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Tuesday, April 27, 2004

Chesterfield, Missouri Buyers Move Up

by Blanche Evans

A brisk spring market and continuing low interest rates have helped many buyers get into their first homes and others to move up to larger homes, say local Chesterfield, Missouri Realtors.

"Spring has burst alive and so has the real estate market in West County," says Realtor Drew Selman, "Although there are lots of buyers dipping their toes into the water, they are waiting for that perfect home to come along."

Selman advises, "Sellers, the house must be in perfect condition and ready to be sold when Mr. & Mrs. Buyer walk through the door. They will want to see clean and clear all the way through the house. A small investment in a professional house stager might not be a terrible idea at this point in the market. Also, price for the market you are in. The old adage of "price it high and let them offer it low," is gone! Price it right the first time is more the mantra. Buyers: There are plenty of homes with time on the market right now. These homes have come down in price and even though they might need work, or aren't perfect, will become the perfect find. Prices are steady with a slight trend up. We will see the trend continue as more buyers enter the market. Interest rates are still low and it's still a good time to buy."

Observes Realtor Christine Ronberg, "Chesterfield's selection of homes is rather sparse, which contributes to higher listing prices in homes of all ranges. At the same time, buyers are extremely particular even though interest rates remain low. Today's consumers appear to be on the fence, unsure of whether to remain in their current home and fix it up, or move up to a more expensive home. Clearly, our most active price range is $150,000-$250,000. With April upon us, numerous relocation people will be arriving from elsewhere in the country and purchasing homes than have not sold for awhile."

"Open houses have picked up in the last three years with many buyers out there looking at property," says Realtor Joni Antweil. "The market is active, and usually the spring market bursts open after a few really active weeks of open houses. Listings are coming on hourly."

Suggests Antweil, "If you are getting ready to sell your home, be sure it is in top condition to compete in the spring market. If it isn't in top condition, adjust the price accordingly. Buyers need to be competitive in their offers to purchase. Be ready with a preapproval letter from your lender.This is just the very beginning of the spring market, so it is still a great time to list your home. Interest rates are so low, that many buyers will be encouraged to buy now. Prices are steady, though appreciation isn't as great as it has been in the last two years."

Published: April 27, 2004

Related Articles:

Market Conditions City Reports

Blanche Evans is the publisher of Agent News and the associate editor of Realty Times, the Internet's largest independent real estate news service. She is the author of two best-selling real estate books: The Hottest e-Careers In Real Estate, Real Estate Education Company, an Internet marketing primer for real estate professionals, and homesurfing.net: The Insider's Guide To Buying And Selling Your Home Using The Internet, Dearborn, a consumer homebuying and selling guide. In 2000, she was recognized by the editors of REALTOR(r) Magazines as one of the "25 Most Influential People In Real Estate," and in 2003 when the "Most Influential" list was updated, she was recognized as one of nine "Notables." She is also a frequent contributor to "Your Money" on CNN fn.
E-mail Blanche at: blanche@realtytimes.com

For more articles by Blanche, Click Here

Copyright © 2004 Realty Times. All Rights Reserved.

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Canadian Tax Deadlines Are Fast Approaching, Are You Prepared?

by PJ Wade

About 23 million Canadians have income tax on their minds as the April 30 deadline fast approaches. Even those whose self-employed status allows them until June 15 to file an income tax return, focus on April 30 since they know that any money owning after this date carries interest charges.

Property owners anticipating a tax refund to pay down their mortgage or finance renovations and buyers eager to increase their down payment, are among the 9 million Canadians who filed by April 5 -- 1.4 million filing electronically using NETFILE.

If you file your income tax return electronically, you may get your refund within eight business days and you won't need to send any receipts along. By arranging direct deposit, you may get your refund even faster.

