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Your Fall Produce Guide

Do you like to eat locally? While the summer has an abundance of fresh produce for you to grab at your local farmer’s market, as fall hits, many wonder what local produce is still available. Below are the top five things to eat this autumn, available in most regions in the country. Apples! All hail fall, the season of apples! From apple pie to applesauce, apple slaw and more, there are hundreds of ways to enjoy this crispy sweet (or tart!) treat. Look for local apples in your grocery store or drive up to a nearby farm to pick yourself. Broccoli. Although it does grow in the warmer months, broccoli lingers into the fall. Roast up some spears with garlic and olive oil, or pull out your wok for a quick stir-fry. Blackberries. Most of us think of summer as the season for berries, but blackberries are available in some regions well into the early fall. Great for pies, smoothies, muffins and fruit salads, these juicy berries are packed with antioxidants—great for fighting colds as the “sick” season approaches. Cabbage. Stuffed cabbage, baked cabbage, stewed cabbage, coleslaw! This cruciferous veggie is very versatile, and extremely inexpensive. Grab a head or four and get to munching. Cauliflower. Many mistake cauliflower as being void of nutrients due to its pale coloring, but this couldn’t be further from the truth. Packed with vitamins, this veggie is great raw, steamed or baked. Some are even getting creative by making cauliflower “rice” and pizza crusts. Hit up Google for some innovative cauliflower recipes. Zoe Eisenberg is RISMedia’s senior content editor. Email her your real estate news ideas at zoe@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com. The post Your Fall Produce Guide appeared first on RISMedia.
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Brandon Farber

Brandon Farber

 

Your Condo View – Enjoy it While You Can

Buying a condo can be way more involved than most buyers think. Make sure you are getting all the information from your REALTOR about purchasing a condo. For a list of common questions you should ask about purchasing condos in our area contact me.  Meanwhile read this story of a gentleman that purchased a condo in Seattle and what he experienced. 
Your Condo View – Enjoy it While You Can  
Downtown condo living, complete with easy access to transit, shopping, a short walk to work, no maintenance yard and best of all, the view. It was the birds-eye view of the city, the mountains, and the breathtaking sunset that sold you on the place – no one mentioned it was only temporary.

Downtown condo living, complete with easy access to transit, shopping, a short walk to work, no maintenance yard and best of all, the view. It was the birds-eye view of the city, the mountains, and the breathtaking sunset that sold you on the place – no one mentioned it was only temporary. What happens when the view that came along with your 33 story condominium disappears because a neighboring building is built only 18 feet away? That is what happened to Benjamin Shanfelder when he purchased a unit in the downtown Seattle Cosmopolitan building in 2005. He realized that other condos were slated for nearby developments, but at the time, the height restrictions limited the number of floors of an adjacent building. The rules were changed and a 34 story condo was constructed right next door, eliminating Shanfelder’s view, sunlight and privacy. Whose responsibility was it to inform the new tenants that the city regulations had changed? According to city requirements, the developer and the adjacent property owners should be notified; however, future tenants are on their own to discover these new developments. A new construction does not automatically assume the condo owner will lose their view. Different areas of the city have different separation requirements based on density. Some areas require no separation where as others mandate a minimum 60 to 200 feet. Potential buyers cannot depend solely on their realtor or developer for zoning information. A bit of research before purchasing their property may save some nasty surprises down the road. Here are some areas to consider:  Get as much information as possible from the developers regarding nearby proposals for developments, zoning restrictions and whether they have invested in air rights for the surrounding real estate to protect views. Visit the city planning office and look up the zoning laws for the nearby sites. Look up the addresses for any project applications and add your name and email address to the notification list for changes or new developments. Speak to the city planners about possible changes to the existing zoning laws. Let your comments be heard at design review hearings about future projects.  Spend the extra money to hire a land-use lawyer to complete this due diligence on your behalf.
 
