In many parts of the country, sellers have finally gotten the message: They can't be so stubborn about their asking prices. For buyers, now's when to find deals.
By Michael Giusti, Bankrate.com
Two years of stormy real estate markets appear to have created an ideal climate for bargain-minded house hunters who know where to look.
Real estate experts say a switch in the psychology of the housing market has helped buyers to see the silver lining around the market's storm clouds and usher in the fine shopping weather.
"We are now in a solid buyer's market," says David Lereah, the chief economist for the National Association of Realtors (NAR). "It has been a seller's market for many years, but now we are seeing people across the country making deals and bringing prices down."
Thursday, March 22, 2007
Tuesday, March 20, 2007
Your lender doesn't want your house
Most lenders will do almost anything to avoid foreclosure -- if you talk to the right people as soon as you can. Here's why and what you can do to save your home.
If you're in danger of falling behind on your mortgage, or if you're already late, you may be skeptical about your lender's willingness to help.
And if you take the advice we personal-finance types typically offer -- call the lender as soon as possible and ask for help -- you could find yourself stymied by the lender's bureaucracy or even told to come back when you are really behind in your payments.
Home-loan expert Jack Guttentag has heard from several borrowers who were blown off by their lenders in this way.
"(The homeowners) got a response of, 'Don't bother us. Come back when you're two months behind,' " said Guttentag, who runs the Mortgage Professor site.
Other borrowers can't even find someone to talk to them.
"It can be intimidating," said Rick Harper, the head of housing counseling for the Consumer Credit Counseling Service of San Francisco. "They may be trying to reach a company in a different time zone (with limited phone hours), or they may wind up in the collections side of the process . . . where all they hear is 'pay up, pay up.' "
It's no wonder many people become convinced their lenders are more interested in taking back their homes than in helping borrowers to keep them.
So I'm here to tell you, with the help of experts who know the mortgage-lending business, that your skepticism is almost certainly unfounded.
If you're in danger of falling behind on your mortgage, or if you're already late, you may be skeptical about your lender's willingness to help.
And if you take the advice we personal-finance types typically offer -- call the lender as soon as possible and ask for help -- you could find yourself stymied by the lender's bureaucracy or even told to come back when you are really behind in your payments.
Home-loan expert Jack Guttentag has heard from several borrowers who were blown off by their lenders in this way.
"(The homeowners) got a response of, 'Don't bother us. Come back when you're two months behind,' " said Guttentag, who runs the Mortgage Professor site.
Other borrowers can't even find someone to talk to them.
"It can be intimidating," said Rick Harper, the head of housing counseling for the Consumer Credit Counseling Service of San Francisco. "They may be trying to reach a company in a different time zone (with limited phone hours), or they may wind up in the collections side of the process . . . where all they hear is 'pay up, pay up.' "
It's no wonder many people become convinced their lenders are more interested in taking back their homes than in helping borrowers to keep them.
So I'm here to tell you, with the help of experts who know the mortgage-lending business, that your skepticism is almost certainly unfounded.
Getting a home loan just got harder
As some lenders collapse under the weight of bad mortgages, others are getting pickier. Now you have to have a real down payment -- and actually be able to afford the house.
By Marilyn Lewis
With the news full of stories about the collapse of lenders that sell mortgages to people with less-than-perfect credit, the survivors are clamping down, leaving first-time homebuyers to wonder, "Will I still be able to buy a house?" People with loans nearing the end of low-interest introductory periods are asking themselves, "Can I qualify for a refinance I can afford?"
The short answer, of course, is that it depends.
By Marilyn Lewis
With the news full of stories about the collapse of lenders that sell mortgages to people with less-than-perfect credit, the survivors are clamping down, leaving first-time homebuyers to wonder, "Will I still be able to buy a house?" People with loans nearing the end of low-interest introductory periods are asking themselves, "Can I qualify for a refinance I can afford?"
The short answer, of course, is that it depends.
Tuesday, March 13, 2007
New 2-year state budget estimate down by nearly $1 billion
TALLAHASSEE, Fla. (AP) – March 13, 2007 – Florida’s shaky financial outlook took a turn for the worse Monday when state economists knocked nearly $1 billion out of their two-year revenue estimate for the current annual budget and the next one, which takes effect July 1.
The present budget year will be Florida’s first with a decline in general revenue from the previous year since 1974-75, said Amy Baker, coordinator of the Legislature’s Office of Economic and Demographic Research.
The declines since the last revenue estimate in November are due mainly to a cooling off of Florida’s recently booming housing market, Baker said.
