Greetings from DisJointed Productions LLC! My name is David Germain, an Artist as well as a friend to Kathleen McMullen. Kathleen and I worked together on selling my Condo a few years back. During that time I got my first glimpse into the world of Real Estate sales. The first thing I found strange was the photos that came on the MLS sheets. I knew that the world of Real Estate was changing and so did Kathleen. It’s said that a picture says a thousand words which is funny because a lot of photos that I looked at years ago only said about six or seven. I asked Kathleen about this and we guessed that agents rarely used professional photographers due to cost. (Just a headshot for an actor will run from $500-$750) Crazy huh? What would be crazy is if I were pushing photos for your properties in this day and age. This is 2012 not 2004. Live streaming has taken the place of photos and websites. Seriously have you tried to look up a web page on your phone’s browser? The next wave of sales tools will be in video, here’s what we offer:
30-45 second videos showcasing the finer points of the property quick and efficient production, most videos can be made in 48 hours no money down! Payment comes when the property closes! But wait, this is the agents responsiblity!! Kathleen will give you the state of the art service that you deserve!!
You’ve already got the best team in town, Dream Home Catchers!! that’s a good start!! or call me at 480-296-8925 or email me at Dave@disjointedproductionsllc.com or visit us at www.disjointedproductionsllc.com. I’m always available for consultation anytime.
Housing-related tax deductions, including home mortgage interest and real estate taxes, account for 49% of total itemized deductions. For middle-income tax itemizers, 56% of deductions are housing-related, which means a low cap on itemized deductions would reduce homeownership benefits for the middle class.
In the second presidential debate, the candidates did everything they could to avoid talking about housing. In listing what he did over the last four years, Obama didn’t mention any housing accomplishments. And, in listing all the problems that Obama failed to fix, Romney didn’t mention housing, either. Both candidates even avoided the mortgage interest deduction when talking about taxes. Romney suggested capping aggregate deductions at $25,000 without explicitly limiting any particular deduction, and Obama criticized Romney for not specifically calling out which deductions he would limit.
But housing was a part of this debate, even if not by name. Nearly half of the value of itemized deductions is housing-related, and capping deductions at $25,000 would hit many middle-income people. To see what a cap on itemized deductions would mean for housing, we looked at the most recent published IRS data on individual tax returns (2009) to sort out the facts.
First, let’s start by looking at who actually itemizes their tax deductions. The table below shows that only one-third of tax-filers itemize, but this ranges hugely by income. Only 15% of filers with less than $50,000 adjusted gross income (AGI) itemize their deductions, compared with 96% with $200,000 or more AGI. Higher-income filers include a much higher average total of itemized deductions, too. A cap of $17,000 – which is what Romney suggested two weeks ago – is roughly equal to the amount that the typical itemizer with less than $50,000 AGI deducts, so many lower-income itemizers wouldn’t be affected at all by that cap. But even a higher cap of $25,000 would hit many people in the $50,000-$200,000 range and probably most in the $200,000-plus range.
Among all filers, nearly half – 49% — of the value of their itemized deductions is housing-related, which includes home mortgage interest, real estate taxes and a few other small deductions like deductable mortgage points and qualified mortgage insurance premiums. Housing-related deductions account for 56% of the middle-income filers’ deductions – more than the share for lower-income or higher-income filers.
|
Who Itemizes Their Tax Deductions, and How Much?
|
|
All tax payers |
Less than $50k AGI |
$50k-$200k AGI |
More than $200k AGI |
| % of filers itemizing deductions |
33%
|
15%
|
65%
|
96%
|
| Avg amt of itemized deductions, among itemizers only, $1000’s |
26
|
16
|
24
|
81
|
| % of itemized deductions that are housing-related |
49%
|
51%
|
56%
|
33%
|
Note: “housing-related” includes mortgage interest deduction, real estate taxes and a few additional very small deductions.
