Monday, January 28, 2013

Post Superbowl. 5 Intelligent Reasons You Should List Your home Today!..Motivated sellers meet..Educated buyers

Many homeowners are waiting until the Spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year:

1.) Demand Is High

Homes are selling at a pace not seen since 2007. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that annual sales in 2012 increased 9.2% over 2011. There are buyers out there right now and they are serious about purchasing.

2.) Supply Is Low

The monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. The current month’s supply is down 21.6% from the same time last year. Historically, inventory increases dramatically in the spring. Selling now when demand is high and supply is low may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative to many purchasers.

4.) Interest Rates Are Projected to Inch Up

The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) Timelines Will Be Shorter

The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.
These are five good reasons why you should consider listing your house today instead of waiting.

Ron Goldstein,

Friday, January 25, 2013

Jobs&Homes.The base of our economy.Ring in 2013 with your ROI and real estate trusted advisor in check

Ring in 2013 with your ROI and real estate trusted advisor and thought leader in check..Announcement from Silver Professionals and
Greetings Linked in colleagues/friends. Happy post new year
May 2013 bring all of you happiness, good health and personal successes!

First of all, thanks for the tremendous ongoing success of SP in 2012. We have placed a great deal of professional candidates nationwide in various disciplines.

Silver Professionals..Employment power and opportunities for dependable and loyal professional job seekers. Employers..We have a reliable and repeatable process in the hiring of candidates from our pool of professional talent. We offer a flat fee schedule of permanent PT/FT (975/4995) employment and several business service offerings to make your human resource capital as efficient as possible. We offer a comprehensive background/interview check, leveraging behavioral questioning to facilitate mutual success. We have recruiting available with our global reach .90 day guarantees..amazing talent from Interim Surgical RN,LPN,Physician Assistant, outside/inside sales/biz dev. gurus..Enterprise IT architects.IOS/Android/Mobile developers..nurses/nurse practitioners.bookkeepers..CEO to COO, CFO, CIO, audit CPAs,Dir of HR, Dir of Manufctg, CRM, ERP and EHR implementers/thought leaders/developers, research scientist, hematologist/oncologist, Concierge Dr… Come check out our 900+ talent available..

Back on the RE "homefront", I was fortunate to have a great many colleagues and referrals assist in making my best year yet for Rubloff, again making the Honor Society!
The perfect "storm" rates@alltime low and purchase activity@5 yr. high..motivated educated buyer..

Allow me the opportunity to be your trusted advisor and thought leader throughout the real estate and job process...Thanks again! Ron

Carpe Diem.The perfect storm.Best time to buy RE in 5 yrs.

Steady December home sales capped the best year for the U.S. real estate market in five years, according to an industry trade group report Tuesday.


The National Association of Realtors said that December sales of previously-owned homes came in just slightly below November's sales pace, but up 12.8% from a year ago. That brought full-year sales to 4.65 million, up 9% from 2011 and the best year for home sales since 2007, when there were 5 million homes sold just before the start of the recession.
Sales are being helped by a combination of strong market fundamentals -- near record low mortgage rates, lower unemployment and a rebound in home prices, all of which are bringing in buyers into the market who had been waiting for it to hit bottom. The mortgage rates and years of depressed home prices have also combined to create the most affordable housing market on record, according to the Realtors group.
And the Realtors are predicting strong sales should continue into 2013 and beyond. It has a forecast for 5.1 million existing home sales this year, and 5.4 million next year.

The improved demand for homes in December led to the inventory of homes for sale to fall to 1.82 million homes on the market, the lowest supply since January 2001. One factor in tightening supplies is a drop in foreclosures and other distressed home sales, which made up only 24% of home sales in December compared to 32% a year ago. The tighter supply, and the drop in distressed sales, have helped to lift home prices so that the median sales price for the year rose to $176,600, up 6.3% from 2011. That's the biggest gain in prices in since the bubble year of 2005.

NEW YORK (CNNMoney) .original article.

Wednesday, January 23, 2013

Will 20% Soon Be the Minimum Down Payment on a Home?

