Florida Real Estate Blog

Tax Deduction for Real Estate Helps Middle Class Families

WASHINGTON – Jan. 31, 2011 – According to a new study from the National Association of Home Builders (NAHB), a proposal to eliminate tax deductions for mortgage interest and real estate taxes would raise taxes disproportionately for middle-class households and make the income-tax system less progressive.

The study found that primarily middle-class taxpayers, with incomes between $50,000 and $200,000, benefit from the real-estate-related deductions; and larger households and families, such as those with children, earn the greatest benefits.

“Proposals to reduce or eliminate the mortgage interest deduction are short-sighted and would harm the economy and job creation at a time when housing is poised for recovery,” says NAHB Chairman Bob Nielsen. “The deduction is the mainstay of our housing policies and tampering with it would break faith with the millions of families who rely upon it to meet their household expenses – and with millions more who one day would like to be able to afford to own a home of their own.”

According to the study, taxpayers earning less than $200,000 claim 68 percent of mortgage-interest-deduction benefits and 77 percent of real estate tax benefits. The same people pay only 43 percent of all income taxes.”
 
Using data from the nonpartisan Joint Committee on Taxation (JCT), the report detailed the tax liability, mortgage interest deduction and real estate tax deduction for five income groups. The report found that the shares of the total benefits of the two housing deductions exceeded the shares of taxes paid for every income class except the last one, those earning $200,000 or more.

These data “demonstrate that the mortgage interest and real estate tax deductions make the U.S. tax system more progressive, not less, as is often claimed,” the report says.

The report adds that “for taxpayers with less than $200,000 in adjusted gross income (AGI), the average tax benefit of the mortgage interest deduction is equal to 1.76 percent of AGI. For taxpayers with more than $200,000 in AGI, it is equal to 1.5 percent. This is clearly indicative of a progressive tax benefit.”

The study also examines the relationship between housing tax benefits and household size to addresses the criticism that the mortgage interest deduction compels people to purchase a larger, more expensive home than they need.
 
Using the IRS data from 2004, the study found that the average benefit of the mortgage interest deduction rose fairly steadily with the size of the household. “These results are consistent with intuition,” the study says. “Larger households and families require larger homes. And larger homes require additional mortgage debt to finance, particularly for younger homebuyers, who are or may be in the process of having children. These greater home finance costs imply larger deductions for mortgage interest and real estate taxes.”

The entire report: Who Benefits From the Housing Tax Deductions? is available on NAHB’s website.

© 2011 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.

Time to Give Your Home's Insurance an Annual Check-Up

	Time for Annual Insurance Check-Up An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook. Read
Visit houselogic.com for more articles like this. © Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

 

Posted by John Elwell at CENTURY 21 Bill Nye Realty, Inc. in Zephyrhills, Florida  Tel: 813-783-4444

This Week Average Mortgage Interest Rate Go Up, But Just a Tad: Freddie Mac

Today, 1/27/11,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.80% (4.76% in the southeast), up from 4.74% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.09%, up from 4.05% last week. A year ago the 30 year rate was 4.98%. 

Freddie Mac's spokesperson said today, "Mortgage rates followed bond yields a little higher this week amid positive data reports from The Conference Board that suggest the economy is strengthening. The index of leading indicators rose 1.0 percent in December, nearly twice that of the market consensus forecast and represented the sixth consecutive monthly increase, according to the Board. They also reported a stronger gain in consumer confidence for January, rising to an eight-month high. In addition, the share of households who said jobs were plentiful rose to the highest level since May 2009."

The housing market also showed signs of bouncing back. Existing home sales in December 2010 rose at the fastest rate since May of last year. The sale of new homes also leaped to the highest level in the past 9 months. Now, instead of sellers having to wait 9.5 months, on average, before finally selling their homes, they wait 8.1 months. For new homes the waiting time dropped from about 8.4 months to 6.9 months. Not an insignificant difference! Let's hope the time decreases even more as we proceed through 2011.

Activity is in high gear here in Zephyrhills, Florida. I almost wish it would slow a bit since this has been one hectic week! Lots of buyers out there looking, especially in our retirement subdivisions. But even in the "real world" there is a lot more looking, shopping and buying of homes going on. Hooray!!!

