You're probably thinking: "Of course, he would say that. He's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why:
If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home.
If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on your home.
http://www.selectbrokersrealty.com
Tuesday, October 28, 2008
Monday, October 13, 2008
Let's Talk About Gray & Rain Water Recycling Systems
Over the last two years, Georgia has struggled with drought conditions. Today, some parts of Georgia remain classified as areas of extreme or severe drought.
Ongoing discussions about droughts has heightened awareness of the importance of water conservation. As such, the Georgia State Codes Advisory Committee (SCAC) has approved the statewide adoption of amended 'Appendix C - Gray Water Recycling Systems' and a new 'Appendix I - Rain Water Recycling Systems'.
Both appendices are scheduled for adoption as part of the State Minimum Standard Plumbing Code. These appendices will regulate and allow the use of "gray water"( treated sewer water) and rain water for the flushing of toilets, and in some cases, for landscape irrigation. The committee projects that adoption of these appendices will support Governor Perdue's water conservation efforts and save millions of gallons of water statewide.
I believe - that sooner or later...somewhere...somehow...we must settle with the world and make payment for what we have taken. This is a great way to cut back on taking so much of our natural resources. Finally, a code that makes sense.
http://www.selectbrokersrealty.com
Ongoing discussions about droughts has heightened awareness of the importance of water conservation. As such, the Georgia State Codes Advisory Committee (SCAC) has approved the statewide adoption of amended 'Appendix C - Gray Water Recycling Systems' and a new 'Appendix I - Rain Water Recycling Systems'.
Both appendices are scheduled for adoption as part of the State Minimum Standard Plumbing Code. These appendices will regulate and allow the use of "gray water"( treated sewer water) and rain water for the flushing of toilets, and in some cases, for landscape irrigation. The committee projects that adoption of these appendices will support Governor Perdue's water conservation efforts and save millions of gallons of water statewide.
I believe - that sooner or later...somewhere...somehow...we must settle with the world and make payment for what we have taken. This is a great way to cut back on taking so much of our natural resources. Finally, a code that makes sense.
http://www.selectbrokersrealty.com
Wednesday, October 8, 2008
The Grand Daddy Stock Market Crash
The 1932 Stock Market Crash was the grand daddy of them all. Investors lost 86% of their money over this 813 day beast. This market crash combined with the 4th worst crash the 1929 crash, makes up the great depression. By the end of November 1929, investors had lost $100 billion in assets in what was later called "The Great Stock Market Crash." In just two months, September and October 1929, the stock market had lost 40 percent of its value. Black Tuesday usually marks the point where the Roaring 20’s ended and the Great Depression started. The stock market would continue to fall until bottoming out in July of 1932 with the Dow at 41.22, down 89.2% (from 381.17 on 9/2/1929 to 41.22 on 7/8/1932.) The stock market wouldn’t recover for another 22 years!
If you had $1000 on 9/3/1929 (beginning of the 4th worst crash, it would have gone down to a whopping $108.14 by July 8th,1932 (end of the worst crash) or an 89.2% loss. To recover from a loss like that, you would have to watch your portfolio go up 825%! The full recovery didn't take place until 1954, 22 years later!!!!
This is the Worst Stock Market Crash Ever:
Date Started: 4/17/1930
Date Ended: 7/8/1932
Total Days: 813
Starting DJIA: 294.07
Ending DJIA: 41.22
Total Loss: -86.0%
http://www.selectbrokersrealty.com
If you had $1000 on 9/3/1929 (beginning of the 4th worst crash, it would have gone down to a whopping $108.14 by July 8th,1932 (end of the worst crash) or an 89.2% loss. To recover from a loss like that, you would have to watch your portfolio go up 825%! The full recovery didn't take place until 1954, 22 years later!!!!
This is the Worst Stock Market Crash Ever:
Date Started: 4/17/1930
Date Ended: 7/8/1932
Total Days: 813
Starting DJIA: 294.07
Ending DJIA: 41.22
Total Loss: -86.0%
http://www.selectbrokersrealty.com
Tuesday, October 7, 2008
2nd Worst Stock Market Crash
1937 - 1938 Stock Market Crash:
Just when investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall street scandals. This was the 2nd Worst Stock Market Crash:
Date Started: 3/10/1937
Date Ended: 3/31/1938
Total Days: 386
Starting DJIA: 194.40
Ending DJIA: 98.95
Total Loss: -49.1%
http://www.selectbrokersrealty.com
Just when investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall street scandals. This was the 2nd Worst Stock Market Crash:
Date Started: 3/10/1937
Date Ended: 3/31/1938
Total Days: 386
Starting DJIA: 194.40
Ending DJIA: 98.95
Total Loss: -49.1%
http://www.selectbrokersrealty.com
Monday, October 6, 2008
Government Bailout of 1907 - 3rd Worst Stock Market Crash
Today's bailout is not the first time the government bailed out the stock market.
The 1907 Stock Market Crash was called the "Panic of 1907." The U.S. Treasury department bought 36 million dollars worth of government bonds to offset the decline of the market (and remember, $36 million translates to a much bigger number in today's dollars). This is the 3rd Worst Stock Market Crash:
Date Started: 1/19/1906
Date Ended: 11/15/1907
Total Days: 665
Starting DJIA: 75.45
Ending DJIA: 38.83
Total Loss: -48.5%
http://www.selectbrokersrealty.com
The 1907 Stock Market Crash was called the "Panic of 1907." The U.S. Treasury department bought 36 million dollars worth of government bonds to offset the decline of the market (and remember, $36 million translates to a much bigger number in today's dollars). This is the 3rd Worst Stock Market Crash:
Date Started: 1/19/1906
Date Ended: 11/15/1907
Total Days: 665
Starting DJIA: 75.45
Ending DJIA: 38.83
Total Loss: -48.5%
http://www.selectbrokersrealty.com
Friday, September 19, 2008
Massive Rescue Effort for Financial Markets
http://www.selectbrokersrealty.com
Finally, congressional leaders and the Bush administration are working with Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke to prepare a massive intervention to revive the U.S. financial system.
The proposed plan reportedly includes using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems and allowing them to again lend money.
Paulson and Bernanke urged lawmakers to approve the plan rapidly, presenting what some described as a “chilling” picture of the state of the financial system.
Congressional leaders were told that the consequences would be grave if the legislation doesn’t pass by the end of next week.
Taking over Fannie Mae and Freddie Mac, creating a new source of funding for investment banks, and assuming control of insurance giant American International Group obviously hasn’t been enough to end the crisis. It hasn’t stopped $79 billion in withdrawals from money-market funds, which are a critical source of funding for the U.S. financial system.
"The costs of doing nothing are enormous," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
This is what it's going to take to turn the housing industry around.
If you have been sitting on the sidelines waiting for things to bottom out before you make your purchase - Now is the time to make your move....
Finally, congressional leaders and the Bush administration are working with Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke to prepare a massive intervention to revive the U.S. financial system.
The proposed plan reportedly includes using hundreds of billions of dollars in government funding to buy bad loans, leaving banks with more money and fewer problems and allowing them to again lend money.
Paulson and Bernanke urged lawmakers to approve the plan rapidly, presenting what some described as a “chilling” picture of the state of the financial system.
Congressional leaders were told that the consequences would be grave if the legislation doesn’t pass by the end of next week.
Taking over Fannie Mae and Freddie Mac, creating a new source of funding for investment banks, and assuming control of insurance giant American International Group obviously hasn’t been enough to end the crisis. It hasn’t stopped $79 billion in withdrawals from money-market funds, which are a critical source of funding for the U.S. financial system.
"The costs of doing nothing are enormous," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
This is what it's going to take to turn the housing industry around.
If you have been sitting on the sidelines waiting for things to bottom out before you make your purchase - Now is the time to make your move....
Wednesday, September 17, 2008
Home Buyers See Mortgage Rates Plunge Below 6%
http://www.selectbrokersrealty.com
On top of the recently enacted $7,500 tax credit, first-time home buyers received a further boost last week in their efforts to buy a home from a sharp drop in mortgage rates resulting from the recent government takeover of Fannie Mae and Freddie Mac.
The interest-rate decline was also good news for those seeking refinancing as well as the housing market overall.
The 30-year fixed-rate mortgage averaged 5.93% for the week ending on Thursday, Sept. 11, according to Freddie Mac’s Primary Mortgage Market Survey. That was down from 6.35% the previous week and 6.31% a year earlier.
One-year Treasury-indexed adjustable-rate mortgages edged up slightly, to 5.21% from an average of 5.15% for the previous week.
“Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past four weeks, which will help to spur home purchases and loan refinancing in coming weeks,” said Frank Nothaft, Freddie Mac’s chief economist. “This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago,” he said.
“Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors® were off 3.2% from June,” Nothaft said. “The Mortgage Bankers Association reported that refinance applications are up 18% over the past three weeks through September 5th, indicating that refinance activity has already begun to pick up.”
For extensive information on the tax-credit benefit, Visit our Web site — www.selectbrokersrealty.com
On top of the recently enacted $7,500 tax credit, first-time home buyers received a further boost last week in their efforts to buy a home from a sharp drop in mortgage rates resulting from the recent government takeover of Fannie Mae and Freddie Mac.
The interest-rate decline was also good news for those seeking refinancing as well as the housing market overall.
The 30-year fixed-rate mortgage averaged 5.93% for the week ending on Thursday, Sept. 11, according to Freddie Mac’s Primary Mortgage Market Survey. That was down from 6.35% the previous week and 6.31% a year earlier.
One-year Treasury-indexed adjustable-rate mortgages edged up slightly, to 5.21% from an average of 5.15% for the previous week.
“Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past four weeks, which will help to spur home purchases and loan refinancing in coming weeks,” said Frank Nothaft, Freddie Mac’s chief economist. “This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago,” he said.
“Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors® were off 3.2% from June,” Nothaft said. “The Mortgage Bankers Association reported that refinance applications are up 18% over the past three weeks through September 5th, indicating that refinance activity has already begun to pick up.”
For extensive information on the tax-credit benefit, Visit our Web site — www.selectbrokersrealty.com
Friday, September 12, 2008
How to Finance Foreclosure Properties
http://www.selectbrokersrealty.com
Foreclosure properties, REO (Real Estate Owned) property owned by banks and other lenders, and properties threatened with imminent foreclosure all represent great investment opportunities for property buyers. They are the most popular source of affordable deals for those seeking bargain homes, because foreclosures often sell at or below wholesale prices.
