2. Pride of home ownership – a home is a personal haven, a place that you can decorate, shape, and share over time because it’s yours.
3. Excellent affordability – lower home prices combined with low interest rates means there are tremendous opportunities for buyers.
4. Historically low interest rates – around 4 percent in the U.S. gives better purchasing power to those who qualify.
5. Appreciation potential – your home investment can grow in value.
6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters.
7. Leverage – where else can you buy an investment of this magnitude with 5-10 percent down?
8. Tax deduction advantages – property tax and mortgage interest write-offs (in Canada, home owners gain a tax benefit upon selling).
9. Tax exemption – up to $500,000 per married couple or $250,000 per person on sale of a primary residence in the United States (no tax upon sale in Canada).
AUGUST – 2012 Newsletter Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the AUGUST – 2012 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.
Mortgage Forgiveness Debt Relief Act Expires in 2012
- No closing cost
- No commission
- No property taxes
- No Insurance
Here are 10 facts the IRS wants you to know about Mortgage Debt Forgiveness
San Diego has seen it’s share of short sales since 2007. If you purchased your home between 2001 and 2008 you are most likely upside down in your mortgage. The Mortgage Debt Relief Act of 2007 has provided an opportunity for many to get out from under the house debt which far exceeds the market value. WWW.DREAMHOMESMATCHMAKER.COM has helped many homeowners get out of sticky situations through a short sale. This is not recommended to everyone, and you should consult a tax attorney/accountant to review your specific situation.
1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit is $1 million for a married person filing a separate return.
3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.
7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans do not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.
For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit http://www.irs.gov. A good resource is IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments.
You can also use the Interactive Tax Assistant available on the IRS website to determine if the cancellation of debt is taxable. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions
Del Mar can call itself Green! They are the proud home of California’s highest LEED rated house. Del Mar Restoration owned by Laura Parker renovated Parker’s own home without setting out for the #1 designation. She has just commenced a new project, a horse farm rennovation in Rancho Santa Fe. Once complete, it will hold the title of the 1st and only LEED certified property in the Ranch. There are pictures of the Del Mar project available online at www.greendelmarhome.com Parker has obviously raised the bar on ‘Going Green’, and given great attention to the possibility of becoming LEED certified with new construction. Lots of new home builders in San Diego have offered opportunities to ‘green’ your home with solar panel upgrade packages, etc. The Community of Del Sur has made a point to being environmentally conscious in their development. Their community Center, the Ranch House, is also LEED certified. Though they have not come close to reaching the new benchmark set by Parker. Hats off to you Laura!
The opportunities to go green don’t require a full conversion/rennovation/remodel, or new construction. You can start anywhere and build upon those measures to reduce your carbon footprint. There are “Green Homes” available for sale throughout San Diego who have take advantage of using reclaimed materials and increased energy efficiency.
Parker in front of her Del Mar Home