“We were so high last year that it’s just not sustainable,” she said. “So it doesn’t reflect economic weakness. It reflects the fact that when you have those extraordinary peaks, you can’t keep going at that speed.”
The present budget year will be Florida’s first with a decline in general revenue from the previous year since 1974-75, said Amy Baker, coordinator of the Legislature’s Office of Economic and Demographic Research.
The declines since the last revenue estimate in November are due mainly to a cooling off of Florida’s recently booming housing market, Baker said.
“We were so high last year that it’s just not sustainable,” she said. “So it doesn’t reflect economic weakness. It reflects the fact that when you have those extraordinary peaks, you can’t keep going at that speed.”
Official: Loan problem is manageable
WASHINGTON – March 13, 2007 – The government is monitoring the distress in the subprime mortgage industry and believes the current situation is manageable, a Treasury Department official said Monday.
The comments by Robert Steel, the Treasury undersecretary for domestic finance, came as concern mounted on Wall Street and elsewhere that a blowup of companies that make higher-risk home loans to consumers with poor credit or low incomes could spill over into other industries.
“We monitor the markets all the time, and are hopefully pretty aware of market conditions,” Steel told reporters in response to a question. “It seems to us that the situation is a manageable one, that we’re watching.”
Federal bank regulators, concerned about a spike in delinquencies and defaults on subprime home mortgages, earlier this month called on lenders to exercise caution in making the loans and to strictly evaluate borrowers’ ability to repay them. The regulators said the guidelines, if formally adopted by the agencies and followed by lending institutions, could result in fewer borrowers qualifying for subprime loans.
The comments by Robert Steel, the Treasury undersecretary for domestic finance, came as concern mounted on Wall Street and elsewhere that a blowup of companies that make higher-risk home loans to consumers with poor credit or low incomes could spill over into other industries.
“We monitor the markets all the time, and are hopefully pretty aware of market conditions,” Steel told reporters in response to a question. “It seems to us that the situation is a manageable one, that we’re watching.”
Federal bank regulators, concerned about a spike in delinquencies and defaults on subprime home mortgages, earlier this month called on lenders to exercise caution in making the loans and to strictly evaluate borrowers’ ability to repay them. The regulators said the guidelines, if formally adopted by the agencies and followed by lending institutions, could result in fewer borrowers qualifying for subprime loans.
Allstate seeks 14% rollback: Request falls short of state estimates
TALLAHASSEE, Fla. – March 13, 2007 – Allstate Floridian Insurance Co., the state’s third-largest home insurer, wants to cut its property insurance rates by an average of 14 percent statewide. But Allstate Floridian’s proposed premium cuts are far less than the estimated reduction of 24 percent Insurance Commissioner Kevin McCarty said recently that the state’s property insurers should be able to shave rates.
Allstate Floridian will have to justify why the decrease it plans – and the proposed 13 percent decrease by its subsidiary, Allstate Floridian Indemnity Co. – is lower than the state’s estimate. Company spokesman Adam Shores said Monday the figures are based on Allstate Floridian’s risk exposure, and “given the state of the overall [insurance] market, we feel that this is the appropriate rate which will help us move forward.”
County estimates of Allstate Floridian’s rate decrease weren’t available Monday. With its rate request filed, Allstate Floridian – the state’s third-largest insurance company – is now free to proceed with plans to drop 106,000 home and condo customers and offer them coverage with a new insurer, Ormond Beach-based Royal Palm Insurance Co.
Allstate Floridian will have to justify why the decrease it plans – and the proposed 13 percent decrease by its subsidiary, Allstate Floridian Indemnity Co. – is lower than the state’s estimate. Company spokesman Adam Shores said Monday the figures are based on Allstate Floridian’s risk exposure, and “given the state of the overall [insurance] market, we feel that this is the appropriate rate which will help us move forward.”
County estimates of Allstate Floridian’s rate decrease weren’t available Monday. With its rate request filed, Allstate Floridian – the state’s third-largest insurance company – is now free to proceed with plans to drop 106,000 home and condo customers and offer them coverage with a new insurer, Ormond Beach-based Royal Palm Insurance Co.
Thursday, March 08, 2007
Home builders survive in tough market by catering to 55+ with new communities
By Paul Owers South Florida Sun-Sentinel Posted March 5 2007
Americans in the "G.I. Generation" were easy to please. Growing up during the Great Depression, they bought homes in the 1940s and '50s replete with one-car garages, Formica countertops and vinyl floors.
Baby Boomers? They're much pickier.
