Big news in Raleigh Today! The converatives in North Carolina are mourning the passing of the legendary Jesse Helms, otherwise known as Senator NO. It's quite ironic that the long-time US Senator passed away on Independence Day. Jesse Helms was a staunch conservative and was one of the longest serving Senators in the history of the United States. Helms served five terms before retiring in 2002 due to poor health. I'm surprised the Mr. Helms made it this long - with his fight against heart disease, cancer, and other ailments.

There will be a Memorial service today at Hayes Barton Baptist Church in Raleigh from 10am until 8pm this evening.

Did you agree with Mr. Helms and his views? What will this mean for the State of North Carolina and the conservative agenda?

 

The giant gaping hole in front of the NC Museum of Art is not some new modern art exhibit.  The massive construction area is the location of a new 127,000 facility that will house permanent collections of art.

Crews with backhoes and other excavation equipment can be seen digging down into the ground about 20 feet to prepare for pouring foundations and underground utilities.

The new facility was originally planned to be located next to the wooded art park area of the 164 acre art museum complex but according to one worker at the museum, there were concerns about soil composition in that area. 

As such, the expansion was relocated to the front of themuseum near Blue Ridge Road. 

The new area will not be able to take advantage of the existing natural landscape, but trees and other landscaping will be added after construction is finished.

The circle drive in front of the Museum has been removed to make way for the new additions.

According to the NC Museum of Art, the new facilities will house some well known works of art that will be on display permanently including sculptures by Auguste Rodin.

When finished in late 2008, the facility will include 65,000 square feet of exhibit space, a central gallery of around 11,500 square feet, amenities such as a gallery shop and cafe with 9,242 square feet of space, and an entry courtyard with 5,650 square feet of space.

The building will be uniquely designed and will feature glass walls and stainless steel panels when finished, says the museum.  The new addition will be a flowing single story structure, but the building will be 26 feet high with interior ceilings at 16 feet.

The main architects for the project are Thomas Phifer and Partners of New York.

According to the museum, the entire project will cost around $138 million and will include a refurbishment of the original art galleries as well in the Stone building, the main building for the art museum.

The museum says it has raised $78 million to date toward this financial goal, including an appropriation of $52.2 million from the North Carolina State Legislature and $15 million in funding from the City of Raleigh and Wake County.

In December 2006 the museum officially broke ground for the project, and the new building is scheduled to open to the public in 2009. 

The NC Museum of Art was created by the State of North Carolina.

Relocation and real estate continue to grow in the Triangle Area of North Carolina.  Realtors are frequently asked why the real estate market in the Raleigh & Cary area is so popular.  Our area received numerous awards of disctinction in 2006. 

For the most recent update your best bet is to click here.

Below are the most notable.

 #1 City for Jobs by Forbes Magazine February 2007

#1 City for Federally Funded Economic Development Incentives (Raleigh, NC) Public Policy Forum, March 2006
#1 Highest Growth County in NC  - Wake County, NC
US Census Bureau, March 2006
#3 Most Educated City (Raleigh, NC)
US Census Bureau-American Community Survey, 2004 (Released January 2006)
#2 Best Place for Business & Careers (Raleigh, NC)
Forbes, May 2006 - We've been in Top 10 for what seems like forever!
#5-Star Quality of Life Metro (Raleigh, NC)
Expansion Management "Quality of Life Quotient", May/June 2006 - Low cost of living, wonderful weather while still enjoying the seasons, great shopping, entertainment and restaurants. Wake county was rated by Forbs and having a top school system...on and on
#6 Brainiest Mid-sized Metro (Raleigh, NC)
Bizjournal, June 2006 Not surprising, considering all the Universities and High Tech fields. The Triangle has one of the highest per capita PHD populations in the world.
Top 10 Projected Home Appreciation Market (Raleigh, NC)
MSN.com, April 2006
#10 Best Walking City (Raleigh, NC)
Prevention, March 2006/ Parks and greenways are abundant in the Triangle. Bike riding is popular as well!
#16 Hottest City for Business Relocation & Expansion (Raleigh-Cary, NC)
Expansion Management, February 2006  

