Grayson Hodge

This is a reminder to all of our landlord investor friends out their that today tis the deadline for all rental properties to be registered with the City of Raleigh. The information below is reprinted from the www.raleighnc.gov website.

Rental Dwelling Registration

Beginning March 1, 2009, all owners of residential rental properties within the City of Raleigh will be required to register their rental properties under Article H: of the City of Raleigh Code. Use the Public Access program to register all rental properties between March 1, 2009 and April 30, 2009. All rental properties must be renewed each year thereafter during the same time period.

The Rental Dwelling Registration Ordinance was adopted by City Council on July 1, 2008 and deemed necessary in order to promote public health, welfare, good order and safety of the City of Raleigh and its residents. The goal of creating this Rental Registration database is to promote responsible management, assist in providing a safe habitat for residents and neighbors of rental dwellings, safeguard property values and expedite repair of residential housing accommodations. The database may also be used to improve contact in case of emergency by Police, Fire, EMS or Inspections.

Owners of rental properties are responsible for payment of rental registration fees. The registration fee for the first or only rental dwelling unit on a property (parcel) is $30.00. The fee for each additional rental dwelling unit on the same parcel is $10.00. For example, if the owner is registering a 4 unit apartment building, the costs would be $60 ($30.00 +$10.00 +10.00 +10.00). If the owner registers 3 single family dwellings on separate parcels the costs would be $90 ($30.00 + $30.00 + $30.00).

If you do not have access to a computer, you may request a Rental Registration Form be mailed to you or visit the Housing/Environmental Division Office (One Exchange Plaza, 5^th floor) and a Customer Services Representative will assist you. If you have any further questions regarding rental property registration, please contact the rental dwelling registration Support Staff at Rental.RegistSupport@ci.raleigh.nc.us or by calling (919) 807-5110 and a representative will assist you.

This year, the federal government extended and expanded home energy efficiency tax credits through 2010 as part of the broader economic recovery package. If your home is older, shouldn't you be considering these tax credits as an incentive to act now and also enjoy the savings and benefits of a more energy efficient home?

The energy efficiency tax credits were created earlier this year by President Obama's economic recovery package, which sought to encourage consumer spending amid the recession, as well as persuade homeowners to become more energy efficient. The tax credits allow homeowners to claim 30% of the cost of qualified energy efficiency products, up to $1,500, including insulation, windows and doors, roofs, HVAC equipment, and water heaters.

To earn an energy efficiency tax credit, homeowners must save their receipt for a qualified purchase, print a form provided by the product's manufacturer and then claim the deduction on their federal income tax return.

The new tax credits can help homeowners defray the cost of several types of energy efficiency upgrades, making them more affordable at this time of economic strain for many. By tightening up their homes with added insulation and caulking and sealing of doors and windows, homeowners will enjoy lower heating and cooling costs, too.

The U.S. Department of Energy (DOE) estimates that homeowners can save up to 30% on their heating and cooling bills by adding insulation to adequate levels and air sealing their homes. In addition, an estimated 65% of U.S. homes, about 45 million, are under insulated, according to the Harvard School of Public Health.

With local and federal tax credits and rebates, the potential savings of lower heating and cooling costs, and product promotions offered by retailers, homeowners should have ample motivation to move ahead in 2009 with energy efficiency projects. If and when energy prices move higher, homeowners will be glad they added insulation and made other improvements.

Short sales are simply the sale of a home for a price that is lower than the total monies owed by the seller to close or settle the sale. These obligations or debts include the mortgages and any accrued late penalties and interest, the taxes, any liens, etc. In order to consummate a closed sale the bank or lending institution typically has to agree to some amount of payoff total that is less than what is owed to them by the seller on the property.

Why would a bank do this, you might ask? Because accepting a little bit less is far better than paying the expenses involved in a foreclosure takeover of the property.

How does this typically happen to a homeowner? People buy houses at prices that are too high, perhaps put a 100% LTV loan on the property, and the economy tanks. The real estate market evens out, or declines and they begin to fall behind on the house payments. Suddenly, they owe more money on the home than it is worth and they become disinterested in making payments because their dream home investment has become a money pit. They are what many refer to as "upside down in their home". This type of situation has been rampant in Florida now for the past 3 years. Many decide to walk away and do.

