It is interesting to read the ever-changing headlines regarding the real estate market! Incredible how the headlines read from week to week in the major Denver newspapers. Most recently, a headline referred to the "poor grades" for the local housing market.
It pays to remember that these are "headlines," and if you ever watched Jay Leno review headlines from across the country, you may already well realize that such do not always accurately portray the actualy news! In fact, these headlines often leave you feeling even more confused.
The bottom line in the Denver area is that housing starts are down by about 29% for the first nine months of this year when compared to the same period of time in 2006. It is also worthwhile noting that vacancies are way down. This may well have happened as a result of houses available for sale not getting sold, and would-be sellers having become landlords. But, that does make for a good rental market, and one worth considering for investors and one-time "sellers" alike.
It is an excellent time to own real estate here. If you want to sell, but are struggling to get offers or even showings, it may be worthwhile to consider renting out the property to cover the mortgage until the market turns more favorable for you. Remember, that with vacancies being low, rental rates can usually be a bit higher.
And, just a tip: Don't just read the headlines. There is often much more to uncover in the rest of the story!
Sunday, November 25, 2007
Thursday, November 15, 2007
$945 Million "Overpaid" in Taxes!
If you own your own home, you may have contributed to this over-payment!
It appears that about 2.2 million homeowners who took the standard deduction on their tax returns, instead of itemizing on their returns, paid $945 million more in taxes than necessary, according to the Government Accountability Office, a research arm of Congress, reported.
On average, the overpayment was $438 apiece, according to the study of 1998 returns.
If you own your residence, and particularly if your home is new or recently purchased, you may be short-changing yourself to the benefit of Uncle Sam! If in doubt, it would behoove you to talk with a certified public accountant, or CPA.
Other often overlooked deductions include points paid when originating a mortgage! If you are not familiar with the financial benefits in home ownership, be sure to talk with a knowledgable real estate broker or CPA!
It appears that about 2.2 million homeowners who took the standard deduction on their tax returns, instead of itemizing on their returns, paid $945 million more in taxes than necessary, according to the Government Accountability Office, a research arm of Congress, reported.
On average, the overpayment was $438 apiece, according to the study of 1998 returns.
If you own your residence, and particularly if your home is new or recently purchased, you may be short-changing yourself to the benefit of Uncle Sam! If in doubt, it would behoove you to talk with a certified public accountant, or CPA.
Other often overlooked deductions include points paid when originating a mortgage! If you are not familiar with the financial benefits in home ownership, be sure to talk with a knowledgable real estate broker or CPA!
Friday, November 9, 2007
Double Value!
It is said in the news that a home's value, on average, doubles every 10 years! That is a good investment return! Not only that, the benefits of home ownership are numerous.
First, you have a place you own, a place to live. Second, you have tax deductions in the form of property taxes and mortgage interest. And, when you think of the average increase in value of 100% over a ten year period, buying a home is a very wise investment.
The added beauty is that you can sell your primary residence once every two years and not pay any taxes on the gain! If you don't want to sell every two years, you can wait and rent the property out for awhile, and as long as the property was your primary residence for at least two of the previous five years, any gain is yours tax-free. I cannot think of any other "investment" that permits earning such money without giving the IRS a share.
I also see ads all over the Denver metro area for builders discounting new homes by as much as $129K! One ad showed an original price of $429K+, and that homes is now being offered at $299,900! Incredible. If you have been looking, today may be the time to make the deal!
First, you have a place you own, a place to live. Second, you have tax deductions in the form of property taxes and mortgage interest. And, when you think of the average increase in value of 100% over a ten year period, buying a home is a very wise investment.
The added beauty is that you can sell your primary residence once every two years and not pay any taxes on the gain! If you don't want to sell every two years, you can wait and rent the property out for awhile, and as long as the property was your primary residence for at least two of the previous five years, any gain is yours tax-free. I cannot think of any other "investment" that permits earning such money without giving the IRS a share.
