Public Policy News

Nationally, there is a tremendous amount of pressure to reduce spending in the tax code in an effort to reduce the federal deficit. One deduction under attack is the Mortgage Interest Deduction (MID). As of today, Congressman David Wu (OR-1) and Congressman Peter DeFazio (OR-4) signed House Resolution 25, a bi-partisan House Resolution that affirms the value and importance of the MID. It’s important that we build more support for this critical tax deduction.

Send Congress a strong message: Protect the full value of the Mortgage Interest Deduction! 

CLICK THIS BUTTON TO SEND A MESSAGE NOW:

In Oregon, 12.5% of REALTORS^® have shared the significance of the MID to their business and clients. Once you have responded to the call-for-action, please share the importance of this issue with your colleagues.

To learn more visit: www.realtoractioncenter.com

Enjoying dinner last night and waking up in the comfort and security of a warm bed I could not help feeling sadness for the hundreds of thousands of people directly affected by the earth quake and tsunami. The grief of losing loved ones; being cold and hungry and now the danger of radiation is beyond my comprehension. While I don’t have a lot of extra resources, I wanted to find places to send money where more then 90 cents of each dollar would go towards helping the survivors in Japan cope and re-build their lives. Following are the organizations that I will be sending a contribution.

Medical Teams International – Tigard, OR http://www.medicalteams.org

Medical Teams International is a Christian organization that is working in partnership with Japanese Christian churches and organizations. One partner in Japan is Christian Relief, Assistance, Support and Hope (CRASH Japan). CRASH Japan is currently conducting assessments in 6 regions of the disaster zone and has deployed water trucks in the Sendai region to address an extremely urgent need. Their plan is to establish bases of operation Fukushima, South Sendai, North Sendai, Minami Sanrikucho Morioka and Hachinohe to coordinate efforts and work with local churches to meet the practical needs of people.

Mercy Corps: - Portland, OR - http://www.mercycorps.org

They are working to help survivors of Japan's earthquake and tsunami with their longstanding partner, Japan Peace Winds. Peace Winds continues to deliver emergency supplies — including large shelters, tents, blankets, instant rice and fresh produce — to families evacuated from homes in the tsunami-devastated city of Kesennuma. Mercy Corps has deployed their emergency team leader to help Peace Winds coordinate its lifesaving response.

Please Give What You Can!

Blog Courtesy of Deborah Wilkinson 

www.PremierePropertyGroup.com

5 Steps for a Successful Short Sale

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful transaction.

First, do you qualify?

You must:

1.      Have a verifiable hardship, like unemployment, medical bills, or relocation

2.      Must have a monthly income shortfall

3.      Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency

If you meet these qualifications, follow these five steps to a successful short sale:

1.      Contact me so we can identify your servicer, fill out a short sale packet for the lender, and assemble all the required information needed to list your home for sale

2.      Gather financial information (i.e., bank statements, pay stubs) from at least the last three months

3.      Keep your house in showcase condition for showings, and make as many repairs as necessary and that you can afford

4.      Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency

5.      Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved

For more information about how the short sale process works, or about any other foreclosure alternatives you may qualify for, call me today. I can help you alleviate the burden that the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

Your next step is easy:  Call me at 503-710-7721 or for more information visit:  http://hosted.cdpe.com/PortlandShortSaleExpert

Sincerley,

Kelly T. Yock

cell:  503-710-7721

Owner, Principal Broker, ABR, CDPE

Premiere Property Group

    5000 Meadows Rd, Suite 150

    Lake Oswego, OR  97035

 www.PremierePropertyGroup.com

10 Reasons To Buy aHome

By Brett Arends , The Wall Street Journal

Enough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Timemagazine starts running covers thatdeclare "Owning a home may no longer make economic sense," it's timeto say: Enough is enough. This is what "capitulation" looks like.Everyone has given up.

After all, at the peak of the bubble five years ago, Time had adifferent take. "Home Sweet Home," declared its cover then, as itcelebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it'sgood to buy a home.

1. You can get a good deal. Especially if you playhardball. This is a buyer's market. Most of the other buyers have now vanished,as the tax credits on purchases have just expired. We're four to five yearsinto the biggest housing bust in modern history. And prices have come down along way– about 30% from their peak, according to Standard & Poor's Case-ShillerIndex, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down20%. Arizonahas halved. Will prices fall further? Sure, they could. You'll never catch thebottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO,who predicted the bust with remarkable accuracy, said two years ago that homeprices needed to fall another 17% to reach fair value in relation to householdincomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan foraround 4.3%. What's not to like? These are the lowest rates on record. Asrecently as two years ago they were about 6.3%. That drop slashes your monthlyrepayment by a fifth. If inflation picks up, you won't see these mortgage ratesagain in your lifetime. And if we get deflation, and rates fall further, youcan refi.

