• Oct. 14, 2008 - How will the Housing Assistance Act of 2008 affect Investors?
The bill which was made law the end of July will cause changes for 1031 investors and what they can exclude from taxable income when they sell a property. Currently a property would have to be owned for at least 5 years, and used as a principal residence for at least 2 of those 5 years, to qualify for up to $250,000 to be excluded as taxable income and up to $500,000 for a married couple. Even if the property was used as a rental property, as long as the 2 year criteria was met the income was not taxed.
As I understand it, after 1/1/09, there is a formula for computing the qualified and non-qualified periods of ownership and only the “qualified” use timeframe would be excluding from being taxed. There seem to be some possible breaks for health problems military service or loss of job. But, needless to say, after January, 2009, anyone considering purchasing an investment property should consult their tax professional to evaluate how these changes will affect them. |
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• Apr. 23, 2008 - Are Real Estate Prices to Continue to Drop?
So many individuals are still on the proverbial fence waiting for the “bottom of the bottom” for prices on property. I don’t believe anyone can say with a certainty when we have hit the bottom for price reductions. When comparing the average residential list price for the 4th quarter of 2007 to the 1st quarter of 2008, the average list was approximately 12% less. The average sold price at 4th quarter was 94.2% of the asking price versus the 1st quarter 2008 average sold price of 93.9% for that period’s closed transactions in our local MLS system.
Then in the lots and land category, the picture is frankly a bit dismal. But then again with such a surplus of inventory, most builders and developers are putting a stay on starting new projects of spec homes.
For buyers or speculators who have good credit and have the needed minimum 20% down payment, I still maintain that TODAY is a fine time to get an excellent buy in this market. If you are in that category, jump in and avail yourselves of some wonderful deals on very nice properties. |
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• Oct. 5, 2007 - If Only we had a Crystal Ball!
Tell me the future . . .
How do we foresee market changes and trends? Certainly nobody has the definite bead on what's ahead and how variables can
impact the final result, but trying to recognize growth and current dynamics in a given area is possible.
In our area, we are still experiencing so much development throughout the county even though the real estate sales are
down somewhat from this time last year. With the recent dredging done to enhance our channel depth, the Port of Brunswick
is deemed to be the fastest growing port in North America. New schools have opened to accommodate the student's growing
numbers with even more school sites in the planning stages for the near future. The Jekyll Island Authority's plan to
enhance amenities and lodging choices for our guests has everyone very excited about putting our lovely Jekyll back on the
map as a convention choice and destination for more guests. If you care to read about the development plans on the table
go to www.rediscoverjekyll.com to review. (Thanks to Brian Brodrick for
providing that link!) New shopping and dining choices have sprung all over the county, particularly close to exits off
I-95. New subdivision communities have given homeowners choices in starter home price points up to upscale areas with
high-end features.
All in all, the outlook for Glynn County's future still looks bright. If you have any specific questions or interests
regarding the Golden Isles of Georgia, I would be very pleased to attempt to help you.
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• Jun. 30, 2007 - Happy 4th of July!
Welcome to summer in Southeast Georgia! I know a lot of people complain about the heat, but I LOVE it! After working for 6 years in NYC, I will NEVER complain about the heat again. When working in NY, I would fly home, and as soon as I got off of the airplane, I would just stand outside with my arms extended trying to get my bones warm. That was one of the best things about coming home. Now it's the week of July 4th, arguably the busiest and one of the hottest week of the year, and I'm loving it!
Real estate has slowed resulting in a great buyer's market for St. Simons. How many times have you heard that??? What an opportunity! The last time the market was like this (right after 9/11) , homes in the St. Simons Island Club were listed beginning in the low $400K's. Now the least expensive home in that neighborhood is listed for $675K. I imagine that the buyers who bought in that "down" market are happy for their foresight. Remember, when opportunity knocks, you need open the door! |
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• Feb. 11, 2007 - Invest in Real Estate Now???
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I spent Friday afternoon with a young investor. He had been referred to me after an appraiser told him he really needed to have a buyer's agent. I love his enthusiasm, and respect the fact that he is getting into real estate at such a young age - not your average young man!
"Invest in real estate now?" you might ask. Well, to borrow some of an article in the March 2007 Smart Money magazine: "Invest in rental housing? Now? With real estate headlines these days ranging from sober to apocalyptic, using 'invest' and 'housing' in the same sentence can get you some funny looks around the water cooler. But rental market fundamentals are surprisingly sound. For one thing, rents have fallen behind sales prices in recent years and have some catching up to do. Even better, the National Association of Homebuilders expects 1.5 million new households to form each year through 2015, many created by immigrants and twentysomethings - the folks most likely to rent."
And, the market for buyers is better here than it has been in awhile. We are an area that expects massive growth due to baby boomers retiring, and our reputation is growing as one of the best places in America to live. So perhaps a better question would be, "Why not invest in real estate now?" How many people wish that they had taken that money that they put in the stock market in the 90's and put it in real estate instead. (That's my hand you see high in the air!)
But it's never too early, or too late for that matter. As I always say, the best deal you get in real estate is the one you make today. I'll keep an eye on this young man's portfolio. Let's hope he does well, as he's getting married this spring. (Congratulations Walter and Nettie!)
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