GENERAL INDICATIONS OF A FORTHCOMING ROBUST HOUSING MARKET

• Home prices could jump almost 10% in 2013 (J.P. Morgan)

• S&P/Case-Shiller home price index shows biggest year-over-year increase since spike caused by expired tax credit

• Existing home sales for November rose 5.9% over October, 14.5% higher than in November 2011 (National Association of Realtors)

• 2012 Housing starts are 23% higher than 2011 and 2013 predicted to usher in a 21% gain over 2012 (National Association of Home Builders).

• Inventories are low and demand is rising – 22% below last year’s levels of traditional listings and distress properties (National Association of Home Builders)

• Positive consistent reports are out on housing starts, permits, prices, new-home sales and builder confidence in recent months indicating a gradual but steady housing recovery is underway across most of the nation (National Association of Home Builders)

• Existing home sales are at the highest level since November 2009

• Foreclosures and short sales accounted for about 22% of November sales, down from 24% in October and 29% in November 2011

• Builder confidence has posted gains for 8 consecutive months and is now at 47; the NAHB/Wells Fargo Housing Market Index has not been above 50 since April 2006

• Rental market has greatly enlarged due to demand and more than 31% of today’s renters plan to buy a home in the next two years, a 9-point increase from 22% in January 2011 (Trulia’s American Dream survey)
 

•  72% of “Millennials” (18-34 year olds) have homeownership as part of their personal American Dream.  About 93% expect to buy a home one day

MONEYRATE.COM RANKS TEN BEST STATES FOR RETIREMENT

10. Texas (tie) — warm weather and solid economy

10. California (tie) — good weather and high life expectancy

9. South Dakota — low crime rate and high life expectancy

7. New Mexico (tie) — good weather

7. Florida (tie) — good weather

6. Colorado — high life expectancy

5. Virginia — good economy

4. Arizona — good weather and high life expectancy

3. Utah  — good economy

2. Idaho — low crime rate and good economy

1. Hawaii — great weather and high life expectancy

 

 

ATTENTION ALL BOATERS!

PICTURE THIS:  You pull your boat up to the soon-to-be-built Waterfront Promenade at the Bridge Hotel in Boca Raton, and dine in the popular WaterColors Restaurant.  There will be a 270 ft wraparound seawall and dock; construction beings this week.  

This is the initial phase of the Bridge Hotel’s major “reinvention” redevelopment plan.  Next there will be new hospitality and dining concepts introduced, further expansion of waterfront amenities and guestrooms, restaurants and public spaces will be undergoing extensive renovations.  Goal is to position the property as a luxury boutique hotel with four-star status. 

During construction, WaterColors new menu will be served in Carmen’s which boasts sweeping penthouse-level panoramic views of Lake Boca, Intracoastal and Atlantic Ocean.  Every guestroom at The Bridge Hotel has panoramic water views.  Location is 999 East Camino Real at A1A’s south end of the bridge.

A DILEMMA TO BE DECIDED ABOUT EXPANDING FLORIDA MEDICAID

NEWS YOU SHOULD KNOW:
Here is a link to an article that explains the dilemma and highlights three studies about it... and asks if Florida can really count on this government funding in light of our national deficit:
 
http://www.healthnewsflorida.org/top_story/read/could_medicaid_expansion_pay_off

UPDATE ON FORECLOSURES

Zillow analysts state that foreclosure home buyers in Palm Beach, Broward and Miami Dade counties could only expect a 2.9% savings in September compared to available homes NOT sold at a distressed price.  Discounts are shrinking on distressed properties.

Zillow further states that same time last year the discount was 6.8%, and in August 2008, the peak foreclosure month in South Florida: 22.7%.  If investors can’t purchase a property they can fix up and sell at a profit, they have no incentive to buy.  For buyers who want to buy, rent the property out and sell later at a profit, it is harder and harder to find a property that meets the profit criteria.

Home buyers getting a mortgage may find the distressed properties don’t appraise to the list price.

RE MORTGAGE DEBT and see attachment re STUDENT LOANS, CREDIT CARDS, etc.