3. You'll save on taxes. You can deduct the mortgageinterest from your income taxes. You can deduct your real estate taxes. Andyou'll get a tax break on capital gains–if any–when you sell. Sure, you'll needto do your math. You'll only get the income tax break if you itemize yourdeductions, and many people may be better off taking the standard deductioninstead. The breaks are more valuable the more you earn, and the bigger yourmortgage. But many people will find that these tax breaks mean owning coststhem less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathroomsyou want. You can move the walls, build an extension–zoning permitted–or painteverything bright orange. Few landlords are so indulgent; for renters, thesetypes of changes are often impossible. You'll feel better about your own placeif you own it than if you rent. Many years ago, when I was working for apolitical campaign in England,I toured a working-class northern town. Mrs. Thatcher had just begun sellingoff public housing to the tenants. "You can tell the ones that have beenbought," said my local guide. "They've painted the front door. It'sthe first thing people do when they buy." It was a small sign that saidsomething big.

5. You'll get a better home. In many parts of the countryit can be really hard to find a good rental. All the best places are sold ascondos. Money talks. Once again, this is a case by case issue: In Miami rightnow there are so many vacant luxury condos that owners will rent them out for afraction of the cost of owning. But few places are so favored. Generallyspeaking, if you want the best home in the best neighborhood, you're better offbuying.

6. It offers some inflation protection. No, it's notperfect. But studies by Professor Karl "Chip" Case (of Case-Shiller),and others, suggest that over the long-term housing has tended to beatinflation by a couple of percentage points a year. That's valuable inflationinsurance, especially if you're young and raising a family and thinking aboutthe next 30 or 40 years. In the recent past, inflation-protected governmentbonds, or TIPS, offered an easier form of inflation insurance. But yields therehave plummeted of late. That also makes homeownership look a little better bycontrast.

7. It's risk capital. No, your home isn't the stock marketand you shouldn't view it as the way to get rich. But if the economy doessurprise us all and start booming, sooner or later real estate prices will headup again, too. One lesson from the last few years is that stocks are incrediblyhard for most normal people to own in large quantities–for practical as well aspsychological reasons. Equity in a home is another way of linking part of yourportfolio to the long-term growth of the economy–if it happens–and stillmanaging to sleep at night.

8. It's forced savings. If you can rent an apartment for$2,000 month instead of buying one for $2,400 a month, renting may make sense.But will you save that $400 for your future? A lot of people won't. Most, Idare say. Once again, you have to do your math, but the part of your mortgagepayment that goes to principal repayment isn't a cost. You're just payingyourself by building equity. As a forced monthly saving, it's a gooddiscipline.

9. There is a lot to choose from. There is a glut of homesin most of the country. The National Association of Realtors puts the currentinventory at around 4 million homes. That's below last year's peak, but wellabove typical levels, and enough for about a year's worth of sales. Morekeeping coming onto the market, too, as the banks slowly unload their inventoryof unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand andsupply will meet. The population is forecast to grow by more than 100 millionpeople over the next 40 years. That means maybe 40 million new householdslooking for homes. Meanwhile, this housing glut will work itself out. Many ofthe homes will be bought. But many more will simply be destroyed–eitherdeliberately, or by inaction. This is already happening. Even two years ago,when I toured the housing slump in western Florida, I saw bankrupt condo developmentsthat were fast becoming derelict. And, finally, a lot of the "glut"simply won't matter: It's concentrated in a few areas, like Floridaand Nevada.Unless you live there, the glut won't have any long-term impact on housingsupply in your town. 

To start your home search today... visit our website for the tools and information you need:  www.PremierePropertyGroup.com

buy

For more information on how to buy in todays market see the PremierePropertyGroup Buyer's Toolkit at: http://www.premierepropertygroup.com/For_Buyers/page_1393057.html

Daily Real Estate News  |   February 8, 2010  

IRS Releases New Forms, Instructions

The IRS has released IR-2010-006 providing a revised Form 5405 to reflect the changes to the tax credit made in the extension and expansion legislation enacted in November 2009. The release reminds taxpayers that all tax returns claiming the tax credit must be filed manually (i.e., they cannot utilize the IRS E-File automatic system).

The revised form includes a section for those repeat buyers who are eligible to claim the $6500 tax credit. The HUD-1 or evidence of the transaction must be filed with all returns claiming the credit (both the $8000 and $6500 credits). Individuals who claim the repeat buyer credit must also provide evidence that they have owned and used the prior residence for five consecutive years. The instructions indicate that property tax or homeowners insurance records are sufficient for this purpose.

