The sun is peeking out and the plants are starting to blossom, so it must be about time for spring chores again. Here's my annual spring checklist of important issues to tend to around the house.
1. Roofing repairs: If you suspect winter storms may have damaged your roof, it needs to be inspected. (If you're not comfortable with the height or steepness of your roof, hire a licensed roofing contractor for the inspection.) Look for missing or loose shingles, including ridge-cap shingles.
Examine the condition of the flashings around chimneys, flue pipes, vent caps, and anyplace where the roof and walls intersect. Look for overhanging trees that could damage the roof in a wind storm, as well as buildups of leaves and other debris.
If you have roof damage in a number of areas, or if older shingles makes patching impractical, consider having the entire roof redone. Also, remember that if the shingles have been damaged by wind or by impact from falling tree limbs, the damage may be covered by your homeowners insurance.
2. Check gutters and downspouts: Look for areas where the fasteners may have pulled loose, and for any sags in the gutter run. Also, check for water stains that may indicate joints that have worked loose and are leaking. Clean leaves and debris to be ready for spring and summer rains.
3. Fences and gates: Fence posts are especially susceptible to groundwater saturation, and will loosen up and tilt if the soil around them gets soaked too deeply. Check fence posts in various areas by wiggling them to see how solidly embedded they are.
If any are loose, wait until the surrounding soil has dried out, then excavate around the bottom of the posts and pour additional concrete to stabilize them. Replace any posts that have rotted.
4. Clear yard debris: Inspect landscaping for damage, especially trees. If you see any cracked, leaning or otherwise dangerous conditions with any of your trees, have a licensed, insured tree company inspect and trim or remove them as needed.
Clean up leaves, needles, small limbs and other material that has accumulated. Do any spring pruning that's necessary. Remove and dispose of all dead plant material so it won't become a fire hazard as it dries.
5. Fans and air conditioners: Clean and check the operation of cooling fans, air conditioners and whole-house fans. Shut the power to the fan, remove the cover and wash with mild soapy water, then clean out dust from inside the fan with a shop vacuum -- do not operate the fan with the cover removed.
Check outdoor central air conditioning units for damage or debris buildup, and clean or replace any filters. Check the roof or wall caps where the fan ducts terminate to make sure they are undamaged and well sealed. Check dampers for smooth operation.
6. Check and adjust sprinklers: Run each set of in-ground sprinklers through a cycle, and watch how and where the water is hitting. Adjust or replace any sprinklers that are hitting your siding, washing out loose soil areas, spraying over foundation vents, or in any other way wetting areas on and around your house that shouldn't be getting wet.
7. Check vent blocks and faucet covers: As soon as you're comfortable that the danger of winter freezing is over, remove foundation vent blocks or open vent covers to allow air circulation in the crawl space.
While removing the vent covers, check the grade level around the foundation vents. Winter weather can move soil and create buildups or grade problems that will allow groundwater to drain through the vents into the crawl space, so regrade as necessary. Remove outdoor faucet covers. Turn on the water supply to outdoor faucets if it's been shut off.
8. Prepare yard tools: Replace broken or damaged handles, and clean and condition metal parts. Tighten fittings and fasteners, sharpen cutting tools and mower blades, and service engines and belts in lawn mowers and other power equipment.
9. Change furnace filters: Now is the time to replace furnace filters that have become choked with dust from the winter heating season. This is especially important if you have central air conditioning, or if you utilize your heating system's fan to circulate air during the summer.
10. Check smoke detectors: Daylight Savings Time snuck up early again this year, and that's usually the semi-annual reminder to check your smoke alarms. So if you haven't already done it, now's the time. Replace the batteries, clean the covers, and test the detector's operation before it's too late.
If you have gas-fired appliances in the house, add a carbon monoxide detector as well (or check the operation of your existing one). CO2 detectors are inexpensive and easy to install, and are available at most home centers and other retailers of electrical parts and supplies.
Source: Paul Bianchina Inman News®All product reviews are based on the author's actual testing of free review samples provided by the manufacturers.
