With the election news running hot and heavy, I received a summary of some of the tax proposals put forward by John McCain and Barak Obama.
The ones of particular interest to home owners are the capital gains tax when you sell your home and dividend taxes.
These proposals are undoubtedly subject to change but for now this is what the candidates appear to be saying.
We are in for an interesting ride.
Richard
-----------------------------------------------
INTERESTING DATA ON TAXES
Proposed changes in taxes after the 2008 General election:
CAPITAL GAINS TAX
MCCAIN ?
0% on home sales up to $500,000 per home (couples). McCain
does not propose any change in existing home sales income tax.
OBAMA ?
28% on profit from ALL home sales
How does this affect you? ?If you sell your home and make a
profit, you will pay 28% of your gain on taxes. If you are
heading toward retirement and would like to down-size your
home or move into a retirement community, 28% of the money
you make from your home will go to taxes. This proposal
will adversely affect the elderly who are counting on the
income from their homes as part of their retirement income.
DIVIDEND TAX
MCCAIN ? 15% (no change)
OBAMA ? 39.6%
How will this affect you? If you have any money invested in
stock market, IRA, CDs, mutual funds, college funds, life
insurance, retirement accounts, or anything that pays or
reinvests dividends, you will now be paying nearly 40% of
the money earned on taxes if Obama becomes president.
Wednesday, July 30, 2008
Tuesday, July 29, 2008
Phoenix Market Update for August 2008
The real estate news still has two sides to it. On the positive side, buyers are arriving on the scene in increasing numbers. Investors make up a significant portion as there are some very good bargains out there especially in the bank owned and short sale properties. Short sales have their long wait times and most are selling "as is" with no provision for repairs. The good news is that the price often reflects the true condition of the property.
On the down side, a recent Arizona Republic article headline said "Foreclosure Pain Felt In All Markets". The article quoted Phoenix Residential expert RL Brown who said that Valley data shows nothing "particularly sinister" but is a reflection of what is happening across the metro Phenix area because of sub-prime loans resetting and the economy generally slowing down.
So, we are not through this buyer's market phase yet. But the ratio of homes for sale versus those that are sold in a given month is narrowing (getting better) and if that trend continues it will eventually lead us to a more normal market scene.
If you don't have to sell then don't. If you want to pick up an investment property in Sun City, Surprise, Litchfield Park, Avondale or Goodyear, now is a good time to be looking.
As always, I can help locate a good property at a great price. Give me a call or send me an email if you are interested.
Richard
On the down side, a recent Arizona Republic article headline said "Foreclosure Pain Felt In All Markets". The article quoted Phoenix Residential expert RL Brown who said that Valley data shows nothing "particularly sinister" but is a reflection of what is happening across the metro Phenix area because of sub-prime loans resetting and the economy generally slowing down.
So, we are not through this buyer's market phase yet. But the ratio of homes for sale versus those that are sold in a given month is narrowing (getting better) and if that trend continues it will eventually lead us to a more normal market scene.
If you don't have to sell then don't. If you want to pick up an investment property in Sun City, Surprise, Litchfield Park, Avondale or Goodyear, now is a good time to be looking.
As always, I can help locate a good property at a great price. Give me a call or send me an email if you are interested.
Richard
Arizona Pictures
I thought you might enjoy looking at some of my Arizona pictures. These are some of my favorite subjects and they can be seen all over Arizona at some time of the year.
You can click on any one picture to see a larger view.
For your enjoyment!
Richard
You can click on any one picture to see a larger view.
For your enjoyment!
Richard
Wednesday, July 09, 2008
Selling? Depersonalize Your Home!
I should have written on this topic some time ago. I apologize for my procrastination. The topic? Adjusting your attitude when selling your home.
What do I mean by that? Here is an example. Nice listing, priced OK, plenty of upgrades, very clean and in a good Avondale neighborhood. The house did not sell and did not sell and . . . well, you get the picture.
The problem? The lady of the house did not allow many open houses. She "didn't want all those strangers trapsing through her home." See the problem? It was still "her" home. That attitude not only kept open houses minimal but actually turned away buyers sometimes before they got to the front door.
I finally had a talk with the husband (who wanted to move to his new job) and told him about his wife's attitude. I was reasonably sure that he would mention what I said to his wife. Two weeks later, we had a contract and the home closed.
Whether you believe in The Force from Star Wars or not, attitude can make a huge difference in how long it takes to sell a home. I usually tackle this head on when I spot it and it resolves.
Have you ever watched a show called the Dog Whisperer on the NATGO channel? Time and again dogs pick up the attitudes of the people around them. The show's host spends as much time working on the people's attitudes as he does working with the dog. Attitudes effect more than dogs. They can effect buyers!!
So "depersonalize" your home so a prospective buyer doesn't have to struggle to visualize the home as their own. Take down collections of family pictures, diplomas and personal momentos. Use new home models as your guide. No clutter and no personal items. It makes it much easier for buyers imagine that house as their home.
What do I mean by that? Here is an example. Nice listing, priced OK, plenty of upgrades, very clean and in a good Avondale neighborhood. The house did not sell and did not sell and . . . well, you get the picture.
The problem? The lady of the house did not allow many open houses. She "didn't want all those strangers trapsing through her home." See the problem? It was still "her" home. That attitude not only kept open houses minimal but actually turned away buyers sometimes before they got to the front door.
I finally had a talk with the husband (who wanted to move to his new job) and told him about his wife's attitude. I was reasonably sure that he would mention what I said to his wife. Two weeks later, we had a contract and the home closed.
Whether you believe in The Force from Star Wars or not, attitude can make a huge difference in how long it takes to sell a home. I usually tackle this head on when I spot it and it resolves.
Have you ever watched a show called the Dog Whisperer on the NATGO channel? Time and again dogs pick up the attitudes of the people around them. The show's host spends as much time working on the people's attitudes as he does working with the dog. Attitudes effect more than dogs. They can effect buyers!!
So "depersonalize" your home so a prospective buyer doesn't have to struggle to visualize the home as their own. Take down collections of family pictures, diplomas and personal momentos. Use new home models as your guide. No clutter and no personal items. It makes it much easier for buyers imagine that house as their home.
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