Let's Talk!
Hot off the Press from Michelle DeNomme, Realtor
FOR IMMEDIATE RELEASE
SALES UP, INVENTORY DOWN FOR FIFTH
CONSECUTIVE MONTH June 2008
Pending Sales 63 Percent Higher Than June 2007 NAPLES, Fla. – July 15, 2008 – Now is a great time to buy, and more people are agreeing according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). “For the fifth consecutive month, we are seeing the number of pending sales increasing and the available inventory decreasing. We are seeing this trend across
the broad spectrum, not just in specific price points or geographic areas,” said Arlene Carozza, NABOR president and Realtor. “Overall, pending sales activity is up 63 percent over last year, with some areas well over 150 percent.” In the June report, compiled by NABOR, overall sales have increased nine percent and inventory has decreased by seven percent. “I’ve seen a marked increase in the number of showings and increased interest in homes,” said Mike Hughes of
Downing-Frye Realty. “Choice properties that are priced right are quickly disappearing.”
The report, which provides annual comparisons of single-family home and condo sales (via the Sunshine Multiple Listing Service), price ranges and geographic segmentation, also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:
Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 60 percent, with 484 in June 2008 compared to 301 in June 2007.
Overall market sales for June 2008 in the $0-$300K category are up 58 percent with median sold price down 15 percent, compared to June 2007. Overall inventory is down seven percent.
For single-family homes priced up to $300,000, there are 172 pending sales, up 537 percent over June 2007, when there were 27 pending sales. In the same category, sales are up to 113, a 253 percent increase over the 32 sold in June 2007.
Pricing for single-family homes from $1 - $2 million increased by nearly eight percent.
Overall condominium pending sales for June 2008 increased 43 percent to 197, compared to 138 in June 2007.
Comparing pending sales from June 2007 and June 2008, condominiums priced up to $300,000, there is a 59 percent increase, while condominiums priced from $500,000 to $1 million are up 38 percent. For condominiums priced from $1 - $2 million, pending sales are up 30 percent from June 2007. Overall condominium inventory is down 13 percent.
“There is a new bubble of buyers on the horizon,” said Mike Hughes of Downing-Frye Realty. “They are on the fence, but now it’s a matter of when they’re going to make that buying decision.”
The Naples Area Board of REALTORS® (NABOR) is an established organization (Chartered 1949) whose members have a positive and progressive impact on the Naples community. NABOR is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus member-customers. NABOR is a member of the
Florida Association of REALTORS® and the National Association of REALTORS®, which is the largest trade association in the United States with more than 1.3 million members and over 1,400 local boards of REALTORS® nationwide. NABOR is structured to provide programs and services to its membership through various committees and the NABOR Board of Directors, all of whose members are non-paid volunteers.
To view the entire June report, go to www.NaplesArea.com and feel free to contact
me with any questions you may have by calling 239.404.7787 or by e-mail at 239.404.7787...
I hope you have a GREAT day!
Michelle
Friday, July 18, 2008
Wednesday, July 2, 2008
A recession-proof home saleORLANDO, Fla. – July 1, 2008
It’s a buyer’s market, but sellers can increase the chance of a sale in today’s climate by working with a Realtor and considering these eight things.
1. Don’t count on open houses to sell your home. According to the California Association of Realtors, less than 5 percent of buyers find their home at an open house. An open house should never be the center of a prospective real estate agent’s marketing plan.
2. Target your marketing. Know what buyers in your area look for and emphasize your home’s appeal accordingly. This includes everything from the description (whether you highlight transportation and parks, or restaurants and nightlife) and how you stage the home (whether the third bedroom becomes an office), to where you advertise the listing (a newspaper in addition to online).
3. Tour similar homes in the area to better understand the competition – what a home sold for 12 months ago, or even six months ago, may not be a good estimate for today.
4. Consider staging your home. Although not always necessary, staging can make a difference in how your house is viewed and compared to others.
5. Offer prospective buyers a neighbor “reference” list. Make a list of your best, most reliable neighbors, so that buyers can reach out to get a better feel for the area, the locals, and what makes the neighborhood a truly unique place to live.
6. Photos posted online should be taken on a sunny day with a wide-angle lens. Approximately one-third of buyers who responded to a recent survey said they would eliminate homes they saw online if they had too few or poor quality photos.