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

CENTURY 21 Yard Sale to Benefit Easter Seals on February 12, 2011 in Zephyrhills, Florida

We will again be hosting a yard sale at our CENTURY 21 Bill Nye Realty, Inc. office to benefit the Easter Seals campaign. There are few Americans who have not heard about this wonderful charitable organization and CENTURY 21 has been one of its many benefactors for years.

We will be selling items at our office located at 34619 State Road 54 just west of  Zephyrhills. Our office is very near the intersection of State Road 54 and Morris Bridge Road/Eiland Boulevard. Right across from the new CVS Drugstore. You can click on the picture to the right to see a map view of our location.

The sale will take place on Saturday, February 12th from 8:00 AM to NOON!

Our parking lot will be filled with hundreds of items donated by agents, customers, and the public. If you would like to donate to this cause you can drop off your items at our office prior to the sale date. Or you can call us at: 813-782-5506 and we will try to pick up your items if we can.

Stop by and see what tempting treasures might await you at tantalizing prices. Costs you nothing to stop and browse. And the money you pay will be going to a very worthy cause.

See you at the yard sale on Feburary 12th.

John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc. 813-783-4444

Property Search Feature Eliminated from Google Search Engine

MOUNTAIN VIEW, Calif. – Jan. 27, 2011 – In July 2009, Google announced that users would be able to find for-sale or for-rent property through Google maps. However, the company switched directions yesterday, announcing that it would discontinue the service effective Feb. 10, 2011.

Brian McClendon, vice president, Google Earth and Maps, explained the decision online, calling the introduction of real estate searches part of Google’s philosophy to “take risks and to experiment.” However, the site did not reach Google’s expectations.

McClendon says the decision to pull the feature is due in part to “low usage, the proliferation of excellent property-search tools on real estate websites, and the infrastructure challenge posed by the impending retirement” of the software tool providers use to submit listings.

Google left open the possibility that some form of real estate search could return one day.

© 2011 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.

Dade City's Pioneer Florida Museum & Village to Host 2011 Farm Festival and Quilt Show

The Pioneer Florida Museum & Village will hold its 21st Annual Farm Festival and Quilt Show on Saturday, February 5th and Sunday, February 6th this year. The hours will be from 9:00 AM to 4:00 PM both days.

The Quilt Show will feature the Hoffman Challenge Travelling Quilt Collection of Dolls, quilts, and clothes. These along with displays of hand-crafted story quilts from some of our area quilt makers.

For those of you who were raised on farms like I was or those who just enjoy rural traditions, there will be a Draft Horse Competition on Saturday at 10 AM. You can also see more modern forms of horse power in the way of antique tractors and buggies.

Lots of local folk will be demonstrating pioneer skills from days gone by. Entertaining for all of the family.

Admission is $8 for Adults and $4 for children, with parking at no charge.

The museum is just north of Dade City, Florida on US 301

To view and/or download the Farm Festival Flyer, click on the following link: Download 2011 Farm Festival Flyer

For more information about this event and the many others that take place at the museum throughout the year, check out their webpage at the following link: http://www.pioneerfloridamuseum.org/

In December 2010, New Home Sales Jump by 17.5%

WASHINGTON – Jan. 26, 2011 – While 2010 was not a stellar year for new home sales, it ended on a positive note: December home sales rose 17.5 percent over November home sales on a seasonally adjusted basis, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.

In December, there were 329,000 home sales on a seasonally adjusted basis, strongly surpassing economists’ predictions of 299,000 sales.

While a strong uptick in new home sales marked a positive end for 2010, however, the year ended up as the slowest one on record. The estimated total of new homes sold in 2010 was 14.4 percent below the 2009 level, according to the report.

© 2011 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.

2011 Calendar of Community Events for Zephyrhills, Florida

Though many people think of Zephyrhills as a sleepy rural suburb of the City of Tampa, there is quite a lot going on in this part of Pasco County, Florida. With our mild weather we enjoy lots of activities all year round. Not like the northern US which in general shuts down its outdoor entertainment venues.

For those who live here or spend the winter months with us, there are certainly plenty of things to do. You only have to be bored if you WANT to be bored.