Stable Housing Numbers: Down Payments Remain Elevated
Down payments greater than or equal to 20 percent were made by 34 percent of all residential home purchasers last month, a percentage that has remained relatively stable over the past year, according to the latest REALTOR® Confidence Index survey from the National Association of REALTORS®. However, over the past several years, lenders have been raising down payment requirements.
The survey shows higher down payment costs than NAR’s 2011 Profile of Home Buyers and Sellers, which is based n part on 2010 transactions. For both conventional and FHA loans, which require only a 3.5 percent down payment, NAR reported the median down payment for all buyers was 11 percent in 2010-2011. First time buyers put about 5 percent down in 2011. Repeat buyers, pooling equity with savings, typically put down about 15 percent. However, investment and vacation-home buyers have been paying higher down payments than those buying a primary residence. The median down payment for both was 27 percent, according to NAR’s Profile of Investment and Vacation Buyers.
In January, Lending Tree reported that states with the highest median down payments were Washington, D.C. (13.5 percent), New York (13.47 percent), Hawaii (13.33 percent) and California (13.22 percent). The state with the lowest average down payment is North Dakota, where buyers put down an average of 11.34 percent.
Attention has focused on down payments in recent months for two reasons. Down payments are a major barrier to first-time buyers, whose market share has dwindled since the home buyer tax credits expired in 2010. A survey of buyers by Move, Inc. last fall found that half of all potential buyers planning to buy in two years or more are waiting in part because they lack the money for a down payment or closing costs.
A second focus has been a proposed regulation called QRM that would create incentives for lenders to offer loans at 20 percent or more. The regulation, being reviewed by regulators, is opposed by many housing, consumer and minority groups concerned that it would put homeownership out of reach of many American families.
Source: www.realestateeconomywatch.com
The survey shows higher down payment costs than NAR’s 2011 Profile of Home Buyers and Sellers, which is based n part on 2010 transactions. For both conventional and FHA loans, which require only a 3.5 percent down payment, NAR reported the median down payment for all buyers was 11 percent in 2010-2011. First time buyers put about 5 percent down in 2011. Repeat buyers, pooling equity with savings, typically put down about 15 percent. However, investment and vacation-home buyers have been paying higher down payments than those buying a primary residence. The median down payment for both was 27 percent, according to NAR’s Profile of Investment and Vacation Buyers.
In January, Lending Tree reported that states with the highest median down payments were Washington, D.C. (13.5 percent), New York (13.47 percent), Hawaii (13.33 percent) and California (13.22 percent). The state with the lowest average down payment is North Dakota, where buyers put down an average of 11.34 percent.
Attention has focused on down payments in recent months for two reasons. Down payments are a major barrier to first-time buyers, whose market share has dwindled since the home buyer tax credits expired in 2010. A survey of buyers by Move, Inc. last fall found that half of all potential buyers planning to buy in two years or more are waiting in part because they lack the money for a down payment or closing costs.
A second focus has been a proposed regulation called QRM that would create incentives for lenders to offer loans at 20 percent or more. The regulation, being reviewed by regulators, is opposed by many housing, consumer and minority groups concerned that it would put homeownership out of reach of many American families.
Source: www.realestateeconomywatch.com
Calling San Antonio Your Home
San Antonio, as anyone who has lived here longer than a couple of weeks knows, has plenty of things that set it — and its people — apart. The local newspaper asked locals to complete the phrase, “You know you’re from San Antonio if ______” and here’s what the readers said:
you schedule your annual vacation to begin on Oyster Bake and end the day after King William.
Tammy Edmondson
you are having Tex-Mex food, and a boat ride along the San Antonio River.
Susan Bauernfeind
you get hungry and what you still really want is a bean burger and a Chihuahua dog from The Triple S (Sill’s Snack Shack) on the Austin Highway
Ferdie Vollmer
you expect a day off from work and school to attend and maybe participate in the Battle of the Flowers parade since Fiesta is a way of life for the month of April
you are aware of how much water the Aquifer has and when it is close to hitting a higher stage level
you have a family member in the military, retired, or planning to join
you give directions with the terms “inside/outside the loop,” “North Side,” “South Side,” “Stone Oak,” and “downtown”
the Spurs and the rodeo are related experiences and you love them both
you don’t mind wearing flip-flops most of the year and have maybe one heavy jacket
you schedule your annual vacation to begin on Oyster Bake and end the day after King William.