Click here for:

IRS release, instructions, and forms

The Home Buyer Tax Credit

Reminder:  Buyers (1st Time & Repeat) have until April 30th, 2010 to get an accepted contract for the purchase of a home.  The transaction must close by June 30th to qualify for the tax credit.

We're here to help... simply contact Premiere Property Group for help in buying your next home!

By Phone:  503-670-9000

By Email:    Info@PremierePropertyGroup.com

You Must Act Now to Take Advantage of This Benefit

The homebuying season is starting early this year, thanks to the expanded first-time and move-up homebuyer tax credit.

Typically, the busiest time for home shopping starts in March and continues through May, but this year buyers who want to take advantage of the tax credits have to hold a signed contract by April 30 and close the deal by June 30.

That is getting people off the couch.

"The tax credit will absolutely have an effect," says Pete Flint, CEO of residential real estate search engine Trulia.com. "It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand."

Source: USA Today, Stephanie Armour (01/20/2010)

If you're considering selling your home this year, NOW is the time to get it on the market! 

Contact Premiere Property Group to get started today:

Email:     Info@PremierePropertyGroup.com

Office:    503-670-9000

Fax:        503-670-9004

As activity in the housing market gets underway in this new year, Portland investors and homeowners are looking for signs of recovery in order to strategize. 

Julie Fugate has been a real estate broker in the local market for five-and-half years and is currently the principal broker at Premiere Property Group. In this web-exclusive interview, Julie offers her insights into what she sees as an encouraging start to 2010.

Read Kat Riker's (KOIN-TV), full interview with Julie by following this link:

http://www.koinlocal6.com/news/local/story/2010-outlook-for-Portlands-housing-market/MFbwY0Icg0-4_NyjJVRkGw.cspx

Home buyer tax credits: Frequently asked questions

If you're in the market for a home, the world is your oyster. Interest rates are at record lows. Housing prices in many parts of the country are still depressed. And you may be eligible for a generous tax break, even if the home you buy isn't your first.

On Nov. 6, President Obama signed legislation that provides a $6,500 tax credit for some current homeowners who buy another home. The law also extends the $8,000 tax credit for first-time home buyers, scheduled to expire Nov. 30, until next spring.

Judging from the mail we've received, a lot of people are interested in taking advantage of this tax break. But the expanded credit also has whipped up a lot of confusion. Here are some answers to questions from readers:

Q: How do I qualify for the $6,500 credit?
A: This credit is available for home buyers who sign a binding contract on a new or existing home by April 30, 2010, and settle by July 1 (deadlines that also apply to the first-time home buyer credit). You must have lived in your existing home for five consecutive years out of the last eight. The home you purchase must be your primary residence. However, the law doesn't require you to sell your old home, says Bob Meighan, vice president at TurboTax, the tax software provider. You can use it as a second home or a rental and still claim the credit, he says.

Q: I sold a home I had lived in for more than five years and bought a new one in August. Do I qualify for a tax credit?
A: No. For existing homeowners, the $6,500 credit is limited to homes purchased after Nov. 6.

Q: Does the home I buy have to be more expensive than the one I own now?
A: No. While the real estate industry is hopeful that homeowners will use this credit to buy a nicer place, there's no prohibition against using it to downsize, Meighan says. That makes this credit particularly useful for seniors who are interested in moving into a smaller home.

If you are planning to move up, keep in mind that you can't claim the credit if the purchase price of the home exceeds $800,000. Unlike some other tax credits, this one doesn't slowly phase out once you exceed the threshold, Meighan says. If you buy a home for more than $800,000 – and that refers to the purchase price, not the assessed value or the amount of your mortgage – you are ineligible for the credit, period.

The $800,000 cap also applies to first-time home buyers, but only those who purchase a home after Nov. 6. First-time home buyers who bought a home for more than $800,000 between Jan. 1 and Nov. 6 can still claim the credit, assuming they meet the other criteria, Meighan says.

Q: I'm an existing homeowner, and would like to build a new home. Can I claim the credit?
A: Yes, but make sure your builder is good at meeting deadlines. You can claim the credit as long as you have a binding contract in place by April 30 and close by July 1. In the case of a new home, the closing date is the day you move in, Meighan says. If your home isn't habitable by June 30, you won't be able to claim the credit, he says.

Q: I bought a home in 2008 and claimed the old $7,500 first-time home buyer's credit, which must be repaid over 15 years. Did the new law change that rule?
A: No. That credit, which was available for homes purchased between April 9, 2008, and Dec. 31, 2008, must still be repaid.

The $8,000 first-time home buyer credit, available for homes purchased after Dec. 31, 2008, doesn't have to be repaid as long as you remain in the home for at least three years. Existing homeowners who qualify for the $6,500 credit don't have to repay that money, either, as long as they meet the three-year requirement.