Next, let’s look and see what people are actually deducting. Housing-related deductions are a larger share of overall deductions for lower-income and middle-income filers than for higher-income filers. Here’s why. Higher-income filers pay a lot more in state and local taxes, since these tax rates often rise with income, and give more in charitable contributions than lower- and middle-income filers, so these deductions account for a larger share of itemized deductions. Among itemizers with $200,000 or more AGI, 36% of itemized deductions are state and local taxes, compared with just 18% for the middle-income filers and 8% for the lower-income filers. In fact, higher-income filers deduct more for state and local taxes than for home mortgage interest – in part because the mortgage interest deduction is limited to interest on the first million of mortgage debt, which would affect higher-income filers most.
At the same time, the home mortgage interest is, by far, the largest deduction for middle- and lower-income itemizers. Lower-income people also rely more on itemizing deductions for expenses that higher-income filers are more likely to get covered by insurance or their employer, including medical/dental expenses and unreimbursed business expenses.
|
Largest Itemized Deductions, by Value
|
|
All tax payers |
Less than $50k AGI |
$50k-$200k AGI |
More than $200k AGI |
| Home mortgage interest |
35%
|
37%
|
40%
|
21%
|
| State and local taxes |
21%
|
8%
|
18%
|
36%
|
| Real estate taxes |
14%
|
13%
|
15%
|
11%
|
| Charitable contributions |
13%
|
9%
|
12%
|
19%
|
| Medical and dental expenses |
7%
|
20%
|
5%
|
1%
|
| Unreimbursed employee business expenses |
6%
|
9%
|
7%
|
2%
|
| Other deductions |
5%
|
5%
|
3%
|
11%
|
Note: each COLUMN adds to 100%.
Summing it all up: capping itemized deductions would certainly put more of the burden on higher-income filers. Whether this cap would also affect lower- and middle-income filers depends on the level of the cap. Many middle-income filers itemize and deduct more than $25,000, so a cap at that level would snag many in the middle-class. There’s no question, though, that if a cap on deductions is low enough to affect filers with less than $200,000 AGI, the home mortgage interest deduction would be most affected. Together, the mortgage interest deduction, real estate taxes and other small housing-related deductions account for the majority of deductions for filers under $200,000 AGI, even though these housing-related deductions are a smaller share of what higher-income filers itemize.
A low cap on itemized deductions would clearly reduce homeownership benefits for the middle class. The bigger question, of course, is how much that matters. Recent research shows that the mortgage interest deduction increases homeownership for higher-income households in some areas but not for other households. Removing the mortgage interest deduction would lower home prices, particularly at the high end, which would hurt current homeowners (including underwater borrowers), while making homeownership more affordable for lower-income households who might not have itemized in the first place. High-cost areas with high homeownership benefit most from the mortgage deduction. Younger, higher-income households in expensive homes benefit most from the mortgage interest deduction. Here’s why: being younger and therefore in the earlier years of a mortgage, more of their mortgage payments are interest rather than principal and therefore deductible. Also, higher-income households are in higher tax brackets and therefore benefit more from deductibility, and people in more expensive homes have larger payments to deduct.
However, even in the absence of the mortgage interest deduction, homeownership today would still be more affordable than renting. Trulia’s Rent vs. Buy report shows that it’s 45% cheaper to buy a home than to rent today, assuming itemized deductions in the 25% tax bracket. But even without any itemizing, it’s still cheaper to buy than to rent in every large metro – check out our data visualization illustrating this point. Thus, even without the tax deduction, low mortgage rates and years of post-bubble price declines have made buying much cheaper than renting.
Sell Your Home Fast Suggestions from our guest blogger, Joellyn Machnics from Sonoran Accents….
Hire a home inspector for a pre-sale home inspection. A thorough inspection of your home will tell you everything you need to repair before listing. Doing repairs now, before you list your home, will remove many buyer objections resulting in a faster sale and higher selling price.
Find the best full service real estate agent or REALTOR you can find. When selling a very valuable asset like your home, its no time to pinch pennies. Don’t go for a discount agent in the hopes of saving a few bucks. It may translate to a lower sales price and more time on the market.
