end upgrades, sold for as much as a million within weeks.
This subdivision is extremely desirable among those in West County and is the home to numerous local sports players and community business leaders / executives. Homes in Brook Hill are currently listing between 630K and 850K, and selling between 530K and 800K.
Per the current MLS listing, this particular Seller is a corporate transferee for Anheuser-Busch. As part of the relocation package, AB apparently purchased the property from the Seller back in August of 2008 for $585,000 (after several standard relocation appraisals determining that was the current market value). The property's current county tax assessment stands at $565,300. With a WHOPPING 494 days on market, this home is currently LISTED for $499,000.
WOW.
Now granted, this property boasts inexpensive finishes, that are NOT neighborhood norm or standard. The stock oak cabinets, laminate counter tops, and other discount store finishes are possibly the reason why this home hasn't budged, even at the current discounted price. That being said, the Buyer EASILY has over 200K in equity once the market rebounds. PLENTY of equity to make updates and renovations and STILL turn a HUGE profit.
With the current amount of days on market, the future Buyer will likely negotiate a purchase price significantly below the current list price. Meaning, the property will more than likely sell for less than the bulk of the neighborhood paid to BUILD their home, over 12 years ago.
Unbelievable. More so as this home is one of thousands, city wide.
Friday, September 11, 2009
Tax Talk...
Property taxes are an icky subject. I realize that.No one, in their right mind, wants to talk about taxes. Period.
That being said, as St. Louis real estate market values continue to decline... a large number of area home owners are left living in a property that is assessed by the city/county to be worth a WHOLE lot more than it actually is. I see it every day.
EXAMPLE: A property is currently listed at $575,000 with 200 days on the market. It last sold for $675,000 in 2004. Sure enough, you pull up the current taxes... currently assessed by the county at the 2004 purchase price of $675,000. Meaning, the homeowner is currently paying taxes on the value of $675,000 when the home is obviously worth SIGNIFICANTLY less.
So what can you do to remedy the issue?
APPEAL! APPEAL! APPEAL!
Though it's not exactly the most SIMPLE process as hello, you are dealing with a government entity here... with a little bit of time and patience, you can drastically reduce the amount of annual taxes that you pay. Click here for St. Louis County's brochure explaining the process and here for the actual appeal forms. St. Louis City residents- click here for more information regarding the city appeal process.
Before you jump through the government hoops, I HIGHLY recommend contacting a Realtor for a current market value, including a CURRENT set of comps within a 1/4 mile radius and over the past 12 months. A super valuable tool in your fight!
Sunday, August 23, 2009
Like sands through an hourglass...
Though the lenders have been stressing this fact for months, I just received this press release from CNN Money reiterating the fact that the Obama $8,000 first time home buyer tax credit is soon drawing to a close.For months, a rumor circulated that the government was considering an extension. However, most lenders forecast that this will not indeed happen due to the current economic conditions.
Between the low property values and the opportunity to take advantage of the tax credit... there is NO BETTER TIME THAN NOW to be a first time home buyer.
If you are contemplating your first purchase, or know someone else who is, the time is now!
The tax credit deadline is November 30, 2009. Meaning your new property must be CLOSED by November 30th to actually utilize the credit. As the average transaction is 5-8 weeks in length... time is of the essence to locate your dream house and write a contract. Email me with any questions...
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