7. Consider a pre-inspection to give you a selling edge. Include information about any repair work you’ve completed since you bought the home. If you don’t market your improvements, you won’t get as much return for them.
8. Once your house is on the market, accept feedback and tweak as necessary.
Tips for Buyers and Sellers in todays Real Estate Market!
Contact me today for a full service marketing plan...
Michelle
It’s a buyer’s market, but sellers can increase the chance of a sale in today’s climate by working with a Realtor and considering these eight things.
1. Don’t count on open houses to sell your home. According to the California Association of Realtors, less than 5 percent of buyers find their home at an open house. An open house should never be the center of a prospective real estate agent’s marketing plan.
2. Target your marketing. Know what buyers in your area look for and emphasize your home’s appeal accordingly. This includes everything from the description (whether you highlight transportation and parks, or restaurants and nightlife) and how you stage the home (whether the third bedroom becomes an office), to where you advertise the listing (a newspaper in addition to online).
3. Tour similar homes in the area to better understand the competition – what a home sold for 12 months ago, or even six months ago, may not be a good estimate for today.
4. Consider staging your home. Although not always necessary, staging can make a difference in how your house is viewed and compared to others.
5. Offer prospective buyers a neighbor “reference” list. Make a list of your best, most reliable neighbors, so that buyers can reach out to get a better feel for the area, the locals, and what makes the neighborhood a truly unique place to live.
6. Photos posted online should be taken on a sunny day with a wide-angle lens. Approximately one-third of buyers who responded to a recent survey said they would eliminate homes they saw online if they had too few or poor quality photos.
7. Consider a pre-inspection to give you a selling edge. Include information about any repair work you’ve completed since you bought the home. If you don’t market your improvements, you won’t get as much return for them.
8. Once your house is on the market, accept feedback and tweak as necessary.
Tips for Buyers and Sellers in todays Real Estate Market!
Contact me today for a full service marketing plan...
Michelle
Tuesday, July 1, 2008
Let Save Our Homes Explain Portability in Florida...
Is Save Our Homes portability selling houses? Let Save Our Homes explain...
When people buy a home, they can apply for a $50,000 homestead exemption. If their home costs $100,000, the homestead exemption allows them to pay taxes on $50,000 instead.
There’s a second exemption, called Save Our Homes. If the market value of a house rises,
for example, from $100,000 to $110,000 in a year, or to $200,000 in 10 years, the county tax assessor can raise the market value of the house by only 3 percent per year. So a house worth $100,000 in 1998 can have a maximum market value of only $134,000 in 2008.That means the cumulative effect of Save Our Homes is enormous.On Jan. 29, Florida voters approved Amendment 1, which allowed homeowners to transfer the Save Our Homes exemption when they bought a new home. Its feature, called portability, would help sell homes, real estate agents said. People had been living for years in homes that were too large or too small, and that big tax break would be the catalyst for trading places.
Contact me for more information... Michelle@NaplesHomeSweetHome.com
Is Save Our Homes portability selling houses? Let Save Our Homes explain...
When people buy a home, they can apply for a $50,000 homestead exemption. If their home costs $100,000, the homestead exemption allows them to pay taxes on $50,000 instead.
There’s a second exemption, called Save Our Homes. If the market value of a house rises,
for example, from $100,000 to $110,000 in a year, or to $200,000 in 10 years, the county tax assessor can raise the market value of the house by only 3 percent per year. So a house worth $100,000 in 1998 can have a maximum market value of only $134,000 in 2008.That means the cumulative effect of Save Our Homes is enormous.On Jan. 29, Florida voters approved Amendment 1, which allowed homeowners to transfer the Save Our Homes exemption when they bought a new home. Its feature, called portability, would help sell homes, real estate agents said. People had been living for years in homes that were too large or too small, and that big tax break would be the catalyst for trading places.
Contact me for more information... Michelle@NaplesHomeSweetHome.com
Friday, June 20, 2008
Did you Know???
FLORIDA NO. 2 FOR NEW RESIDENTS
About 40 million Americans move each year, and Florida is the No. 2 spot for relocation, second only to California, according to a survey conducted by Relocation.com. The survey finds that 19 percent of those relocating went from owning their own homes to renting, with only 15 percent shifting the other way. Only 14 percent of the 1,237 respondents owned their previous residence and moved to a newly purchased home, and the majority (52 percent) went from one rental situation to another. The survey shows that most people relocate for a new job, a transfer within their current job or to seek a new lifestyle, including retirement. About half the moves were from one state to another. Two-thirds moved more than 100 miles and 54 percent moved more than 500 miles away. California is the number one destination state with 6 percent of the total sample moving there from another state, while 5 percent of all relocations move to Florida, followed by Texas (4 percent), New York (3 percent) and Georgia (2 percent).