Hire a professional home stager for a comprehensive home staging consultation. An experienced home stager has participated in the successful sale of hundreds of homes. They know what makes home sell. A comprehensive home staging consultation will help you prepare your home for sale to maximize its appeal to the greatest number of potential buyers.
Get a head start on getting rid of everything that you don’t want to move to your new home. If you already know you don’t want it or don’t need it, then donate it, sell it, give it away or throw it away now. The less extra stuff you have, the easier it is for home buyers to see how spacious your home is and how it will fit their lifestyle. So, start packing anything you won’t need now. It will help focus your energy on your move to your new home.
Pay some attention to your yard. It will pay off in better curb appeal. You want your home to look inviting on the outside so buyers are encouraged to consider the inside.
Sonoran Accents Home Staging and Re-design
www.stagingbysonoranaccents.com
Joellyn Machnics
Certified Home Stager
The summer Phoenix real estate market is heating up with high levels of buyer activity. This is great news for sellers with shorter listing times, more sales certainly and increasing sales prices. But for buyers, this may mean multiple offers.
When would-be buyers learn a seller is receiving multiple offers, a knee-jerk response may include:
- Not recognizing the seriousness of the situation,
- Submitting an offer too low,
- Blindly throwing money at the sellers (never a good move), or
- Panic/flail your arms/cry.
None of these reactions, however, will get you the result you want: the house.
Making a victorious offer is more art than science. Sellers may be fixated on their bottom lines (sensibly so, if you ask me) but there are a number of other seller priorities that buyers can address in optimizing their offers. Here are some less-obvious strategies for besting the other prospective buyers vying for your home: more…
You can be (1) out-of-work, (2) without income, (3) with a terrible credit rating and (4) having lost all of your home equity — and yet, you will still be approved for the FHA Streamline Refinance program.
Your loan needs to be endorsed by the FHA prior to May 31 2009 (If you purchased in the last three years there are other programs available including the option of bundling in energy improvements)
The home must be owner occupied (meaning you live in the home) and you must be current for the last 12 months
This is a great program, No Appraisal means even if you are upside down you can refinance!
Here is even better news we can add in Energy Efficiency Savings. So not only are you lowering your monthly mortgage payment you are lowering your utility bills as well as making the home more comfortable and safer and increasing the resale value at the same time.
What you need:
Copy of Driver’s License
Copy of Social Security Card
Copy of your Mortgage Statement or Bill
Bank Statements for the last 30 days
Copy of your Note and Deed of Trust
Evidence of Home Owners Insurance
more…
At Dream Home Catchers we support our clients by providing them with tools and information they can use to improve many aspects of their lives. The tools and articles you see posted are from Dream Home Catchers’ clients and strategic partners. We are proud to highlight these individuals who are experts in their own field.
What to look for when it comes to insurance:
Insurance is the one product that everyone will use if they buy it. That’s why it’s important to buy the right product from the right producer and company. There are several different types of insurance available.
Term insurance is the least expensive insurance. It is a vehicle that get’s you from one point to another. It gains no value during the life of the policy, which is why it is inexpensive. Once the policy reaches maturity it’s over and another policy must be purchased.
Whole life policies are more expensive and gain value as they mature. They may be cashed in during the life of the policy for the cash value.
Universal life policies also gain value and may be cashed in while the policy is in force. The right Universal policy usually gains cash value more rapidly than a Whole life policy and more value. They are the most expensive.
Depending on your needs your insurance agent should recommend the right policy for you to protect your family and loved ones from unexpected financial disaster.
What to look for when purchasing life insurance:
- How much coverage you need.
- The length of the policy.
- Is the policy convertible to another policy?
The best policies are fully convertible. For example, if you have a $100,000 policy and want to increase the death benefit to a larger amount the policy can be re-written with no further medical exam and with the age of the policy starting back at day one.
It is always best to insure your life at a young age and convert a policy later in life as insurance is harder to get the older you are.
A little bit about the author Scott Quatrone:
In November of 2011 I returned to the United States after spending 4 ½ years in Iraq and Afghanistan working as a paramedic for the US Army. I have been a paramedic since 1988 and have had my insurance license since 2007. Since the age of 18 I have been dedicated to helping others through life, either as a respiratory therapist, paramedic or insurance agent.
