Buyers: It’s time to commit

WASHINGTON – April 20, 2012 – It’s an old investment adage that remains true: “Buy low, sell high.”
National Association of Realtors® (NAR) President Moe Veissi, who served as Florida Realtors president in 2002, explains why conditions have never been better to buy a home in an online radio interview.
The Real Estate Today interview can also be forwarded through Facebook and Twitter to friends, family and clients.
Veissi, broker-owner of Veissi & Associates Inc. in Miami, says today’s real estate market has “less folks looking, less inventory and more contracts working. … We’re just now seeing appreciation in real estate prices in some areas of the country. … This is a wonderful time to take advantage of interest rates that are lower than they’ve ever been.”
Veissi quotes investor Warren Buffet’s outlook on the current real estate market: “Warren Buffet appeared on CNBC about two weeks ago, and the young lady that was interviewing him asked where you should invest your money. Warren said, ‘If I had the capabilities, I’d buy 200,000 homes across this county … I think that housing in America today will outstrip the investment capabilities of the Wall Street blue chips over the longer term.”
To hear the five-minute radio interview and forward to friends and clients, visit the Real Estate Today website at: http://retradio.com/?p=4916.
© 2012 Florida Realtors®

Feder Nation News!

Dave Feder - Twisted Beginnings for the curious......

 The ad in the local Buffalo Evening News Read: "Folk Singer Wanted"  I was 17 and still in high school but I may have looked older. When I walked in the door the manager of the club looked skeptical. I proceeded to play a few tunes I knew like Peaceful easy Feeling, Horse with no Name, Don't think twice, etc.

  The manager asked me if I was eighteen. I said yes? He said you're hired, and handed me a cassette of songs to learn for the show. It was then I realized I was in a strip club. The songs on the tape were mostly John Valbe and other off color bar songs. I was so innocent and the songs were very graphic, and funny.

 On my first night, I arrived with my guitar, microphone, and an old Fender Dual Showman amp. Not the best setup but it was all I had. They set me up in a corner by stage left just far enough downstage that I could watch the show for my cues.

  My Job was to distract the "audience" while the girls were dressing for the next undressing dance. The old ladies from the bowling alley next door were very particular about how their favorite songs were performed. They would often yell out things like it's not #$%&#@ it's &^%$*# you $%#&@#!!! They were the only customers that I remember being there for any length of time. They were awesome.

 The performers were mostly well road worn women with scars to prove it. One even danced until she was eight months pregnant. This is when I knew for sure that the music biz was for me! Mind you, this was well before the days of rampant cosmetic surgury. remember the Seinfeld episode Good Naked and Bad Naked......

  There was also a very tall pretty woman working the door named Patty. Her enlarged Adam’s apple and five o’clock shadow didn't clue me in until I met her in the Bell's market one day shopping. In the daytime, in the market, she was a dude named Tommy. (Still very pretty but much more dudish) Did I tell you I was naive? 

      I guess in some ways I am still pretty clueless socially. But it probably keeps me out of some trouble. Probably gets me into some too I guess.

   Nyan music update: Ny has been working on his Jazz chops on tenor sax! He has cool versions of Charlie Parkers Anthropology, and Duke Ellington's Solitude under his fingers and the feel is happining!

     We really had fun on Friday at Pierre's with Ryan Raines, and with Micah and Ryan at Morada Bay on Saturday night. What a fun spot.

 Remember the big happining spot in town is the Late Night Thursday Night Jam sessions at The Green Turtle. These parties are the coolest thing that has happened to late night since Ice Cream and Pizza!

 Thursday Late Night Jam at The Turtle 10-1

 Friday Pierre's 6-9

  A big thanks to all who came out to support Jeff Shamon at Coconut Cove!

  We love you Jeff!

