INVESTING IN REAL ESTATE

There has never been a better time to invest in Real Estate. Prices are low, interest rates are low and inventory is high. Prices have hit the bottom and are starting to rise. We won't see the 10% to 20% annual increases in value we saw in the first half of the last decade, nor the dramatic drop that occurred in the second half. I anticipate a steady 2% to 5% annual increase in value over the next ten years. Interest rates are at an all time low. there may never be another time to use other people's money for so cheap. Inventory is high and there are several more bank owned and short sale properties coming on the market everyday. Warren Buffett says single-family homes are a very attractive investment right now. "I'd Buy Up 'A Couple Hundred Thousand' Single-Family Homes If I Could." (February 27, 2012, CNBC).
Residential Real Estate is a great investment because it has more than one source of income.
Appreciation: As discussed above it has the potential to appreciate in value. The price of existing homes increased by 5.4% annually from 1968 to 2009, on average. (Natl. Assoc. of Realtors)
Rental Income: The demand for rental housing is very high and increasing. Buy the right property at the right price, and you can not only cover the cost of your expenses, you can clear a monthly income.
Tax Advantages: Rental property expenses are tax deductable. Expenses include, but are not limited to repairs, insurance, and mortgage interest. Depreciation of property is another tax deduction and when combined with expenses, can be more than the income. So even though you are making a profit from the rental property, you can claim a loss on income taxes. Consult a tax expert for your individual situation.
You have options when you buy investment property. You can pay cash, obtain mortgage, join a partnership and you can even purchase real estate in your retirement account such as an IRA
Let Realtor Bill Hellums help you navigate the maze of investment property from EGI to CFBT and beyond.
Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Visit My Websites http://selldaytona.com/ & http://venetianbay.org/

Visit My Websites http://selldaytona.com/ & http://venetianbay.org/

Another Reason Buyer's Need Their Own Realtor

I just had another closing where the seller's title agent and Realtor work for the same company. This is not a bad thing in and of it's self, my company owns a title company also. However the buyer should beware, they need a Realtor to represent their interest.
In my most resent closing, I noticed two errors on the HUD that when corrected, netted my buyer $500.
The first error was a closing fee charged by the title company. The contract clearly stated the seller would chose the title company and pay their fees.
The second was the omitting of the Home Warranty allowed for in the contract.
I believe both of these errors were honest mistakes, however they would have gone overlooked had the buyer not had a professional looking out for their interest. In most cases, buying a home is the largest purchase anyone makes, and they don't do it very often. They rely on a real estate professional, a Realtor to make sure everything is correct and their interest are being protected.


Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Bank of America Relocation Assistance for Short Sales

Florida Enhanced Short Sale Relocation Assistance
Florida homeowners may receive $5,000 to $20,000
in relocation assistance.

Bank of America encourages distressed homeowners to explore a short sale as a viable option for avoiding foreclosure. To that end, for a limited time we are offering enhanced relocation assistance to help motivate homeowners to engage with us on a pre-offer short sale. An additional benefit for these pre-offer programs - such as the Home Affordable Foreclosure Alternatives (HAFA) and Bank of America's proprietary program - is that deficiency may be waived for the homeowner.

Eligibility:
Homeowners with property in Florida
Short sales initiated without an offer between September 26 and November 30
The customer will have to be eligible for one of the without offer programs such as the HAFA program or our proprietary program (specific investor participation and eligibility criteria do apply to these programs)
Successful closing of the eligible short sale by August 31, 2012
Minimum relocation assistance is $5,000 and maximum is $20,000, with the specific amount calculated based on the unpaid principal balance

Exclusions:
Ginnie Mae, FHA, VA and USDA loans are ineligible for participation
Lot loans are ineligible for participation
Properties outside the state of Florida are ineligible for participation
Short sales initiated with an offer are not currently eligible for the enhanced relocation assistance.

Call Bill Hellums, Realtor (386) 760 7607 for more information on the short sale of your home.

/div>Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Buying Real Estate in your IRA

Did you know you could buy Real Estate with your IRA? Housing prices are low, and now is a great time to scoop up a great bargain that will return a regular monthly dividend, in the form of a rental check to your retirement portfolio.
If you don't have enough money in your IRA, you can buy a percentage of a property. For instance, if you and your spouse each have $100,000 in your IRA, you could each buy 50% of a $190,000 house and still have $10,000 to cover expenses.
Not only will the value of the property likely increase, you will also be increasing the value of your IRA with the monthly rental income. And if you are using a Roth IRA, it will be all tax free income when you retire.
Call me today to discuss this great opportunity to take advantage of the low housing prices.

Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Why Are My Florida Property Taxes Going Up?