Anybody can buy this kind of property. Basically all you need is some money and a willingness to bid. But be aware that if you attend a property auction, you may wind up bidding against professional foreclosure investment specialists who are also looking for cheap houses. If you are unsure about how the foreclosure real estate game is played, learn as much as possible ahead of time in the Learn Section of Bargain Homes, so that you are not at a disadvantage when making your purchase offer.
Before stepping into the foreclosure property arena, it is important to educate yourself. You’ll want to know as much as possible about such things as the pitfalls of hidden costs. For example, when purchasing a house that has a lien against it, the buyer may be responsible to pay back that debt. Such strings-attached baggage can include huge amounts of money owed to the IRS.
And you will want to explore various ways to come up with the money necessary to finance your purchase of a foreclosure. Some lenders don’t lend money for foreclosure property mortgages, while other lenders are eager to make loans to help you buy. To find out more, do some homework ahead of time, so that you can approach the foreclosure auction with confidence and adequate financial backing.
Foreclosure properties, REO (Real Estate Owned) property owned by banks and other lenders, and properties threatened with imminent foreclosure all represent great investment opportunities for property buyers. They are the most popular source of affordable deals for those seeking bargain homes, because foreclosures often sell at or below wholesale prices.
Anybody can buy this kind of property. Basically all you need is some money and a willingness to bid. But be aware that if you attend a property auction, you may wind up bidding against professional foreclosure investment specialists who are also looking for cheap houses. If you are unsure about how the foreclosure real estate game is played, learn as much as possible ahead of time in the Learn Section of Bargain Homes, so that you are not at a disadvantage when making your purchase offer.
Before stepping into the foreclosure property arena, it is important to educate yourself. You’ll want to know as much as possible about such things as the pitfalls of hidden costs. For example, when purchasing a house that has a lien against it, the buyer may be responsible to pay back that debt. Such strings-attached baggage can include huge amounts of money owed to the IRS.
And you will want to explore various ways to come up with the money necessary to finance your purchase of a foreclosure. Some lenders don’t lend money for foreclosure property mortgages, while other lenders are eager to make loans to help you buy. To find out more, do some homework ahead of time, so that you can approach the foreclosure auction with confidence and adequate financial backing.
Tuesday, September 2, 2008
FHA Raises Upfront Premiums
http://www.selectbrokersrealty.com
The cost of obtaining a FHA loan in Braselton, Hoschton and across the nation goes up Oct. 1, 2008.
The Federal Housing Administration announced Tuesday that it is increasing the upfront premiums charged to most borrower to guarantee that a mortgage will be repaid.
Effective Oct. 1, most borrowers will pay 1.75 percent of the loan amount, up from 1.5 percent because the FHA is adopting a “risk-based” pricing system based on borrowers’ credit scores and the amount of their down payment or equity.
On a $300,000 loan, the new upfront premium works out to $5,250, up from $4,500. The annual premiums paid by borrowers would remain at 0.5 percent to 0.55 percent of the loan balance.
The cost of obtaining a FHA loan in Braselton, Hoschton and across the nation goes up Oct. 1, 2008.
The Federal Housing Administration announced Tuesday that it is increasing the upfront premiums charged to most borrower to guarantee that a mortgage will be repaid.
Effective Oct. 1, most borrowers will pay 1.75 percent of the loan amount, up from 1.5 percent because the FHA is adopting a “risk-based” pricing system based on borrowers’ credit scores and the amount of their down payment or equity.
On a $300,000 loan, the new upfront premium works out to $5,250, up from $4,500. The annual premiums paid by borrowers would remain at 0.5 percent to 0.55 percent of the loan balance.
Friday, August 29, 2008
Time, Time, Time Slips Away
http://www.selectbrokersrealty.com
This is a little off the subject of Real Estate however we all need to monitor our time...........
Time is truly our most precious resource. The famous writer, Jean-Louis Servan-Schreiber, wrote, "Unlike other resources, time cannot be bought or sold, borrowed or stolen, stocked up or saved, manufactured, reproduced, or modified. All we can do is make use of it. And whether we use it or not, it nevertheless slips away." It truly is how we use it to our advantage that makes the difference. How effectively are you using the time you are given?
This is a little off the subject of Real Estate however we all need to monitor our time...........
Time is truly our most precious resource. The famous writer, Jean-Louis Servan-Schreiber, wrote, "Unlike other resources, time cannot be bought or sold, borrowed or stolen, stocked up or saved, manufactured, reproduced, or modified. All we can do is make use of it. And whether we use it or not, it nevertheless slips away." It truly is how we use it to our advantage that makes the difference. How effectively are you using the time you are given?
Thursday, August 28, 2008
Understanding Capital Gains in Real Estate
http://www.selectbrokersrealty.com
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________
The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.
You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________
The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.
You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Tuesday, August 26, 2008
Hoschton May Make National News
http://www.selectbrokersrealty.com
A all day workshop to make scarecrows will be held at the Hoschton Depot Wednesday Aug. 27 starting at 8am you are encouraged to attend. If you have any questions or need directions email me - ray@selectbrokersrealty.com
A reporter named Juanita Cousins will be at the scarecrow workshop to follow up on an article written earlier about our project. She is with the Associated Press which is a major network source of newspapers, radio and TV. Her article will be available to use by any of the news media across the country. The Associated Press is where ABC, NBC, CBS, & TBS get a lot of their stories.
A all day workshop to make scarecrows will be held at the Hoschton Depot Wednesday Aug. 27 starting at 8am you are encouraged to attend. If you have any questions or need directions email me - ray@selectbrokersrealty.com
A reporter named Juanita Cousins will be at the scarecrow workshop to follow up on an article written earlier about our project. She is with the Associated Press which is a major network source of newspapers, radio and TV. Her article will be available to use by any of the news media across the country. The Associated Press is where ABC, NBC, CBS, & TBS get a lot of their stories.
Monday, August 25, 2008
VA Raises Loan Cap to $729,000
http://www.selectbrokersrealty.com
The Department of Veterans Affairs (VA) is raising ceilings on its no-downpayment home loans from the current $417,000 to as much as $729,000.
The increases are effective immediately under legislation recently enacted with President Bush signing the Housing and Economic Recovery Act of 2008.
That law also improved VA's Specially Adapted Housing Program. It raises primary grants from $50,000 to $60,000 toward constructing a new home or modifying an existing home to meet adaptive needs of veterans or active duty servicemembers with certain service-connected disabilities.
One new feature is a provision in the law that will assist burn victims. It will allow veterans with certain service-connected disabilities resulting from severe burns to receive the adaptive housing grants. The new law also makes future increases in ceilings on the Specially Adapted Housing Program automatic.
The increased limits in the general home loan program for all veterans' home purchases or construction will be based on local housing costs, tied to the similar locality adjustments of the Federal Home Loan Mortgage Corp., Freddie Mac.
VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are about 2.3 million existing VA home loans, more than 90 percent made with no down payment.
The Department of Veterans Affairs (VA) is raising ceilings on its no-downpayment home loans from the current $417,000 to as much as $729,000.
The increases are effective immediately under legislation recently enacted with President Bush signing the Housing and Economic Recovery Act of 2008.
That law also improved VA's Specially Adapted Housing Program. It raises primary grants from $50,000 to $60,000 toward constructing a new home or modifying an existing home to meet adaptive needs of veterans or active duty servicemembers with certain service-connected disabilities.
One new feature is a provision in the law that will assist burn victims. It will allow veterans with certain service-connected disabilities resulting from severe burns to receive the adaptive housing grants. The new law also makes future increases in ceilings on the Specially Adapted Housing Program automatic.
The increased limits in the general home loan program for all veterans' home purchases or construction will be based on local housing costs, tied to the similar locality adjustments of the Federal Home Loan Mortgage Corp., Freddie Mac.
VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are about 2.3 million existing VA home loans, more than 90 percent made with no down payment.
Thursday, August 21, 2008
Should You Buy Or Rent
http://www.selectbrokersrealty.com
Buying a home is a rewarding experience. You derive a great deal of personal satisfaction from owning a home. Homeownership allows you to build up your personal net worth over time. Moreover, long-term increases in housing prices nationwide makes homeownership a relatively attractive investment.
In some cases, renting may be a more attractive option. For example, if you plan to move in a year or two, you are unlikely to recover the closing costs you pay when you buy a home. In addition, finding a home to buy generally takes more time than looking for an apartment to rent.
In addition to building up equity over time, owning a home offers significant tax breaks. The interest expense that you pay on up to $1 million in home mortgage debt ($500,000 if you are married and filing a separate return) is tax-deductible.
Your tax savings from the mortgage interest tax deduction are greatest in the early years of a mortgage loan. For example, on a 7%, 30-year fixed rate mortgage loan of $100,000, you pay $6,968 in interest the first year of the loan. If you are in the 25% income tax bracket, your tax savings are $1,742. In Year 16 of the loan, you pay $5,090 in interest, which saves you $1,273 in taxes. In Year 24 of the loan, you pay $2,926 in interest, which saves you $732 in taxes.
When you sell your home, you can exclude up to $500,000 in capital gains if you are married and filing a joint return. (The exclusion limit is $250,000 for other tax filers.) You will need to pass the IRS's ownership and use tests to show that the home has been your primary residence for at least two of the past five years. In addition to mortgage interest, you can also deduct your local property taxes on your income tax return.
Buying a home is a rewarding experience. You derive a great deal of personal satisfaction from owning a home. Homeownership allows you to build up your personal net worth over time. Moreover, long-term increases in housing prices nationwide makes homeownership a relatively attractive investment.
In some cases, renting may be a more attractive option. For example, if you plan to move in a year or two, you are unlikely to recover the closing costs you pay when you buy a home. In addition, finding a home to buy generally takes more time than looking for an apartment to rent.
In addition to building up equity over time, owning a home offers significant tax breaks. The interest expense that you pay on up to $1 million in home mortgage debt ($500,000 if you are married and filing a separate return) is tax-deductible.
Your tax savings from the mortgage interest tax deduction are greatest in the early years of a mortgage loan. For example, on a 7%, 30-year fixed rate mortgage loan of $100,000, you pay $6,968 in interest the first year of the loan. If you are in the 25% income tax bracket, your tax savings are $1,742. In Year 16 of the loan, you pay $5,090 in interest, which saves you $1,273 in taxes. In Year 24 of the loan, you pay $2,926 in interest, which saves you $732 in taxes.
When you sell your home, you can exclude up to $500,000 in capital gains if you are married and filing a joint return. (The exclusion limit is $250,000 for other tax filers.) You will need to pass the IRS's ownership and use tests to show that the home has been your primary residence for at least two of the past five years. In addition to mortgage interest, you can also deduct your local property taxes on your income tax return.
