"Why own when you can rent"-HUH?

Home ownership is still a great goal and a worthwhile investment. To me this seems like a fairly reasonable statement. Not so to everyone however. Recently I was in a conversation and shared that our daughter, having secured a good post college job in her field, had purchased a home and we were very proud that she had done it on her own, qualified for her mortgage, "hired" a realtor shopped and (thankfully!) asked us to help evaluate her final choice before she signed on the dotted line. This was met with "Home ownership is a thing of the past- a losing proposition! She shouldda rented!!" I thought "Seriously?"  I think this man exhibited a terrible attitude toward what was once the American Dream.
Yes the market is still in terrible shape. Yes many people are still underwater in mortgages they will never "surface" from and yes the outlook for the near future does not look much better.
HOWEVER. If we don't start buying homes and other big ticket items, if we all squirrel away every red cent we earn because "the sky is falling" well, it will. consider this;
Rent is money you will never see again.
Rent is NOT Tax deductible.
" Renters generally have no idea what they'll be paying a few years down the line. Home owners with fixed-rate mortgages, however, essentially have the same payment for up to 30 years. Even those with adjustable rates have a cap and can figure out their maximum potential mortgage payment. The stability also comes from the sense homeowners get of being anchored to their community. "It gives you a little more leverage when it comes to community issues and activism," Cotlier says. "When you own your home, and you're paying taxes on it, you might have your voice a little better heard when it comes time to speak up about neighborhood or community issues."-By Melissa M. Ezarik • Bankrate.com

 I will grant you that it is because of the market that my daughter was able to afford a very nice starter home. The prices have dropped enough (even in this nice stable neighborhood) that made the purchase very "do-able" for a first time home buyer. Instead of the defeatist attitude of my acquaintance however, I think we need to invest in America through every means available.  Home ownership is a rewarding experience I want my kids and YOURS to have.

REALTORS debunk all-encompassing home sale tax rumor

Realtors debunk all-encompassing home sale tax rumor

CHRISTOPHER QUINN
/ Cox Newspapers
Atlanta — Diane Michels of Atlanta received an email last summer claiming that she would have to pay a new 3.8 percent sales tax if she sold her house in order to move to a retirement home in Florida.
The unsolicited chain email, sent from "Michael W, Realtor," said, "If you sell your $400,000 home, there will be a $15,200 tax," and blames it on a provision of President Barack Obama's health care reform.
"We were also told to check into it by a real estate agent," Michels said by phone.
Although there is a new capital gains tax two years down the road for some high-end home sales, the untrue assumption of an all-inclusive home sales tax has been surging on Internet blogs, in outraged email letters and even has been mentioned in some news forums, such as "Fox & Friends." Last June, host Gretchen Carlson mentioned part of Obama's health plan was to raise taxes on home sales.
"This became an Internet rumor that took off like wildfire," said National Association of Realtors spokesman Walter Molony.
The NAR got so many inquiries that it created a brochure to set the record straight. Rest easy, Molony says. There is no new all-encompassing home sales tax.
However, the new tax that will apply to a portion of gains on high-profit home sales by high-income owners takes effect in 2013 and is expected to help raise money to pay for the health care plan.
Individual homeowners are allowed to exempt from taxes up to $250,000 in gains from a home sale and couples can exempt up to $500,000, said Spence Shumway, founder of the accounting firm StoneBridge. The 3.8 percent surcharge tax will apply to gains above those thresholds and if the homeowners earn more than $200,000 a year for an individual or $250,000 for a couple.
Bill Murray, a Prudential Georgia Realty broker in Atlanta, said agents are aware of the rumor. Agents are ready to explain, but he fears the rumor might prevent sellers or buyers from acting.
"What I am afraid of is that many people will not understand it and pull back and not ask questions," he said.
Source Detroit News Extra Your Money, Monday October 17, 2011

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Underwater? Things you need to know before you sell.

Unfortunately, it's very common to overhear conversations around you in the grocery line or at your local pub that someone is or has a friend or relative who is "underwater" in their home. (facing foreclosure or short sale)

Beyond being  frustrated and hurt, there are some real practical and important decisions to be made by the homeowner who must sell due to these circumstances.

Seeking the advice of a REAL ESTATE professional you trust is the first step. If you do not have a relationship with a REALTOR ask friends and family for a recommendation, check well known local real estate people on their website.  REALTORS must take continuing education yearly in order to remain licensed, but some go above and beyond the requirements for certifications that will benefit YOU.
Look for SFR which means Shortsale, Foreclosure Resource, an extra certification from the National Association of REALTORS that agents can take to avail themselves of the latest information in an ever changing market.