Topic Summary: Five years ago, at the start of the housing crisis, Congress passed a law called the Mortgage Forgiveness Debt Relief Act.  The MFDRA would prevent homeowners from paying tax on the amount of any debt forgiveness.  

This provision is set to expire, as designed, on Dec. 31st.  If allowed to expire through Congressional inaction, homeowners who will get underwater workouts may be liable for paying taxes on the amount of forgiven dept. Also, a growing number of homeowners who will conduct a "short sale" in 2013 may also be liable for paying taxes. As an example almost 30% of all recent sales in California were "short sales" and in Nevada about 25% of all sales were "short."

The IRS Does Not See It The Same Way!
It would appear that homeowners who got in trouble over the last few years because of money problems probably couldn't handle the mortgage situation they were in and a "life line" (work out) was offered and excepted. Next year, homeowners who do a work out, will have a surprise tax event that may cause more long term negative pressure with what's owed to the IRS and the states. To see what is exactly covered and other tips, the IRS offers this resource HERE.

How does the tax provision work? Without the tax measure, a homeowner who owes $400,000 on his mortgage and sells his house for $300,000 would owe income taxes on the difference of $100,000, the amount that's forgiven. The $100,000 would be considered regular income by the Internal Revenue Service and in many states. The reason being, many state tax income sources the same way as the IRS.  This could take away some of the incentive for homeowners to seek a short sale.

What Would It Cost To Renew?  Renewing the provision for two years, as President Obama proposed earlier this year, would cost the Treasury Dept. $2.7 billion, according to the Congressional Budget Office.
Timeline: There will be a lot of activity in Congress after the election and overall, the spirit of "giving" is not something that is trendy in Washington these days. There has been bi-partisan support for the extension, it's just a matter of getting focus in Congress.

THIS ARTICLE IS FROM MY HOME ACTIONS NEWSLETTER.  THERE ARE MANY ARTICLES OF INTEREST TO HOMEOWNERS IN HOME ACTIONS.  IF YOU WISH TO SUBSCRIBE, EMAIL marilynfjacobs@gmail.com.

Things to Do at Daggerwing

Nature Center in November

Daggerwing Nature Center is operated by the Palm Beach County Parks and Recreation Department and is located in South County Regional Park at 11200 Park Access Road, off Cain Boulevard between Glades Road and Yamato Road, in western Boca Raton.

The following activities are planned at Daggerwing Nature Center during November.

 ANIMAL FEEDINGS
Daily at 3:15-3:30 pm
Families, all ages, free (reservations not required)
3:15 pm is feeding time. Listen to a short talk about a specific animal and then watch while they are fed.
Wednesday – alligator; Thursday – snake; Friday – skunk; Saturday – alligator

 MOMMY, MOTHER NATURE and ME: Turtles
Friday, Nov. 2, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turtles through books, activities, nature walks, and crafts. During this class, get up-close and personal with several different types of live turtles.

 AMPHIBIANS
Saturday, Nov. 3, 1-1:45 pm
Families and all ages, $3 per person (reservations required)
Come and meet some live green tree and pig frogs. Find out why frogs are as important to the environment as an indicator species, and what we can do to help their wild populations.

 FALL CRAFTS
Saturday, Nov. 10, 10:30-11:15 am
Ages 5-10, $4 per child (reservations not required)
Make some festive, fun, fall crafts that will make great decorations for Thanksgiving.

MOMMY, MOTHER NATURE and ME: Turkeys
Friday, Nov. 16, 10:30-11:15 am
Ages 2-5, $4 per child (reservations required)
Introduce your little ones to Mother Nature. Learn all about turkeys through books, activities, nature walks, and crafts, just in time for Thanksgiving.

ECO EXPLORERS: Dip-Netting
Wednesday, Nov. 21, 2-3 pm
Ages 8-12, $4 per child (reservations required)

Come to Daggerwing and find out what is living in our ponds. We will go “dip-netting” and look at our findings using magnifying glasses and microscopes. Wear water shoes or shoes that can get wet/dirty.