Friday, August 15, 2008
Hurricane Shoals Art in the Park - Sept. 20 - 21
http://www.selectbrokersrealty.com
If you are from Braselton, Hoschton, Jackson County or North Georgia you don't want to miss this festival on Sept. 20 - 21.
The festival will feature a 5K Mill Race, Duck Dash, Antique Automobiles, corn meal being ground, Exhibits, Arts, Crafts and Food. A new addition this year will be the miniature golf course, “Spirit of the River.”
All proceeds are used to maintain and improve Hurricane Shoals Park, which is located between Maysville and Jefferson.
Vendors are needed for the 18th annual Art in the Park festival planned for Sept. 20-21 at Hurricane Shoals Park.
Craft and food vendors are asked to contact Marsha Baxter at 706-850-5615 or 706-202-8285. For more information, go to www.hurricaneshoalspark.org.
If you are from Braselton, Hoschton, Jackson County or North Georgia you don't want to miss this festival on Sept. 20 - 21.
The festival will feature a 5K Mill Race, Duck Dash, Antique Automobiles, corn meal being ground, Exhibits, Arts, Crafts and Food. A new addition this year will be the miniature golf course, “Spirit of the River.”
All proceeds are used to maintain and improve Hurricane Shoals Park, which is located between Maysville and Jefferson.
Vendors are needed for the 18th annual Art in the Park festival planned for Sept. 20-21 at Hurricane Shoals Park.
Craft and food vendors are asked to contact Marsha Baxter at 706-850-5615 or 706-202-8285. For more information, go to www.hurricaneshoalspark.org.
Thursday, August 14, 2008
Tax Benefits Make Now a Great Time to Buy a Home
http://www.selectbrokersrealty.com Press Release
Ray Vaughn , president and broker of Select Brokers Realty, calls the $7,500 real estate tax credit to first-time home buyers in the new housing stimulus legislation an example of “trickle-up” economics. “As first-time home buyers enter the real estate market, armed with an extra $7,500, they increase the demand for homes in Braselton, Hoschton and Jackson County Ga. and in the process help stabilize the market value of homes,” he says. “As they purchase their first home, they free those who are selling their first homes to move up in the real estate market to more expensive homes. Those who had $200,000 homes now buy houses in the $300,000 range. That allows more home owners to sell and move up in the market as well as allowing empty nesters and recent retirees an opportunity to downsize. Mortgage brokers, Realtors® and home builders in Braselton, Hoschton and Jackson County Ga. receive critical new clients and the benefits don’t stop there. Sales of furniture, electronics, household items, landscaping supplies and home improvement items also increase. An escalation in sales also boosts manufacturing and shipping. The process profits the broader community because all these transactions infuse tax revenue into the system, benefiting the community in a variety of ways.” Ray applauds Congress for providing this tax incentive for home buyers. “Now it is up to the American consumer to realize this is a great time to buy a home,” he says. “With interest rates between 6% and 7%, tax rebates and credits from the federal government and a buyer’s market, it’s a great time to make the American Dream a reality.”
Ray Vaughn , president and broker of Select Brokers Realty, calls the $7,500 real estate tax credit to first-time home buyers in the new housing stimulus legislation an example of “trickle-up” economics. “As first-time home buyers enter the real estate market, armed with an extra $7,500, they increase the demand for homes in Braselton, Hoschton and Jackson County Ga. and in the process help stabilize the market value of homes,” he says. “As they purchase their first home, they free those who are selling their first homes to move up in the real estate market to more expensive homes. Those who had $200,000 homes now buy houses in the $300,000 range. That allows more home owners to sell and move up in the market as well as allowing empty nesters and recent retirees an opportunity to downsize. Mortgage brokers, Realtors® and home builders in Braselton, Hoschton and Jackson County Ga. receive critical new clients and the benefits don’t stop there. Sales of furniture, electronics, household items, landscaping supplies and home improvement items also increase. An escalation in sales also boosts manufacturing and shipping. The process profits the broader community because all these transactions infuse tax revenue into the system, benefiting the community in a variety of ways.” Ray applauds Congress for providing this tax incentive for home buyers. “Now it is up to the American consumer to realize this is a great time to buy a home,” he says. “With interest rates between 6% and 7%, tax rebates and credits from the federal government and a buyer’s market, it’s a great time to make the American Dream a reality.”
Wednesday, August 13, 2008
Should You Disclose Facts That Affect Your Property
http://www.selectbrokersrealty.com
Sure it can be frustrating, exhausting and time-consuming to sell a home in some markets, but don't try to cut corners by failing to make the proper disclosures.
Not only is it illegal for you and your agent not to disclose certain material facts that can affect the value, desirability or salability of a home, most savvy buyers will quickly walk away if he or she suspects deceit.
If you lie by omission and get caught, not only can you face both local and federal charges, you'll still have a home to sell in a less-than-hospitable market. The extra time to sell your home and your day in court could stigmatize the property.
Of course, if you honestly don't know about an issue, or there's little if any chance you could have known, you obviously can't report it.
It's not a bad idea to get a home inspection so you do know. An inspection reveals your attempt at discovery, it will help you determine which items need repair or replacement (not that you are required to make certain repairs), you can use it to price your home and it's a good negotiating tool.
In any event, a good rule of thumb, when it comes to whether or not something should be disclosed: "If you can't figure it out, don't leave it out."
Sure it can be frustrating, exhausting and time-consuming to sell a home in some markets, but don't try to cut corners by failing to make the proper disclosures.
Not only is it illegal for you and your agent not to disclose certain material facts that can affect the value, desirability or salability of a home, most savvy buyers will quickly walk away if he or she suspects deceit.
If you lie by omission and get caught, not only can you face both local and federal charges, you'll still have a home to sell in a less-than-hospitable market. The extra time to sell your home and your day in court could stigmatize the property.
Of course, if you honestly don't know about an issue, or there's little if any chance you could have known, you obviously can't report it.
It's not a bad idea to get a home inspection so you do know. An inspection reveals your attempt at discovery, it will help you determine which items need repair or replacement (not that you are required to make certain repairs), you can use it to price your home and it's a good negotiating tool.
In any event, a good rule of thumb, when it comes to whether or not something should be disclosed: "If you can't figure it out, don't leave it out."
Monday, August 11, 2008
Seller Funded Gifts Disappear With FHA Loans
http://www.selectbrokersrealty.com
Starting January 1, the minimum downpayment for an FHA loan will be 3.5 percent. That's a half point higher than the current minimum, but Congress wants to make sure borrowers have a real investment in the house they buy.
Borrowers can still get help with that downpayment, such as gifts from relatives, local government and trade union homeownership programs -- but starting October 1 -- not January 1 -- they won't be able to use any of the popular downpayment assistance programs run by organizations that funnel “gifts” from home sellers to buyers. Organizations such as Nehemiah, Incorporated and Ameridream will no longer be able to provide seller-funded gifts in connection with FHA mortgages.
So if you're a home buyer -- or a real estate or mortgage professional working with home buyers -- keep that October 1 deadline in mind
Starting January 1, the minimum downpayment for an FHA loan will be 3.5 percent. That's a half point higher than the current minimum, but Congress wants to make sure borrowers have a real investment in the house they buy.
Borrowers can still get help with that downpayment, such as gifts from relatives, local government and trade union homeownership programs -- but starting October 1 -- not January 1 -- they won't be able to use any of the popular downpayment assistance programs run by organizations that funnel “gifts” from home sellers to buyers. Organizations such as Nehemiah, Incorporated and Ameridream will no longer be able to provide seller-funded gifts in connection with FHA mortgages.
So if you're a home buyer -- or a real estate or mortgage professional working with home buyers -- keep that October 1 deadline in mind
Thursday, August 7, 2008
Barrow County BOE Considers Charter System
http://www.selectbrokersrealty.com
The Barrow County Board of Education met Thursday to discuss wheather the county school system should convert to a charter system.
A charter system is a publicly funded entity and is exempt from certain legislative requirements. Currently, over 1.3 million students nationwide are enrolled in over 3,900 existing charter schools.
Let me know what you think about this. ray@selectbrokersrealty.com
The Barrow County Board of Education met Thursday to discuss wheather the county school system should convert to a charter system.
A charter system is a publicly funded entity and is exempt from certain legislative requirements. Currently, over 1.3 million students nationwide are enrolled in over 3,900 existing charter schools.
Let me know what you think about this. ray@selectbrokersrealty.com
Wednesday, August 6, 2008
Jackson County & Barrow County ELECTION FINAL
http://www.selectbrokersrealty.com
Smith is new District Attorney, Hunter Bicknell wins BOC chairman of Jackson County; Yearwood over Garrison in Barrow BOC race.
Brad Smith will be the new District Attorney for the Piedmont Judicial Circuit. Smith won the runoff election against Donna Sikes 5,502 to 4,218. The balloting for the seat was in Jackson, Barrow and Banks counties.
In Jackson County, Hunter Bicknell won the board of commissioners chairman's seat against Ron Johnson 2,648 to 1,788.
In Barrow County BOC Chairman seat, challenger Danny Yearwood defeated incumbent Doug Garrison 2,542 to 1,600.
Smith is new District Attorney, Hunter Bicknell wins BOC chairman of Jackson County; Yearwood over Garrison in Barrow BOC race.
Brad Smith will be the new District Attorney for the Piedmont Judicial Circuit. Smith won the runoff election against Donna Sikes 5,502 to 4,218. The balloting for the seat was in Jackson, Barrow and Banks counties.
In Jackson County, Hunter Bicknell won the board of commissioners chairman's seat against Ron Johnson 2,648 to 1,788.
In Barrow County BOC Chairman seat, challenger Danny Yearwood defeated incumbent Doug Garrison 2,542 to 1,600.
Tuesday, August 5, 2008
How To Start a Neighborhood Watch Ptogram
http://www.selectbrokersrealty.com
Crime is a major concern for communities in Braselton, Hoschton, Jackson County and across the United States. Through a well organized Neighborhood Watch program, you can dramatically reduce crime in your neighborhood. Statistics show that most burglaries occur in neighborhoods without an organized Neighborhood Watch group.
In order to start a Neighborhood Watch, you must establish a partnership with a local law enforcement agency. To get started:
Recruit as many neighborhors as possible to discuss the needs of your community.
Decide on a date and place for an initial Neighborhood Watch meeting.
Contact your local police department or sheriff's office and invite them to your initial meeting.
You will be assigned a prevention officer who will attend your first meeting and help you develop an action plan.