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Brandon Farber

Brandon Farber

 

Wyndwater New Construction Hampstead NC

📞📞TEXT 100103493 to 910-238-3608   FOR AN AUTOMATIC TEXT MESSAGE SENT TO YOUR PHONE WITH ALL PROPERTY DETAILS! 📢Welcome to WyndWater, a master-planned community with play areas, walking trails, and sidewalks dotted with swings. 📢Wynn Homes presents the Cooke 🛏️🛏️🛏️🛏️4bedroom
🛁🛁🛁3 bth home
✅👣open floor plan ✅👌👌 This home has a formal dining room that features an accent ceiling, 1-piece crown and chair-rail with backer. Features of the kitchen include cabinets with crown molding, granite countertops, ceramic tile backsplash and a USB outlet. The downstairs living area has engineered hardwood floors. The master bedroom, located upstairs, features a trey ceiling with crown molding and a large walk-in closet. The master bath has a garden tub and a separate shower with a glass door. Other features include sodded front and side yards with front irrigation, gutters on the front of the home, digital thermostats and wood shelves in all closets. All this and more.   ⏳💲💲Builder is offering $5000 in Buyer Incentives on the 1st 5 received contracts(presale or spec) at Wyndwater. These Incentives can only be used towards Upgrades and/or Closing Costs.          

Katherine Farber

Katherine Farber

 

Working With A Home Inspector

Working with an Inspector The rule of real estate is to get your money's worth.  When you are looking into finding a place, you will want to make sure that the rule immediately applies.  One way to make sure that you are getting more for your money is by finding the right inspector.  This will allow you to find a property that is worth the up keep.   The job of an inspector is to find everything that might be a larger problem in the house before you move in.  This will begin by checking the electricity, water supply, plumbing, furnace and heat supplies, and the general build of the home.  They will take a part of their day in order to make sure that everything is built up to standard and that it won't cause problems before you move in.   If there is something that the inspector says is wrong with your home, you will have the ability to ask for repairs or money back for the home.  There are several who will save thousands of dollars by having an inspector look at what is in the home and how it needs to be changed.  Because of this, you will want to make sure that the right inspector is coming to your home.   Most likely, your real estate agent will have a specific inspector that they like to work with.  However, you can find one on your own and have them inspect the home as contract work.  You want to make sure that they will do a thorough job and that they have your best interests in mind.  This will help you to walk into your home without any surprises and with potential replacements before you move in.   Working with an inspector is an essential part to buying a home.  It will help to determine and define the quality of the home and can help you to get the best deal in the end.  Before you sign the final papers, make sure that the inspector you have worked with has looked through everything.  This will help you to begin making your house into a home.  
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Brandon Farber

Brandon Farber

 

Working With a 1031 Exchange

Working With a 1031 Exchange There are several ways to benefit off of owning property and being involved in real estate.  Not only does this come from finding the right property, loans and people to work with, but also moves into finding the best ways to save money while you own a property.  One of the well known ways to save an extra dollar is by becoming involved in a 1031 exchange.   A 1031 exchange is a specific tax form that can help with the profits and losses that you have received for the year.  They are usually used for those that own extra real estate property as an investment.  This form will allow you to roll-over the profits that have been made from a sale made from a real estate property.  From here, you can purchase another property instead of paying the tax back on the property that was already purchased.   The major benefit of a 1031 exchange is that it allows for you to be able to delay specific taxes and instead invest into other properties.  If the property is invested in, then the taxes that are taken from capital gain will not be used later on.  A second benefit to a 1031 exchange is that it allows for more equity to be a part of the investment.  Because of this, each time you invest in a new property from the 1031 exchange, the properties will gain a higher value.   The one thing to keep in mind if you are considering a 1031 exchange is that the new investment has to be what is known as like kind.  This means that the investment must be the same as the property that has already been made.  Before getting into a 1031 exchange, it is important to consider this point, as it can cause for problems with new investments later.  However, if you have enough that was made out of the purchase for the 1031 exchange, you can purchase more, or fewer, amounts of the same type of property.   If you are moving into building your own type of benefits from real estate, then knowing about the 1031 exchange is important.  This will help you with getting more out of your property and laying the foundation for your success in real estate.  
 
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Brandon Farber

Brandon Farber

Work to begin on Oak Island's new splash park!