Life is full of milestones. As a real estate professional, one of my personal favorites is when people make the leap from renting an apartment to owning their own home. Achieving the America Dream marks a significant change in a person’s life. But with daily headlines blasting stories of lower property values, foreclosures and economic downturn, many people are taking a good hard look at their options before signing their name on the bottom line, as well they should.
Despite the headlines purchasing your own home is still a sound economic investment. I have always encouraged potential buyers to carefully consider all of their options before moving forward with purchasing a home. Now more than ever many people can significantly benefit from purchasing a home as compared to remaining in their rental.
Below are 10 reasons why you may want to consider purchasing a new home:
1. Save money: It may be less expensive to own than rent. Your mortgage payment may even be less than your monthly rent. Even if your mortgage is higher, the tax benefits may outweigh the added expense.
2. Desirably: Trulia.com analyzed the largest 50 cities in America as to which are better to buy in versus rent in. They ranked Mesa #6 and Phoenix #8 as best areas to buy!
3. Affordability: Many buyers who could not afford to buy a home a few years ago can now afford to buy. The Greater Phoenix median purchase price level is close to what it was in the year 2000.
4. Interest rates are very low! Save money! The lower the interest rate the lower the monthly house payment.
5. Save on taxes: If a buyer itemizes on their federal tax return, they can deduct mortgage interest and property taxes. These tax deductions may mean it costs less to own your 1500 square foot house than to rent a 900 square foot apartment.
For example, if someone paid $12,000 in mortgage interest in a year and were at a 20% federal tax rate, they may receive up to a $2,400 annual tax deduction. (The buyer needs to see their accountant as to which is better for them: itemizing deductions versus taking the standard deduction before buying.)
6. Supply: A home buyer has so many choices – one-story or two; patio or backyard; Tuscan or southwestern. The choices are endless.
7. Negotiating power: Since it is a buyer’s market, the seller often will pay many of the buyer’s closing costs and prepaid expenses.
8. If you previously owned and lost your home to a short sale or foreclosure you may still be able to buy again and don’t know it.
9. Home ownership means a place of your own and place to put your own stuff! All of it – no more storage units.
10. Someday home prices will go up again!
At the end of the day, purchasing a home is a huge responsibility. However many people stand to benefit from purchasing a home over renting. Consider the benefits and don’t be paralyzed by fear. See your Real Estate Professional for details and recommendations based on your personal circumstances.
As a real estate agent I have always been fascinated with different life styles and types of housing. Since moving to Phoenix I have witnessed how the Phoenix metro area has changed and evolved. Many families have been drawn to the single family homes in Phoenix’s sprawling suburbs for the schools and parks. People entering retirement move into manageable smaller homes surrounded by activities and friends. Now as Phoenix continues to evolve we have seen urban dwellers drawing them today’s our emerging downtown.
Many of my clients from the East Coast are calling me and asking about Loft Living in Phoenix. Lofts are popular on the East Coast, but are new to the Phoenix area and are mostly new construction. These are not old warehouses or buildings that have been converted into lofts, but brand new loft style condos. Most are centrally located in Phoenix and right by the light rail which makes the commute easy, either way. Phoenix Lofts are spacious with many amenities including private garages, ample storage, fitness centers, spas, pools, security. Many include hardwood floors and stainless steel appliances. They can be 1-3 levels in high rise buildings, penthouses, or those in smaller buildings above restaurants and offices. Most all have excellent views. Yard maintenance is a thing of the past and social and cultural opportunities are close by as are sporting events. Restaurants, wine bars, theaters, and museums are all within walking distance.
What is even more interesting, is the urban dwellers that are being drawn to these downtown oasis. Baby Boomers and successful young people are excited about loft living and what city life has to offer them.. Loft Living is very popular in Phoenix, AZ and the developers can barely keep up with the building of these lofts. If you would like to experience a true adventure in living, I would suggest you take a look at Loft Living in Phoenix. It is a fast growing niche in the housing market and an attractive alternative to traditional housing.