For more information, visit http://www.usaonwatch.org
Crime is a major concern for communities in Braselton, Hoschton, Jackson County and across the United States. Through a well organized Neighborhood Watch program, you can dramatically reduce crime in your neighborhood. Statistics show that most burglaries occur in neighborhoods without an organized Neighborhood Watch group.
In order to start a Neighborhood Watch, you must establish a partnership with a local law enforcement agency. To get started:
Recruit as many neighborhors as possible to discuss the needs of your community.
Decide on a date and place for an initial Neighborhood Watch meeting.
Contact your local police department or sheriff's office and invite them to your initial meeting.
You will be assigned a prevention officer who will attend your first meeting and help you develop an action plan.
For more information, visit http://www.usaonwatch.org
Monday, August 4, 2008
Need More Water in Braselton, Hoschton, Jackson County? Dig Your Own Well
http://www.selectbrokersrealty.com
Home owners in the Braselton, Hoschton and Jackson County areas who have been faced with water restrictions because of the lingering drought in the area are drilling their own wells to keep their lawns lush and their pools full.
So far this year, for instance, there have been 305 permits to drill new wells issued in Atlanta’s Fulton County and 95 permits in Raleigh, N.C.
Drilling companies bore holes usually 300 to 600 feet deep into fractured rock and then extract the water with an electric pump discreetly hidden in the shrubbery.
The practice has outraged water conservationists and other less-well-heeled home owners.
Legislators in North Carolina tried but failed to pass a law that would have imposed the same watering restrictions on private wells as on municipal water.
Jim Kennedy, Georgia’s state geologist says the practice could become a problem if a significant number of homeowners dig wells and pump a lot of water, “But so far we’re not at that point,” he says.
Before you drill contact your local water authority in regard to latest rulings.
Home owners in the Braselton, Hoschton and Jackson County areas who have been faced with water restrictions because of the lingering drought in the area are drilling their own wells to keep their lawns lush and their pools full.
So far this year, for instance, there have been 305 permits to drill new wells issued in Atlanta’s Fulton County and 95 permits in Raleigh, N.C.
Drilling companies bore holes usually 300 to 600 feet deep into fractured rock and then extract the water with an electric pump discreetly hidden in the shrubbery.
The practice has outraged water conservationists and other less-well-heeled home owners.
Legislators in North Carolina tried but failed to pass a law that would have imposed the same watering restrictions on private wells as on municipal water.
Jim Kennedy, Georgia’s state geologist says the practice could become a problem if a significant number of homeowners dig wells and pump a lot of water, “But so far we’re not at that point,” he says.
Before you drill contact your local water authority in regard to latest rulings.
Friday, August 1, 2008
7 Dos and Don’ts for Legal 1031 Tax Exchanges
http://www.selectbrokersrealty.com
If your thinking of exchanging property in Braselton, Hoschton and Jackson County thru a 1031 here are some tips to remember.
Rochelle Stone and John Mangham of Starker Services Inc. in Los Gatos, Calif., share these tips on how to avoid common legal mistakes in 1031 exchanges.
1. Do know how to count. Like-kind exchange rules allow 180 days to complete the transaction, which includes the 45 days for the identification of a replacement property. Weekends and holidays count, and no extensions are granted, so don’t get it wrong.
2. Don’t assume a second home qualifies for an exchange. Vacation property must be an investment (which means you don’t live there for more than 14 days a year or 10 percent of the time it’s rented) or used in a trade or business to qualify for a 1031 exchange.
3. Do exchange for a property equal or greater in value. If your client exchanges for a property of lesser value, the unspent money will be taxable as capital gains.
4. Do replace your debt. Taking out a mortgage at a lower level during an exchange creates a taxable event. If your clients want a lower mortgage payment, they have to bring cash to the transactions.
5. Don’t ignore recapture. Any depreciation an investor has previously taken must be deducted from the basis of the property before calculating any gain.
6. Don’t forget to set up the exchange before the transaction closes. You need to include a stipulation in the purchase agreement so that the funds from a property’s sale transfer to a qualified intermediary instead of to the sellers during the closing.
7. Do give the buyers and exchangers a refund on any earnest money advanced from their own cash for a property that is later transferred through a 1031 exchange. This refund will come from the intermediary, who will replace the amount with exchange funds.
Note: These are not all the rules that govern 1031 exchange contact your tax advisor before entering into an agreement.
If your thinking of exchanging property in Braselton, Hoschton and Jackson County thru a 1031 here are some tips to remember.
Rochelle Stone and John Mangham of Starker Services Inc. in Los Gatos, Calif., share these tips on how to avoid common legal mistakes in 1031 exchanges.
1. Do know how to count. Like-kind exchange rules allow 180 days to complete the transaction, which includes the 45 days for the identification of a replacement property. Weekends and holidays count, and no extensions are granted, so don’t get it wrong.
2. Don’t assume a second home qualifies for an exchange. Vacation property must be an investment (which means you don’t live there for more than 14 days a year or 10 percent of the time it’s rented) or used in a trade or business to qualify for a 1031 exchange.
3. Do exchange for a property equal or greater in value. If your client exchanges for a property of lesser value, the unspent money will be taxable as capital gains.
4. Do replace your debt. Taking out a mortgage at a lower level during an exchange creates a taxable event. If your clients want a lower mortgage payment, they have to bring cash to the transactions.
5. Don’t ignore recapture. Any depreciation an investor has previously taken must be deducted from the basis of the property before calculating any gain.
6. Don’t forget to set up the exchange before the transaction closes. You need to include a stipulation in the purchase agreement so that the funds from a property’s sale transfer to a qualified intermediary instead of to the sellers during the closing.
7. Do give the buyers and exchangers a refund on any earnest money advanced from their own cash for a property that is later transferred through a 1031 exchange. This refund will come from the intermediary, who will replace the amount with exchange funds.
Note: These are not all the rules that govern 1031 exchange contact your tax advisor before entering into an agreement.
Thursday, July 31, 2008
Should Jackson County Builders Offer New Car With Home?
http://www.selectbrokersrealty.com
Home builders in Braselton, Hoschton and Jackson County have long offered incentives and discounts for home buyers. They’ve also thrown in material perks like a Mercedes, a trip to Maui or even another house. Now a home builder wants to help ease the burden of a long commute and soaring gas prices by giving buyers a free 2008 Honda Civic, according to an article in today’s WSJ.
William Grant, the owner of Brodheadsville, Pa.-based Grant Homes Inc., is using the Hondas to lure prospective buyers to a new 75-home development in rural Pennsylvania. Allentown, the largest center of employment near the development, is about 25 miles away.
The Hondas are worth about $20,000, and that value is not included in the price of the house. Buyers can choose to accept the free car or have the company pay the closing cost and buy down their interest.
Of four home sales last weekend, two buyers chose to take the car, Mr. Grant says. “The buying public is certainly waiting to do something,” he says.
Are you looking for a new home and would a new Honda influence your decision -- Let me know?????
ray@selectbrokersrealty.com
Home builders in Braselton, Hoschton and Jackson County have long offered incentives and discounts for home buyers. They’ve also thrown in material perks like a Mercedes, a trip to Maui or even another house. Now a home builder wants to help ease the burden of a long commute and soaring gas prices by giving buyers a free 2008 Honda Civic, according to an article in today’s WSJ.
William Grant, the owner of Brodheadsville, Pa.-based Grant Homes Inc., is using the Hondas to lure prospective buyers to a new 75-home development in rural Pennsylvania. Allentown, the largest center of employment near the development, is about 25 miles away.
The Hondas are worth about $20,000, and that value is not included in the price of the house. Buyers can choose to accept the free car or have the company pay the closing cost and buy down their interest.
Of four home sales last weekend, two buyers chose to take the car, Mr. Grant says. “The buying public is certainly waiting to do something,” he says.
Are you looking for a new home and would a new Honda influence your decision -- Let me know?????
ray@selectbrokersrealty.com
Wednesday, July 30, 2008
President signs the housing stimulus package
http://www.selectbrokersrealty.com
Great news for the housing market - Today President Bush signed the housing stimulus package into law.
This milestone legislation will help provide an enormous boost to the housing industry in the form of a tax credit for first-time home buyers, as well as much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing.
The temporary first-time home buyer tax credit of $7,500 will help stimulate home buying, reduce excess supply in housing markets and shore up home prices.
For more information on this stimulus package visit www.selectbrokersrealty.com
Great news for the housing market - Today President Bush signed the housing stimulus package into law.
This milestone legislation will help provide an enormous boost to the housing industry in the form of a tax credit for first-time home buyers, as well as much-needed measures that will improve mortgage liquidity, foster refinancing of troubled loans and expand the supply of affordable rental housing.
The temporary first-time home buyer tax credit of $7,500 will help stimulate home buying, reduce excess supply in housing markets and shore up home prices.
For more information on this stimulus package visit www.selectbrokersrealty.com
Tuesday, July 29, 2008
Demand for Homeownership in Braselton, Hoschton and North Georgia Remains Healthy
http://www.selectbrokersrealty.com
Underlying demand for homeownership remains healthy in Braselton, Hoschton and North Georgia despite the ongoing challenges for would-be buyers in the current market, according to a new survey conducted by Harris Interactive for Move, Inc. As reported in last week's NBN Online, the survey found that about 41% of current home owners who were polled said they do plan to purchase a home again, while 80% of all renters surveyed expect to eventually become home owners. In fact, 47% of renters in the poll indicated that they plan to purchase a home within the next five years. In addition, most prospective home buyers (57%) indicated that they are willing to make sacrifices to save and earn extra income for down payments and will compromise on neighborhood features and residential amenities in order to buy a home in the current market. On the flip side, 81% of home buyers in the poll indicated that they remain nervous about the current housing market and cited significant barriers to homeownership. Even so, 44% believe the housing market will improve once a new president takes office next January. Read more on this encouraging study in NBN Online.
Underlying demand for homeownership remains healthy in Braselton, Hoschton and North Georgia despite the ongoing challenges for would-be buyers in the current market, according to a new survey conducted by Harris Interactive for Move, Inc. As reported in last week's NBN Online, the survey found that about 41% of current home owners who were polled said they do plan to purchase a home again, while 80% of all renters surveyed expect to eventually become home owners. In fact, 47% of renters in the poll indicated that they plan to purchase a home within the next five years. In addition, most prospective home buyers (57%) indicated that they are willing to make sacrifices to save and earn extra income for down payments and will compromise on neighborhood features and residential amenities in order to buy a home in the current market. On the flip side, 81% of home buyers in the poll indicated that they remain nervous about the current housing market and cited significant barriers to homeownership. Even so, 44% believe the housing market will improve once a new president takes office next January. Read more on this encouraging study in NBN Online.