Here are a few of the fun diversions that will take place this year:

• Monthly "Music & Motorcycle" events in downtown Zephyrhills
• Winter Auto Fest
• Pasco County Fair
• Florida State Fair
• Kumquat Festival
• Monthly Saturday Nite Cruises with Classic Cars
• Plant City Strawberry Festival
• Zephyrhills Celtic Festival and Highland Games
• Many picnics and get-together for citizens of various states
• And a whole lot more!

To see a complete schedule of events that you can print up for future reference, download the following PDF document that the Zephyrhills Chamber of Commerce gave me: Download Zephyrhills Calendar of Events 2011

You can also call the Chamber of Commerce for more information at: 813-782-1913 or e-mail them at: info@zephyrhillschamber.org

If you like our area so much that you would like to live here, I would be happy to assist you in any way that I can. Just call John Elwell - REALTOR at CENTURY 21 Bill Nye Realty, Inc  813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

Florida Economist Says Recovery is Not Just Coming. It's Already Here!

MANATEE COUNTY, Fla. – Jan. 21, 2011 – Economist Hank Fishkind told about 400 Manatee County leaders that Florida’s recovery is in its early stages even if it doesn’t seem like it to some people.

Calling it the “worst recession, probably, since the Great Depression, and at least the worst since 1975,” Fishkind said, “This is the recovery – right now,” Fishkind said. “The momentum is growing.”

Fishkind spoke at an “Economic Forecast Breakfast” sponsored by Whitney Bank and the Manatee Economic Development Council. As evidence of the ongoing recovery, Fishkind pointed to recent improvements, including:

• Job growth in the tourism and convention industries
• Job growth in education
• Strong retails sales at the close of 2010
• Consumer belief that it’s safe to spend money
• $500 billion boost from a 2 percent cut in payroll taxes

Fishkind also expects retirees to return to Florida’s warm shores, but “there is a discernible lag between recovery and population growth,” Fishkind said. “It takes time for people to realize there is a recovery.”

For a true turnaround, however – the kind that everyone sees and appreciates – Fishkind says the state must wait until 2012.

Source: Michael Pollick, Sarasota Herald Tribune, Jan. 20, 2011

© 2011 Florida Realtors®
Reprinted with permission. Florida Realtors®. All rights reserved.

Fair Housing Law to Likely Include No Discrimination Based on Sexual Orientation in Near Future

WASHINGTON – Jan. 21, 2011 – The U.S. Department of Housing and Urban Development (HUD) proposed new regulations intended to ensure that its core housing programs are open to all eligible persons, regardless of sexual orientation or gender identity.

“This is a fundamental issue of fairness,” says HUD Secretary Shaun Donovan. “We have a responsibility to make certain that public programs are open to all Americans. With this proposed rule, we will make clear that a person’s eligibility for federal housing programs is, and should be, based on their need and not on their sexual orientation or gender identity.”

HUD is currently seeking public comment on a number of proposed areas including:

• Prohibiting lenders from using sexual orientation or gender identity as a basis to determine a borrower’s eligibility for FHA-insured mortgage financing.

FHA’s current regulations protect some classes, saying a loan decision “shall be made in a uniform manner without regard to” specified prohibited grounds. The proposed rule would add actual or perceived sexual orientation and gender identity to the prohibited grounds.
 
• A clarification to the term “eligible families” for HUD programs, stating that the term should not ban anyone based on marital status, sexual orientation or gender identity from participation in HUD programs.
 
• Prohibiting owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD, from asking about sexual orientation or gender identity of an applicant. HUD is proposing to institute this policy in its rental assistance and homeownership programs, which include the Federal Housing Administration (FHA) mortgage insurance programs, community development programs, and public and assisted housing programs.

Previous HUD actions

• HUD is conducting the first-ever national study of discrimination against members of the lesbian, gay, bisexual and transgender (LGBT) community in the rental and sale of housing.

• HUD currently requires discretionary fund recipients to comply with local and state non-discrimination laws that cover sexual orientation or gender identity. The Fair Housing Act prohibits discrimination in rental, sales and lending on the basis of race, color, national origin, religion, sex, disability and familial status. Approximately 20 states, the District of Columbia and more than 150 cities, towns and counties have additional protections that specifically prohibit such discrimination against LGBT individuals.

To see and/or download a copy of the proposed rule changes CLICK HERE

© 2011 Florida Realtors®

Reprinted with permission. Florida Realtors®. All rights reserved.