Will 20% Soon Be the Minimum Down Payment on a Home?

by The KCM Crew
Increased CostSeveral government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, it was suggested that loan-to-value (the percentage of the overall purchase price which was being borrowed) was a major factor in determining if a loan would default:
“For most origination years, requirements for borrower credit score and loan-to-value ratio are the factors that most reduce the ever-90-day delinquency rate of mortgages acquired by the Enterprises that would have met the proposed QRM standards.”
The note then made the following proposal:
“An LTV ratio qualified residential mortgage must meet a minimum LTV ratio that varies according to the purpose for which the mortgage was originated. For home purchase mortgages, rate and term refinances, and cash-out refinances, the LTV ratios are 80, 75, and 70 percent, respectively.”
Basically, the original note suggested that a 20% down payment should be the new guideline. We realize that there has been much debate on this issue since and that the minimum down payment required under the new QRM guidelines will probably be less than 20%. However, we can’t know for sure.
Bloomberg reported last week:
“The six regulators drafting the separate QRM rule, including the Department of Housing and Urban Development, the Office of the Comptroller of the Currency and the Securities and Exchange Commission, must decide whether to include such a requirement — and whether to make it less than the 20 percent they originally proposed.”
Will it be more difficult to qualify for a mortgage after the new QRM rules are announced? Probably
As David Stevens, President of the Mortgage Bankers Association said during a speech in Washington on Jan. 16:
“I have consistently warned of the regulatory tidal wave to come and it’s finally upon us. These changes will impact business operations and the future of mortgage access for years to come.”

Wednesday, January 16, 2013

10 Reasons to Buy Instead of Rent.Carpe Diem..Educated buyers meet informed sellers. Great time!

10 Reasons to Buy Instead of Rent

With rents going up and interest rates at an all-time low, renters should consider taking the plunge

Home buying has earned a bad rap in recent years: The subprime mortgage crisis and ensuing economic meltdown left many homeowners underwater, unable to pay their mortgage, and even facing foreclosure. Homeownership rates fell throughout the recession, and are currently around 66 percent, compared with almost 70 percent in 2004, according to the Census Bureau.
But the great American dream of owning a home appears poised for a comeback. Real estate company Trulia reports that in many parts of the country, rents are rising while housing prices are falling, making buying a home more affordable. Trulia found that in 98 out of 100 major metropolitan areas, including Detroit, Atlanta,Chicago and Cleveland, buying has become more affordable than renting.
If you're struggling with whether to buy versus rent, consider these 10 reasons to take the plunge into homeownership:
1. You can ramp up energy efficiency.
Energy-efficient improvements, from adding insulation to upgrading your air conditioning unit, can reduce your monthly utility bill, says Jane Hodges, author of the new book Rent Vs. Own. While renters can make plenty of green improvements on their own, from unplugging appliances to turning off lights, homeowners can make bigger changes, such as adding solar panels or installing an energy-efficient roof. (Of course, a renter living in a one-bedroom apartment likely uses far less energy than a homeowner in a three-bedroom house, so size can trump energy improvements.)
2. You can customize your space.
Whether you need to knock down a wall to make a larger master bedroom or redo the bathroom to reflect your Art-Deco tastes, owning the space you live in means you have the freedom to do so, without worrying about losing your security deposit.
3. Homeowners buy less furniture.
"Often when you're renting you need custom furniture that fits the space," says Hodges, such as room dividers for a loft or miniature furniture to fit into a basement apartment. "When people move a lot, they can end up buying a lot of furniture," she says. If you buy a home and settle in for the long haul, you can likely purchase a few pieces that will stick around.
4. Owning a home forces you to save.
The so-called "forced savings" argument is a widely-held one: Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on new shoes or fancy meals. Then, if you eventually sell your home after the mortgage is paid off, there's a good chance that "you'll walk away with a payoff," even after subtracting the costs of ownership, says Hodges. (Of course, homeowners who face foreclosure or declining home values often find themselves without such equity to show for their monthly mortgage payments.)
5. Homeownership allows you to build a second income stream.
From taking in a renter in a spare bedroom to renting out driveway space to commuters, Hodges says homeowners are increasingly finding ways to monetize their homes. In cities with scant green space, some homeowners even rent out small patches of grass for people who want to grow vegetables.
6. No landlord can kick you out.
Renters can face an unexpected eviction notice if their landlord suddenly decides to sell the home, rent to someone else, or otherwise end the lease. That's one reason Boston University economics professor Laurence Kotlikoff says that for older people with a fixed income in particular, he recommends homeownership (and a paid-off mortgage). "It's important for older people to be in a home that they own as security against a landlord," he says.
7. In fact, you don't have to speak to a landlord, ever again.
Landlords can take ages to fix a broken dishwasher, let the air vents fill with dust and particles, or leave pesky messages about repairs. If you're the homeowner, then you're in charge—which means you have to be home when the plumber calls, but the plumber reports to you. (And, of course, you also have to pay the plumber.)
8. Unlike rent, a fixed mortgage can't go up (even if inflation does).
Fixed mortgage rates don't go up, even if the cost of everything else does. To protect yourself, Jack Otter, author of Worth It… Not Worth It? suggests making a 20 percent down payment and taking out a 30-year fixed mortgage to lock in today's low interest rates. "Mortgage rates haven't been this low since GIs were heading home from France. Lock in a low monthly payment, and you've just taken a huge step in protecting your family against inflation," he writes.
9. Homeowners can take tax deductions.
The chief tax benefit of homeownership is the ability to deduct mortgage interest payments, but the perks don't stop there. Homeowners can also deduct eligible expenses (certain energy-efficient improvements, for example) and in some cases can avoid federal taxes on earnings from the sale of a home.
10. You can take advantage of currently low interest rates and prices.
Interest rates remain at historical lows, and at the same time, home prices in many areas remain soft. Trulia points out that deals are especially appealing in suburban areas, compared with the more expensive cities. Overall, Trulia says, asking prices on homes went down 0.7 percent over the last year, while rents went up by 5 percent.
Of course, buying isn't for everyone. If you might move soon, or you want the flexibility to upgrade your digs with just a month's notice, or your job outlook is uncertain, then renting can be ideal. Hodges says potential buyers should first consider the transaction costs of homeownership, which can add up quickly, especially if a buyer doesn't plan to stay put for very long.
"During the bubble, people were looking at homes as a tool to make money," says Hodges. Now, they just see it as a place to live.