FLORIDA NO. 2 FOR NEW RESIDENTS
About 40 million Americans move each year, and Florida is the No. 2 spot for relocation, second only to California, according to a survey conducted by Relocation.com. The survey finds that 19 percent of those relocating went from owning their own homes to renting, with only 15 percent shifting the other way. Only 14 percent of the 1,237 respondents owned their previous residence and moved to a newly purchased home, and the majority (52 percent) went from one rental situation to another. The survey shows that most people relocate for a new job, a transfer within their current job or to seek a new lifestyle, including retirement. About half the moves were from one state to another. Two-thirds moved more than 100 miles and 54 percent moved more than 500 miles away. California is the number one destination state with 6 percent of the total sample moving there from another state, while 5 percent of all relocations move to Florida, followed by Texas (4 percent), New York (3 percent) and Georgia (2 percent).
Thursday, June 19, 2008
Florida’s strong population growth boosts demand for housing!
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.” On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.” On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
Florida’s strong population growth boosts demand for housing
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
Florida’s strong population growth boosts demand for housing
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
As one of the fastest growing states in the nation, Florida’s population is expected to increase by 325,000 in 2008, spurring demand for working-age and retirement housing.
“Florida remains a prime destination for workers seeking new jobs and for the growing wave of baby boomers,” said economist Hank Fishkind, president of Fishkind & Associates in Orlando. “However, a slower national economy means that 2008 growth will be somewhat below the levels seen during the recent boom years.”
Fishkind’s analysis of demographic data indicates Florida enjoyed a net population growth of 350,000 each year from 2000 to 2006. That includes about 203,000 people who moved to Florida from other states, about 107,000 migrants from foreign countries and about 47,000 from natural increase (total births minus total deaths).
“It’s important to note that this is net growth,” added Fishkind. “The actual number of people who move to Florida each year is far greater.”
On the domestic side, the strongest “sending” states are New York, New Jersey, Illinois, Ohio, Pennsylvania, Georgia, Michigan and California. Among top foreign countries are Venezuela, Puerto Rico, the United Kingdom and Canada.
“Florida has a long history of population growth regardless of the nation’s economic cycle,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR). She added that Florida has been one of the top ten fastest growing states for seven decades in a row, exceeding the U.S. average by 100 percent since 1970.
In fact, the U.S. Census Bureau projects that in 2010 Florida will surpass New York and become the nation's third most populous state. By 2030, the Census Bureau projects the state’s population will reach 28.6 million, an increase of 12.7 million since 2000.
One reason for that growth is that the state’s highly diversified economy continues to attract jobs in tourism, technology, international trade and business services. That brings in individuals, couples and families in their 20s to 50s, primarily to Florida’s larger metropolitan areas.
In addition, Florida traditionally captures a large share of the domestic retiree market, ranging from highly affluent entrepreneurs and executives to moderate-income couples seeking a warm-weather destination with plenty of recreational opportunities.
According to the Census Bureau, there are 76 million baby boomers born between 1946 and 1964. If only 5 percent retire to Florida, that alone would add 3.8 million new residents.
International buyers provide a third stream of migration into Florida, including working-age professionals, retirees and affluent second-home buyers.
As Riley said, “The bottom line is that more than 900 people move to Florida every day. That provides a solid foundation for our state’s residential real estate market.”
Use Your IRA to Their Purchase Your Dream Home Today!
Baby Boomers Here's How to Use Your IRA to Their Purchase Your Dream Home Today!
Real Estate is not necessarily rocket scientist work.
The key is to buy when everyone is selling and sell when everyone
is buying. Obviously, it is a great time to buy.
One tool I have promoted in the past was to utilize your IRA to purchase investment property through establishing a Self- Directed IRA. Unfortunately, if your IRA held the property you were precluded from utilizing the property for personal use. The property must strictly have been purchased solely for investment purposes. In addition, no bank I have ever worked with has ever agreed to lend money to property titled in a Self-Directed IRA.