Armed with unprecedented wealth, Boomers demand 10-foot ceilings, high-end appliances, a clubhouse concierge and live theater performances from Joan Rivers. Companies that know how to deliver that lifestyle are enjoying brisk sales, even as the housing downturn lingers.
"Builders who offer that are doing very well," said Tim McCarthy, founder of Traditions of America, a Philadelphia-based builder of communities for home buyers 55 and older. "Others are falling behind, and they're not able to compete."
Americans in the "G.I. Generation" were easy to please. Growing up during the Great Depression, they bought homes in the 1940s and '50s replete with one-car garages, Formica countertops and vinyl floors.
Baby Boomers? They're much pickier.
Armed with unprecedented wealth, Boomers demand 10-foot ceilings, high-end appliances, a clubhouse concierge and live theater performances from Joan Rivers. Companies that know how to deliver that lifestyle are enjoying brisk sales, even as the housing downturn lingers.
"Builders who offer that are doing very well," said Tim McCarthy, founder of Traditions of America, a Philadelphia-based builder of communities for home buyers 55 and older. "Others are falling behind, and they're not able to compete."
Legislative panel OKs sweeping tax cuts as Democrats protest potential impact
TALLAHASSEE– Only a day after lawmakers hailed a new era of cooperation at the state Capitol, Democrats complained bitterly Wednesday that Republicans were ramming through the Florida House a property tax-cut plan that critics say will lead to decreased police protection and closings of parks, libraries and programs for seniors.
On a party-line vote, Republicans on the House Government Efficiency and Accountability Council approved a $5.8-billion overhaul of the property tax system that would force Florida's counties, cities and special taxing districts to roll back rates to what they were on Jan. 1, 2001. The proposal would allow only modest adjustments for population growth and inflation, and according to House analysts, would yield an average statewide tax cut of 19 percent.
On a party-line vote, Republicans on the House Government Efficiency and Accountability Council approved a $5.8-billion overhaul of the property tax system that would force Florida's counties, cities and special taxing districts to roll back rates to what they were on Jan. 1, 2001. The proposal would allow only modest adjustments for population growth and inflation, and according to House analysts, would yield an average statewide tax cut of 19 percent.
One in four snowbirds find a roost in Florida
By Kathleen Kernicky South Florida Sun-Sentinel Posted March 4 2007
It started with vacations. Vacations stretched into winters. Ruth and Ted Goolst of Boca Raton were snowbirds while Ted ran his optometry practice in Newton, Mass. When Ted, 77, retired four years ago, the couple moved full-time into their condo at Whisper Walk.
"It got to be a bit of a hassle going back and forth. And it was getting too expensive to hold down two homes. It was there or here. We figured our lives would be easier here," says Ruth, 73.
According to a recent University of Florida study, almost one in four people 55 and older who moved full-time to the Sunshine State between 2000 and 2003 started out as a snowbird. In addition, 30 percent of current snowbirds said it was "likely or very likely" they would move here year-round at some point.
It started with vacations. Vacations stretched into winters. Ruth and Ted Goolst of Boca Raton were snowbirds while Ted ran his optometry practice in Newton, Mass. When Ted, 77, retired four years ago, the couple moved full-time into their condo at Whisper Walk.
"It got to be a bit of a hassle going back and forth. And it was getting too expensive to hold down two homes. It was there or here. We figured our lives would be easier here," says Ruth, 73.
According to a recent University of Florida study, almost one in four people 55 and older who moved full-time to the Sunshine State between 2000 and 2003 started out as a snowbird. In addition, 30 percent of current snowbirds said it was "likely or very likely" they would move here year-round at some point.
Friday, March 02, 2007
'No' to the Bedroom Just Like Fenway
Dan Marino's home in Weston, Fla., has all of the extras befitting a Hall of Fame quarterback -- a 15,000-square-foot main house, two guest houses, a waterfall Jacuzzi spa, a volleyball court and a putting green. What it lacks is a buyer: After more than a year on the market, a $1.4 million price cut to $14.5 million and a change in listing agents, the former Miami Dolphin's home still hasn't sold.
From Miami to San Francisco, the real-estate market is glutted with the splashy homes of professional athletes. Experts say there are simply more of them out there than there were a decade ago, as salaries and signing bonuses have soared and even some first-year players are living large in gigantic, decked-out homes. At the same time, trades and free-agency deals have continued apace, meaning more properties are being put up for sale every year. And the offers aren't rolling in.