Monday, July 28, 2008
FHA Provides Relief to Owners Facing Foreclosure
http://www.selectbrokersrealty.com
To address Braselton, Hoschton, North Georgia and the nation’s foreclosure crisis, the housing stimulus package approved by Congress will allow the Federal Housing Administration (FHA) to guarantee up to $300 billion in new mortgages if lenders voluntarily agree to reduce the outstanding principal and adjust the terms to make them more affordable for borrowers.
“Expansion of the FHA program to provide new loan guarantees will help finance at-risk borrowers into viable mortgages and prevent further foreclosures,” said NAHB President Sandy Dunn.
The Congressional Budget Office (CBO) estimates that the FHA foreclosure relief plan could help as many as 400,000 struggling home owners to stay in their homes.
According to the CBO, this three-year program, which becomes effective on Oct. 1, will not cost taxpayers a dime - it will be more than paid for by using funds in the first few years from a new affordable housing trust fund to be established by Fannie Mae and Freddie Mac.
Known as the FHA Housing Stabilization and Homeownership Retention Act, the program is designed to help borrowers in danger of losing their home to refinance into lower-cost government-insured mortgages they can repay.
The program contains key protections to limit its budgetary impact, including higher refinancing fees that will be used to establish a new FHA reserve to cover possible losses from defaults on these government-backed mortgages.
In order to participate in the voluntary program, lenders and mortgage investors must take significant losses by reducing the loan principal on an existing mortgage. In exchange for an FHA guarantee on the home loan, borrowers must share any profit from the resale of a refinanced home with the government.
Only primary residences are eligible; no speculators, investment properties or second homes will be refinanced.
Specifically, the FHA would pay the existing lender no more than 85% of the property’s present appraised value. The FHA would then charge the home owner a loan at 90% of the appraised value. The extra 5% is a cushion against losses and would pay for the up-front premium.
In the example of a $250,000 home with a 100% mortgage that has declined 10% in value to $225,000, the FHA loan would repay the lender 85% of the home’s current worth, about $191,250. The existing home owner’s new loan would be for 90% of the $225,000, or $202,500.
The plan also provides $180 million for financial counseling and legal assistance to help families stay in their homes.
To address Braselton, Hoschton, North Georgia and the nation’s foreclosure crisis, the housing stimulus package approved by Congress will allow the Federal Housing Administration (FHA) to guarantee up to $300 billion in new mortgages if lenders voluntarily agree to reduce the outstanding principal and adjust the terms to make them more affordable for borrowers.
“Expansion of the FHA program to provide new loan guarantees will help finance at-risk borrowers into viable mortgages and prevent further foreclosures,” said NAHB President Sandy Dunn.
The Congressional Budget Office (CBO) estimates that the FHA foreclosure relief plan could help as many as 400,000 struggling home owners to stay in their homes.
According to the CBO, this three-year program, which becomes effective on Oct. 1, will not cost taxpayers a dime - it will be more than paid for by using funds in the first few years from a new affordable housing trust fund to be established by Fannie Mae and Freddie Mac.
Known as the FHA Housing Stabilization and Homeownership Retention Act, the program is designed to help borrowers in danger of losing their home to refinance into lower-cost government-insured mortgages they can repay.
The program contains key protections to limit its budgetary impact, including higher refinancing fees that will be used to establish a new FHA reserve to cover possible losses from defaults on these government-backed mortgages.
In order to participate in the voluntary program, lenders and mortgage investors must take significant losses by reducing the loan principal on an existing mortgage. In exchange for an FHA guarantee on the home loan, borrowers must share any profit from the resale of a refinanced home with the government.
Only primary residences are eligible; no speculators, investment properties or second homes will be refinanced.
Specifically, the FHA would pay the existing lender no more than 85% of the property’s present appraised value. The FHA would then charge the home owner a loan at 90% of the appraised value. The extra 5% is a cushion against losses and would pay for the up-front premium.
In the example of a $250,000 home with a 100% mortgage that has declined 10% in value to $225,000, the FHA loan would repay the lender 85% of the home’s current worth, about $191,250. The existing home owner’s new loan would be for 90% of the $225,000, or $202,500.
The plan also provides $180 million for financial counseling and legal assistance to help families stay in their homes.
Friday, July 25, 2008
Weak Market & Inflation Spike Rates
http://www.selectbrokersrealty.com
Weak market and the fear of inflation, in Braselton / Hoschton and the rest of the country, are among the reasons for Spike in Mortgage Rates this Week
Freddie Mac today released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage (FRM) averaged 6.63 percent with an average 0.6 point for the week ending July 24, 2008, up from last week when it averaged 6.26 percent. Last year at this time, the 30-year FRM averaged 6.69 percent.
Weak market and the fear of inflation, in Braselton / Hoschton and the rest of the country, are among the reasons for Spike in Mortgage Rates this Week
Freddie Mac today released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage (FRM) averaged 6.63 percent with an average 0.6 point for the week ending July 24, 2008, up from last week when it averaged 6.26 percent. Last year at this time, the 30-year FRM averaged 6.69 percent.
Wednesday, July 23, 2008
Help for Fannie and Freddie
www.selectbrokersrealty.com
Treasury Secretary Henry Paulson Tuesday urged Congress to quickly approve support for Fannie Mae and Freddie Mac, calling it "central to the speed with which we emerge in the Braselton, Hoschton and North Georgia areas from this housing correction."
Meanwhile, Treasury officials confirmed that bank examiners from both the Federal Reserve and the Office of the Comptroller are currently inspecting the books at both Fannie and Freddie. Paulson said in an interview published Tuesday in the New York Times that he believed the results of those examinations will give Congress confidence.
Paulson said that Fannie and Freddie have issued $5 trillion in debt and mortgage backed securities. Of that amount, more than $3 trillion is held by U.S. financial institutions and over $1.5 trillion is held by foreign institutions, making the stabilization of the two companies essential to the global economy.
Treasury Secretary Henry Paulson Tuesday urged Congress to quickly approve support for Fannie Mae and Freddie Mac, calling it "central to the speed with which we emerge in the Braselton, Hoschton and North Georgia areas from this housing correction."
Meanwhile, Treasury officials confirmed that bank examiners from both the Federal Reserve and the Office of the Comptroller are currently inspecting the books at both Fannie and Freddie. Paulson said in an interview published Tuesday in the New York Times that he believed the results of those examinations will give Congress confidence.
Paulson said that Fannie and Freddie have issued $5 trillion in debt and mortgage backed securities. Of that amount, more than $3 trillion is held by U.S. financial institutions and over $1.5 trillion is held by foreign institutions, making the stabilization of the two companies essential to the global economy.
Tuesday, July 22, 2008
Sheree Garrison joins Select's Team
www.selectbrokersrealty.com
Select Brokers Realty is pleased to welcome Sheree Garrison to our Braselton / Hoschton "Home Town Team" of professional realtors. Sheree has 14 years of experience in Georgia as a licensed real estate agent. Call Sheree at 678.227.1402 for help with any of your real estate needs.
Select Brokers Realty is pleased to welcome Sheree Garrison to our Braselton / Hoschton "Home Town Team" of professional realtors. Sheree has 14 years of experience in Georgia as a licensed real estate agent. Call Sheree at 678.227.1402 for help with any of your real estate needs.
Monday, July 21, 2008
Win $380,000 House and Pay $170,000 in Taxes
A man from Hagerstown, Md., who won a four-bedroom house in a charity raffle is having trouble selling it for enough to pay the taxes on the prize.
Dennis Weaver paid $100 for a ticket in a raffle to benefit the San Mar Children’s Home. He won a restored farmhouse in nearby Big Pool, Md., appraised at $380,000.
Income taxes on the prize plus property taxes totaled $170,000. To pay them, Weaver took out a mortgage. This week he put the house up for auction to get enough money to pay off the mortgage, but there were no bidders, according to a news story in the Hagerstown Herald-Mail.
Weaver is giving up his apartment in Hagerstown and moving into the farmhouse to avoid paying rent on top of his mortgage.
He’s given up on the idea of selling. He says he’ll just wait until the market improves.
Dennis Weaver paid $100 for a ticket in a raffle to benefit the San Mar Children’s Home. He won a restored farmhouse in nearby Big Pool, Md., appraised at $380,000.
Income taxes on the prize plus property taxes totaled $170,000. To pay them, Weaver took out a mortgage. This week he put the house up for auction to get enough money to pay off the mortgage, but there were no bidders, according to a news story in the Hagerstown Herald-Mail.
Weaver is giving up his apartment in Hagerstown and moving into the farmhouse to avoid paying rent on top of his mortgage.
He’s given up on the idea of selling. He says he’ll just wait until the market improves.
Friday, July 18, 2008
Is This The Housing of the Future
Builders in many parts of the country are turning to building tract houses that are half the size of the average U.S. home and cost a lot more per square foot. What's surprising is how quickly they sell them. Many homeowners are leaving their larger homes and seeking smaller, easy to care for and maintain, homes.
Thursday, July 17, 2008
Retail Developments Slowing
Construction of retail-property is also slowing as consumer spending wanes. Portfolio & Property Research forecasts that in 2009, retail-space construction in the top 54 U.S. markets will drop 48%, to 71 million square feet, from this year. Existing properties are hurting, too. Vacancy rates at U.S. malls and shopping centers have climbed to 7.4% this year, the highest level this decade, according to market-research firm Reis Inc.
Tuesday, July 15, 2008
Bush Calls on Congress to Pass Housing and Energy Bills
President Bush said Tuesday the nation's troubled financial system is "basically sound" and urged lawmakers to quickly enact legislation to prop up mortgage giants Fannie Mae and Freddie Mac.
He also called on the Democratic-run Congress to follow his example and lift a ban on offshore drilling to help increase domestic oil production.
"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Bush told a White House news conference - his first since late April.
Bush said the two troubled mortgage companies play a central role in the nation's housing-finance system and that government action to help them were not bailouts because the two would remain shareholder-owned companies.
"I don't think the government ought to be involved in bailing out companies," Bush said.
Amid soaring gas prices, the toughest real estate market in decades, falling home prices and financing that's harder to come by, Bush said: "It's been a difficult time for many American families." But he also said that the nation's economy continues to grow, if slowly.
He also called on the Democratic-run Congress to follow his example and lift a ban on offshore drilling to help increase domestic oil production.
"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Bush told a White House news conference - his first since late April.
Bush said the two troubled mortgage companies play a central role in the nation's housing-finance system and that government action to help them were not bailouts because the two would remain shareholder-owned companies.