Oak Island:  The Town boasts 65 public beach accesses on miles of sandy beaches, as well as fishing docks and piers, boat ramps and many other access points to the Intracoastal Waterway and the Davis Canal, making it the perfect location for fishing, boating, kayaking and other water activities. The Town also has a municipal golf course and eight parks, ranging from a fishing T at the west end of the island to a large park on the mainland complete with baseball and football fields. There is a skate park, a dog park, a cabana on the oceanfront with an observation deck and plenty of places to find a quiet spot to relax and enjoy the view. Area businesses, like piers and marinas, restaurants and ice cream shops, also help make vacationers feel welcome while catering to full-time residents. Now work is to begin on Oak Island’s new splash pad, to open before summer. Oak Island residents will soon have a freshwater option to splash in, just one block from the ocean. The town’s Parks and Recreation Department announced Friday that a splash pad, years in the making, will be installed before the summer.
 

WILMINGTON PROPERTY OWNERS COULD SEE LARGER TAX INCREASE

WILMINGTON, NC (StarNews) — City residents could see a property tax rate increase three times larger than expected as part of the 2018-19 fiscal year budget. At Monday’s agenda review meeting, council members were presented two scenarios that would raise the property tax rate 1-cent or 1 1/2-cent, rather than the previously discussed half-cent hike.   For the full article see link below: https://www.wwaytv3.com/2018/06/04/wilmington-property-owners-could-see-larger-tax-increase/

Katherine Farber

Katherine Farber

 

Wilmington is the Place To Be: Things to do Around this Great City

The possibilities are endless in the beautiful city of Wilmington.  From aquariums, museums, historical sites, festivals, libraries, film studios, theatres, plantations and more, this richly cultured city is an ideal place to buy your next home.  Where else do you have a historic downtown-filled with fancy old houses, lots of cool shops and restaurants-and a beautiful stretch of sand, Wrightsville Beach, only 20 minutes apart?  Here is just a short list of a couple great things to do around Wilmington, NC.   Battleship North Carolina: Step aboard the most decorated US Battleship of WWII! Explore nine decks and discover where history comes alive Airlie Gardens: Breathtaking public gardens that host events such as outdoor summer concerts, Christmas lights display and many more. Historic Downtown District: With a rich history like Wilmington's there are historic homes, shopping,  carriage rides, walking tours and top rated restaurants to enjoy all in walking distance here.  Bellamy Mansion: A historic civil war home that is both beautiful and fascinating to tour if you have an interest in history Riverwalk: A newly renovated scenic walk along the Cape Fear River.  Great for boat tours, bike rides, people watching, and a relaxing time.   Noni Bacca Winery: The tasting room right in the heart of Wilmington that boasts 156 international medals for the highest quality wines.  Enjoy a warm welcome and some premium wine right in your own neighborhood. Water tours: Enjoy a day out on the water along the Cape Fear River and its waterways on a chartered catamaran with options for all types of personalities including eco/history tours, sunset cruises with live music, birding tours, and holiday tours. Thalian Hall Center for Performing Arts: Experience history and charm at the Thalian Hall which hosts the world-class touring artists in various performance disciplines, the cinematique arthouse film series, The annual Pied Piper Children's Theatre, community based theatre, dance, film and music organizations. Wilmington boasts a multitude of activities that range to satisfy history buffs, foodies as well as outdoor enthusiasts.  From 5 star restaurants, exciting museums and history, to world class beaches and aquariums just a short drive away this really is an amazing city to live in!
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Brandon Farber

Brandon Farber

Will new 'megadecks' be harmful to surf city?

Will new ‘megadecks’ be harmful to Surf City’s fragile dune system? Officials from Surf City and the state's Division of Coastal Management respond to concerns that some beach homeowners have raised of the negative impact these structures could have on a beach dune system left heavily damaged and vulnerable after Florence.   PENDER COUNTY, NC (WECT) - Surf City could see more mega decks in its future even though residents have mixed feelings about it. Town council in a 3-1 vote Wednesday night approved a motion for mega decks, which are structures up to 500 square feet on the oceanfront where a house would not be able to be built. Some residents aren’t in favor of the new development because of possible deck parties that could result in loud music or the deck becoming an eyesore. However, Bill Pelon, who owns two mega decks, couldn’t think of a better way to use the lots. “We utilize it not just going up and laying out but also, we’ve got a bar there," Pelon said. “We have a refrigerator, freezer. It’s just nice things to have along with the grill. We can grill out and have access to the ocean.” The town has two Coastal Area Management Act-approved mega decks. At Wednesday night’s meeting, Surf City resident Marcus Norton said mega decks will eat away at available parking space, which could cause people to avoid the area altogether.   Full article: http://bit.ly/2FbPbYJ
 

Why You Should Use A Realtor.