 All programs are by reservation only, unless otherwise stated. Call (561) 629-8760 or visit the nature center to make program reservations. Fees (if applicable) are due the day of the program by cash or check only.  All participants are required to sign a program participation form for every program. If you are more than 5 minutes late to a program you have made a reservation for, your spot will be given to a person on the waiting list.

All Aboard Florida’s proposed 230-mile $1BB commuter rail line would go from Miami to Ft Lauderdale to West Palm Beach, Jacksonville, Orlando and Tampa, according to the Orlando Sentinel.   Service will be running at 2014 – with no risk to taxpayers.  Travel time from Miami to Orlando is estimated to be three hours with day long service from early morning to evening.

Anticipated are 6,000 construction jobs for Floridians and 400 jobs to operate the rail service.   Workers will also be needed to build station houses at some stops.  Amenities will include Wi-Fi internet service, gourmet meals, reserved business and coach class seating and easy-on, easy-off baggage compartments.

Annual anticipated travelers: 50MM.  It is estimated to take 3MM cars off the road whose drivers will use the rails instead, resulting in less congestion on I95..  There will be access to major international airports, seaports and existing commuter and rail systems including Metrorail and SunRail.

Bids are due by 12-7-012, then review of costs by FDOT (Florida Department of Transportation) follows, and winners will be chosen by 12-18-2012.  Interested companies must attend a mandatory meeting on 11-13-2012 at FDOT headquarters in DeLand.

All Aboard Florida is a wholly owned subsidiary of Florida East Coast Industries, based in Coral Gables, a privately owned, operated and maintained passenger rail service.  It is one of Florida’s largest full-service commercial real estate and infrastructure companies. 

This will be a solution for millions of Floridians and tourists, for both business and pleasure trips.  Expectation is to include 200 miles of existing tracks from Miami to Cocoa and a new 40-mile rail line from Cocoa to Orlando International Airport is to be built.

PETS IN CONDOS - Fair Housing Act covers emotional support animal

FLORIDA ASSOCIATION OF REALTORS: AVENTURA, Fla. – Sept. 28, 2012 – The Fair Housing Act does more than protect homeowners or renters who use a support-services animal – it also protects residents who need an animal for emotional support.   While the definition of an emotional support animal goes beyond “I love him,” the Fair Housing Act covers residents or potential residents who rely on an emotional support animal.

The issue raises questions from landlords and homeowner associations. An existing rule on pets, for example – such as an additional pet deposit – doesn’t apply to support animals under The Fair Housing Act.

The U.S. Department of Housing and Urban Development (HUD) announced yesterday they reached a Conciliation Agreement with Point Three East Condominium Association in Aventura, Fla., over the issue. The condo association allegedly refused to allow a resident to keep an emotional support animal, even though the resident provided medical documentation attesting to her need for the accommodation. HUD also found that some of the board members who denied the resident’s request had, or previously had, animals in their units.

Under the agreement, Point East Three Condominium Association will allow the resident to keep her emotional support animal and pay her $18,000. In addition, the condominium association will enact a reasonable accommodation policy and obtain fair housing training for all its board members.

“Condo associations are not exempt from adherence to the Fair Housing Act,” said Carlos Osegueda, HUD’s Region IV director for Fair Housing and Equal Opportunity. “Their policies and practices cannot discriminate against persons with disabilities, and HUD will continue to take action anytime we find that they do.”

For more information on emotional support animals protected by The Fair Housing Act, visit the American Bar Association website.

People who believe they are victims of housing discrimination can contact HUD at (800) 669-9777 (voice) or 1 (800) 927-9275 (TTY).

US BUDGET VISUALIZED

US BUDGET

ARE YOU ONE OF THE 29.8% OF FLORIDIANS WHO LACKS HEALTH INSURANCE???

Census Bureau data released this week shows that Florida ranks 2^nd worst in percentage of working-age population without health insurance.  29.8% of Floridians lack health insurance.  
  