"I don't think the government ought to be involved in bailing out companies," Bush said.
Amid soaring gas prices, the toughest real estate market in decades, falling home prices and financing that's harder to come by, Bush said: "It's been a difficult time for many American families." But he also said that the nation's economy continues to grow, if slowly.
Monday, July 14, 2008
Feds Help Fannie Mae and Freddie Mac
The Federal Reserve and U.S. Treasury step in to help bolster mortgage giants Fannie Mae and Freddie Mac as losses from their mortgage holdings threaten their survival. The two housing companies either hold or back $5.3 trillion of mortgage debt, which is about half of the outstanding mortgages in the U.S.
Friday, July 11, 2008
Senate Housing Bill Still Not Put To A Vote
WASHINGTON -- The Senate failed to pass a huge housing package on Thursday, continuing a legislative process that has been repeatedly bogged down by procedural hurdles, even as the housing market worsens.
The multifaceted bill, likely Congress's biggest response to the housing mess, would revamp oversight of the struggling mortgage giants Fannie Mae and Freddie Mac, a measure that Treasury Secretary Henry Paulson has said is vital to restore confidence in the U.S. housing market. The bill would also allow the government to insure up to $300 billion in refinanced mortgages, which Democrats say could help up to 500,000 people avoid foreclosure.
A final vote could still occur Friday, but other attempts to pass the bill have slipped during the past two weeks. The holdup Thursday was an objection to the legislation by Sen. Jim DeMint (R., S.C.), who has called the package a "bailout" and demanded more time for debate. Lawmakers can pass the bill without his support, but it takes longer under Senate rules.
"We've been close, but close doesn't count on Senate business," Senate Majority Leader Harry Reid (D., Nev.) said. The chamber now plans to vote on the measure late Friday afternoon.
Lawmakers from both parties have begun to express frustration at how long the process was taking. The bill is expected to pass easily once a final vote is called.
Sen. Johnny Isakson, a Georgia Republican who supports the bill, said he is pushing to have the package completed by the end of the month.
"We're almost at the point where what we're doing is too late," Sen. Isakson said. "You reach a point where what you are doing may stop the bleeding but doesn't turn the market around."
RealtyTrac Inc., an online foreclosure marketplace based in California, said 252,363 people entered foreclosure during the month of June, up 53% from 2007
The multifaceted bill, likely Congress's biggest response to the housing mess, would revamp oversight of the struggling mortgage giants Fannie Mae and Freddie Mac, a measure that Treasury Secretary Henry Paulson has said is vital to restore confidence in the U.S. housing market. The bill would also allow the government to insure up to $300 billion in refinanced mortgages, which Democrats say could help up to 500,000 people avoid foreclosure.
A final vote could still occur Friday, but other attempts to pass the bill have slipped during the past two weeks. The holdup Thursday was an objection to the legislation by Sen. Jim DeMint (R., S.C.), who has called the package a "bailout" and demanded more time for debate. Lawmakers can pass the bill without his support, but it takes longer under Senate rules.
"We've been close, but close doesn't count on Senate business," Senate Majority Leader Harry Reid (D., Nev.) said. The chamber now plans to vote on the measure late Friday afternoon.
Lawmakers from both parties have begun to express frustration at how long the process was taking. The bill is expected to pass easily once a final vote is called.
Sen. Johnny Isakson, a Georgia Republican who supports the bill, said he is pushing to have the package completed by the end of the month.
"We're almost at the point where what we're doing is too late," Sen. Isakson said. "You reach a point where what you are doing may stop the bleeding but doesn't turn the market around."
RealtyTrac Inc., an online foreclosure marketplace based in California, said 252,363 people entered foreclosure during the month of June, up 53% from 2007
Wednesday, July 9, 2008
Vote Next Tuesday July 15
Just a friendly reminder to hit the polls on July 15 for the primary! Historically voter turnout in Jackson County has been fewer than 20 percent. This means that only one in five citizens are helping make the decisions that effect them, their parents, children, and grandchildren. Be sure your voice is heard this go-round: Don't forget to vote!Learn about the candidates at www.JacksonCountyDecision2008.com And while you're at it, contact them directly - our local candidates are real people just like you and me!
Tuesday, July 8, 2008
McCain & Obama Seek To Fix Housing Problems
Which candidate would do a better job of handling housing prices? According to a recent AP-Yahoo News poll, 25 percent of those surveyed said Barack Obama and 17 percent thought John McCain. But nearly 30 percent said neither. Both Obama and McCain envision the Federal Housing Administration providing new, cheaper mortgages to distressed home owners.
Obama wants to create a $10 billion fund to counsel distressed home owners before they slide into foreclosure; help people sell homes they bought but could not afford; and team with state governments, community groups, and lenders to ensure loans can be modified in a timely manner to avoid foreclosure or bankruptcy.
McCain sees a more limited government role. "In some cases, lenders and borrowers alike were caught up in the speculative frenzy that has harmed the housing market," the Arizona senator said. "It is not the responsibility of the American public to spare them from the consequences of their own bad judgment."
Obama wants to create a $10 billion fund to counsel distressed home owners before they slide into foreclosure; help people sell homes they bought but could not afford; and team with state governments, community groups, and lenders to ensure loans can be modified in a timely manner to avoid foreclosure or bankruptcy.
McCain sees a more limited government role. "In some cases, lenders and borrowers alike were caught up in the speculative frenzy that has harmed the housing market," the Arizona senator said. "It is not the responsibility of the American public to spare them from the consequences of their own bad judgment."
Tuesday, July 1, 2008
Scarecrow website
Everyone knows by now that Hoschton is seeking a spot in the Guinness World Records with the most scarecrows in one location - they now have a website www.scarecrowstampede.com.
Thursday, June 26, 2008
Do You Have A Real Estate Question
Have a Real Estate question? Wondering about buying, selling, financing, refinancing or renting? Send your inquiry to ray@selectbrokersrealty.com
Tuesday, June 24, 2008
Braselton Road Project Still Moving Forward
The Board of Commissioners approved development agreements with property owners for the Zion Church Rd. project. The county will realign Zion Church Rd. at the intersection of Josh Pirkle Rd. on Hwy 124 to Hwy. 53 in Braselton. Construction is slated to begin in the summer of 2009.
Monday, June 23, 2008
Tax Benefits of Owning Your Home
The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) & $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value) - Total deduction =$12,577
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) & $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value) - Total deduction =$12,577
Then, multiply your total deduction by your tax rate.
For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56
$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)
Friday, June 20, 2008
Worry Over Inflation Causes Interest Rate To Go Up
Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May's consumer- and producer-price indexes, both of which showed stronger levels of inflation.
The 30-year fixed-rate mortgage averaged 6.42% in the week ended Thursday, up from 6.32% last week. The mortgage averaged 6.69% a year ago; the last time it was this high was the week ended Sept. 27, when it also averaged 6.42%.
The 15-year fixed-rate mortgage averaged 6.02%, up from 5.93% last week. The mortgage averaged 6.37% a year ago, and hasn't been higher since the week ended Oct. 18, when it averaged 6.08%.
The 30-year fixed-rate mortgage averaged 6.42% in the week ended Thursday, up from 6.32% last week. The mortgage averaged 6.69% a year ago; the last time it was this high was the week ended Sept. 27, when it also averaged 6.42%.
The 15-year fixed-rate mortgage averaged 6.02%, up from 5.93% last week. The mortgage averaged 6.37% a year ago, and hasn't been higher since the week ended Oct. 18, when it averaged 6.08%.
Wednesday, June 18, 2008
Insurers are Attempting to Stop Forecloures
Mortgage insurers are stepping up their efforts to prevent foreclosures, considering that they have to reimburse lenders if they lose money after a foreclosure . Some mortgage insurers are writing checks so borrowers can catch up on their payments, calling borrowers directly to work out payment plans and modifications.
Tuesday, June 17, 2008
Greenspan Predicts Rise in Interest Rates
The credit crisis is under control, but with inflation now the top concern, higher interest rates can be expected, said former Federal Reserve Chief Alan Greenspan said last week.Greenspan said he thought the credit crisis had peaked in March. "I think the worst is over (for the U.S. economy) if the financial crisis is over," Greenspan said via video link to an event in Mexico.But to keep inflation under control, Greenspan said the fed will have to tighten monetary policy and that will drive up interest rates
Wednesday, June 11, 2008
DON'TS For First Time Home Buyers
DON'T get taken by the first house or neighborhood you see. Keep an open mind and spend sufficient time finding the right fit in a house and neighborhood for your needs.
DON'T buy more than you can afford. Lenders will often loan you as much as your financial condition warrants, but that may not be what you can comfortably afford. It's better to live with a comfortable mortgage on a smaller home than to struggle every month paying a mortgage on a house with more room than you really need. The down payment, closing costs, monthly expenses and taxes must in total all be within your income and savings range
DON'T buy more than you can afford. Lenders will often loan you as much as your financial condition warrants, but that may not be what you can comfortably afford. It's better to live with a comfortable mortgage on a smaller home than to struggle every month paying a mortgage on a house with more room than you really need. The down payment, closing costs, monthly expenses and taxes must in total all be within your income and savings range
Tuesday, June 10, 2008
Mortgages With No Down Payment Still Available
Despite the bursting of the housing bubble, it’s still possible to buy homes with no money down. Freddie Mac says its “HomePossible” mortgages can help buyers with limited credit or savings, including teachers, firefighters and members of the military. Although borrowers are sometimes required to show they have money in the bank to draw upon in a crunch, Freddie Mac said people can qualify for its no-money-down purchases with no cash reserves. However, borrowers must undergo homeownership education. Such programs can reduce delinquency rates by about 34%, the company said. Freddie Mac allows home buyers to borrow more than the purchase price if they use a second loan, sometimes called a piggyback, from special lenders such as government housing agencies, nonprofit groups and employers. Fannie Mae typically applies a similar requirement when home buyers borrow more than 97% of the price. Both companies are required to devote certain percentages of their funding to affordable housing, and no-money-down or low-downpayment loans can help the companies meet those quotas. One reason buyers borrow more than the purchase price is to cover transaction costs. However, it isn’t clear how many of these no-money-down purchases are taking place these days.