Consider this: if you needed work done on your teeth, would you go to a dentist or do it yourself? The same theory applies to real estate. The art of selling a home is something that takes years to perfect. There are so many aspects of home sales that the average buyers and sellers are unaware of. Also there are many aspects of the process that are only easily available to a Realtor.
 
Consider this: if you needed work done on your teeth, would you go to a dentist or do it yourself? The same theory applies to real estate. The art of selling a home is something that takes years to perfect. There are so many aspects of home sales that the average buyers and sellers are unaware of. Also there are many aspects of the process that are only easily available to a Realtor. The actual process of selling a home is very time consuming and right about now, the seller has many more important things to consider, such as the impending move.  Realtors spend years learning the art of selling and how to interpret the real estate market. They can offer you insight and information that only comes from years of experience. Realtors are also experts on their area; they know the communities and what they have to offer, the location of schools, transport routes, and how the current market will affect the sale of your home.  Using a Realtor to sell your home has several advantages over a FSBO. Perhaps the most important of these advantages is exposure. The marketing of your home is of the highest importance. Without a robust marketing plan, your home will not be seen by prospective buyers and as such, will take much longer to sell. Realtors utilize the latest in internet technology to ensure that your home is seen by as many buyers as possible. Also, realtors have a large budget to purchase newspaper ads, hold open houses, and create flyers and information packs about your property. Realtors can also utilize a CMA to evaluate the correct value of your home and to price it correctly in your local market. This will enable your home to be competitive and attractive to buyers. Remember, homes sold by a Realtor sell for an average of 20-30 thousand more than homes sold by the owner. use a professional to sell your home, and free up the time you need to organize yourself for the process of moving your own new home.
  Come Take A Tour.pdf
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Brandon Farber

Brandon Farber

 

Why You Should Stage a Cozy Fire Pit Area

By Melissa Dittmann Tracey, REALTOR® Magazine Fire features, like outdoor fire pits and fire tables, are in demand. The National Association of Landscape Professionals calls it one of the hottest landscape trends for the fall, based on a recent survey of 5,000 of its member landscapers. These hot-spots can be a great way to show off the entertaining potential of your outdoor space. Set up a fire pit with a few outdoor chairs around it. You can even drape a blanket over one chair and add ingredients to s’mores on a table to finish off this perfect cozy fall scene. Consider, taking a picture of your fire pit with the flames at dusk to even add to your listing photos to highlight as a selling point too. (A professional photographer may be best to get this picture so that the lighting is perfect.) Check out these chic fire pit areas featured by designers at Houzz. Photo by Envision Landscape Studio – Browse patio photos Photo by Alderwood Landscape Architecture and Construction – Browse patio photos Photo by Elevation Architectural Studios – More patio photos Photo by Arterra Landscape Architects – Browse patio photos Photo by Draper white – Discover patio design ideas Photo by Sycamore Design – Discover patio design ideas
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Brandon Farber

Brandon Farber

 

Why Utilization Rate Affects Credit Scores

Why Utilization Rate Affects Credit Scores A high utilization rate is a sign that you may be experiencing financial difficulty and is a strong indicator of lending risk. As a result, high utilization hurts credit scores and can cause lenders to be reluctant to extend additional credit. If you have a high balance-to-limit ratio on one card, that negative can be significantly off-set by having a low overall utilization rate. That is why we caution against closing unused cards if your scores are low and eliminating that open credit limit might increase your total utilization ratio. Keep Credit Card Balances as Low As Possible VantageScore recommends an overall utilization rate of no more than 30 percent. However, the lower your utilization ratio, the better for your credit scores. Ideally, you should pay your balances in full each month so that you never pay finance charges and don't spend more than you can afford to repay. But, don't expect paying in full to lower your utilization. The balance reported is the amount owed when you receive your billing statement. The only way to have a zero balance is to not use the card for an entire billing cycle or pay the balance well before the due date so that your billing statement will show a zero balance due. If your scores are not as good as they need to be to be approved at the best rates, paying down balances is often the best action you can take to improve your risk.
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Why Doubling the Standard Deduction Won’t Help Most Homeowners