Over-the-top, customized amenities such as 8-foot doorways, wrought-iron gates emblazoned with uniform numbers, and basketball courts with stadium seating aren't hitting home with prospective buyers. Many of these properties are sitting on the market for a year or more, and if they finally do sell, it's often at substantially discounted prices.
From Miami to San Francisco, the real-estate market is glutted with the splashy homes of professional athletes. Experts say there are simply more of them out there than there were a decade ago, as salaries and signing bonuses have soared and even some first-year players are living large in gigantic, decked-out homes. At the same time, trades and free-agency deals have continued apace, meaning more properties are being put up for sale every year. And the offers aren't rolling in.
Over-the-top, customized amenities such as 8-foot doorways, wrought-iron gates emblazoned with uniform numbers, and basketball courts with stadium seating aren't hitting home with prospective buyers. Many of these properties are sitting on the market for a year or more, and if they finally do sell, it's often at substantially discounted prices.
Saturday, February 24, 2007
What's 'beautiful' worth? About $12,500
The right phrasing in real estate listings can speed a sale and even boost the final price, a Canadian study says. And here's a tip: If you must sell, don't put "must sell" in your ad.
In real estate listings, what's the difference between describing your home as "beautiful" versus "move-in condition"? About $12,500 on a $250,000 home.
Professor Paul Anglin, a real estate economist in Guelph, Ontario, says that homes described as "beautiful" in real estate listings sell for 5% more while "move-in condition" has no effect on sale price.
Anglin and his colleagues from the University of Windsor and researchers from Canada Mortgage and Housing examined about 20,000 real estate listings and sales data in Windsor and Essex counties, Ontario, from between 1997 and early 2000. Among other things, they studied how listings' phrasing affected sale prices and the length of time it took for the listings to close.
In real estate listings, what's the difference between describing your home as "beautiful" versus "move-in condition"? About $12,500 on a $250,000 home.
Professor Paul Anglin, a real estate economist in Guelph, Ontario, says that homes described as "beautiful" in real estate listings sell for 5% more while "move-in condition" has no effect on sale price.
Anglin and his colleagues from the University of Windsor and researchers from Canada Mortgage and Housing examined about 20,000 real estate listings and sales data in Windsor and Essex counties, Ontario, from between 1997 and early 2000. Among other things, they studied how listings' phrasing affected sale prices and the length of time it took for the listings to close.
Friday, February 23, 2007
Home buying: Buy now? Or wait for a price drop?
A reader wonders whether rising mortgage rates would wipe out any benefits from prices falling further.
(Money Magazine) -- Question: My wife and I want to buy. Should we wait to see if prices fall, or take advantage of today's low mortgage rates? - Heath Hewett, Columbia, S.C.
Answer: If you're asking whether a significant price drop would lower your monthly payments more than a big increase in mortgage rates would raise them, it's easy: You should probably root for the price decline.
For example, the monthly payment on a $300,000, 30-year fixed-rate mortgage at today's rates is $1,847. Rates would have to rise to 8.1 percent - nearly two full percentage points - before a $250,000 loan would cost that much.
But it sounds as if you're really asking whether prices in your area are likely to decline enough to justify holding off on a purchase. When it comes to that, frankly, your guess is as good as ours.
While there's no lack of experts making predictions about where home prices are headed in the next year, no one knows for sure.
(Money Magazine) -- Question: My wife and I want to buy. Should we wait to see if prices fall, or take advantage of today's low mortgage rates? - Heath Hewett, Columbia, S.C.
Answer: If you're asking whether a significant price drop would lower your monthly payments more than a big increase in mortgage rates would raise them, it's easy: You should probably root for the price decline.
For example, the monthly payment on a $300,000, 30-year fixed-rate mortgage at today's rates is $1,847. Rates would have to rise to 8.1 percent - nearly two full percentage points - before a $250,000 loan would cost that much.
But it sounds as if you're really asking whether prices in your area are likely to decline enough to justify holding off on a purchase. When it comes to that, frankly, your guess is as good as ours.
While there's no lack of experts making predictions about where home prices are headed in the next year, no one knows for sure.
West Palm Beach to sell land to the highest online bidder
If you're in the market for prime development land, then check out the two parcels the city of West Palm Beach is selling. To do so, you don't even have to leave your office; you can learn everything you need to know about the land -- and bid on it -- via an interactive online auction the city is holding starting today.
The auction is being conducted by Sperry Van Ness/Fisher Auction Co. Inc., a Pompano Beach-based auction house. And it's being held exclusively online, through Friday . All necessary information for potential bidders can be found at www.fisherauction.com.