Wednesday, May 28, 2008
New Housing Permits only 37% of 2005 Levels
The credit market crisis alone, which started with last summer’s subprime mortgage meltdown and has since resulted in a broad-based mortgage credit crunch for prospective home buyers, has depressed housing sector activity by an additional 30%, National Association Home Builders economists calculate. As a result, housing permits nationwide have plunged to only 37% of their levels at the height of the boom in 2005
Friday, May 23, 2008
Hoschton Fall Festival
Hoschton Fall Festival will be Sept. 26 - 27 2008 This year's event will host 2 High Energy, Hard-Kicking, Blow the Roof Off Bands ----- Bill Gentry and the 35 Cent Rodeo & Banks and Shane. For more info. go to www.cityofhoschton.com
Wednesday, May 21, 2008
Do You Have A Real Estate Question
Have a Real Estate question? Wondering about buying, selling, financing, refinancing or renting? Send your inquiry to Ray at ray@selectbrokersrealty.com
Monday, May 19, 2008
Home Sales Rising in Late 2008
The good news: home sales have stabilized over the last seven months and should increase slightly in the second half of 2008, NAR Chief Economist Lawrence Yun told a crowd of REALTORS® at NAR’s Midyear Legislative Meetings & Trade Expo Thursday. The other good news is that the subprime lending crisis is becoming a thing of the past. “I believe 2008 will be the year when we have to clean up and recover from the subprime mess"
Friday, May 16, 2008
Jackson County Boys & Girls Club Net $60,000
The Boys & Girls Club of Jackson County held a fundraiser Friday night and netted more than $60,000 through both live and silent auctions. The Boys and Girls club is open to children ages 6 to 15 for membership for $25 per year.
For more info. call Michael Williams 706-367-8553.
For more info. call Michael Williams 706-367-8553.
Thursday, May 15, 2008
Hoschton Seeks Guinness World Record
Hoschton is seeking a spot in the Guinness World Records with the Most Scarecrows in one location. The current record is 3,311 held by Cincinnati Horticultural Society's Flower and Farm Fest. Hoschton plans to have 4,000 displayed throughout Hoschton's Addresses for the Fall Festival on Sept. 26-27.
Monday, May 12, 2008
Housing Market of the Future
Smaller Houses. In a February survey of potential home buyers by the National Association of Home Builders, 60 percent said they would rather have a smaller house with more amenities than vice versa. "In the past, people would say 'Give me space and I'll add the features later,' " says Gopal Ahluwalia, the NAHB's vice president of research. Newly built houses will have layouts that can "live bigger" than their square footage would suggest, with rooms that can do double duty, experts say.
Saturday, May 3, 2008
Housing Crisis - Not The First Time
The age of industrialization hardly ushered in a society of home owners. In 1900 nearly 40% of Americans were living in urban areas, double the percentage from 40 years earlier. But 75% of those dewellers were renters. No doubt many didn't see homeownership as a realistic possibility.
In 1921 construction of housing units soared from 449,000 units to 937,000 in 1925. The following year the air started coming out of the real estate boom. By 1929 construction had dropped to 509,000 units. In October the stock market plunged; the Great Depression was on.
The Depression left many home owners unable to renew their mortgages at reasonable rates. Between 1930 and 1940 about 1,000 homes were foreclosed daily and homeownership plummeted more than 25%. By 1940 the homeownership rate was at 43.6% below the 47.9% it had been 20 years earlier.
On May 7, 1933 President Roosevelt in a radio broadcast outlined the "New Deal" program. He said "Congress is about to pass legislation that will greatly ease the mortgage distress among the farmers and the home owners of the nation by providing for the easing of the burden of debt now bearing so heavily upon millions of our people."
The Home Owners Loan Corp. that Congress authorized in 1933 helped save thousands of destressed home owners from losing their houses. It called for the federal government to issue bonds that home owners could exchange for home mortgages. In 1934 Congress established the Federal Housing Act (FHA).
More readily available and affordable mortgages helped spur home building and buying.
The country's entry into World War II again currtailed homebuilding, but the G.I. Bill in 1944 made low interest home, farm and business loans readily available with 100% loan to value ratios.
SO IF 100% LOANS HAVE BE AVAILABLE SINCE 1944 - WHY IS EVERYONE BLAMING OUR CURRENT HOUSING CRISIS ON THESE TYPE LOANS?
Before citizens could take advantage of this program builders had to address the serious housing shortage that existed. By 1947 millions of husbands and wives and children were living bunched up with their in-laws.
The housing boom that followed the war is one of the defining moments in America's housinf history. Homeownership increased more than 11% fro 1940 to 1950 and jumped another 7% by 1960, passing the 60% mark.
Over the next 40 years the percentage of Americans owning their home continued to rise. Homeownership peaked at 68.9% in2005, a year that marked the end of a prolonged housing boom.
CONGRESS NEEDS TO STEP FORWARD, AS THEY DID IN THE PREVIOUS ECONOMIC CRISIS, TO REFORM THE FHA AND TO ESTABLISH A HOMEBUYERS TAX CREDIT THAT WOULD RESTORE CONFIDENCE TO CONSUMERS.
In 1921 construction of housing units soared from 449,000 units to 937,000 in 1925. The following year the air started coming out of the real estate boom. By 1929 construction had dropped to 509,000 units. In October the stock market plunged; the Great Depression was on.
The Depression left many home owners unable to renew their mortgages at reasonable rates. Between 1930 and 1940 about 1,000 homes were foreclosed daily and homeownership plummeted more than 25%. By 1940 the homeownership rate was at 43.6% below the 47.9% it had been 20 years earlier.
On May 7, 1933 President Roosevelt in a radio broadcast outlined the "New Deal" program. He said "Congress is about to pass legislation that will greatly ease the mortgage distress among the farmers and the home owners of the nation by providing for the easing of the burden of debt now bearing so heavily upon millions of our people."
The Home Owners Loan Corp. that Congress authorized in 1933 helped save thousands of destressed home owners from losing their houses. It called for the federal government to issue bonds that home owners could exchange for home mortgages. In 1934 Congress established the Federal Housing Act (FHA).
More readily available and affordable mortgages helped spur home building and buying.
The country's entry into World War II again currtailed homebuilding, but the G.I. Bill in 1944 made low interest home, farm and business loans readily available with 100% loan to value ratios.
SO IF 100% LOANS HAVE BE AVAILABLE SINCE 1944 - WHY IS EVERYONE BLAMING OUR CURRENT HOUSING CRISIS ON THESE TYPE LOANS?
Before citizens could take advantage of this program builders had to address the serious housing shortage that existed. By 1947 millions of husbands and wives and children were living bunched up with their in-laws.
The housing boom that followed the war is one of the defining moments in America's housinf history. Homeownership increased more than 11% fro 1940 to 1950 and jumped another 7% by 1960, passing the 60% mark.
Over the next 40 years the percentage of Americans owning their home continued to rise. Homeownership peaked at 68.9% in2005, a year that marked the end of a prolonged housing boom.
CONGRESS NEEDS TO STEP FORWARD, AS THEY DID IN THE PREVIOUS ECONOMIC CRISIS, TO REFORM THE FHA AND TO ESTABLISH A HOMEBUYERS TAX CREDIT THAT WOULD RESTORE CONFIDENCE TO CONSUMERS.
Friday, May 2, 2008
Don't Be Caught Unaware of Problems
A pre-listing home inspection can uncover previously unknown problems - major and minor - allowing sellers the opportunity to make repairs or replacements as needed. By addressing these issues before the home goes on the market, you can list a home with confidence in its condition and will have a better chance of maximizing its value. Being aware of issues in advance will also allow for disclosure of problems when selling, which can result in cleaner offers and a smoother transaction for both parties.
Thursday, May 1, 2008
Loan Plan for Homeowners
Struggling U.S. homeowners could receive federal loans to pay down as much as 20% of their principal under a proposal introduced Wednesday by the Federal Deposit Insurance Corp. to help stem foreclosures.
The plan would be run through the Treasury Department, which would make the loans.
The program would hinge on the willingness of mortgage servicers and investors to agree to restructure troubled loans, as well as to pay the financing cost of making the federal loans.
The plan would be run through the Treasury Department, which would make the loans.
The program would hinge on the willingness of mortgage servicers and investors to agree to restructure troubled loans, as well as to pay the financing cost of making the federal loans.
Tuesday, April 29, 2008
Home Values Are Down
Home prices are down about 12% since the height of the housing boom in 2005 and incomes have grown 14%, bringing “prices relative to income to about where they were in 2003” during this year’s first quarter I believe we have flushed out most of the excess.
Monday, April 28, 2008
Mortgage Rates Jump
Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ended April 24, from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above 6 percent. The 15-year fixed mortgage rate climbed during the same period, edging up to 5.62 percent from 5.40 percent.
Thursday, April 24, 2008
Braselton Antique & Gardening Festival
Braselton Antique & Gardening Festival set for this weekend April 26 & 27
(Braselton) The semi-annual Braselton Antique and Gardening Festival "goes green before green became cool" this weekend by offering workshops in addition to the booths of antiques, vintage items, collectibles and gardening merchandise. Scheduled for Saturday (9:00-6:00) and Sunday (10:00-5:00) in Braselton Park, all events, exhibits and workshops are free. Food and beverage vendors will be in the park. Timely workshops are hosted by area professionals. "Drought tolerant plants, vegetable gardening and dividing/planting day lilies" are workshops to be presented in the park pavilion. Helpful information on water conservation, forest fire prevention and growing organic foods will be offered by exhibitors. Hometown Community Bank is the presenting sponsor of the festival. Admission and parking are free at the two-day events. The Braselton Park is located one block west of GA 53 in downtown Braselton (Exit 129 from I-85). For further information, telephone 706.654-3693.
(Braselton) The semi-annual Braselton Antique and Gardening Festival "goes green before green became cool" this weekend by offering workshops in addition to the booths of antiques, vintage items, collectibles and gardening merchandise. Scheduled for Saturday (9:00-6:00) and Sunday (10:00-5:00) in Braselton Park, all events, exhibits and workshops are free. Food and beverage vendors will be in the park. Timely workshops are hosted by area professionals. "Drought tolerant plants, vegetable gardening and dividing/planting day lilies" are workshops to be presented in the park pavilion. Helpful information on water conservation, forest fire prevention and growing organic foods will be offered by exhibitors. Hometown Community Bank is the presenting sponsor of the festival. Admission and parking are free at the two-day events. The Braselton Park is located one block west of GA 53 in downtown Braselton (Exit 129 from I-85). For further information, telephone 706.654-3693.
Wednesday, April 23, 2008
Government Efforts with Mortgage Crisis
Some state officials, frustrated by what they view as the federal government's inadequate response to the mortgage crisis, are taking increasingly aggressive steps to address the rising rate of foreclosures.
Company and government efforts to address the mortgage crisis have done little to stanch foreclosures, state officials said.
The Silver Lining: The number of delinquent borrowers working with lenders has increased, they said.