Fortunately, thanks to a little utilized provision in the Internal Revenue Code there is a way for Buyers to get at their retirement account for personal use without paying a penalty and still obtain mortgage financing as title will be placed in their individual name. A friend of mine Harry J. Abrahamsen, a Financial Planner in Holmdel, New Jersey recently introduced this concept to me over dinner. Harry is quoted in the recent special issue of Forbes Investment Guide which is on newsstands through August 17, 2008.
I discovered the IRS allows individuals to dodge the standard early withdrawal tax at any age via a 72(t) distribution. However, there is a catch. Distributions are subject to ordinary income. Additionally, once distributions start they must continue for five years or until the beneficiary reaches 59 1/2 years old, whichever is longer.
Harry claims the best people suited for 72(t) distributions are individuals with fairly large IRA's who want to enjoy their money before retiring. "Maybe you're 50 and ten years away from a retirement that you dream will include a beach cottage. Why not use your IRA to start enjoying the beach house now, when real estate is cheap and you can lock in low interest rates?"
Forbes Magazine Illustrates that Alfonse DeMaria, a 41 year old New Jersey Chiropractor followed Harry's advice four years ago when he tapped into his $700,000.00 IRA to buy a farm house with acreage in rural New York. His $3,000.00 monthly distribution covers his monthly mortgage payments and real estate taxes. DeMaria enthusiastically claims "My kids and I can start enjoying the house now rather than 25 years from now, and it will still be here then, too!!!"
WOW! What an opportunity for baby boomers. What better reason to get off the fence. Monthly periodic payments can be used to qualify for mortgage financing opening doors most people don't even know exist.
If a 72(t) distribution makes sense the next step is deciding on one of three ways to calculate distribution. Depending on which method is chosen, if a 50 year old has an existing IRA account of $500,000.00, he or she can receive approximately $24,000.00 a year (or $2,000.00 a month) to pay their mortgage which will allow them to buy their dream home today.
Feel free to contact me should you have any questions.
Have a GREAT day!
Michelle
Prudential Florida WCI Realty
Michelle@NaplesHomeSweetHome.com
Cellular Phone 239.404.7787
www.MichelleDeNomme.com
Michelle DeNomme, REALTOR
This e-mail was provided by Law Offices of Ronald S. Webster
Baby Boomers Here's How to Use Your IRA to Their Purchase Your Dream Home Today!
Real Estate is not necessarily rocket scientist work.
The key is to buy when everyone is selling and sell when everyone
is buying. Obviously, it is a great time to buy.
One tool I have promoted in the past was to utilize your IRA to purchase investment property through establishing a Self- Directed IRA. Unfortunately, if your IRA held the property you were precluded from utilizing the property for personal use. The property must strictly have been purchased solely for investment purposes. In addition, no bank I have ever worked with has ever agreed to lend money to property titled in a Self-Directed IRA.
Fortunately, thanks to a little utilized provision in the Internal Revenue Code there is a way for Buyers to get at their retirement account for personal use without paying a penalty and still obtain mortgage financing as title will be placed in their individual name. A friend of mine Harry J. Abrahamsen, a Financial Planner in Holmdel, New Jersey recently introduced this concept to me over dinner. Harry is quoted in the recent special issue of Forbes Investment Guide which is on newsstands through August 17, 2008.
I discovered the IRS allows individuals to dodge the standard early withdrawal tax at any age via a 72(t) distribution. However, there is a catch. Distributions are subject to ordinary income. Additionally, once distributions start they must continue for five years or until the beneficiary reaches 59 1/2 years old, whichever is longer.
Harry claims the best people suited for 72(t) distributions are individuals with fairly large IRA's who want to enjoy their money before retiring. "Maybe you're 50 and ten years away from a retirement that you dream will include a beach cottage. Why not use your IRA to start enjoying the beach house now, when real estate is cheap and you can lock in low interest rates?"
Forbes Magazine Illustrates that Alfonse DeMaria, a 41 year old New Jersey Chiropractor followed Harry's advice four years ago when he tapped into his $700,000.00 IRA to buy a farm house with acreage in rural New York. His $3,000.00 monthly distribution covers his monthly mortgage payments and real estate taxes. DeMaria enthusiastically claims "My kids and I can start enjoying the house now rather than 25 years from now, and it will still be here then, too!!!"