Are these Short Sales typically a good buy? Rarely! The reason for that is they typically are still overpriced, even though the bank is losing money selling it. You have to remember that they paid too much on the front end, put 100% financing on it and are way behind on the payments usually.

So, how can a consumer find a bargain short sale? Buyers hunting for these bargains either have to be: experts on the market and the home values, or they need to be working with a very competent and professional Realtor who can give them knowledgeable advice about comparable sales and condition of other properties.

With the deadline for filing federal tax returns fast approaching, the Internal Revenue Service (IRS) has made information available for qualified home buyers about how and when to claim the $8,000 first-time home buyer tax credit.

The basic eligibility requirements for the credit are: the home must have been purchased on or after Jan. 1 and before Dec. 1, 2009; the buyer cannot have owned a home in the three years prior to the purchase; and the buyer must have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers.

Two factors affect the amount of credit qualified buyers can claim: it can only be equal to 10% of the purchase price of the home, up to a maximum of $8,000; and it is reduced for buyers with a MAGI between $75,000 for single taxpayers ($150,000 for married filers) and the upper income limit.

To claim the credit, buyers must complete IRS Form 5405 to calculate the amount of the tax credit, and enter it on line 69 of the IRS 1040 income tax return.

Qualified buyers have several options for when to claim the tax credit, but they can claim it only after the purchase of the home is complete, which in most cases happens when the title of the property transfers.

Buyers who complete their home purchase prior to April 15, 2009, can claim the credit on their 2008 income tax return. If the qualifying home purchase will be completed shortly after April 15, buyers can file an extension for tax year 2008 and claim the credit when they file their 2008 return, which must be done by Oct. 15. If the buyer has already filed his 2008i income tax return an amended tax return can be filed after the home has been purchased and closed this year, or home buyers can claim a qualified purchase on their 2009 income tax return, which they will file in 2010. The IRS is being unusually flexible in the use of the tax credit because the government really wants this money out there being spent in the marketplace to boost the economy now.

A few things qualified buyers should take into consideration when deciding whether to claim the credit on their 2008 or 2009 returns include how quickly they need the refund and their expected income for 2009. There are no restrictions on how home buyers use the money, but they may want it quickly to pay for expenses related to the home purchase such as moving costs, furniture or remodeling. If homeowners expect their income to change next year due to factors such as retirement or a salary bonus, they should calculate how the income limits will affect their credit amount.

This information is provided to familiarize consumers with the first-time home buyer tax credit, and is not intended to serve as tax advice or as a legal opinion on tax status or consequences. Individual tax considerations will vary, and it is recommended that a tax professional be consulted to determine how this information applies to particular circumstances.

For more information, visit www.federalhousingtaxcredit.com.

In the most recent TARR Report, as published by Stacey P. Anfindsen/S.M.A Publications, Inc., a study of foreclosure sales and listings was done for Wake County over the past 13 months. Based on the nightly news reports of doom and gloom and hopelessness, most would find the report surprising especially given statistics from other areas around the country.

The report compiled sales data from the Wake County Revenue Department and listings offered from the Triangle Multiple Listing Service. Out of approximately 8500 listings currently on the market in Wake County, only 225 homes are classified as foreclosures or owned by a financial institution. That's roughly only 2.5% of the total inventory that is for sale, which means that if you're looking for a foreclosure deal, you will have limited selection at best. Over the 13 month period investigated the average sales price of all foreclosures sold and closed was $178,500 while the overall average of homes sold was $262,800. The average loss per year from the price that the original homeowner paid for the homes as compared to the price for which the financial institution sold it in foreclosure was surprisingly only 3.8%. What a surprise! If you listen to the news media these homes should be going at half price at least.

The purpose of this blog entry is to share facts about the real estate market in Raleigh without the twists that the media put into their journalism. Their purpose is to sensationalize and get the public's attention. Good news rarely sells, but facts are facts and it's no surprise that Raleigh is purported to be in the Top Ten cities in the US headed for the fastest housing recovery and I believe we're on the way already. Sales were up significantly in the past 6 weeks because smart savvy buyers are with their realtors buying the nice homes and locking in the lowest interest rates EVER!

Are you a smart savvy buyer or the unlucky one that waited and missed out?