Tammy Edmondson
you are having Tex-Mex food, and a boat ride along the San Antonio River.
Susan Bauernfeind
you get hungry and what you still really want is a bean burger and a Chihuahua dog from The Triple S (Sill’s Snack Shack) on the Austin Highway
Ferdie Vollmer
you expect a day off from work and school to attend and maybe participate in the Battle of the Flowers parade since Fiesta is a way of life for the month of April
you are aware of how much water the Aquifer has and when it is close to hitting a higher stage level
you have a family member in the military, retired, or planning to join
you give directions with the terms “inside/outside the loop,” “North Side,” “South Side,” “Stone Oak,” and “downtown”
the Spurs and the rodeo are related experiences and you love them both
you don’t mind wearing flip-flops most of the year and have maybe one heavy jacket
San Antonio Positive Housing Trend Continues Housing statistics mirror San Antonio economy
The local housing market continues to grow reflecting the strong economic climate of the city according to the March 2012 Multiple Listing Service report by the San Antonio Board of REALTORS® (SABOR). Key housing indicators all improved in March 2012 compared with March 2011.
Housing statistics continued their upswing for the third consecutive month this year. The average price for single family homes grew two percent to $185,561 and the median price increased four percent to $155,600 compared to figures in March 2011. Both average and median prices have improved month over month this year, marking a favorable housing trend for the year. Last month’s average and median prices were $183,955 and $147,100, respectively. To date sales, which encompass homes sold in the first‐quarter of 2012, saw a six percent increase from the first quarter of 2011.
The number of homes sold in San Antonio also grew 4 percent to 1,637 in March compared to the same month last year. “We are entering our busy spring and summer sales period and with market conditions as favorable as they are, we are hopeful that we’ll maintain our steady progress,” said Liza Reyes, 2012 SABOR Chairman of the Board.
Key Statistics
$185,561 – Average price for single‐family homes in March 2012, 2 percent higher than a year ago.
$155,600 – Median price for single‐family homes in March 2012, 4 percent higher than a year ago.
3,855 – Total number of single‐family homes sold year‐to‐date in the first quarter 2012, 6 percent higher than a year ago.
San Antonio is among a handful of metros that reached its pre‐recession employment peak by mid‐2011. The job market continues to grow with news that Bandera Ventures will build a 300,000‐sf assembly and warehouse building in Seguin to house companies that supply packaging and logistics support to manufacturer Caterpillar Inc. The Milken Institute named San Antonio the best performing city in 2011. It gained the top ranking out of 200 large U.S. metros and ranked seventh in job growth for 2005–2010. Job growth positively affects the housing market.
“The benefit to the San Antonio housing market from job creation by military relocations, growth in health care and biosciences, renewed investment in oil and gas exploration, as well as revived interest in manufacturing reflect favorably in our statistics,” said SABOR President and CEO Angela Shields.
Source: The San Antonio Board of REALTORS®
Housing statistics continued their upswing for the third consecutive month this year. The average price for single family homes grew two percent to $185,561 and the median price increased four percent to $155,600 compared to figures in March 2011. Both average and median prices have improved month over month this year, marking a favorable housing trend for the year. Last month’s average and median prices were $183,955 and $147,100, respectively. To date sales, which encompass homes sold in the first‐quarter of 2012, saw a six percent increase from the first quarter of 2011.
The number of homes sold in San Antonio also grew 4 percent to 1,637 in March compared to the same month last year. “We are entering our busy spring and summer sales period and with market conditions as favorable as they are, we are hopeful that we’ll maintain our steady progress,” said Liza Reyes, 2012 SABOR Chairman of the Board.
Key Statistics
$185,561 – Average price for single‐family homes in March 2012, 2 percent higher than a year ago.
$155,600 – Median price for single‐family homes in March 2012, 4 percent higher than a year ago.