I have a link with all of the rankings located at my website at http://www.trianglenchomes4sale.com/

In a deal just completed, Developers Diversified, an Ohio REIT purchased a 307 property portfolio from the Inland Retail Real Estate Trust.  Of these properties, 12 are shopping centers in Wake, Durham, Orange, Chatham and Johnston counties.  The area properties in question are: Chatham Crossing in Siler City   (32,000 square feet), South Square in Durham (89,622 square feet), Meadowmont Village Center in Chapel Hill     (132,857 square feet), Capital Plaza in Wake Forest (46,793 square feet), Clayton Corners in Clayton (125,653 square feet), Sexton Commons in Fuquay-Varina (49,097 square feet), Mill Pond Village in Cary (84,364 square feet), Circuit City in Cary (27,891 square feet), and the Raleigh properties of Alexander Place (143,073 square feet), Eckerd-Perry Creek (10,908 square feet), Capital Crossing (83,248 square feet), and Wakefield Crossing (75,927 square feet).  This expands Developers Diversified's portfolio in the Triangle to nearly 2.5 million square feet.

The staff economist for the National Home Builders Association, Michael Carliner, says that the Triangle (Chatham, Durham, Franklin, Johnston, Orange and Wake Counties of North Carolina) is "perhaps the healthiest market in the United States."  Area job growth is exceeding the national average.  New people means more buyers and it certainly doesn't hurt the demand for apartments either.  In October, on a year to year basis, jobs increased nationally 1.5%, the Durham area increased 2.2% and the Raleigh-Cary metropolitan statistical area increased 4.4%. 

As reported here before, the Triangle housing market has not been immune to the hit the national market has taken.  For the most part our problems have been that of people moving here are having problems selling their homes in the markets they are coming from.  Thus the inventory of new homes locally has increased as has the inventory of resale homes because of this problem.  However, both the volume builders and the smaller local builders have been cutting back on the building of new homes which should increase the demand for resale homes and cut down on the new home inventory as well.  Currently, closings and new home starts are nearly equal which indicates a market in balance.  So what's in store for 2007?  In the Triangle it would appear that a housing market in basic balance may be the story and if that's not all good neither is it all bad.

As I mentioned in a previous blog downtown Raleigh is finally awakening from its slumber.  Now that the renovation of Fayettville Street is complete and the new Convention Center is under construction young singles and professionals are starting to flock to the downtown area.  A lot of residents are transplants from big cities like Boston, Chicago, and New York.  They want a big city feel atmosphere and the downtown area is well on its way to becoming a top urban location. 

The map below depicts current and planned developments in the downtown area.  If you would like additional information

on any of the properties listed below please send me an email at Tracy@TracySantrock.com

In October existing home sales declined in the Triangle for the first time in four years. 

• Resales declined 4.5% while inventory grew 6.6% 

The decline was the result of two main factors:

(1) - New residents coming to the area having difficulty selling their homes in the markets they are coming from 

(2) - Incentives being offered by builders of new homes. 

Conventional wisdom says that current interest rates also impacted the market.  Interest rates have only risen slightly over the past month.  When the market was still realtively healthy nationally interest rates had already come well off of their lows and the Triangle market was still enjoying record sales.  By the same token, even at their current highs rates still are well below their historic and/or average levels for the last 8 to 10 years so I ascribe little if any of the decline to it.  Certainly, they do effect some buyers but not to the degree generally given voice to.  However, I suggest that (at least locally) any interest rate impact is offset by the incentives being offered by new home builders and the price reductions being offered by individual home re-sellers.  Our local MLS indicates that in October 37% of all listings had price reductions.  At the same time Days on Market declined on average, year to year, from 82 to 72 days.  As to average home price, they increased to $227,185 an increase of 3.4%.