WOW! What an opportunity for baby boomers. What better reason to get off the fence. Monthly periodic payments can be used to qualify for mortgage financing opening doors most people don't even know exist.
If a 72(t) distribution makes sense the next step is deciding on one of three ways to calculate distribution. Depending on which method is chosen, if a 50 year old has an existing IRA account of $500,000.00, he or she can receive approximately $24,000.00 a year (or $2,000.00 a month) to pay their mortgage which will allow them to buy their dream home today.
Feel free to contact me should you have any questions.
Have a GREAT day!
Michelle
Prudential Florida WCI Realty
Michelle@NaplesHomeSweetHome.com
Cellular Phone 239.404.7787
www.MichelleDeNomme.com
Michelle DeNomme, REALTOR
This e-mail was provided by Law Offices of Ronald S. Webster
Friday, May 16, 2008
let's Talk!
Renowned Florida economist Hank Fishkind spoke
the words Naples Realtors and brokers wanted to hear.
The housing markets hit bottom in Collier County and home prices aren’t
going to drop anymore, he said Thursday in a talk organized by the Naples
Area Board of Realtors. “The markets are not eroding further,” said Fishkind,
principal of Orlando-based Fishkind & Associates.
Prices have flattened out and if they were going to fall any more that would
have happened in the last six months, he said. However, he said it will take
another six to 12 months for sales volumes to really start improving in the
Naples area.
In Lee and Charlotte counties, the recovery is going to take longer because
there are higher inventories of unsold homes, Fishkind said. In those counties,
there was more overbuilding because land prices were so much cheaper, he said.
While he described the condominium market in Florida as a “disaster” generally
because there has been so much overbuilding, he said it’s not as bad in the
Naples area because the scarcity of land and high land prices have limited new
development.
He described the unsold inventory of new homes in Collier County as
“fairly small.” In February, a little more than 200 existing single-family
homes sold at an average price of $540,000 in Collier County, according
to deed records, Fishkind said. There were more than 100 new single-family
homes that sold for an average price of $375,000. About 50 new condominiums
sold for an average price of $350,000, and about 175 existing ones sold for an
average price of $425,000 in February, he said. “Basically prices are the same
as in 2006,” Fishkind said. He predicts that it will be “years” before prices go up
again.
Fishkind also touched on job losses and foreclosures in Collier County.
As of March 8, the county had lost about 7,400 jobs year-over-year.
In Lee County, there were 11,000 jobs lost in the same 12 months.
Fishkind called it “ugly,” but said he believes the worst is over.
Statewide, more than 77,000 jobs have been lost in the last year.
Many were in construction. Builders have been forced to make cutbacks
with the slowdown in residential and commercial construction, and some
have gone bankrupt. Collier has been hard hit because its economy isn’t
diversified and its main drivers are construction and tourism, Fishkind said.
“Employment growth is going to be modest at best over the next few years,”
he said. On the foreclosure front, there have been 1,600 single-family
foreclosure filings in Collier since the beginning of the year. In all of 2007, there were 1,500, Fishkind said.
For condominiums, there have been 400 foreclosure filings so far this year,
almost as many as for last year. “I think ultimately we will start to see
that peak and then level off. It’s a reflection of all the adjustable rate
mortgages coming due,” said Russ Weyer, a senior associate with Fishkind &
Associates, in an interview after the talk.
Lee County filings have already showed signs of stabilizing, he said.
The decline in housing starts will bottom out in 2008, but don’t expect
them to skyrocket again like “Mount Everest,” Fishkind said.
The housing correction, high energy prices and federal cuts in interest
rates all point to a national recession, he said. He doesn’t expect a recovery
in Florida’s economy this year. He predicts that the population won’t start
growing again until next year. When people start spending more that will
make the difference, he said. That could happen in a few months when
millions of taxpayers receive economic stimulus checks from the federal
government.
More than 200 people attended Fishkind’s presentation, held at
NABOR’s office off Pine Ridge Road. It was a record showing for a
NABOR quarterly luncheon.
John Zagar, president for Stock Realty in Naples, said
Fishkind reaffirmed his own thoughts about the turning market.
At Lely Resort, one of Stock Construction’s communities
off U.S. 41 East, there were 160 sales in the first three months
of this year, compared to about 100 for all of 2007, he said.
Arlene Carozza, NABOR’s president, said after the board’s
March report showed a sharp spike in pending sales the
members started feeling the worst was behind them.
Though the busy winter season traditionally ends at Easter,
local Realtors continue to be busy with more open houses,
showings and closings, she said.
“Usually by this time Naples is cleared out,”
Carozza said. “People are staying — and buying.”
To see Hank Fishkind’s full report, visit www.fishkind.com.
Renowned Florida economist Hank Fishkind spoke
the words Naples Realtors and brokers wanted to hear.
The housing markets hit bottom in Collier County and home prices aren’t
going to drop anymore, he said Thursday in a talk organized by the Naples
Area Board of Realtors. “The markets are not eroding further,” said Fishkind,
principal of Orlando-based Fishkind & Associates.
Prices have flattened out and if they were going to fall any more that would
have happened in the last six months, he said. However, he said it will take
another six to 12 months for sales volumes to really start improving in the
Naples area.
In Lee and Charlotte counties, the recovery is going to take longer because
there are higher inventories of unsold homes, Fishkind said. In those counties,
there was more overbuilding because land prices were so much cheaper, he said.
While he described the condominium market in Florida as a “disaster” generally
because there has been so much overbuilding, he said it’s not as bad in the
Naples area because the scarcity of land and high land prices have limited new
development.
He described the unsold inventory of new homes in Collier County as
“fairly small.” In February, a little more than 200 existing single-family
homes sold at an average price of $540,000 in Collier County, according
to deed records, Fishkind said. There were more than 100 new single-family
homes that sold for an average price of $375,000. About 50 new condominiums
sold for an average price of $350,000, and about 175 existing ones sold for an
average price of $425,000 in February, he said. “Basically prices are the same
as in 2006,” Fishkind said. He predicts that it will be “years” before prices go up
again.
Fishkind also touched on job losses and foreclosures in Collier County.
As of March 8, the county had lost about 7,400 jobs year-over-year.
In Lee County, there were 11,000 jobs lost in the same 12 months.
Fishkind called it “ugly,” but said he believes the worst is over.
Statewide, more than 77,000 jobs have been lost in the last year.
Many were in construction. Builders have been forced to make cutbacks
with the slowdown in residential and commercial construction, and some
have gone bankrupt. Collier has been hard hit because its economy isn’t
diversified and its main drivers are construction and tourism, Fishkind said.
“Employment growth is going to be modest at best over the next few years,”
he said. On the foreclosure front, there have been 1,600 single-family
foreclosure filings in Collier since the beginning of the year. In all of 2007, there were 1,500, Fishkind said.
For condominiums, there have been 400 foreclosure filings so far this year,
almost as many as for last year. “I think ultimately we will start to see
that peak and then level off. It’s a reflection of all the adjustable rate
mortgages coming due,” said Russ Weyer, a senior associate with Fishkind &
Associates, in an interview after the talk.
Lee County filings have already showed signs of stabilizing, he said.
The decline in housing starts will bottom out in 2008, but don’t expect
them to skyrocket again like “Mount Everest,” Fishkind said.
The housing correction, high energy prices and federal cuts in interest
rates all point to a national recession, he said. He doesn’t expect a recovery
in Florida’s economy this year. He predicts that the population won’t start
growing again until next year. When people start spending more that will
make the difference, he said. That could happen in a few months when
millions of taxpayers receive economic stimulus checks from the federal
government.
More than 200 people attended Fishkind’s presentation, held at
NABOR’s office off Pine Ridge Road. It was a record showing for a
NABOR quarterly luncheon.
John Zagar, president for Stock Realty in Naples, said
Fishkind reaffirmed his own thoughts about the turning market.
At Lely Resort, one of Stock Construction’s communities
off U.S. 41 East, there were 160 sales in the first three months
of this year, compared to about 100 for all of 2007, he said.
Arlene Carozza, NABOR’s president, said after the board’s
March report showed a sharp spike in pending sales the
members started feeling the worst was behind them.
Though the busy winter season traditionally ends at Easter,
local Realtors continue to be busy with more open houses,
showings and closings, she said.
“Usually by this time Naples is cleared out,”
Carozza said. “People are staying — and buying.”
Be sure to contact me with any questions you may have by e-mail at Michelle@NaplesHomeSweetHome.com...
To see Hank Fishkind’s full report, visit www.fishkind.com.
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