If you owe the Canadian Revenue Agency (CRA) (that's www.cra.gc.ca/tax or, through its formal name of Canadian Customs and Revenue Agency, www.ccra.ca), try not to increase your financial burden by filing late. The late penalty is 5 per cent of your 2003 balance owing plus 1 per cent of your balance owing for each full month that your tax return is late to a maximum of 12 months. If you paid a late-filing penalty for 2000, 2001 or 2002, the penalty goes up to 10 per cent of the 2003 balance, plus 2 per cent for each full month you're late up to 20 months. However, if circumstances beyond your control force you to file late, CRA may waive or cancel the late-filing penalty.

Real estate owners benefit from understanding how their properties may help them qualify for tax deductions. For instance, here are two real-estate-related tax tips:

If you have moved and are at least 40 kilometres closer to your new job or business, or if you are a student who is moving to study full time at an educational institution that offers post-secondary courses, you may be entitled to deduct your moving expenses, which could include the amount you pay for movers or rental vans, furniture storage, meals and lodging during the move, and the costs incurred to break your lease or sell your home.

Since buildings gradually wear out or become obsolete, you can deduct their cost over time, that is, take a deduction for capital cost allowance (CCA) over several years if you run a home-based business. Before claiming depreciation on your principal residence, ask your accountant or check with CRA to find out how this deduction may affect the tax-free status of your principal residence when you sell the property.
When you're searching government websites for tax-related information, keep these distinctions in mind:

The CRA administers tax laws so visit its website to find out what the current tax laws say and how they're interpreted and applied.

The Department of Finance Canada is responsible for federal tax policy and legislation so its site carries information about proposed changes to tax laws, proposed tax cuts or increases, studies about the effects of taxation and possible future tax policies.

The Minister of Finance and Parliament decide on tax amounts and how to calculate them. Details of legislation proposed or enacted during the current session are available on the Parliamentary website.

Tax legislation is also developed by individual provinces and territories.
If you are wondering about the status of your tax refund so you can move your real estate plans ahead, access this information through an online service called My Account. This is a quick, secure way to review your personal tax data, Canada Child Tax Benefit, GST credit, RRSP contributions and limits, repayments to the Home Buyers' Plan and payment status information whenever and wherever you want.

Published: April 27, 2004

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Canadian News

"The Canadian Connection"

PJ Wade, The Improvement Coach, is a business strategist and an internationally recognized authority on retirement and the Maturing Marketplace (= baby boomers and seniors). PJ's firm, The Catalyst, provides strategic communication and educational services to the financial, healthcare and housing sectors - and the clients they serve.Author of 6 books and over 850 published articles, PJ's current books are Have Your Home and Money Too, "the owner's manual for your home," (Wiley, ISBN 0-471-64400-5) and Caring for Your Aging Parents (Coles, ISBN 0-7740-0613-7). PJ is a widely-known and often-quoted financial commentator and a popular strategic speaker. For more, visit http://www.thecatalyst.com.

Copyright © 2004 Realty Times. All Rights Reserved.

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April Round-Up -- Rates Rise, But Sales Remain Strong

by Peter G. Miller

Rates Up In April, Sales Strong

In late April mortgage rates reached their high for the year, 5.94 percent plus .7 points, according to Freddie Mac. In essence, rates are now somewhat higher than the levels we saw in early January.

What does it mean? Interest is a central consideration because as rates rise affordability declines. For example, $200,000 borrowed over 30 years at fixed rates requires a monthly payment of $1,136 for principal and interest. At 6 percent, the same loan costs $1,190 monthly.

While rates in the current marketplace are now rising, they are rising relative to lows unseen for decades. One result is that sales of both existing and new homes remain strong in most communities. Existing home sales in February were 5.7 percent above the same month last year, according to the National Association of Realtors. New-home sales posted an all-time record in March, says the National Association of Home Builders, "buoyed largely by the second lowest interest rates since 1956 and a strengthening national economy."