States such as Maryland, Massachusetts, Minnesota and Virginia are looking at extending the foreclosure process or have already taken such steps in an effort to give borrowers more time to work out repayment plans with their lenders. Rising foreclosures hurt not just troubled borrowers, state officials say, but also their neighbors and communities.
Company and government efforts to address the mortgage crisis have done little to stanch foreclosures, state officials said.
The Silver Lining: The number of delinquent borrowers working with lenders has increased, they said.
States such as Maryland, Massachusetts, Minnesota and Virginia are looking at extending the foreclosure process or have already taken such steps in an effort to give borrowers more time to work out repayment plans with their lenders. Rising foreclosures hurt not just troubled borrowers, state officials say, but also their neighbors and communities.
Tuesday, April 22, 2008
Fuel Cost and Housing
The real cost of housing is significantly higher than we think when transportation is factored into the equation, according to a joint study by the Center for Neighborhood Technology and the Center for Transit Oriented Development.These organizations have developed a database that measures affordability in 52 major metropolitan areas around the country. The farther from public transportation a community is located the higher its cost of living. In some cities, the cost of housing is less than 30 percent of income, but when transportation is added in the costs can be as much as 65 percent of income. Gasoline at $1 and gasoline at $3 are whole different worlds.
Monday, April 21, 2008
Jazz Concert
Jackson County Comprehesive High School will be the host location for several jazz concerts from East and West Middle Schools and High School jazz bands. The concert starts at 7:30 pm
Friday, April 18, 2008
Welcome -- Whole Foods
Whole Foods Market - a natural & organic foods grocer opened it regional distribution center in a 111,000 sq. ft. building located on Hwy. 124 Braselton.
Wednesday, April 16, 2008
Housing Slowdown Goes Beyond U.S.
Countries in the rest of the world are beginning to feel their own versions of the U.S. housing downturn.In Ireland, Spain, Britain, and elsewhere, housing markets are returning to earth after soaring for decades. Experts worry that these countries could suffer the mortgage defaults and foreclosures that have been such a problem in California, Florida, and other U.S. states.''The problems in the U.S. are being transmitted to Europe,'' says Michael Ball, professor of urban and property economics at the University of Reading in Britain, who studies housing prices. ''What's happening now is an awful lot more grief than we expected.''The problem is most acute in Spain, where more than 4 million homes have been built in the last decade – more than in Germany, Britain, and France combined. Now property values have dropped more than 15 percent and mortgages are drying up.
Monday, April 14, 2008
No-Downpayment Mortgages Gone for Good?
While Fannie Mae and Freddie Mac still have products that allow borrowers to finance 100% of their home purchases, at a higher cost, the major private mortgage insurance companies have recently backed off insuring these loans.
Petco Moving To Braselton
Petco -- a national retailer of pet foods plans to open a large distribution center in Braselton's Business Park with a 506,200 square foot facility.
Friday, April 11, 2008
Building Permits Dropped
The number of building permits in Jackson county dropped more than 60% the first quarter of 2008 compared to the same period in 2007. Braselton's dropped from 102 to 48, Jefferson dropped from 63 to 10.
Tuesday, April 8, 2008
Hoschton's Art Trax
On April 19th Hoschton Depot will host this year's Art Trax. Pottery, glass-blown objects and other fine art will be displayed and available for purchase. For more details contact Robbie Bettis at Braselton Antique Mall 706-654-3693
Sunday, April 6, 2008
Here Are Five Low-Cost Ways to Save Energy:
Get a blower test. For $200 to $500 (a fee that's sometimes subsidized by utilities), an energy auditor can find where air is escaping through cracks around windows, doors, pipes and light fixtures. If you plug these gaps with caulk and weather stripping, you can tighten the house considerably. But you should be aware that better sealed homes also need better ventilation, because they tend to build up extra moisture and indoor pollutants like cooking smoke and chemicals from household cleaners. While opening a window can bring in fresh air, it also lets heated air escape, so you may need to add a mechanical ventilation system.
Seal ductwork. Seal joints and openings around heating/cooling registers with mastic sealant or metal tape (not duct tape, which despite its name, isn't durable enough for this purpose). Also, partially close registers in rooms that you don't often occupy.
Improve windows. When it comes to conserving energy, windows are a weak spot, so many states and localities provide incentives to install storm windows, solar glazing for windows (to help control solar heat gain and loss), window films and weather stripping. Some will help subsidize upgrades to new energy-efficient windows as well. For a list of programs, go to EfficientWindows.org.
Install fans. Energy Star-rated ceiling fans improve air flow in your home and make you feel more comfortable in hot weather, so you're less likely to fiddle with the thermostat. Whole house fans in the attic reduce heat build up, so your house feels cooler.
Boost insulation. Over the years, insulation can settle down and lose its fluffiness, reducing its ability to protect against energy loss. Attic insulation should be at least a foot deep
Seal ductwork. Seal joints and openings around heating/cooling registers with mastic sealant or metal tape (not duct tape, which despite its name, isn't durable enough for this purpose). Also, partially close registers in rooms that you don't often occupy.
Improve windows. When it comes to conserving energy, windows are a weak spot, so many states and localities provide incentives to install storm windows, solar glazing for windows (to help control solar heat gain and loss), window films and weather stripping. Some will help subsidize upgrades to new energy-efficient windows as well. For a list of programs, go to EfficientWindows.org.
Install fans. Energy Star-rated ceiling fans improve air flow in your home and make you feel more comfortable in hot weather, so you're less likely to fiddle with the thermostat. Whole house fans in the attic reduce heat build up, so your house feels cooler.
Boost insulation. Over the years, insulation can settle down and lose its fluffiness, reducing its ability to protect against energy loss. Attic insulation should be at least a foot deep
Friday, April 4, 2008
Jackson County Chamber of Commerce Chili Cook-Off
The Jackson County Chamber of Commerce will host it's annual chili cook-off on Saturday April 19 from 3-6pm at Year One Braselton. A classic car show will also be held at this event.
Thursday, April 3, 2008
67 Acre Mixed-Use Project with 657 Condos and Townhomes near Braselton
A 67 acre property spanning Hall County and Gwinnett County with 657 condos and townhomes with almost 800,000 sq ft of office and retail space near Hwy 211 located on Thompson Mill Rd next to The Village at Deaton Creek received the blessings of the Hall County commissioners last week. Next month, Gwinnett County commissioners will have their final say on the project.
Wednesday, April 2, 2008
Fannie Mae Raises Credit Standards
Fannie Mae has tightened standards for the home mortgages it guarantees or buys.
The government-sponsored provider of home loan funding told lenders Monday it will require a minimum credit score of 580 for most loans it buys on an individual basis. Credit scores range from 300 to 850. In the past, Fannie had no minimum score.Fannie also told lenders it will increase the period needed for borrowers to re-establish credit history after a foreclosure from four years to five. Fannie said it would allow shorter recovery periods for borrowers with "documented extenuating circumstances" that caused the foreclosure.
In a separate memorandum, Fannie, told loan services last week that it could extend forbearance periods on delinquent borrowers to as long as six months to allow borrowers time to find an alternative to foreclosure.
The government-sponsored provider of home loan funding told lenders Monday it will require a minimum credit score of 580 for most loans it buys on an individual basis. Credit scores range from 300 to 850. In the past, Fannie had no minimum score.Fannie also told lenders it will increase the period needed for borrowers to re-establish credit history after a foreclosure from four years to five. Fannie said it would allow shorter recovery periods for borrowers with "documented extenuating circumstances" that caused the foreclosure.
In a separate memorandum, Fannie, told loan services last week that it could extend forbearance periods on delinquent borrowers to as long as six months to allow borrowers time to find an alternative to foreclosure.
Tuesday, April 1, 2008
American Street Rodders Car Show
The American Street Rodders classic car club will kick off their 2008 season on Saturday April 12 at Towne Center Shopping Center Hoschton Ga. starting at 5pm. For more info visit their web site www.americanstreetrodders.net Cruise-Ins will be held every 2nd Saturday of the month thru Oct.
Monday, March 31, 2008
Housing Industry Needs Congress' Help
The housing contraction of the last couple of years is weaving its way through the entire economy, wreaking havoc on the credit markets and causing job losses. Nearly one in six jobs is connected with the housing industry in the metro Atlanta area
The message coming from the housing industry at this point is urgent, yet simple. Congress must move now to enact a temporary home buyer tax credit. This will pay huge dividends, with three immediate results: a stimulation of home buying activity, a drop of excess supply in housing markets and a halt to the erosion of housing prices and mortgage credit quality.
Few can argue that the home building industry is a critical component of the economy, both in metro Atlanta and the nation as a whole. In fact, housing represents 15.2% of the U.S. gross national product. As housing goes, so goes the economy, and this statement has never been more accurate.
The message coming from the housing industry at this point is urgent, yet simple. Congress must move now to enact a temporary home buyer tax credit. This will pay huge dividends, with three immediate results: a stimulation of home buying activity, a drop of excess supply in housing markets and a halt to the erosion of housing prices and mortgage credit quality.
Few can argue that the home building industry is a critical component of the economy, both in metro Atlanta and the nation as a whole. In fact, housing represents 15.2% of the U.S. gross national product. As housing goes, so goes the economy, and this statement has never been more accurate.
Sunday, March 30, 2008
Jackson County - 10th Fasting Growing County in U.S.
Jackson County grew by almost 4000 people in 2007 making it the 10th fasting growing county in the nation, according to the U.S. Census Bureau.
Friday, March 28, 2008
Don't Forget PMI Mortgage Insurance Is Deductible
As April 15 tax day approaches, here is a reminder for home buyers with PMI mortgage insurance. Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. This is a new tax break that Congress has approved through 2010. On average, this year's tax break could be worth $350 per taxpayer — an annual deduction that qualified home owners can take each year through 2010. Be sure to ask your tax consultant about this deduction.
Thursday, March 27, 2008
West Jackson Overlay Districts
Jackson County commissioner Bruce Yates is proposing a overlay district for Ga. Hwy 53 and Ga. Hwy 124. A public meeting on the proposed overlay district will be held on Tuesday April 15, at 7 pm at the Hoschton Depot.
Wednesday, March 26, 2008
Hi, I'm new at blogging and I have to admit that I entered this very hesitantly. My goal is to create a place where we can exchange ideas and knowledge about what's happening not only in the real estate world but what's happening in North Georgia. Did you know that the FHA loan limits have increased for Jackson, Hall, Banks, Franklin, Stephens, Hart and Elbert Counties to $271,050.00 that's over $70,000.00 increase over previous limits.
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