"Auctions are a beneficial way to sell a property," said Louis B. Fisher III, principal owner of Fisher Auction. "They transform surplus holdings into cash or earnings assets."
The auction is being conducted by Sperry Van Ness/Fisher Auction Co. Inc., a Pompano Beach-based auction house. And it's being held exclusively online, through Friday . All necessary information for potential bidders can be found at www.fisherauction.com.
"Auctions are a beneficial way to sell a property," said Louis B. Fisher III, principal owner of Fisher Auction. "They transform surplus holdings into cash or earnings assets."
Sunday, February 18, 2007
Mountains of homes still listed for sale
It's a quiet Sunday afternoon in West Kendall, the third quiet Sunday afternoon in a row that Olga Alvarez has opened her house to buyers.
The carpets are vacuumed, the kitchen scoured, the orange balloons and open-house signs placed on street corners. Three groups came through last week, two the week before. This time, Alvarez is hoping for The One.
At 1 p.m. sharp, she unlocks the door and settles in to wait.
• • •
The story of housing in South Florida in 2006 was one of waiting -- buyers waiting for the right price, sellers waiting for the right buyer, everyone waiting to see where an uncertain market would go. Now the question is: Will 2007 be the year the market turns around?
The carpets are vacuumed, the kitchen scoured, the orange balloons and open-house signs placed on street corners. Three groups came through last week, two the week before. This time, Alvarez is hoping for The One.
At 1 p.m. sharp, she unlocks the door and settles in to wait.
• • •
The story of housing in South Florida in 2006 was one of waiting -- buyers waiting for the right price, sellers waiting for the right buyer, everyone waiting to see where an uncertain market would go. Now the question is: Will 2007 be the year the market turns around?
Saturday, February 17, 2007
Dwindling number of students in Florida blamed on costly housing
Tallahassee · Soaring home prices are being blamed for a sudden and surprising decline in the number of students entering Florida public schools, a survey of county school superintendents revealed Thursday.
Half of the 62 school chiefs polled cited the cost of housing as a major reason why students and their families either left their counties or chose not to move there. The findings underscore the emerging view that housing costs are putting the brakes on fast-growing Florida.
For schools, the first signs of the trend surfaced when state analysts wrongly predicted that 48,376 more students would crowd classrooms statewide when doors opened in the fall. Instead, only an extra 477 children showed up.
"We missed it big time," said Wayne Blanton, executive director of the Florida School Boards Association. "Through 2005, we had 10 years in a row of more than 50,000 new students a year. Suddenly, it's stopped." It's the slowest growth rate in students that Florida has seen since the 1982-83 school year.
Half of the 62 school chiefs polled cited the cost of housing as a major reason why students and their families either left their counties or chose not to move there. The findings underscore the emerging view that housing costs are putting the brakes on fast-growing Florida.
For schools, the first signs of the trend surfaced when state analysts wrongly predicted that 48,376 more students would crowd classrooms statewide when doors opened in the fall. Instead, only an extra 477 children showed up.
"We missed it big time," said Wayne Blanton, executive director of the Florida School Boards Association. "Through 2005, we had 10 years in a row of more than 50,000 new students a year. Suddenly, it's stopped." It's the slowest growth rate in students that Florida has seen since the 1982-83 school year.
Need help buying your first home? Here's where to look
Wondering if now is the time to buy your first house or condo?
With a deluge of properties for sale throughout South Florida, prices are flexible, interest rates reasonable, and sellers are offering incentives to seal a deal.
But a home's price is just the beginning. Taxes and insurance can add as much as 50 percent to your monthly payment, real estate experts warn.
"It seems to me there are a lot of options out there, but you've got insurance and taxes and those are a real killer," said Bob Stroh, director of the University of Florida's Shimberg Center for Affordable Housing. "We're seeing young people staying at home until they are 25 or 30 because they can't afford to buy anything."
To help bridge the affordability gap, programs for first-time buyers are available from the U.S. Department of Housing and Urban Development, the Florida Housing Finance Corp., Broward and Palm Beach counties, and many of their cities.
With a deluge of properties for sale throughout South Florida, prices are flexible, interest rates reasonable, and sellers are offering incentives to seal a deal.
But a home's price is just the beginning. Taxes and insurance can add as much as 50 percent to your monthly payment, real estate experts warn.
"It seems to me there are a lot of options out there, but you've got insurance and taxes and those are a real killer," said Bob Stroh, director of the University of Florida's Shimberg Center for Affordable Housing. "We're seeing young people staying at home until they are 25 or 30 because they can't afford to buy anything."