The proposed property tax notices are out and if your home is Homesteaded, you may be paying more in taxes. The reason for this is the millage rate has increased and the assessed value is still lower than the market value on your home. So even though the value of your home has dropped, it has not dropped below the assessed value. For example: if the assessed value for your home last year was $200,000 and your millage rate was 19, then your tax bill was $3,800. This year, your assessed value remained at $200,000 but the millage went up to lets say 22, then this year's tax bill will be $4,400. The reason the Taxing Authorities have raised the millage, is because the values of all the properties in Florida have gone down. Unlike most of us, when we have less money to spend we lower our budget, rather than lowering their budget, they are increasing our taxes. I guess they can't figure out that we are in a recession, income has remained level at best. The truth is that if we are lucky enough to still have a job, we have probably lost income.
Florida has legislation stating that the proper “measuring-stick” for taxing authority growth, from year to year, is the “Per Capita Income (PCI) Index + Growth” (meaning annual growth in newly constructed properties). Clearly the Taxing Authority's spending far exceeded increases in the personal income and the growth of newly constructed properties.
Our only recourse is to attend the public meetings and make our voices heard.Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Foreclosures and Short Sales vs conventional sales

There are some buyers that are only looking at bank owned properties. They think these are the best deals, but this is not always the case.


Banks are willing to take between 8 and 10 percent less than the appraised value for their properties. Many homeowners are willing to take less than the appraised value for their homes as well, and some even advertise below appraised value.


When an offer is made on a bank owned property, the first thing the bank does is order an appraisal to determine the value. The next step is to have the closing company prepare a HUD form with all the cost involved in the sell of the property to determine the bottom line. The banks have no emotions, if the offer meets their bottom line they will accept the offer, if it doesn't, they have an unlimited supply of money especially with the government bailouts, and they will sit on the property.





As the housing market declined in 2007 and 2008, some homeowners were still living in the past, and thought their homes should be worth what they were at the peak of the market. Now, the smart seller knows the current market conditions and have priced their homes accordingly.


A homeowner that is serious about selling their home has to compete with the bank owned properties, therefore they have lowered their prices. In addition the homeowner is emotional, the price they are willing to accept fluctuates based on any number of factors, and can change daily, this can work to the buyers advantage. The homeowner also has a limited supply of money, and may be in a must sell situation.
So the moral to the story is; when everyone else is buying bank owned properties, it is a great time to look at the properties offered by the homeowner.

Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Do You Need A Realtor When You Buy a New Home

Why should you use a Realtor when you are buying from a builder?

Many new home buyers are unaware they should have a Realtor on their side when they purchase a new home. Just like with the purchase of a resale home, your Realtor (buyer's agent) will represent you during your transaction. The builder or their sales person is representing the builder’s interest not yours. When you have me as your Realtor, I am your agent, and I will look out for your best interest.

Who pays your Realtor in a new construction purchase?

The best thing about working with me is that it cost you nothing. Using my services in your purchase will not increase the price that you pay for your new home. To ensure you get the best price, I will use statistics from recent sales in our area to help you determine the right offering price. I will earn my commission working for you and will be paid by the seller (the builder or developer) at closing.

Are there any other advantages to having a Realtor?

Yes, as a Realtor, I am a professional and adhere to a code of ethics. I under go continuing education to improve my knowledge and stay up to date on the various things that effect real estate. The real estate market is constantly changing, and may vary from neighborhood to neighborhood. Knowing these market conditions will assist you in finding the best property and getting it at the very best price. More reasons to use a Realtor

Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

BUILDER MAY OWE YOU $$$

If you bought a home in 2008, the previous owner may owe you money. The previous owner is responsible for the taxes for the time they owned the home. The closing agent estimated the amount the taxes would be and collected their share and credited it to you at the closing. If the estimate was low, you are owed money, this is very likely if you bought a new construction home because the tax was figured on the land value only.



Here is how it works:

1. find out what your tax bill is, not the discount rate paid in November but the full rate.

2. figure out how long they owned the property.

3. check the HUD statement you received at closing and see how much they paid for property tax.

4. do the math.

5. collect your money.

6. if you don't understand or can not find the information, check with your Realtor or the Closing Agent, they will have the information and be able to help with the math.



Example:

You bought your home on March 1, 2008. The closing agent estimated the taxes to be $1200.00 for the year and credited you $200. The actual tax bill ended up being $2400.00 for the year. You are due $200 from the previous owners.



The math:



$2400 tax bill divided by 12 months = $200 per month.

$200 multiplied by 2 months (Jan and Feb) = $400.

$400 minus the $200 already credited you at closing = $200 you are owed.



Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Time to file for your Homestead

If you bought your home in 2008, and lived in it as your permanent residence on January 1, 2009, you need to file for your Florida Homestead exemption before March 1, 2009.
The Florida Homestead Exemption is $50,000 and will reduce the amount you pay for your property tax.
The first $25,000 applies to all property taxes, including school district taxes. The additional exemption up to $25,000, applies to the assessed value between $50,000 and $75,000 and only to non-school taxes.
You can file at any of the Volusia county offices.

(386) 736-5901 (West Volusia)
(386) 254-4601 (Daytona Beach)
(386) 423-3315 (New Smyrna Beach)
(386) 775-5257 (Orange City)

Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/