Q: We have a rental home and would like to sell it to our son, who has never owned a home. Would he qualify for the first-time home buyer credit?
A: No. The legislation specifically prohibits taxpayers from claiming the credit if the sale is between "related parties," Meighan says. A home sale to a parent, grandparent, child or grandchild would fall into that category.

Q: I sold my home this year and have been renting since. If I buy a new home, do I qualify for the expanded credit?
A: Yes, as long as you meet all of the other requirements, says Mel Schwarz, partner with Grant Thornton in Washington, D.C. The eight-year period used to determine eligibility ends on the day you buy your new home, he says.

For more information contact:

Kelly Yock, ABR, Broker/Owner

Premiere Property Group

cellular:  503-710-7721

Kelly.Yock@PremierePropertyGroup.com

www.PremierePropertyGroup.com

CHICAGO (MarketWatch) -- On his road to homeownership, Scott Leibfried has learned one thing: Expect the unexpected.

He and his wife had an offer accepted on a home, only to later find that foreclosure proceedings were about to begin on it. That's after they considered another home that was aesthetically pleasing but had major issues that came to light upon closer inspection.

In the meantime, they're trying to estimate the money they will need for closing costs and any future expenses, hoping that they won't eat too much into their financial cushion.

"There are always going to be things that come up," Leibfried said.

That statement could describe homeownership in general.

Allan Glass, a Los Angeles-based real-estate agent who works with the couple, says "the biggest mistake buyers make is underestimating the costs" of buying a house and maintaining it over time.

Homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses, he said. "That is the absolute minimum. It's better to have 2% to 3% socked away somewhere."

The cushion often isn't easy for first-time home buyers to have -- especially after they've scrimped and saved for their down payment. And there are many first-time buyers in the market now, due to affordable prices, low interest rates and a federal tax credit.

"Some people walk away from closing with a nickel and a stick of gum, and that's probably not going to be a good idea," says Dale Robyn Siegel, president of Circle Mortgage Group, in Harrison, N.Y. She recommends having at least six months of mortgage payments in the bank after closing on a house "especially now, with such an iffy job market."

A five-year budget

To get a better handle on where the house stands, buyers should attend a home inspection and ask questions, says Bill Richardson, a home inspector in New Mexico and president of the American Society of Home Inspectors. That way, they can get tips and recommendations from the inspector as he or she is working. They should keep the inspection report handy for reference.

For existing homes, an inspector will estimate the age of major components, giving the home buyer a sense of when they will need replacing. A furnace, for example, often lasts between 12 and 15 years; a water heater from 10 to 12 years, he says.

A list of approximate life expectancies of home components -- as well as cost estimates -- can be found at LivingWithMyHome.com, a Web site sponsored by home-inspection company Pillar to Post. Click on the "Repair & Remodel Estimates" tab. Visit the site.

Once you know what you're dealing with -- and perhaps what the sellers will repair or pay for before the sale is final -- look five years out and make a list of big-ticket home issues that you'll need to address, says Kelly Rogers, director of education for the Consumer Credit Counseling Service of Orange County, based in Santa Ana, Calif. Make a timeline for those expenses.

And don't count on borrowing money needed for repairs. "The banks have really tightened up, so it's harder and harder to get a home-equity line of credit," Richardson said. "If you don't budget for repairs, you will never get the repairs done when you need it."

When small problems pop up, it's important to address them before they become large-scale projects. Consider the tile in the bathroom: As soon as there's deterioration or cracking, address it, Richardson said.

"If the toilet is loose to the floor... it doesn't seem like a big deal, but it can leak and rot the floor," he said. "What could be a $15 repair could [end up being] a $700 repair or more."

Richardson suggests planning for a $500 to $1,000 annual general maintenance budget for most starter homes, which would cover everything from painting a room to caulking the bathtub.

"Buying a home is one of the largest investments you're going to make," he said, "If it's done wisely and with lots of thought, it can be a huge asset. If it's not well thought out, it can become a huge burden to you."

Monthly surprises

Estimating monthly expenses can often trip up new home buyers as well.

As renters, people are accustomed to paying rent and likely utilities -- phone, Internet service and cable.

As a homeowner, however, there will be other utility costs such as water, sewer and trash collection. Then there are property taxes, homeowner's insurance and possible homeowner's association dues.

There also can be expenses unique to your location. In Los Angeles, for example, water restrictions are such that if you go over a certain cap of usage, you face a penalty, according to Glass.

Remember, you also can have miscellaneous expenses such as snow removal and lawn service, if you don't plan on doing them yourself, Siegel said.