  Look how many views we have!!

   http://www.youtube.com/watch?v=6_3jwM8lO60

  Good Night all..I love you each and every one.......Not in a creepy way.........more of a Hippie Flower Child kind of way..with benefits........;-)  

Florida ranked first in 2011 home sales to Canada

SARASOTA, Fla. – March 15, 2012 – The strength of the Canadian dollar, sustained low pricing in the U.S. housing market, and perceptions regarding the general economic outlook continue to encourage Canadians to purchase a home in the Sunbelt states.
According to the National Association of Realtors® (NAR) 2011 Profile of International Buying Activity, Florida and Arizona are top choices because of their favorable winter climate. In fact, 58 percent of all international sales in 2011 came from just four states: Florida at 31 percent, followed by California at a distant 12 percent, Texas accounted for nine percent and Arizona at six percent.
Even for international buyers it’s location, location, location. Forty-three percent of those surveyed report a favorable location as their clients’ most important factor when choosing where to purchase. That was followed by 27 percent who stated their clients’ top reason to buy in the U.S. was that they view U.S. real estate as a profitable investment.
Canadians specifically purchase due to a perceived positive return on their investment. They also showed a strong desire for a lakefront recreational location. In fact, eight percent of Florida re-sales were to Canadians in 2010. Similar culture, closeness to their native homeland and lack of a communication barrier are also factors steering Canadians to the lower 48 U.S. states.
The NAR profile also showed that in the 12-month-period ending March of 2011, Canadians accounted for 23 percent of all foreign buyers – the largest of any country. In a 2010 article, Canada’s largest daily newspaper The Globe and Mail reported that a vast majority of Canadians were paying cash for their purchase.
“There are few lenders who have a mortgage process tailored for Canadians looking to purchase a home in the U.S.,” said Sheila Blom, Florida mortgage market manager for M&I, a part of BMO Financial Group. “Our parent company is based in Toronto, so naturally we have relationship products specifically designed to meet the needs of Canadian customers for purchasing or refinancing their primary residence, second home or investment property in the U.S.”

© 2012 Florida Realtors®

Commonly overlooked home tax deductions

PARSIPPANY, N.J. – March 8, 2012 – Many tax breaks accompany homeownership, and noting each can add thousands of dollars to an IRS tax refund.
“There are a wide variety of tax breaks available to existing homeowners and first-time homebuyers,” says Mark Steber, chief tax officer, Jackson Hewitt Tax Service, Inc. “Speaking with a local, knowledgeable tax preparer can help ensure taxpayers take advantage of all the home ownership-related credits and deductions for which they are eligible.”
Mark Steber, chief tax officer for Jackson Hewitt Tax Service Inc., notes several tax breaks available covering home-related areas:

• Mortgage Interest. The amount of mortgage interest paid on a principal residence or second home is deductible and generally reported on Form 1098. Taxpayers can also deduct all the points paid to purchase the residence, even if the seller has paid some. If certain requirements are met, the points may be deducted in full in the year paid. Otherwise, they may be deducted over the life of the mortgage. Seller-paid points that taxpayers claim as an itemized deduction reduce the cost basis of the home.

• Buying a Home. Most of the expenses incurred when buying a home are not deductible. However, there are certain closing costs added to the basis of a residence. Keeping track of the basis is important because, when selling, it’s needed to calculate any gain or loss.

• Property Taxes. Taxpayers may deduct real estate property taxes in the year paid, reported on Form 1098, the annual statement from the financial institution holding the mortgage. Taxpayers may also be able to deduct some of the taxes paid during closing. The taxes must be the responsibility of, and paid by, the taxpayer.

• Energy Credits. Taxpayers get energy credits available for making energy efficient changes to a home. For 2011, the credit is limited to 10 percent of the cost of improvements, up to a lifetime total of $500. The credit will be further limited for each category of Improvement.

• Home Improvements. Home improvements are not generally deductible on a tax return. However, the cost of improvements is added to the basis of the home and helps keep any gain, at time of sale, below the $250,000 ($500,000 if married filing jointly) exclusion amount.

There are also tax breaks for owners facing a foreclosure or short sale. Foreclosures and short sales are treated as both a home sale and a canceled debt. When the house is a taxpayer’s primary residence, and they have lived in and owned the home for two of the last five years, any gain up to $500,000 on the disposition is tax-exempt. In addition, the canceled debt (mortgage still owed) is excluded from taxable income for 2011, as long as it is less than $2 million and is for the taxpayer’s principal residence.

© 2012 Florida Realtors®

4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.
Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.
Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?
Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.

1. The general rule of mortgage affordability

As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.
To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment

How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.

The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt

Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.
Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide

The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calculation instead.
Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.''

Published: March 11, 2010 By: G. M. Filisko