Do You Have One Minute?

I think we would all agree, knowledge is power!  When you have the proper information, the decisions you make can be the right ones.  In my efforts to help educate my clients on the current state of our local real estate market, I have come across a wonderful resource.  Check it out!

The 1 Minute Housing Market

Single-Family Homes for Rent

Single-family homes used for rental property have distinct advantages over other types of investments.

 
An investor can borrow 75-80% at fixed interest rates on appreciating assets with definite tax advantages and reasonable control. The financing alone is attractive compared to some investments that require 50% cash and have floating rates at prime plus for one or two years.

Home prices have adjusted 30-40% around the country, mortgage rates are incredibly low and rents have risen in the past two years due to more demand and shorter supply. Indicators like these point to a strong and sustained rental market.

Consider you bought a $125,000 home for cash that would rent for $1,250 per month. With $15,000 income and allowing for property taxes, insurance and maintenance, it is still reasonable to expect $10,000 net income. You'd have an 8% return on investment without considering tax savings or future appreciation compared with 5-year CDs paying less than 1.5% and a 10-year Treasury yield at 1.65%.

The reasonable control has a lot of appeal to many investors who find the volatility of the stock market unacceptable and don't want the risk associated with some of the alternative investments. Please contact me if you'd like to know more about available opportunities.

Which Value Do YOU Use?

What your home is worth depends on why you ask the question. It could be one value based on a purchase or sale and an entirely different value for insurance purposes.


Fair Market Value is the price a buyer and seller can agree upon assuming both are knowledgeable, willing and unpressured by extraordinary events. This value is generally indicated by the comparable market analysis done by real estate professionals.

Insured Value is determined for the proper insurance coverage. Replacement cost could actually exceed the cost of new construction when additional expenses are incurred for demolition and the added complexities of matching existing construction.

Homeowners are generally more familiar with their home's market value. Since it can be lower than the replacement cost, owners should review the insured value with their property insurance agents periodically. Under-insuring could invoke a co-insurance clause that may limit the settlement and increase your out-of-pocket-expenses. 

Announcing...

Source: Texas Association of REALTORS® 5 New Rights for Property Owners in HOAs Nearly 20% of Texans live in neighborhoods that have homeowners associations (HOAs), and new laws that went into effect earlier this year have provided more rights to those property owners regarding the use of their property. Here are FIVE property-related upgrades or additions that HOAs CAN NO LONGER PREVENT homeowners from doing the following: 1. Installing a solar-energy device on the property. 2. Installing and use of rain-harvesting devices. 3. Displaying certain religious items on the entry of the property. 4. Installing roof shingles that are wind and/or hail resistant, energy efficient,  or solar generating. 5. Flying the U.S., Texas, or a branch of the U.S. armed forces flag. *Each of these rights applies to condos as well. **It's important to note that a homeowners association may place some parameters on these rights. Learn more about these new laws governing homeowners associations in "Taming the HOA" from the May 2012 issue of "Texas REALTOR®."

Chocolate...YES, I Said Chocolate!

If I have 10 chocolate cakes and someone asks me for one, how many cakes do I have left? That's right, 10. YUM!  The dog days of summer are among us!

Here is a list of 21 Quick Tricks to Feel Better Instantly

1. Wash your hands & face, and brush your teeth. It’s reinvigorating and relaxing.
2. Change your socks. It’s an odd trick, but it works.
3. Call a close friend. A quick conversation with someone you care about is a boost.
4. Stretch. Reach for the sky and touch your toes.
5. Go outdoors. Fresh air is great for the senses.
6. Take a light exercise break. A short walk can re-energize your mind.
7. Dress to feel your best. When we look good we feel good.
8. Listen to your favorite music. Elvis always works for me.
9. Watch or read something that inspires you. Browse Youtube: “surprise military homecomings.”
10. Enjoy a good laugh. The best medicine!
11. Take a few deep breaths. Deep breathing controls stress.
12. Clear a stuffed nose. Trust me, on this one.
13. Cook a tasty meal. Or splurge at a favorite restaurant.
14. Walk away from vampires. People who suck the energy from you with their problems.
15. Complete an important piece of unfinished business. Remove a burden.
16. Work on something meaningful to you. Volunteer!
17. Assist someone in need. Great for karma too!
18. Think about your latest or greatest success. It reminds you that you can accomplish anything.
19. Act like today is already an awesome day. Research shows, the way we act is related to the way we feel.
20. Notice what’s right. Stay positive and learn from mistakes.
21. Take a moment to acknowledge how far you've come. Remember, you started with nothing.

And the best news of all:  Mortgage interest rates continue to drop, according to Ed Kampft!

BIG News!!

Well, I hinted at this announcement back in April, but now, we are more than ready to shout it from our own little corner of the web!!!  Read on folks...

Jim Bartz, a sales professional in the Dallas area, has joined the Keller Williams Realty Plano Market Center in partnership with his spouse, Sally Bartz.  He brings an extensive background in finance and people skills to their partnership; having been a CPA working in the tax area for 10 years, and then 25+ years in the sales and training area with the Dale Carnegie Courses and The Sales Edge Training Group.

“We are truly luck to have Jim join us here in Plano,” says Team Leader Heather Garinger.  “Keller Williams Realty offers its associates unparalleled career growth and lifelong learning opportunities in the real estate industry.  We know that Jim, combined with the experience of Sally, will be a great fit and our clients will truly benefit from his joining us.”

Welcome, Jim Bartz!

Sally chose Keller Williams Realty seven years ago and I have seen nothing but caring, coaching, and helpfulness from this group.  It was a natural for me to join her.  The synergy will be awesome!  We are truly blessed to be able to work together again, helping clients to live their dreams.

Gift or Inherit?

Transferring the title of a home from one person to another may seem simple but it could have a significant tax implication. 

When a person inherits property, the basis is "stepped-up" to fair market value at the time of the decedent's death. On the other hand, a gift has a carry-over basis which means that the recipient receives the unrealized gain also.

As an example, let's say an elderly parent, in an attempt to get their affairs in order, gives their home to their adult child. The rationale might be that they are the sole beneficiary and will get the property eventually. In an effort to settle things early, unnecessary income tax may be incurred.

If the home was purchased for $20,000 and worth $100,000 at the time of transfer, there is a possible gain of $80,000. However, if the adult child inherited the property at the time of the parent's death, their new basis would be $100,000 or the fair market value at the time of death and the possible gain would be zero.

This is meant to be an example and many other variables could be involved. If you're concerned about a situation, you should seek specific advice from a tax professional. As always, I'm here to help you as your real estate professional.