To help bridge the affordability gap, programs for first-time buyers are available from the U.S. Department of Housing and Urban Development, the Florida Housing Finance Corp., Broward and Palm Beach counties, and many of their cities.
Sunday, February 04, 2007
Cost of renting commercial space in S. Florida creeps up toward New York rates
When Jim Cahlin looks at commercial real estate in South Florida, he's starting to see New York.
"We're getting closer and closer to rental rates in major metropolitan markets," said Cahlin, a broker for Cushman & Wakefield.
At year-end 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 at year-end 2005, according to a Cushman report. Broward's rental rate for comparable digs was $31.08 a square foot, up from $29.29.
Rents in the Big Apple and other large cities are north of $50, Cahlin said.
Why are South Florida landlords charging so much? Because they can.
"We're getting closer and closer to rental rates in major metropolitan markets," said Cahlin, a broker for Cushman & Wakefield.
At year-end 2006, the average rental rate for luxury downtown office space in Palm Beach County was $40.69 a square foot, up from $36.42 at year-end 2005, according to a Cushman report. Broward's rental rate for comparable digs was $31.08 a square foot, up from $29.29.
Rents in the Big Apple and other large cities are north of $50, Cahlin said.
Why are South Florida landlords charging so much? Because they can.
Saturday, February 03, 2007
Not-so-easy money?
This refund should be simple, but one-third so far aren't claiming it
SAN FRANCISCO (MarketWatch) -- It's perhaps the easiest $30 to $60 you'll ever collect from the IRS, but more than one-third of early-bird tax filers failed to claim the telephone excise tax refund, available this year to just about any taxpayer who paid for long-distance telephone service in recent years, the IRS said Wednesday.
"A little more than one-in-three returns are omitting the telephone tax refund," said Eric Smith, an IRS spokesman.
Some of those taxpayers are correct in not claiming the refund if they didn't pay for long-distance telephone service. But plenty of taxpayers who aren't claiming the refund are "omitting it in error," Smith said.
The refund is available this year only, and came about after court decisions found the excise tax, first levied in 1898 to fund the Spanish-American War, should no longer apply to telephone service as it's billed today. Taxpayers can claim a refund based on the 3% excise tax they paid on long-distance calls from March 2003 through July 2006
SAN FRANCISCO (MarketWatch) -- It's perhaps the easiest $30 to $60 you'll ever collect from the IRS, but more than one-third of early-bird tax filers failed to claim the telephone excise tax refund, available this year to just about any taxpayer who paid for long-distance telephone service in recent years, the IRS said Wednesday.
"A little more than one-in-three returns are omitting the telephone tax refund," said Eric Smith, an IRS spokesman.
Some of those taxpayers are correct in not claiming the refund if they didn't pay for long-distance telephone service. But plenty of taxpayers who aren't claiming the refund are "omitting it in error," Smith said.
The refund is available this year only, and came about after court decisions found the excise tax, first levied in 1898 to fund the Spanish-American War, should no longer apply to telephone service as it's billed today. Taxpayers can claim a refund based on the 3% excise tax they paid on long-distance calls from March 2003 through July 2006
Monday, January 29, 2007
Support squeeze
Tips for coping when care for parents, children means delaying retirement
SAN FRANCISCO (MarketWatch) -- The good news is baby boomers aren't as selfish as the "Me Generation" label attributed to them might suggest. The bad news is their generosity might force them to work well into their retirement years, according to a new survey of working Americans.
About one in five workers 45 and older provide financial support to a parent, according to the survey of about 5,400 adults conducted by Brightwork Partners for Putnam Investments.
And a fair portion of boomers are supporting their adult children: Almost one-third of working Americans 45 and older with a grown child over age 25 pay rent or provide housing for that child, the survey found. Meanwhile, 45% of middle-age workers with grown children provide financial support of about $2,500 a year on average.
SAN FRANCISCO (MarketWatch) -- The good news is baby boomers aren't as selfish as the "Me Generation" label attributed to them might suggest. The bad news is their generosity might force them to work well into their retirement years, according to a new survey of working Americans.
About one in five workers 45 and older provide financial support to a parent, according to the survey of about 5,400 adults conducted by Brightwork Partners for Putnam Investments.
And a fair portion of boomers are supporting their adult children: Almost one-third of working Americans 45 and older with a grown child over age 25 pay rent or provide housing for that child, the survey found. Meanwhile, 45% of middle-age workers with grown children provide financial support of about $2,500 a year on average.