Earlier this year I received my Seniors designation.  One of the most important issues facing seniors is wealth preservation and planning optimal tax strategies.  It's getting close to that time of year again so I thought I'd write about tax issues facing seniors and how to maximize tax deductions while minimizing the old IRS pain.  It's not to early during the holiday season to remember the taxman-Mr. IRS-and make plans to minimize your tax hit when April 15th rolls around.  A few smart moves before the end of the year could save you a bundle in the spring.  Qualifying for many tax benefits depends on individual circumstances, so it's always wise to consult a CPA/qualified tax preparer.  Here are some isues to ponder while you're preparing your 2006 taxes:

1.  Early mortgage and property tax payments

Pay your January, 2007 mortgage in December, 2006 and the mortgage intereste for that Juanuary payment can be deducted on your 2006 taxes.  Check with you local government to see if it's possible to pre-pay property taxes and claim that deduction on your 2006 tax return.

2.  Energy-efficient renovations

If you've modified your home with energy efficient products, such as solar panels, windows, and geothermal heat pumps, you may be eligible for a tax credit.  The maximum credit is $500.  Be aware that the rule has a few wrinkles. For instance, only $200 of that $500 can be taken for windows. 

3. Investment property

Tally up the receipts associated with your investment proeprty.  Repairs-things to keep in the property in good working condition-are deductible during the year you pay them.  More significant investments, such as a kitchen or bathroom or a major renovation,  get depreciated over 27.5 years for residentail real estate.  Major improvements on non-residential investment properties are depreciated over 31.5 years.

4.  Points and refinancing mortgages

If you paid points when you refinanced a home mortgage, points are deductible in full in the year paid, if the proceeds of the loan were used to improve your residence.  If they were used for something else (new car, vacation, etc.) they're deductible, but only over the life of the loan.  If this is a second refinance, and the taxpayer was amortizing previous points over the life of the loan, the remaining points not previously deducted are allowed in full, but only if the new loan is with a different lender. 

5.  1031 Exchanges

Profits on the sale of rental property are treated as a capital gain and you'll have to settle up with Uncle Sam.  One option to defer paying that tax is to re-invest the proceeds in a like-kind exchange.  To the extent that the proceeds are reinvested, the gain is deferred until the replacement property is sold. 

6.  Vacation Property

Carefully track how much time you spent at a vacation property.  When you own and rent out vacation home, expenses are generally allocated between rental use and personal used, based on the number of days of each use.  If you use the home for 14 days or less, or less than 10% of the time it is available for rent, the expenses are all allocated to, and deducted rom the rental income.  If you meet this limited-use test, the vacation home is not considered used as a personal residence.  Use by family members is counted as personal use by the owner, unliess family memebers pay fair market rent.

7.  Tax-free gifts

If you're looking to reduce your taxable estate for hiers, one option is to gift money to children, grandchildren and others.  Individuals can gift up to $12,000 (or $24,000 per couple) per year to anyone without tax consequences.  Another option is to gift appreciated assets, such as a piece of real estate worth $12,000.  "If I give a piece of real estate, it could be worth $15,000 in a few years and $30,000 down the road.  It's a way to legally give more than that $12,000 per year to someone. 

8.  Parental dependant care

If you're supporting a parent and provide over half of his or her support, such as nursing home and medical expenses, you may be able to claim him or her as a dependent.  Rules are stringent, so check with your CPA to determine whether your parent meets the dependency requirements.

9.  Charitable donactions

Those 701/2 or older can designate up to $100,000 of their IRA directly to a charity.  It's a neat tool for Seniors who might have a lot of montey and are worried about estate tax issues.  It's a great way to give to their charity of choice and save some estate tax down the road for their heirs. 