I also see ads all over the Denver metro area for builders discounting new homes by as much as $129K! One ad showed an original price of $429K+, and that homes is now being offered at $299,900! Incredible. If you have been looking, today may be the time to make the deal!
Wednesday, November 7, 2007
Tough market?
Homes are selling! I know, because I am selling some. Many are priced right and are selling quickly. Or, they are selling quickly after a sometimes dramatic price drop. In some cases, the drop is preceding a bank foreclosure, and sometimes the drop is following a bank foreclosure.
I showed a condo in a downtown high-rise a few days ago that was an UNBELIEVABLE price. For a "fix and flip" investor, this property was a trashed gold mine. The price had dropped $71,000 after the foreclosure. For a spacious unit with 180 degree views, if I had cash available, I would have put in an offer!
Whether or not a house sells in today's market comes down to two factors. The first, as always, will be location. If a buyer isn't looking in a certain location to begin with, an available property will not be considered. Further, within the same building or neighborhood, certain locations will win over less desirable ones when getting offers.
The second, and a "bigger" factor than a few years ago, is the price. From times in Denver when you would no sooner see a sign up (if it got that far), and a property was under contract, today, there are many others on the market from which to choose, and if a seller won't budge at all on price, a buyer may go to the next door.
Another place to tap into if looking for a home today is with new build communities. Many builders are giving so many incentives, particularly when it comes to spec homes that are ready close. Builders typically like to get these homes sold and closed and off their books before the end of the calendar year.
Why not consider taking advantage of one of these opportunities today?
I showed a condo in a downtown high-rise a few days ago that was an UNBELIEVABLE price. For a "fix and flip" investor, this property was a trashed gold mine. The price had dropped $71,000 after the foreclosure. For a spacious unit with 180 degree views, if I had cash available, I would have put in an offer!
Whether or not a house sells in today's market comes down to two factors. The first, as always, will be location. If a buyer isn't looking in a certain location to begin with, an available property will not be considered. Further, within the same building or neighborhood, certain locations will win over less desirable ones when getting offers.
The second, and a "bigger" factor than a few years ago, is the price. From times in Denver when you would no sooner see a sign up (if it got that far), and a property was under contract, today, there are many others on the market from which to choose, and if a seller won't budge at all on price, a buyer may go to the next door.
Another place to tap into if looking for a home today is with new build communities. Many builders are giving so many incentives, particularly when it comes to spec homes that are ready close. Builders typically like to get these homes sold and closed and off their books before the end of the calendar year.
Why not consider taking advantage of one of these opportunities today?
Saturday, November 3, 2007
Colorado Home Prices Up!
Okay....it is in the news now. Home prices increased in Colorado over the past couple months. It seems that, despite the high numbers of homes in foreclosure, the average price of homes sold and closed has increased. This upward trend will likely continue, many believe, as homes in Colorado had not seen the double digit appreciation as other markets in the U.S. over the past decade. Rather, Colorado had seen an even, steady growth.
Additionally, Colorado and the Denver area especially have been in the news with "ski" conventions being held here in 2010 (taken out of Las Vegas...to a place where what happens here doesn't have to stay here!), and with the hosting of the Democratic National Convention. The market is abuzz with the forcasted need for housing over a four month period in the area next year. I talked with the owner of a high-rise condominium unit in downtown Denver...who told me he had his place leased out for four months at $15,000 a week! $60,000 a MONTH.....for FOUR months. Maybe it's time for YOU to invest!?
Additionally, Colorado and the Denver area especially have been in the news with "ski" conventions being held here in 2010 (taken out of Las Vegas...to a place where what happens here doesn't have to stay here!), and with the hosting of the Democratic National Convention. The market is abuzz with the forcasted need for housing over a four month period in the area next year. I talked with the owner of a high-rise condominium unit in downtown Denver...who told me he had his place leased out for four months at $15,000 a week! $60,000 a MONTH.....for FOUR months. Maybe it's time for YOU to invest!?
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