Seniors: call  (561-638-9818) for information on Medicare Advantage zero premium plans with no or low co-pay for doctor visit.  Enrollment period for these plans is Oct 15 – Dec 7 – if you are turning 65 or getting a Medicare Supplement you can enroll any time – with Advantage, for guaranteed enrollment,  your application must be received between three months before and three months after the month of your birth.

HOW TO SELL YOUR HOUSE QUICKLY

According to HomeGain.com, a real estate services website, 76% of homeowners in the first quarter believed their home was worth more than the listing price that their real estate agents recommended.   They stated that home buyers usually understand current market value better than sellers who own and live there and many buyers still think homes are overpriced.

They point out that your home is worth what a buyer will pay for it according to current market conditions.  Consider how real estate agents and appraisers establish a selling price or price range – by researching similar homes to yours that recently sold.  Appraisers adjust comparable prices if there is a pool in one property and not in the other, or a remodeled kitchen.  Other factors are considered as well.  You need to see and understand the facts and not use emotions to decide on a list price.

Sellers get offers they think are too low and say, “I’m not giving my house away.”   They should surely then go over market conditions by looking at comparative sales, before turning an offer down after their agent tries to negotiate it up.  “Giving it away” is a myth. 

Buyers look for properties that are new on the market, and early on you have the best opportunity to sell your house.  Buyers want to feel they are getting a good deal.

If you want to sell, dispense with the funds incurred to keep it up, perhaps HOA fees and others, look carefully at the facts your agent presents to you regarding prices.  Buyers look at them, and know the market values.  When you become a buyer, you will also thoroughly research prices of properties you are interested in.

INTERESTED IN ONLINE SCHOOLS?

FLORIDA ONLINE COLLEGES - could be "the way to go" - http://www.onlineschools.org/guides/Florida.

Florida is one of the few states that have opted to join the Elementary & Secondary Education Act's (ESA) Flexibility clause which promotes charter online schools.  Children who are home-schooled or attend schools that are poor performing can take free credited courses with online schools in Florida.  Online students also have many resources available including academic advising, school newspapers and literary magazines, student clubs and comprehensive virtual libraries.  

Academic counseling for students from Grade 6 up is available from FACTS.org.  Financial aid plans are available for online students.  The Florida Bright Futures Scholarship program is lottery-based for financial aid and available to any Florida resident.  Degree programs are available in agriculture, education, business, design construction and health care, offered at the certificate, associate, bachelor, master or doctorate level.

Check out the directory to see all that is available and perhaps you will make personal use of this information, or pass it on to a friend.

If you are a biker and will be in or near New Haven, CT September 8th, you can participate in the Ride Closer to Free fund raising event for cancer research and patient care at Smilow Cancer Hospital at Yale-NewHaven.  

Support a participant with a donation which can be pledged on the site, rideclosertofree.org or donate to the ride.  Taking part are the two Capobianco brothers, both five years now in remission.

Online registration ends at midnight, Wednesday, September 5^th or on the day of the ride at the Yale Bowl.  Participants must arrive by 6 am.  Riders and volunteers interested in taking part in the Closer to Free Bike Ride should contact the Office of Development at 203.688.8727 or email rideclosertofree@ynhh.org.

Perhaps you can "light just one little candle".

  There are rumors flying all over the net that the recent OK by the Supreme Court to uphold the Affordable Care Act will mean a 3.8% Tax on Home Sales on 2013. Well it's not that easy. So to clear it all up, the National Association of Realtors issued this statement

---

Now that the Supreme Court has upheld the health care legislation, all of its major provisions remain in effect, including the new tax that was designed to affect upper income taxpayers.  The 3.8% tax is imposed ONLY on  those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return).  The tax applies to investment income, defined as interest, dividends, capital gains and net rents.  These items are all included in an individual's AGI.  A formula will determine what portion, if any, of these types of investment income would be subject to the tax.
The tax is NOT a transfer tax on real estate sales and similar transactions.  Not long after the tax was enacted, erroneous and misleading documents went viral on the Internet and created a great deal of misunderstanding and made the tax into something far more draconian than the actual provisions.
The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence.  Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.

For your own situation, please consult a financial adviser or accountant.