10.  Tax advisors

Find a good tax advisor and tax retun preparer.   Get recommendations for referrals from trusted friends, bankers and attorneys.  Seek out someone with expertise in estate planning and Senior issues, so the person can offer long-term tax strategies versues just focusing on annual tax preperation.

 

 

 

 

 

A wonderful new dog park in the Triangle area has opened.  This dog park is located at 2050 North West Marynard near the corner of Chapel Hill Road and Maynard.  The town of Cary’s first dog park will provide a place for dog owners to let their pets run free safely and legally without a leash.  The park is approximately 1 acre in size.  Pet owners can purchase memberships or day passes at any Cary, NC community centers. An electronic gate will allow members/day guests through.  Please see the fee schedule below.

Fees	Resident	Non-resident
Single Dog	$40	$80
Multi Dog	$60	$120
Day Pass	$5	$10

Background
In 2002, a group of dog owners approached the Town about providing a safe place where dogs could play and get exercise while not on a leash. In December 2004, more than 60 residents attended a meeting that the Town arranged for public input. The Cary Dog Park Club has hosted several “Dog Park for a Day” events that the Town sponsored. Club members have held the events to demonstrate how a dog park would work and to help raise money for one. Get details on the operations plan, fees, budget, buffer vegetation, etc.

Have fun with your pets!!

For those of you who love working out in Cary at the YMCA and have been waiting for years for the new YMCA your day is almost here.  The YMCA of the Triangle enters an exciting new eara with the groundbreaking of the Southwest Wake YMCA.  Volunteers and community leaders gathered at the property at 8951 Holly Springs Road in Apex on Tuesday. 

The main building will be nearly 45,000 square feet and will include an indoor track,gymnasium, wellness center and nursery.  Other amenities include steam and sauna rooms for men and women.  The new YMCA will have a variety of popular programs similar to the other YMCAs in the area like after school, track-out programs and summer day camps. 

In addition to the new amenities, the YMCA will have a big impact on the local economy.  The YMCA will employ over 800 people and operate with a $7.5 Milion dollar annual budget. 

As you have seen from several of my previous posts the Triangle area is growing in leaps and bounds.  As a part of the growth our schools are seeing a large influx of students as well. 

In order to support this growth we will need new schools.  There is currently a proposed bond amendment for $980 million that will need to be passed in order for our school system to support the projected growth over the next five years.  There has been a lot of information passing back and forth.  Here are the main reasons you should support the bond vote in November.

WHY IS THIS IMPORTANT TO YOU AS A MEMBER OF THE COMMUNITY?
A strong and well-recognized public school system plays an integral role in recruiting the best and brightest minds to our companies. Take a look at these accolades--important validation as individuals and families consider Wake County:
 August 2006 - #3 Top Metro Overall
-- Expansion Management 
June 2006 - #2 Highest Graduation Rate in the Country (82.2%)
 -- Education Week 
May 2006 - #2 Best Place for Business
-- Forbes 
January 2006 - #3 Most Educated City
 -- US Census Bureau 
December 2005 - #1 Best Public Education System in the Country
 -- Expansion Mgmt, "2006 Education Quotient" 
Nov. 2005 - Top 20 Best Places to Live, Work & Play 
-- Homebuilder.com
May 2005 - #2 Best Places for Business & Careers
-- Forbes
April 2005 - #2 Best Public Education System in the Country
-- Expansion Management

 * To stay competitive over the long haul, our businesses will be highly dependent upon the next generation of knowledge workers-innovative thought leaders in math, science and technology. Other countries, such as India and China, are moving ahead of us in this realm, and we must not allow a lack of funding to prevent us from taking responsible measures to prepare our children for the future. Before we can focus on technology advancement, we have to have the bricks, mortar and seats in place.