It might also help to define a shortsale. Short sale is when a lender agrees to discount your loan due to an economic hardship on the part of the homeowner.  This is usually tried to prevent you from going into foreclosure.  Shortsale is an involved process and you must have very legitimate hardship in order to convince the bank to approve it.  Reasons such as sudden death, loss of a job and even in some situations, divorce can be sited.  If your property is certain to be foreclosed, shortsale is the lenders preferable option.

Short sale can end the financial pain and get you on to a new start, carrying less weight, and who needs baggage?  Seek the advice of a professional REALTOR today!

Halloween is a HOMEY Holiday Make sure yours is safe!

Halloween is an exciting time of year for kids, and to help ensure they have a safe holiday, here are some tips from the American Academy of Pediatrics (AAP). Feel free to excerpt these tips or use them in their entirety for any print or broadcast story, with acknowledgment of source.
ALL DRESSED UP:

• Plan costumes that are bright and reflective. Make sure that shoes fit well and that costumes are short enough to prevent tripping, entanglement or contact with flame.
• Consider adding reflective tape or striping to costumes and Trick-or-Treat bags for greater visibility.
• Because masks can limit or block eyesight, consider non-toxic makeup and decorative hats as safer alternatives. Hats should fit properly to prevent them from sliding over eyes.
• When shopping for costumes, wigs and accessories look for and purchase those with a label clearly indicating they are flame resistant.
• If a sword, cane, or stick is a part of your child's costume, make sure it is not sharp or too long. A child may be easily hurt by these accessories if he stumbles or trips.
• Obtain flashlights with fresh batteries for all children and their escorts.
• Do not use decorative contact lenses without an eye examination and a prescription from an eye care professional. While the packaging on decorative lenses will often make claims such as “one size fits all,” or “no need to see an eye specialist,” obtaining decorative contact lenses without a prescription is both dangerous and illegal. This can cause pain, inflammation, and serious eye disorders and infections, which may lead to permanent vision loss.
• Teach children how to call 9-1-1 (or their local emergency number) if they have an emergency or become lost.

CARVING A NICHE:

• Small children should never carve pumpkins. Children can draw a face with markers.  Then parents can do the cutting.
• Consider using a flashlight or glow stick instead of a candle to light your pumpkin. If you do use a candle, a votive candle is safest.
• Candlelit pumpkins should be placed on a sturdy table, away from curtains and other flammable objects, and should never be left unattended.

HOME SAFE HOME:

• To keep homes safe for visiting trick-or-treaters, parents should remove from the porch and front yard anything a child could trip over such as garden hoses, toys, bikes and lawn decorations.
• Parents should check outdoor lights and replace burned-out bulbs.
• Wet leaves should be swept from sidewalks and steps.
• Restrain pets so they do not inadvertently jump on or bite a trick-or-treater.

ON THE TRICK-OR-TREAT TRAIL:

• A parent or responsible adult should always accompany young children on their neighborhood rounds.
• If your older children are going alone, plan and review the route that is acceptable to you. Agree on a specific time when they should return home.
• Only go to homes with a porch light on and never enter a home or car for a treat.
• Because pedestrian injuries are the most common injuries to children on Halloween, remind Trick-or Treaters:
• Stay in a group and communicate where they will be going.
• Carry a cell phone for quick communication.
• Remain on well-lit streets and always use the sidewalk.
• If no sidewalk is available, walk at the far edge of the roadway facing traffic.
• Never cut across yards or use alleys.
• Only cross the street as a group in established crosswalks (as recognized by local custom). Never cross between parked cars or out driveways.
• Don't assume the right of way. Motorists may have trouble seeing Trick-or-Treaters. Just because one car stops, doesn't mean others will!
• Law enforcement authorities should be notified immediately of any suspicious or unlawful activity.

HEALTHY HALLOWEEN:

• A good meal prior to parties and trick-or-treating will discourage youngsters from filling up on Halloween treats.
• Consider purchasing non-food treats for those who visit your home, such as coloring books or pens and pencils.
• Wait until children are home to sort and check treats. Though tampering is rare, a responsible adult should closely examine all treats and throw away any spoiled, unwrapped or suspicious items.
• Try to ration treats for the days following Halloween.

© 10/10 American Academy of Pediatrics