Friday, January 4, 2013

Tax Benefits for buying real estate in 2013

Leverage, appreciation and tax breaks highlight the advantages of owning real estate. Whether you are simply a homeowner or a real estate investor, you benefit from owning property. The tax advantages of owning real estate are one aspect of investing that transcends market conditions.

Mortgage Interest Deductions

As a homeowner, you are entitled to itemize your tax deductions and claim all interest you pay on your mortgage as a deduction. In areas characterized by high median home value, this benefit is especially advantageous. If you are in a 28 percent tax bracket, buy a $700,000 condo in San Francisco with a 20 percent down payment and have a $560,000 mortgage at 5 percent, your mortgage interest deduction during your first year of home ownership will be just under $8,000 ($28,000 in interest times .28). Use an online mortgage calculator with an amortization schedule to calculate mortgage interest--it changes every month because the principal is reduced. There are caps on the amount of interest that can be written off and an income threshold beyond which deductions are not allowed, but the vast majority of home owners never butt up against these limitations.

Tax Exempt Profits

As a homeowner you are entitled to an exemption of $250,000 (if you are single) or $500,000 (if you are married) of profit on your home when you sell. You must live in your house at least two of the prior five years before the sale. You can take advantage of this tax exemption once every two years. If you are purchasing another house in the same region, you may need the proceeds to purchase your next house, but if you are downsizing or moving to a less-expensive area of the country, you will be able to pocket the proceeds.


For rental property owners, depreciation is a significant tax benefit. Depreciation is a deduction of the cost of buildings and capital improvements to buildings over their lifetimes. The IRS has determined the useful life of various classes of buildings and improvements. You use these figures to determine how much of a deduction you can take each year. If you buy an apartment building worth $1,000,000, you can deduct $36,363 from the building's income each year for 27.5 years. ($1,000,000 divided by 27.5 years.) In some cases, depreciation results in your making an actual cash profit but showing a paper loss for tax purposes. In some instances, you can carry over excess depreciation to reduce the tax liability of your employment income.

Tax Deferment

When you sell a rental property, you are entitled to take advantage of IRS code No. 1031 and put the profits into a new building, tax free. The 1031 exchange can be used over and over, theoretically resulting in a permanent avoidance of tax on your profits. You may also do a 1031 exchange and then refinance the new building, taking your profit out as equity, tax free.

Original article..

Ron Goldstein, MBA
Transnational Referral Certified(TRC)
Quality Service Certified(QSC)
Broker Associate
Prudential RUBLOFF Real Estate
cell (312)771-7190
Carpe Diem.Today is your day!...
Certified Eco-Broker
Check out my blog@