 WHY DO WE NEED MORE SCHOOLS?
 * The Wake County School System is growing faster than any other system in the state, with 5,099 additional students in 2004, 6,436 added in 2005, and 7,566 added in 2006. This year Durham County added only 262 students, Orange County added 301 students and Johnston added 1,568.
 * Using our forecasting software, the school board is predicting Wake County will add an additional 8,348 students next year, 9,231 in 2008 and 10,227 in 2009, so the growth will continue for many years to come.
* It is Wake County's legal obligation to provide adequate learning accommodations for every student. With crowded classrooms and more than 1,000 mobile units already in place, we have no choice but to add more new schools. This is why Wake County Commissioners put the bond issue on the Nov. 7 ballot.

 WHAT WILL WE GET IN THE $970 MILLION BOND PLAN?
 * 17 new schools
 * 13 comprehensive renovation projects
* Repairs and maintenance projects at nearly 100 other schools
* Funding for land and startup design of 13 future schools (7 elementary, 4 middle, 2 high)
* 5-year technology replacement and upgrade program
 
WHAT WILL IT MEAN TO VOTE "YES"/"NO" TO THE BONDS?
I believe this is possibly one of the most misunderstood aspects of the bond proposal issue. The bonds are about financing, pure and simple. Bonds are the only way we will cover the cost of growth, and a "no" vote does not mean there will be no bonds. It simply changes the type of bonds Wake County is able to secure, and most likely the amount of the bonds.
* A "yes" vote on Nov. 7 will allow Wake County to secure funds through the issuance of general obligation bonds. These bonds carry the lowest interest rates for local governments, especially when sought by a county like Wake with its AAA bond rating. (Wake County is one of only 22 counties in the country to hold this rating). $970 million will be available for the projects listed above.
* A "no" vote sends the School Board and Wake County Commissioners back to the drawing board. It will cost valuable planning and construction time (it takes an average of 34 months to build an elementary school from site acquisition to completion, and 50 months for a high school). Commissioners are likely to focus first on new construction and can borrow about $625 million without increasing taxes. That means they will likely delay projects such as renovations, repairs, maintenance and technology upgrades. Bonds issued by the County Commissioners are called certificates of participation, and they will carry a higher interest rate (about 0.2% higher) than general obligation bonds.

WILL THE BOND RAISE PROPERTY TAXES?
Yes. You will pay 4.7 cents more for each $100 of your home's assessed value. For example, if your home is assessed at $200,000, you would pay $94 more in property tax per year. It's important to point out, however, that Wake County property tax rates are currently below the state average of .6520 and significantly lower than those of neighboring and comparable counties. Consider the 2006-07 rates for each of these counties: 
* Orange: $0.9030
* Mecklenburg: 0.8189
* Durham 0.8090
* Johnston: 0.7800
* Wake: 0.6340
Adding the proposed 4.7 cents still keeps Wake County well below our neighbors at $0.6810.

You can learn more at www.WakeBonds2006.com or www.wcpss.net/bond/. If you are interested in viewing my slides from Wednesday's press conference , those are also available.  I encourage you to learn all you can about the 2006 Wake County School Bond Referendum, share what you learn with your families and neighbors, and vote on Nov. 7.

A couple of years ago my husband and I spent a couple of weeks in Europe.  One of my fondest memories included a visit to Claude Monet's home in Giverny, France.  I actually got to see the actual Lily Pond that inspired the Monet paintings. 

I'm so excited that they have taken Claude Monet's paintings on the road.  Over 50 paintings by this beloved impressionist are here in Raleigh.  This exhibit is a must see!!  His paintings include that  of Normandy's fields and coast, the garden and water lily pond at Giverny, and Rouen's cathedral.   For more details Visit the Monet in Normandy Web site!