One of the most talked-about provisions in the tax reform framework that the Trump Administration and Republican congressional leadership released a few weeks ago is the doubling of the standard deduction. Of all the changes the framework would make, this one is presented as something that will help middle-income households. And that is true, but the households that it mainly helps are renter households. Home-owning households will likely see their taxes go up even if they were to take that increased standard deduction. There are two reasons for this. First, although the standard deduction would increase from $12,600 for a family to $24,000, the plan would do away with the personal exemption and the exemption for dependents. Right now, those exemptions are $4,050 per person, So, for a family of four, the family would see their standard deduction rise from $12,600 to $24,000 but they would also no longer get to take their exemptions, which, under the current code, would total $16,200. So, they would gain almost $12,000 but lose more than $16,000. Households with larger families would lose even more. Second, for homeowners who are used to itemizing their deductions, all of these deductions except for two—the deductions for charitable giving and mortgage interest—would go away. For many middle-income households (those earning between $50,000 and $200,000), the two remaining itemized deductions won’t be enough to make it advantageous for them to continue itemizing. That’s mainly because they would lose the deduction for state and local taxes, which, for many households, is the single largest itemized deduction they take, even larger than the deduction for mortgage interest. As a result, they would almost certainly stop itemizing and instead take the standard deduction. While that might give some of them a better tax picture than if they continued to itemize, it would nevertheless be less than what they receive in tax benefits under the current code. Just as importantly, the change would wipe out the distinction between owning and renting in the tax code. That’s a distinction that’s been part of the tax code for more than 100 years and losing it would result in an across-the-board drop in home values by 10 percent or more, NAR estimates. Of course, everyone’s tax picture is unique. How one person or one family comes out under the proposed changes will differ based on many factors–household income, household expenses, the number of dependents, the size of the mortgage, the state a household lives in, and so on. But in general, based on analyses NAR and other organizations have either done themselves or commissioned others to do, the result won’t be a net gain for most middle-income households but rather a net loss. That’s why NAR and many other organizations are opposing the changes the framework is proposing. NAR’s concerns are detailed in the latest Voice for Real Estate news video. Watch now.
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Brandon Farber

Brandon Farber

 

Why a Real Estate Agent is a House Flippers Best Asset

There is so much more to flipping a house than just making it look amazing.  Of course, that's a huge part of it, but it’s also about being able to actually sell the house when you’re done with all of the renovations. Having an experienced real estate agent on your side can really boost your chances of getting the best sell for that flip.  A real estate agent are experienced negotiators that can really help with  giving more wiggle room for your renovation budget (and profit). They can help you set and keep you on track with your budget.  Real estate agents come with a lot of experience in housing price points and they know what sells so you'll be spending your budget on the right renovations. Real estate agents can help you stay on your timeline because "time is money".  Don't forget it is important to find a real estate agent that enjoys the process.   If this is a path you're interested in taking send me a message and we can set out a plan to tackle your next project!
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Brandon Farber

Brandon Farber

 

Why 2019 Could Be a Buyers Market

Home prices rose 5.1 percent in November 2018, compared to the same period in 2017, according to CoreLogic's Home Price Index (HPI) and the HPI forecast released on Wednesday. The report projects home prices calculated using the CoreLogic HPI and other economic variables. While home prices showed an increase year over year and month over month in November, the report forecast a decrease in home price growth in 2019 projecting home prices to grow by 4.8 percent on a year-over-year basis from November 2018 to November 2019. Month over month too, the report forecast a drop in home price growth by 0.8 percent from November 2018 to December 2o18. "The rise in mortgage rates has dampened buyer demand and slowed home-price growth," said Dr. Frank Nothaft, Chief Economist at CoreLogic. "These higher rates and home prices have reduced buyer affordability." The report also included the CoreLogic Market Conditions Indicators (MCI), which analyze the housing values in 100 largest metropolitan areas across the U.S. It indicated that while 35 percent of the metros had an overvalued housing market, 27 percent were undervalued, and 38 percent remained at value. The projected drop in home prices during the year as well as recent declines in the stock market are likely to see homeowners changing their selling strategy. In fact, according to Nothaft, home sellers are already responding to the reduced buyer affordability by "lowering their asking price, which is reflected in the slowing growth of the CoreLogic Home Price Index." "A strong economy helps homeowners feel confident about the value of their property," said Frank Martell, President and CEO, CoreLogic. "If recent declines in the stock market shake consumer confidence in the national economy, we may see homeowners' perception of home value change and a subsequent buyers' market emerge in 2019." At a state-level, the report found that North Dakota was the only state to show a year-over-year decline in home prices in November, while Idaho and Nevada showed double-digit growth. At a metro level, Las Vegas posted the maximum gains in home prices at 11.7 percent followed by Denver (6.6 percent); San Francisco (5.9 percent); Los Angeles (5.3 percent); and Boston (5.1 percent). Radhika Ojha, Online Editor at the Five Star Institute
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Who Owns a Half Million-Dollar Home?