3,855 – Total number of single‐family homes sold year‐to‐date in the first quarter 2012, 6 percent higher than a year ago.
San Antonio is among a handful of metros that reached its pre‐recession employment peak by mid‐2011. The job market continues to grow with news that Bandera Ventures will build a 300,000‐sf assembly and warehouse building in Seguin to house companies that supply packaging and logistics support to manufacturer Caterpillar Inc. The Milken Institute named San Antonio the best performing city in 2011. It gained the top ranking out of 200 large U.S. metros and ranked seventh in job growth for 2005–2010. Job growth positively affects the housing market.
“The benefit to the San Antonio housing market from job creation by military relocations, growth in health care and biosciences, renewed investment in oil and gas exploration, as well as revived interest in manufacturing reflect favorably in our statistics,” said SABOR President and CEO Angela Shields.
Source: The San Antonio Board of REALTORS®
Misconceptions About Real EstateTax Breaks
One of the biggest financial advantages of owning a home is the mortgage interest deduction, but the amount many taxpayers submit is often greater than the allowed limit. And, while home offices have become more popular because of convenience and the downturn in the economy, many homeowners may be better off not taking the deduction because of the depreciation recapture upon sale.
Both the mortgage interest and home office topics need to be double-checked before the April 17 deadline. Why April 17 this year instead of April 15? According to the Internal Revenue Service, taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday.
In addition, Emancipation Day, a holiday observed in Washington, D.C., falls this year on Monday, April 16. According to federal law, Washington, D.C., holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.
Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns. Remember that an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if timely payment is not made.
Many consumers stay in their homes for years, accumulate appreciation and then refinance to put a child through school, mom into a nursing home or attend a much anticipated family reunion. The new debt on the refinance will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing.
For example, let's assume your home is now worth $300,000 and you need to take cash out for college tuition. The balance of your loan before you refinance is $135,000 and you take $100,000 "cash back" for a new loan balance of $235,000. However, the maximum allowable mortgage interest deduction remains $135,000 -- the acquisition debt, not the bigger number from the refinance.
Another popular deduction that is often taken yet needs additional consideration is the home office deduction. It's relatively easy for taxpayers to deduct the cost of a home office. To qualify for a deduction, the space must be used exclusively and on a regular basis for either the entire business or its administrative and management activities. If you are an employee, additional rules apply for claiming the home office deduction.
For example, the regular and exclusive business use must be "for the convenience of your employer." A home office deduction is comprised mainly of depreciation, utilities and insurance. For example, if a home has 2,500 square feet and the detached garage now deemed "the office" is 250 square feet, then 10 percent of the utilities and insurance are deductible.
The actual office depreciation is 10 percent of what would be a depreciation deduction if the entire home were being depreciated for tax purposes. (Depreciation is not allowed on a typical principal residence, so the square footage allotted to "residence" would not qualify.) Supplies and other expenses directly related to the home office are fully deductible.However, all these benefits do come at a price. The tax law originally stated that if you sell your home at a gain, any depreciation for a home office will have to be "recaptured." That means that any profit on the business portion is taxable as capital gain.
On Dec. 23, 2002, the IRS issued new regulations concerning gain on home sales. As long as the home office was in the same structure and not separated from the home, only the depreciation taken for the home office after May 6, 1997, is subject to tax. Still, that depreciation recapture amount could be a lot more than you expect. It may be worthwhile to simply work from home and not deem the space a "home office."
Source: By Tom Kelly Inman News®
Both the mortgage interest and home office topics need to be double-checked before the April 17 deadline. Why April 17 this year instead of April 15? According to the Internal Revenue Service, taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday.
In addition, Emancipation Day, a holiday observed in Washington, D.C., falls this year on Monday, April 16. According to federal law, Washington, D.C., holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.
Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns. Remember that an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if timely payment is not made.
Many consumers stay in their homes for years, accumulate appreciation and then refinance to put a child through school, mom into a nursing home or attend a much anticipated family reunion. The new debt on the refinance will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing.