I attended a luncheon at Hidden Lake North of Raleigh a week ago.  The agents onsite had a lot of information about what a wonderful, gated community it will be. It's just a 20-minute drive northeast of cosmopolitan Raleigh, near the quaint town of Wake Forest. This planned community of only 124 homes will feature heavily wooded, rolling topography with generous homesites ranging from 1 to 6 acres, dubbed "Private Preserves" due to their size. When the nearly 600-acre community opens, the first phase will offer more than 40 homesites bordering a 75-acre private lake. In addition to the lake, Hidden Lake residents will enjoy an array of amenities ideal for those who love the outdoors. Audubon International recently approved the site plan for Hidden Lake, which is the first step in achieving Audubon’s Three Diamond designation. Audubon International’s Three Diamond designation is its highest level of certification within its Gold Signature Program and indicates a superlative project based on protection of wildlife, water quality, and native flora and fauna, as well as green-building practices and site design.
	Acreage: 600 acres (240 hectares)
	Recreation: 227 acres of open space, including a 100-acre park and an outdoor pavilion for community and family events
	Biking Trails: Seven miles of bike paths
	Walking Trails: More than six miles of paved and soft-surface trails
	The Lake House: Will serve as the community amenities center. With a large gathering room with two fireplaces and a spacious lakeside veranda, The Lake House is ideal for both small and large parties.
	The Boat House: Includes canoes, kayaks and paddle boat launches. A few electric boats will be available for communal use. The Boat House also features a fishing pier, allowing residents to cast their lines in the clear, spring-fed lake with large fish.
	Lots: Homesites range between one and six acres and are expected to start in the $200,000's
	Homes: Homes are expected to start in the $900,000's

Let me know if you'd like any additional details by emailing me at Tracy@TracySantrock.com

• Availability of jobs, since many in this group will work beyond age 65.
• Affordable housing—many cities have costs on par with or below the national median price of $161,600.
• Culture and entertainment (from museums and opera to shopping and sports events).
• Access to outdoor recreation, from skiing and biking to walking and hiking.
• Safety—personal and property safety, and a generally secure feeling.
• Colleges or universities (for continuing education and a multigenerational vibe).
• Sense of community (often places with a vital and walkable downtown).
• Proximity to comprehensive, well-regarded health care facilities.
• Good public high schools, since many boomers still have teens at home.
• Ease of getting around (public transportation, traffic, access to an airport).

I wanted to share with you the latest community coming to the newly redesigned North Hills area with a Midtown address.  Kane Residential is pleased to announce that, on October 10th, pre-sales will begin for Ramblewood at North Hills, a community of brick townhomes, brick condominiums, and single-family Garden Homes. This project, introduced by Kane Residential, has been anticipated by the Triangle community and I wanted you to be the first to know.  Appointments will begin to scheduled on October 2^nd with a start date of October 10^th.  Completion date for the first homes is scheduled in the summer of 2007.  The community will have three types of homes:

• The Townhomes will have Brick exteriors featuring a traditional architecture.  Siteplans range from 2,300 to 4,500 square feet.  The townhomes will include 9 and 10-foot finished ceilings, hardwood floors, stainless steel appliances, and granite countertops.  In addition, first-floor master suites and finished attics will be available.   There will be X units and the base pricing starts in the high $400k’s going up to the $700k range.  There will be only 40 Townhomes in Ramblewood. 

 

• The Stacked Flats will be Single level floor plans offering 2 and 3 bedroom options at 1,150-2,000 square feet.  The raised ceilings will include 9-foot finished ceilings, Hardwood floors, Stainless steel appliances, granite countertops, and gracious terraces.  They will also have reserved, covered parking with elevator access and storage located in the parking level.   The stacked flats will start just under $300k and go into the $400k range with 80 units available. 

 

Garden Homes With only 18 sites available they will go fast.  The architecture will be influenced by classical English, French and American architecture and begin at 3000 square feet.  The floor plans will be either open or formal with first-floor master suites.  These Modern amenities, including state-of-the-art kitchens, delivered with timeless style will include Double-car, carriage style garages.    In addition,  outdoor spaces offer a variety of landscape design options, including cutting gardens and water features.  These luxurious high-end homes will start in the $900k range.

 

If you would like more information please feel free to call me at (919)656-5310 or email me at Tracy@TracySantrock.com