As we age, experiences come along and we ask ourselves, “Why did no one tell me how hard this is?” Transitioning a loved one to a long-term care residence is one of those events for many people. It is an emotionally charged undertaking and can be very taxing for everyone involved. I’ve had the experience of moving loved ones several times; most recently we moved my father. Though my experiences, I’ve learned several valuable lessons that will support you and your family through this challenging transition.
- Let your loved one choose the facility. Many people dread the thought of living in a nursing home, fearing that they will lose independence and control over their lives. You may make the transition easier for your loved one if they make their choice from a “short list” of possibilities. Reassure your family member that if for some reason it doesn’t work out, they may move. Rarely is any decision permanent.
- Visit and call often. Many seniors feel lonely when they first move into a care facility. Frequent contact will reassure your loved ones that they are not forgotten. In time, they will make friends with the other residents and no longer feel so alone.
- Get to know the staff. Despite the challenges of caring for people in a facility who are used to living on their own, staff members form strong bonds with the residents. Remember, these are the people providing the hands-on care for your loved one 24 hours each day, day in and day out. By showing empathy and understanding to the staff and asking about their lives, you are helping them help your loved one.
- Participate in the creation and implementation of the care plan. The staff members are the professionals, but they don’t know your loved one as well as you know your loved ones. You can shed some light on ways your family member may benefit from the services provided.
- Participate on the advisory committee. Some nursing homes have a committee made up of residents and/or family and community members. The goal is to assist the administration with suggestions regarding concerns and improvements. Ask about participating on this committee, and if you can join, you will get a first hand view of the challenges faced by the residents and management, and you will be a part of the solution!
- Take good care of yourself. This is an emotionally taxing and often times aggravating time in your life. Knowing that you are doing the best you can and when you feel like screaming…scream, crying….cry….and find someone you can share and confide in without guilt. Your folks will be happier knowing you are happy and healthy.
As a result of my personal experience I am now dedicated to supporting families in similar situations. Whether selling a home, finding a new location or just providing resources, our team understands the emotional challenge of transitioning a loved one to a care facility especially in today’s economic condition.
Kathleen McMullen with her Mom
My main goals in writing this blog was to start a conversation. So many people have had similar experiences but in the moment it often feels like you are very alone. If you have personal experience or lessons learned please share! I look forward to hear your story!
We are proud to announce the Dream Home Catchers Fun-tivities Guide. Below is a list of the best activities and resources for anyone living or visiting the Valley of the Sun! If you have any questions or would like more insight to living in the Phoenix make sure to give us a call.
The Dream Home Catchers favorite Phoenix activity!
http://www.cactusleague.com/
http://www.westgatecitycenter.com/
http://www.golfcoursewebpages.com/eastwestvalley.html
http://www.phoenixzoo.org/
http://www.suncityaz.org/
http://www.azcentral.com/community/peoria/
http://www.gpglcc.org/
http://www.jobingarena.com/
http://www.surpriseregionalchamber.com/
http://www.wnba.com/mercury/
http://www.phoenixmag.com/
Phoenix is a great place for families, couples nearing retirement or anyone looking for an active vibrant lifestyle!
Greetings from DisJointed Productions LLC! My name is David Germain, an Artist as well as a friend to Kathleen McMullen. Kathleen and I worked together on selling my Condo a few years back. During that time I got my first glimpse into the world of Real Estate sales. The first thing I found strange was the photos that came on the MLS sheets. I knew that the world of Real Estate was changing and so did Kathleen. It’s said that a picture says a thousand words which is funny because a lot of photos that I looked at years ago only said about six or seven. I asked Kathleen about this and we guessed that agents rarely used professional photographers due to cost. (Just a headshot for an actor will run from $500-$750) Crazy huh? What would be crazy is if I were pushing photos for your properties in this day and age. This is 2012 not 2004. Live streaming has taken the place of photos and websites. Seriously have you tried to look up a web page on your phone’s browser? The next wave of sales tools will be in video, here’s what we offer:
