Tax-free Exchange

Consider the Hidden Advantage of Tax Free Exchange. In the past property exchanges were regarded as highly complex. The current real estate market now agrees that property exchanges are trouble-free, secure and profit producing. Even if a commercial or business property owner sells and then immediately reinvests, capital gains tax must be paid. The Internal Revenue Code Section 1031 allows a taxpayer to exchange property used productively in a trade, business or investment for property of a like-kind. In the exchange the IRS does not recognize any loss or gain and the capital gains tax is deferred. This deferral allows property owners to utilize money originally budgeted to pay the government for investment.Following the Rules Leads to Success. Consult your experienced realtor or your CPA for the rules.

HOME STYLES

The American Ranch.

Single story
Low pitched gable roof
Deep-set eaves
Horizontal, rambling layout: Long, narrow, and low to the ground
Rectangular, L-shaped, or U-shaped design
Asymmetrical
Large windows: double-hung, sliding, and picture
Sliding glass doors leading out to patio
Attached garage
Simple floorplans
Emphasis on openness (few interior walls) and efficient use of space
Built from natural materials: Oak floors, wood or brick exterior
Lack decorative detailing, aside from decorative shutters and porch-roof supports.

About the Ranch Style:

The Ranch style is also known as American Ranch, Western Ranch, or California Rambler. Although Ranch style homes are traditionally one-story, Raised Ranch (or Split Level) homes may have two levels of living space. Ranch style housing evolved from several other twentieth century ideas.

More "styles" to come in future posts.

Transient America

National averages indicate that America is on the move. In fact, Americans move about every 5.2 years, leaving little time for settling down. So how do we keep continuity in an ever-changing community? One answer: Keep our local businesses healthy. While five years is not an insignificant amount of time, it leaves little room for finding out about the new place you live, and making the connections that build stronger community structures. Real estate agents, in particular, serve an interesting role in the new “moving” America. They serve as the stewards of the communities – the information clearinghouse on all sorts of things, including schools, great local restaurants, cultural events and local shopping experiences. When you don't know, ask an experienced realtor!

HOME STYLES

From time to time, I'll put up a description of different home styles. There are, maybe, thirty of these which are distinctive. I can send a picture to those who wish to view a particular style.

Craftsman--Popularized at the turn of the 20th century by architect and furniture designer Gustav Stickley in his magazine, The Craftsman, the Craftsman-style bungalow reflected, said Stickley, “a house reduced to it’s simplest form... its low, broad proportions and absolute lack of ornamentation gives it a character so natural and unaffected that it seems to... blend with any landscape.”The style, which was also widely billed as the “California bungalow” by architects such as Charles Sumner Greene and Henry Mather Greene, featured overhanging eaves, a low-slung gabled roof, and wide front porches framed by pedestal-like tapered columns. Material often included stone, rough-hewn wood, and stucco. Many homes have wide front porches across part of the front, supported by columns.

Real Estate Development

A real estate developer develops land, thereby increasing its value. The developer may be an individual, but is often a partnership or a corporation. Developers are concerned with providing property that people will buy.

Useless buildings have no value, which means they can't be sold or rented. However, property can only sell if it's in the right location, has utilities (defined as the availability from adjacent public roadways and with a sufficient capacity of water, sanitary sewer, storm sewer, electrical power, natural gas, telephone and cable), construction costs can be managed, and the project can be completed on time.

The standard solution to development problems is to retain a registered professional engineer who specializes in pre-development engineering issues, and involve this person before purchasing the land. The standard solution to the salability problems is to retain an architect to design an attractive development. Many developers retain at least some ownership of profitable properties.

A number of these developments have commercial applications; yet many others are sold as "lots-only" to buyers and builders.

Real Estate Economics 101

Housing bubble? What housing bubble?With the 10-year U.S. Treasury bond yielding below 4% and 30-year mortgages available at 5.6%, there isn’t a housing bubble!

Granted, there are some cities and communities around the country in which there is some serious inflation of prices. But other factors are in play in those places.

A year ago the 10 year treasury yielded 5.2 percent. Right now it's yielding 3.9 percent! So the interest rate a good borrower can get has gone DOWN from 6.3 percent to 5.6 percent! That's an 8.2 percent drop. What that means is that a home-buyer can buy that much more house than he could a year ago.

When you combine these factors with the fact that families are making more money now (therefore having more disposable income), the marketplace is adjusting its prices. Taxes are going up; building materials are going up; and home sellers are asking more for their properties. And there's no "bubble" in sight. At least for the next year or two.

Using an IRA to Purchase a Second Home?

The market for second homes in the US is booming. Whether you're thinking about buying one as an investment or a vacation home for your family, you're not alone. According to the latest study released by the National Association of Realtors®, there were a record 2.82 million second homes sold in 2004.

Have you thought about using your IRA to do it? Your stock broker won't tell you, but you can buy homes, condos, office units, ranches........... !!!!! Buy your family a vacation home, using before-tax-dollars, and use your disposable pocket money for something else!

National Association of Realtors Forecast

June 8 – Lower-than-expected mortgage interest rates will push home sales to a fifth consecutive record in 2005, according to the latest forecast by the National Association of Realtors. David Lereah, NAR’s chief economist, said long-term interest rates look very favorable. “Not only have mortgage interest rates declined, but an expected rise in the second half of the year will be slower than in earlier projections,” he said. “As a result, we now expect to set records for both existing- and new-home sales this year.” Lereah said the 30-year fixed-rate mortgage should rise slowly to only 6.1 percent in the fourth quarter, and reach 6.5 percent by the end of 2006. Last week, Freddie Mac reported the 30-year fixed rate dropped to 5.62 percent. Existing-home sales are forecast to rise 1.6 percent to a total of 6.89 million this year from a record 6.78 million in 2004, while new-home sales are seen to grow by 3.2 percent to 1.24 million in 2005. At the same time, housing starts are projected to increase 3.4 percent to just over 2.02 million units, the highest level since 1973. The national median existing-home price for all housing types is expected to rise 8.8 percent in 2005 to $201,500, while the typical new-home price should increase 5.7 percent to $233,600.

For Sale By Owner

One of the issues that seems to come up routinely when one is ready to sell, is: 1) "Do I fully understand the legal ramifications and necessary steps required in selling a home?"

Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your states disclosure laws. Are you completely informed of all the steps necessary to sell real estate? Since a very high percentage of all real estate litigation results from home owners trying to sell their own property, isn't hiring a professional a wise choice?

Tyler Texas Real Estate - Curb Appeal

Curb appeal, whether online or in person, is the first step to getting buyers to notice your property, so, just like first impressions, make it a good and lasting one. Stand back and take a "camera's eye" view of your home. If it needs color, add some. If it needs vegetation and flowers, add some. Since 67 percent of all buyers now go online to begin their search for a home, it's really important that that first impression is a good one! Professional realtors take pictures of the homes for sale. And they post their listings on Multiple Listing services, which are available on the internet through realtors' websites. So, make that FIRST picture, that FIRST impression, the best that you can.

How Much Does $1,000,000 Buy?

Time was (and not so long ago), that seven figures could buy you something really special. A penthouse with amazing views. A stunning Hamptons home. A really, really great place in California. On the beach. But in nearly every corner of the U.S., the days of million-dollar mansions are, sadly, over. Welcome to an era of million-dollar bungalows, garden apartments and two-bedroom condos (in need of renovation). However, most Americans still consider $1 million a lot of money, no matter what their real estate agents tell them--and rightly so. The problem is that in certain markets, there seems to be a complete disconnect between property value and the buying power of a dollar.

But in Tyler, Texas, an East Texas city where the median-priced home is only $138,000, a million bucks still gets you almost anything you want!!

Real Estate Ownership

The founding fathers knew some things that only a percentage of our people now know and believe. One of those things, among many, was that ownership empowers individuals and families! In fact, one’s ability to hold office, and to vote, was enabled by his proof of real property ownership. A deed to real estate was the ticket to a stake in the country’s future!
Well, the country has liberalized somewhat since then, but the underlying principle is still there. The one who owns real estate has a certain degree of command regarding the course of his life; and he possesses a dignity and freedom not otherwise celebrated.
Man has governments under which he must live. But the primary government is self-government under God. And those who do not own property suffer a certain “disengagement” from the society and culture, where property owners enjoy an autonomy and freedom to engage as they choose.
So, there’s a form of disenfranchisement in the absence of ownership; and, for those who do own, a real sense of liberation. This same factor is now being discussed with reference to the president’s ambitious social security reforms. He’s attempting to “empower” men and women and families with ownership of stocks and bonds through private investment accounts. And the idea is that ownership “liberates”; and non-ownership "oppresses". A magistrate that promotes private ownership is also promoting freedom. And the opposite is also true: a magistrate that stifles private ownership is promoting tyranny and slavery.
This realtor, as well as others here at Century 21 First Group, promotes private ownership of real property along with our founding fathers. I do so with vigor and confidence that my efforts for my customers empowers them. I champion their enterprises and encourage them as I contribute to their pursuit of freedom and happiness.
This essay, should you read it, is meant to promote an awareness of the importance of, and the advantages and benefits of, private ownership of real property. Please feel “free” to engage with comments – either positive or negative.

Tyler Texas Real Estate

Well, this is a brand-new weblog; and this is the first posting. So I guess it ought to be about my web site and about Tyler real estate. The url is www.johncmartin.com. We're going to try to put up a consistent flow of informative real estate postings for everyone to read. Hopefully they'll be interesting and educational. The web site itself has just about everything one might need in the way of information about Tyler and about Tyler Texas real estate. But there's so much more to learn about real estate in general. That's the purpose of this blog. Stay tuned; and stay informed!