Tougher loan guidelines wise for borrowers
Perspective: Better underwriting offers benefits to consumers
The federal government has stepped into a battle between banks and borrowers and for once, the government is on the right track: New stricter loan guidelines should be applied not just to interest-only and payment-option adjustable-rate mortgages, but also to an entire category of esoteric and extremely complicated loan products.
read more: http://www.inman.com/hstory.aspx?ID=61762
The federal government has stepped into a battle between banks and borrowers and for once, the government is on the right track: New stricter loan guidelines should be applied not just to interest-only and payment-option adjustable-rate mortgages, but also to an entire category of esoteric and extremely complicated loan products.
read more: http://www.inman.com/hstory.aspx?ID=61762
Friday, January 26, 2007
New Boca development may open doors to affordable housing
A new development of homes on Broken Sound Boulevard in Boca Raton will offer the city something no other plat has done before.
The developer of the 172-unit residential complex, Stiles Development Corp. of Fort Lauderdale, will be the first to put some cash – specifically, $3 million -- into the city’s Affordable Housing Land Trust fund.City officials have been working long and hard for at least three years to come up with a method of providing affordable housing to middle income residents. To date, an ordinance is in the works, but it has never seen the light of a public hearing.Since 2004, the Greater Boca Raton Chamber of Commerce has been pushing for an affordable housing ordinance – and has even drafted a model for the city to adopt. The planning staff is currently reviewing it.A land trust, combined with an ordinance explaining how it can be used, could solve Boca’s problem of finding an equitable solution to the affordable housing issue
The developer of the 172-unit residential complex, Stiles Development Corp. of Fort Lauderdale, will be the first to put some cash – specifically, $3 million -- into the city’s Affordable Housing Land Trust fund.City officials have been working long and hard for at least three years to come up with a method of providing affordable housing to middle income residents. To date, an ordinance is in the works, but it has never seen the light of a public hearing.Since 2004, the Greater Boca Raton Chamber of Commerce has been pushing for an affordable housing ordinance – and has even drafted a model for the city to adopt. The planning staff is currently reviewing it.A land trust, combined with an ordinance explaining how it can be used, could solve Boca’s problem of finding an equitable solution to the affordable housing issue
Twelve Tempting Locations For Vacation-Home Buys
The recent softening in the U.S. real-estate market after years of double-digit percentage growth in home prices may make it scarier than ever to buy a vacation home.
Some regions are scary because, even with the recent dip, they seem prohibitively expensive. Elsewhere, buyers may have understandable fears that places that seem affordable will only become more so as prices continue to fall.
The editors at RealEstateJournal.com set out to identify potential vacation-home deals that would assuage the most nervous Nellies. We looked for appealing locales across the U.S. where prices rose at a rate well below the national average of 84.3% between the second quarter of 1996 and the second quarter of 2006, and have above-average employment outlooks according to data from Economy.com.
read more: http://www.realestatejournal.com/buysell/regionalnews/20061109-kim.html
Some regions are scary because, even with the recent dip, they seem prohibitively expensive. Elsewhere, buyers may have understandable fears that places that seem affordable will only become more so as prices continue to fall.
The editors at RealEstateJournal.com set out to identify potential vacation-home deals that would assuage the most nervous Nellies. We looked for appealing locales across the U.S. where prices rose at a rate well below the national average of 84.3% between the second quarter of 1996 and the second quarter of 2006, and have above-average employment outlooks according to data from Economy.com.
read more: http://www.realestatejournal.com/buysell/regionalnews/20061109-kim.html
Facing foreclosure? Beware of 'rescue firms' offering to help you
To a financially strapped homeowner terrified by the prospect of foreclosure, it sounds like an escape plan:
Temporarily transfer title of the property to a foreclosure rescue firm, which pays the mortgage and allows you to rent the house. The company promises that after six months or a year you can regain ownership.
But it's not always that simple. Terms of these deals are difficult for struggling homeowners to meet. And real estate experts say savvy firms often prey on elderly or low-income owners who are not sophisticated in financial matters.
read more: http://www.sun-sentinel.com/business/realestate/sfl-sbforeclose25jan25,0,7678449.story?coll=sfla-busrealestate-headlines
Temporarily transfer title of the property to a foreclosure rescue firm, which pays the mortgage and allows you to rent the house. The company promises that after six months or a year you can regain ownership.
