Corbett2Corbett

Ed Corbett Atlanta RELATOR North Georgia Homes & Investment Property

Did You Miss This One?

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SOLD - Acreage In North Fulton GAAnother great property sold in North Fulton. A wonderful 4-acre horse farm nestled in nature, without leaving city conveniences. If you missed this property, don’t worry there are others out there. North Fulton is blessed with open acres ready to meet the needs of those wanting to spread out and maybe have a horse or two.

Land is still available. Check out another property we have in North Fulton.

Contact the Corbett2Corbett Team and we will be happy to assist you with your search for land in North Fulton, just minutes from the hustle and bustle of city life.

 

 

Buffett: ‘I’d Buy Up a Couple Hundred Thousand’ Homes

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National Association of RealtorsBuffett: ‘I’d Buy Up a Couple Hundred Thousand’ Homes
Daily Real Estate News | Wednesday, February 29, 2012

Warren Buffett, the billionaire investor and Berkshire Hathaway CEO, said on CNBC’s “Squawk Box” recently that he’d “buy up a couple hundred thousand” single-family homes if it was practical.

Buffett said that’s because he believes purchasing a home with ultra-low mortgage rates and holding it for the long-term has become a better investment than stocks right now.

Source: Housing Market Forecast Beyond 2012 From Warren Buffet

“G-fees” and their Impact on New Mortgages

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C2C Real Estate PostCongress is debating how to pay for a 10-month extension of the payroll tax cut, an extension of unemployment benefits, and increased Medicare payments to doctors.  They are considering funding the extension via a mandate to Fannie Mae and Freddie Mac to increase their guarantee fees or “g-fees” by at least 10 basis points on the rate. For example, for a $ 200,000 home loan, the increased g-fee (assuming an approximate rate hit of .125% in rate) would equate to $ 250 more per year in interest, or $ 7,500 more over a 30-year mortgage. (This information comes from a report written by a Senior Loan Officer with WR Starkey Mortgage, LLP).  The Congressional Budget Office estimated that the increase would ultimately pay for about $ 35.7 Billion of the cost of the payroll tax extension.
What exactly is the “g-fee”? The “g-fee” or Guarantee fee is an amount charged by mortgage-backed securities providers like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In essence, the “g-fee” acts a lot like insurance and helps lower the overall risk.

Officially, the increase to guarantee fees will begin April 1, 2012. For more information on “g-fees” and the potential impact on new mortgages, please contact your trusted financial advisor. To read more on this topic you may visit the National Mortgage News site.

3.8% Tax on Home Sales

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C2C Real Estate PostI read a recent article from the Governmental Affairs Group of the National Association of Realtors and thought I would share what they were saying. The article was centered around one question: “Will the Health Insurance Reform Law Impose a 3.8% Tax on Home Sales?”

As reported by the Government Affairs Group, there is speculation that “the health insurance reform law contains a provision for a sales tax on homes.” Below are the facts as reported by the NAR Government Affairs update:

National Association of Realtors“Beginning in 2013, the health insurance reform law will impose a 3.8 percent tax on unearned net investment income, which includes some (but not all) income from interest, dividends, rents (less expenses), and capital gains (less capital losses). The tax falls on only those individuals with an adjusted gross income above $200,000 for single filers or $250,000 for couples filing jointly.

The tax will not be imposed on all real estate transactions.” It is difficult to “… understand the interplay between the health insurance reform law and existing real estate tax law. The exemption for the first $500,000 of capital gain from the sale of a principal residence remains intact and is not impacted by the new law.”

Because the tax is very complicated, the National Association of REALTORS® has prepared an informational brochure outlining several scenarios that could be relevant. You may also want to review NAR’s list of frequently asked questions about the health insurance reform law and the 3.8 percent tax on unearned investment income.

If you have additional questions see your local financial advisor.

 

Tax Benefits of Homeownership

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The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership.

Here’s How It Works.
Assume:
$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______
$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

Information provided by RealtorMag.org the Official Magazine of the National Association of Realtors.

7 Reasons to Own Your Home

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1. Tax breaks
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation
Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability.
Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom
The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability
Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

When you are ready to purchase your first home make sure you check all listings and locations such as fripp island estate.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

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