After the release of the tax reform legislation from the House, last week’s question was “who will be affected by the new bill?” One of the key elements of the tax reform is the proposed capping of the mortgage interest deduction at $500K. Under the current tax framework, taxpayers who own a home are able to reduce their taxable income by the amount of interest paid on the loan, which is secured by their principal residence. Interest is deductible on only the first $1 million of debt used for acquiring, constructing, or substantially improving the residence ($500,000 for single individuals if filing separately), or the first $100,000 of home equity debt regardless of the purpose or use of the loan.  The new tax reform legislation allows homeowners to take the deduction on their first $500,000 of mortgage debt, half of the current threshold. The new threshold will affect only mortgages on purchases made after the law is in force (but will not include refinancing). Thus, a new homebuyer will be able to deduct from his taxable income up to $15,475[1] under the new proposed tax framework, while he could deduct up to $30,950 under the current tax framework. Although $500K seems to be a decent amount of money, is it enough to buy a home in all areas in the United States? Since all real estate is local, we calculated the share of homes[2] with a value higher than $500K by Congressional District. Based on the data, on average, 15% of homes with a first mortgage are worth over half a million dollars across the congressional districts. The share varies from 0.1% (13th District, Ohio) to 94% (14th District, California). Actually, one out of every two homes is worth over half a million in several districts in the following states: California, Connecticut, District of Columbia, Hawaii, Massachusetts, New York, Virginia and Washington. Furthermore, we should bear in mind that the limit of $500K is not indexed to inflation, causing its value to diminish even further over time. Thus, we took our analysis one step further and calculated the share of homes with a value higher than $500K (subject to an inflation rate of 2%) in 2026 and 2036. The map below allows you to see the share of homes with a first mortgage and value higher than $500K in 2016, 2026 and 2036.
It is true that the statistics above include people with a mortgage who already own a house. As we already mentioned, the MID cap will be applied to new mortgages only. Thus, someone would argue that these people will not be affected. It is true that there will not be a direct effect on these owners, but we expect that they will be less willing to sell their home. Consequently, homeowners are expected to be less mobile. Finally, the diminished role of mortgage interest deduction will impact home values negatively. By how much is debatable, but all homeowners can expect to lose some portion of their housing equity if the proposed tax bill become the law. [1] In the first year of a 30-year mortgage (assuming a 20% down payment and 3.9% mortgage rate) [2] Only homes with a first mortgage are included
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Brandon Farber

Brandon Farber

 

While Home Sales Lag, Demand Grows

Despite a growing demand among homebuyers, the sales of existing homes lagged for the third straight month in June, according to the latest existing home sales data released by the National Association of Realtors (NAR) on Monday. According to the report, total existing-home sales, decreased 0.6 percent to 5.38 million in June. On a year-over-year basis, existing home sales were down 2.2 percent over the same period a year ago, NAR said. The deceleration was led by declines in the South and West, which exceeded the sales gains in the Northeast and Midwest regions, the report indicated. While the report found that the median existing-home price for all housing types was $276,900, total housing inventory at the end of June climbed 4.3 percent to 1.95 million existing homes for sale—0.5 percent above the same period a year ago.   About Author: Radhika Ojha Radhika Ojha, Online Editor at the Five Star Institute, is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Dallas, Texas. You can contact her at Radhika.Ojha@theMReport.com
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Brandon Farber

Brandon Farber

 

Which Counties Will be Most Affected by the Tax Reform?

While the House and the Senate have passed their tax reform bills, they now have to figure out how to reconcile their differences. Once they conclude the final bill, both chambers will have to pass it again before it reaches the President’s desk to become law. In the meantime, we compared the impact that tax reform will have on homeowners across counties. Since all real estate is local, the impact of the tax reform on owners will vary from county to county. For each of the proposed changes in the current tax framework, we identified the three most affected counties. -Most taxpayers claiming the mortgage interest, real estate tax, income tax, sales taxes and student loan deductions If these deductions are eliminated, taxpayers will no longer be able to deduct the following amounts from their taxable incomes. Mortgage interest deduction: In Loudoun County, VA, 46.5% of the taxpayers claimed the mortgage interest deduction. These owners were able to deduct $13,460 on average from their taxable income as a result of the deduction. Douglas County, CO: 46.1% of the taxpayers deducted $11,050 on average. Forsyth County, GA: 44.3% of the taxpayers deducted $9,360 on average. Real estate tax deduction: In Hunterdon County, NJ, 52.5% of the taxpayers claimed the real estate tax deduction.  These owners deducted $10,170 on average from their taxable income as a result of the deduction. Loudoun County, VA: 49.3% of the taxpayers deducted $5,770 on average. Douglas County, CO: 49.0% of the taxpayers deducted $3,340 on average. Income tax deduction: In Loudoun County, VA, 53.1% of the taxpayers claimed the income tax deduction. These taxpayers deducted $9,570 on average from their taxable income as a result of the deduction. Howard County, MD: 52.7% of the taxpayers deducted $12,900 on average. Falls Church city, VA: 51.3% of the taxpayers deducted $12,610 on average. Sales tax deduction: In Williamson County, TN, 33.2% of the taxpayers used the sales tax deduction. These taxpayers deducted $3,080 on average from their taxable income as a result of the deduction. Rockwall County, TX: 32.1% of the taxpayers deducted $2,240 on average. Kendall County, TX: 30.6% of the taxpayers deducted $2,510 on average. Student loan deduction: In Lincoln County, SD, 17.9% of the taxpayers used the student loan deduction. These taxpayers deducted $1,150 on average from their taxable income as a result of the deduction. Cass County, ND: 17.5% of the taxpayers deducted $1,100 on average Clay County, SD: 16.5% of the taxpayers deducted $1,230 on average   -Most homes with a mortgage which are worth over $500K San Mateo County, CA (94.3%) had the highest share of homes with a mortgage worth over $500K, followed by San Francisco County, CA (93.7%) and Marin County, CA (91.7%). Although the proposed cap on mortgage interest deduction will affect only new mortgages, owners especially in these states are expected to be more hesitant to move as a result of the cap.   -Most owners who will be affected by the change to the capital gains exemption Four counties in Colorado – Garfield County, Moffat County, Rio Blanco and Routt, County – had the highest share of owners (24.8%) who have lived in their homes for 2-4 years followed by Pinal County, AZ (22.7%) and Cass County, ND (22.7%). Under both proposed tax frameworks, these homeowners will no longer be able to take the exemption, and they will need to pay for capital gains taxes until they live in their homes at least 5 out of the last 8 years. The amount paid for capital gains taxes depends on the price appreciation of the house. For instance, owners in Cass County, ND are expected to pay $4,960 on average for capital gains taxes if they have lived less than 5 years in their home, while in San Francisco County, CA and McKenzie County, ND they will need to pay $17,470 and $16,500, respectively. It is noteworthy that if the final plan limits the real estate tax deduction at $10K instead of eliminating the deduction, it will help homeowners in many counties across the country. In more than half of the counties, over 95% of the owners paid less than $10K for real property taxes in 2016. Use the map to see how tax reform affects homeowners in each county:
Click for data (PDF) Note: Capital gains were calculated based on the price appreciation within the period 2011-2016. While the American Community Survey provides 2015 estimates for median home prices for all counties, we estimated the 2016 median home price using the HPI growth for the period 2015-2016. 
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Brandon Farber

Brandon Farber

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