For example, let's assume your home is now worth $300,000 and you need to take cash out for college tuition. The balance of your loan before you refinance is $135,000 and you take $100,000 "cash back" for a new loan balance of $235,000. However, the maximum allowable mortgage interest deduction remains $135,000 -- the acquisition debt, not the bigger number from the refinance.
Another popular deduction that is often taken yet needs additional consideration is the home office deduction. It's relatively easy for taxpayers to deduct the cost of a home office. To qualify for a deduction, the space must be used exclusively and on a regular basis for either the entire business or its administrative and management activities. If you are an employee, additional rules apply for claiming the home office deduction.
For example, the regular and exclusive business use must be "for the convenience of your employer." A home office deduction is comprised mainly of depreciation, utilities and insurance. For example, if a home has 2,500 square feet and the detached garage now deemed "the office" is 250 square feet, then 10 percent of the utilities and insurance are deductible.
The actual office depreciation is 10 percent of what would be a depreciation deduction if the entire home were being depreciated for tax purposes. (Depreciation is not allowed on a typical principal residence, so the square footage allotted to "residence" would not qualify.) Supplies and other expenses directly related to the home office are fully deductible.However, all these benefits do come at a price. The tax law originally stated that if you sell your home at a gain, any depreciation for a home office will have to be "recaptured." That means that any profit on the business portion is taxable as capital gain.
On Dec. 23, 2002, the IRS issued new regulations concerning gain on home sales. As long as the home office was in the same structure and not separated from the home, only the depreciation taken for the home office after May 6, 1997, is subject to tax. Still, that depreciation recapture amount could be a lot more than you expect. It may be worthwhile to simply work from home and not deem the space a "home office."
Source: By Tom Kelly Inman News®
5 Common Mistakes Home Owners Make on Their Taxes
As you calculate your tax returns, consider each home tax deduction and credit you are — and are not — entitled to. Running afoul of any of these 10 home-related tax mistakes — which tax pros say are especially common — can cost you money or draw the IRS to your doorstep.
#1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2011 property taxes until 2012. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2011, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2011 property taxes until 2012. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2011, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
#2: Confusing escrow fees for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
#3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
#4: Failing to deduct private mortgage insurance
Lenders require home buyers with a down payment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000. Also, unless Congress acts to extend the PMI deduction again, 2011 is the last tax year for which you can take this deduction.
#5: Misjudging the home office tax deduction
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
#3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
#4: Failing to deduct private mortgage insurance
Lenders require home buyers with a down payment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000. Also, unless Congress acts to extend the PMI deduction again, 2011 is the last tax year for which you can take this deduction.
#5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It’s complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks. If so, here’s what to know about what you can write off.
Source: Houselogic
Source: Houselogic
Tips to Increase Your Home's Curb Appeal
Have you been wanting to change the look of your house but aren't sure what you can do to increase your curb appeal? Handyman Connection, one of the largest networks of home repair and remodeling contractors in North America, has released a few home improvement ideas to help you enhance the street view of your home. The front door is the gateway to your home and can often be an easy and inexpensive way to add a different dimension to your home's curb appeal. You can paint your door a different color to accent the exterior paint on your house or you can get an entirely new door. Pick a color that stands out from the rest of your house but a color that also meshes well with the rest of your color scheme. Painting or re-painting your house is a great way to drastically alter your home's curb appeal and it may be the perfect option if you want to give your house a brand new look. Give your exterior walls some flair by picking a color different than what was previously on your house and accentuate it by finding a nice color for the trim as well. Don't wait too long to paint your house because that could make the job much more difficult; you should paint before the previous coat begins to show signs of wear and tear. Fencing around your yard is a great way to increase your home's appeal. A small white-picket fence is a simple way to give your house a nice, cozy look. Putting up a fence on the sides of your yard is a practical way to increase your privacy and your curb appeal at the same time. Adding a deck or a wing to your deck could be perfect if you like to spend time outside and also want to increase your home's curb appeal. Adding a wing to your deck is easier than enlarging it and gives you two areas to gather instead of one. Painting or staining your deck is crucial to adding the curb appeal you seek, so dedicate a weekend or two every other year where you or a professional handyman can make your deck look good as new. Source: www.handymanconnection.com |
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