Homewoners Enjoy Tax Savings

There are several tax advantages for home ownership, as you may have heard. EVERY YEAR, like clockwork, for as long as you own the property and pay a mortgage.

Let's take a look at them (Courtesy of Weichert Capital Properties & Estates) - -

Owning a home invokes more than a sense of pride and freedom. It is also a long-term investment opportunity. With tax season in full swing, it is a great time to remind your customers to speak with their tax advisor about these tax advantages associated with homeownership:

· Mortgage Interest Payments: Mortgage interest is usually deductible on a primary residence, as well as on a second home that meets certain requirements. Now you're a player with sheltered income.
· Mortgage Insurance Payments (so-called PMI): Congress has extended the mortgage insurance deduction for an additional three years. This is especially helpful for low- and moderate-income homeowners, as well as first-time home buyers putting down less than 20 per cent, generally.
· Points (Loan Discount or Mortgage Origination Fees): The points that your customer pays to their lender upon purchase of a home, or even the points that are paid by the seller on the buyer’s behalf, may be tax deductible as a prepayment of interest if certain basic requirements are met.
· Property Taxes: These annual taxes are based on the assessed value of the property and may lead to a considerable deduction each year...thousands of dollars coming off of your gross, taxable income.
· Home Equity: The interest paid on home equity loans could mean tax benefits that are not available through other credit sources.

Home ownership: A GREAT INVESTMENT

Fear Grips Buyers

New concept: When the economy is BOOMING and everything is COMING UP ROSES, that's absolutely the WRONG TIME to invest in real estate. It's already over. The Big Boys have already gotten out. When should you invest?

When things are down and out, and we're entering a recession. Deals are to be had and bones can be picked, so to speak.

Why wait until interest rates go UP any more (they went UP last week and again TODAY). I'm talking about mortgage interest rates, not the FED's rates.

Why wait until more buyers come out in the spring with the good weather? They'll be bidding against you!

Why wait until prices fall any more? Who says prices on the properties you want will be going down? If you want them, others do too, and those prices won't go down. Why not just make an aggressive offer NOW and seal the deal today?

Get those tax advantages, get that future property appreciation, live your American Dream!

Why indeed?

GDP Depends on Real Estate Growth

James M. Weichert, president and founder of Weichert, Realtors®, one of the nation’s largest privately held real estate companies, reiterated his recent call for a federal tax credit or other incentive for home buyers. Such action, he said, would speed economic recovery and help avert a recession.

“Every home sale triggers a demand for goods and services that ripples through virtually every segment of the economy,” Weichert said. “It is my fervent hope that as our lawmakers in Washington focus on economic issues, they will act to directly encourage home buying through a tax incentive. As the single largest segment of the U.S. gross domestic product – accounting for 33 percent of all U.S. economic growth in the past several years – housing historically has been the powerful engine that drives economic prosperity. Given swift and appropriate legislative action, the housing industry can lead the way to both short- and long-term recovery.”

The economic repercussions of a home sale begin almost immediately, Weichert said. In the interval from contract signing to closing, home buyers call upon a wide range of service suppliers that typically include home inspectors, termite/pest inspectors, mortgage lenders, appraisers, title companies, insurance companies, and lawyers. When home inspections turn up problems, a handyman is employed to do fix-ups. On moving day, both parties in the transaction will need truck rentals or moving services. Even the state in which the home sale takes place benefits, as the state government receives income from the real estate transfer tax. click

How Grand Indeed...NOT

Stamford's so-called Grand List (the value of all taxable property, including real estate, automobiles and business equipment) now totals $23.9 billion, in case you wanted to buy the place!

By comparison, our neighboring city, Greenwich, is valued at $33.8 billion. We're catching them...not!

As is well known, the Grand List directly affects the owners of those properties mentioned above, since this is how their local property tax rates are set. Higher grand list, higher property taxes.

Stamford had a revaluation of the city in 2006, the first since 1999, and the list nearly DOUBLED, from $11 billion to $20.9 billion, though who knows exactly why. The 2007 revalutation came in at 15% above this (another $3 million), despite falling home prices in certain areas of the city. They said it was because of the increased value of commercial properties, based upon a handful of recent sales.

Hey, just because a few out-of-city companies overpaid for their office space is little reason for us all to pay more property taxes at this time, huh?

Of interest:

* Stamford's largest tax district A - - South End, East Side, West Side, Waterside, Shippan (the mayor's home area) and Cove - - jumped by 23%, up $12.2 billion.
* Stamford's CS district - - Glenbrook, Sprindale, Belltown and Turn of River - - jumbed by 6% to $5 billion.