Some buyers, no doubt, will be knocked out of the marketplace because rates are not at all-time lows -- but it's also true that the rates we're seeing now would have set off a buying frenzy not long ago.

So what will happen to prices and sales as rates rise? It's a local question -- speak with your real estate broker and ask about sales and prices in your immediate community. In particular look at the local job market, building restrictions and population growth.

The Taxing Matter of Points

With so much financing and refinancing underway in the past year, one has to ask: Are points deductible?

The rules for points vary, but in general terms they look like this:

If you buy a home and pay a point at closing, the point is deductible in the year paid.

If you buy a home and the seller pays the point, the point is deductible as a marketing expense to the owner -- and as an acquisition cost to the buyer. When the buyer sells, the value of the point can be used to reduce any profit from the sale.

If you refinance and pay a point, the point may be deducted over the life of the loan, say 15 or 30 years. If you pay off the loan in advance, any remaining value can be taken in the year the loan is repaid.

But there's a catch: "If you refinance the mortgage with the same lender," says the IRS, "you cannot deduct any remaining balance of spread points. Instead, deduct the remaining balance over the term of the new loan. A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event." See Publication 936, page 5.
As always with tax questions, speak with a CPA, enrolled agent or tax attorney about specifics before filing any forms.

Computer Screens Change Home Design

Since computers first evolved as common household appliances space has always been an issue. Early computers the size of suitcases were deemed "portable" because they had handles. But today we not only have traveling laptops, we have something else: flat-panel or LCD screens just a few inches wide that take up little or no desk space -- if you're so inclined you can actually hang them on a wall like art.

In terms of household decor, such screens can radically change the notion of home offices. No longer do you need a desk as large as a piano to hold a huge and heavy monitor. Instead, combine a laptop with a flat-panel monitor and printer and there's your home office. A table or shelf in any room can now become a computer center. Just plug into a proper phone or other connection and you have access to the world.

In effect, where only one room might have been a home office in the past, computers and Internet access are increasingly available at many points in the house -- not a bad idea when several members of the household need to be online.

Prices for flat-panel monitors and TVs have fallen substantially in recent months and, as is usually the case with electronics, look for even lower prices in the months ahead.

What To Do With That Tax Refund

If you were one of the lucky citizens to receive a tax refund this year from one part of the government, another part has some ideas regarding how you can spend the money to improve household safety. Here are several suggestions from the U.S. Consumer Product Safety Commission:

Install and maintain smoke detectors and CO detectors.

Purchase fire extinguishers for the kitchen.

Have a professional electrician inspect your home's electrical wiring system. This should be done every 10 years.

Have an electrician install ground fault circuit interrupters (GFCIs) in rooms where water could be present.

Install safety latches and locks on cabinets and drawers so children cannot gain access to medicines and cleaners.

Use safety gates to keep children away from stairs and rooms containing hazards.

Get anti-scald devices for regulating water temperature to help prevent burns.

Spring-loaded lid supports can prevent the lid of chests used to store toys from falling on a child's neck or from closing and trapping a child inside the chest.

Outlet covers and outlet plates can protect children from electric shock or electrocution.

Window blind cord safety tassels can help prevent strangulation in the loops of cords.

Use helmets and other safety equipment when riding on bicycles, scooters, skates and skateboards.
For more articles by Peter G. Miller, please press here.

Published: April 27, 2004

Related Articles:

Mortgage Rates Creep Up As News Continues To Encourage Confidence In The Economy

Long-Term Mortgage Rates Inching Up As Economy Shows Signs Of Improvement

Do You Have Enough Power Available For Your Tenants?

The Tax Treatment Of Points

Peter G. Miller, also known as OurBroker®, is the author of six real estate books -- including The Common-Sense Mortgage -- and is the original creator and host of America Online's Real Estate Center. Mr. Miller welcomes your questions, comments, and news releases via e-mail at peter@ourbroker.com.

Copyright © 2004 Realty Times. All Rights Reserved.

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