But it's not always that simple. Terms of these deals are difficult for struggling homeowners to meet. And real estate experts say savvy firms often prey on elderly or low-income owners who are not sophisticated in financial matters.
read more: http://www.sun-sentinel.com/business/realestate/sfl-sbforeclose25jan25,0,7678449.story?coll=sfla-busrealestate-headlines
If you moved in 2006, you might get tax savings
NEW YORK (MarketWatch) -- Were you one of the 25 million tax-paying Americans who changed homes in 2006? If so, you might be due big tax savings. According to real estate attorney and columnist Bob Bruss, your household moving expenses can be deducted as an adjustment to gross income.
Deductible expenses include any direct household moving costs, such as hiring a moving van, shipping expenses, moving insurance, and airline, train or bus fare to your new city. If you drive yourself, you can deduct gasoline and oil bills. The cost of lodging en route (but not meals) is also deductible.
read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFBA6FCE9%2D71D8%2D455F%2DB45B%2D5B9B496B9A79%7D&siteid=mktw&dist=nwhreal
Deductible expenses include any direct household moving costs, such as hiring a moving van, shipping expenses, moving insurance, and airline, train or bus fare to your new city. If you drive yourself, you can deduct gasoline and oil bills. The cost of lodging en route (but not meals) is also deductible.
read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BFBA6FCE9%2D71D8%2D455F%2DB45B%2D5B9B496B9A79%7D&siteid=mktw&dist=nwhreal
Officials Seek to Rein In Insurers As Home-Insurance Premiums Rise
A backlash against insurers is building in several coastal states where homeowner premiums have increased sharply despite several years of rising industry profits and an uneventful hurricane season in the East.
In Florida, where back-to-back hurricanes have helped some rates more than double since 2004, the state legislature yesterday approved a measure aimed at reducing homeowner premiums offered by private insurance companies by 5% to 25% or more. The legislature has been meeting since last week in a special session specifically aimed at addressing the state's insurance crisis. The measure now goes to Republican Gov. Charlie Crist, who has made insurance-rate cuts a top priority since taking office this month.
read more:http://www.realestatejournal.com/buysell/taxesandinsurance/20070124-mcqueen.html?rejpartner=mktw
In Florida, where back-to-back hurricanes have helped some rates more than double since 2004, the state legislature yesterday approved a measure aimed at reducing homeowner premiums offered by private insurance companies by 5% to 25% or more. The legislature has been meeting since last week in a special session specifically aimed at addressing the state's insurance crisis. The measure now goes to Republican Gov. Charlie Crist, who has made insurance-rate cuts a top priority since taking office this month.
read more:http://www.realestatejournal.com/buysell/taxesandinsurance/20070124-mcqueen.html?rejpartner=mktw
Monday, January 15, 2007
Blueprint for home sale: Price it right
(My broker has been saying this for the last quater of 2006.)
The current market value of your home may be more than, less than or the same as it was last year depending on where you live and what you have to sell. Nationally, the median sale price of homes sold in October 2006 dipped 3.5 percent from October 2005, which was an exceptionally strong month. But there are still pockets of the market, such as Portland, Ore., where prices are still going up.
The current market value of your home may be more than, less than or the same as it was last year depending on where you live and what you have to sell. Nationally, the median sale price of homes sold in October 2006 dipped 3.5 percent from October 2005, which was an exceptionally strong month. But there are still pockets of the market, such as Portland, Ore., where prices are still going up.
Saturday, January 13, 2007
Consumers see their insurance rates, risks rising
Insurers post record profits as companies hike rates and shift more risk to customers, a consumer group says.
Although the insurance industry has posted record profits in the past three years, home insurers have been overpricing policies and shifting risks to consumers, a new study released Monday by the Consumer Federation of America found.
Insurers have been systematically overcharging for insurance and shifting costs to consumers, the report found. Profits in the past three years have risen to record levels despite the increased hurricane activity of 2004 and 2005.
Although the insurance industry has posted record profits in the past three years, home insurers have been overpricing policies and shifting risks to consumers, a new study released Monday by the Consumer Federation of America found.
Insurers have been systematically overcharging for insurance and shifting costs to consumers, the report found. Profits in the past three years have risen to record levels despite the increased hurricane activity of 2004 and 2005.
Florida exodus? Statistics show residents starting to leave for less costly locales
For the first time in 30 years, United Van Lines Inc. says it moved more people out of Florida than in, and analysts see that as a sign that consumers are looking elsewhere for a cheaper slice of life.
Wednesday, January 10, 2007
Upscale garages 'in,' buyer incentives 'out' for '07
When home sales softened late in 2005, many sellers decided to take their homes off the market and wait until the spring flowers surfaced -- along with the traditional housing season -- to lure potential home buyers. While sellers enjoyed modest appreciation in many areas of the country early in 2006, the second half was a totally different matter.
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