Fri, 29 August 2008  August 29, 2008 Proposal has projects all over the county, but possible $250 million price tag stirs debate. 1. New recreation center at Davidson IB Middle School 2. Planning for new 3. Double Oaks pool renovations. 4. Stewart Creek Greenway; Build 0.5-mile trail. 5. Expansions to 6. New regional sports complex in Matthews Northern residents will get a mega-sized, regional recreation center. Greenway trails will be added, including one to The projects, recommended by the park and recreation commission, are among 60 that could be paid for with a bond package this fall of up to $250 million. The projects won't be spelled out on the November ballot, but county commissioners and other leaders will use the list to drum up support for the bond package. A public hearing is set for the Sept. 3 commissioners meeting. Commissioners also will vote that night on the final size of the bond package. Scott McClure, chairman of the park and rec commission, told commissioners recently the plan has been well received by residents across the county. The mayors of Matthews, Mint Hill and Pineville also have lent their support. But some residents are likely to push for changes. The Charlotte Tennis Association, for example, wants money to build a 20-plus court tennis center and to hire a director of tennis for the county. And there is still some concern about whether the county should even ask voters to approve a bond package in light of the economy and the county's mounting debt load. This spring, County Manager Harry Jones had recommended asking voters for $560.2 million worth of county bonds, including $360.2 million for a new jail. That would join $227.2 million in roads, neighborhood development and affordable housing bonds from the city of Concern about the size of the local bond slate prompted county leaders to decide to pay for the new jail using debt that doesn't require voter approval. Commissioners then agreed to increase the size of the park bonds to no more than $250 million. Commissioner Dan Bishop has said he thinks the bond package is unaffordable, and noted it is more than three times the size of the last referendum for parks. Commissioners can decide to reduce the size of the bond package, but some say they expect to ask voters for the full $250 million. Among the proposed projects for the bond is $25 million for a regional sports plex in Matthews, a project commissioner Bill James has championed. An original list of bond projects didn't list the sports plex. James, whose district includes the sports plex, said Sunday he thinks the new list of parks projects better distributes the bond money across the county instead focusing on those areas closest to uptown. “It's fair,” James said. Comments[0] |
Thu, 28 August 2008  August 28, 2008 The Park condo was auctioned at noon Thursday at the Mecklenburg County Courthouse. A bid of $17.9 million was offered by Tim Griffin, an attorney for the lender. Steel at The Park condos has started to rust. Wind and rain have damaged fireproofing materials on the walls, and stucco, glass windows and interior doors have been left inside, targets for vandals and the elements. That rare scene of uptown decay – a sharp contrast from the city's shiny image – was painted by attorneys Wednesday in U.S. Bankruptcy Court. As the fate of the stalled condo tower has languished in court, its developer burdened with financial problems, the building could be falling into disrepair, its lender's attorney said. The 21-story project at In addition to the dangers facing its structure and the building materials inside, a city fire inspector has expressed concern about wood and debris, a fire hazard, she said. City officials have also revoked the developer's right to use part of The court on Wednesday appointed Langdon Cooper, a The high-profile Park is one of several uptown condo towers to face problems this year, despite showing strong sales. 210 Trade, the condo tower going up at the EpiCentre, has been stalled since February in a legal dispute between its developer at the EpiCentre's. Two other projects, One Charlotte and 300 South Tryon, have been postponed this year. The Park went into foreclosure last month. As of Aug. 20, its developer, After an auction and bidding period this month, a company called But on Aug. 14, three contractors filed an involuntary bankruptcy petition, forcing the condo tower into court and temporarily halting the foreclosure process. Those creditors, who say they're owed more than $1.8 million, want to see the project sold for a higher price and supported Cooper's appointment, said Kevin Sink of Nicholls & Crampton in Raleigh, who filed the bankruptcy petition on their behalf. “There needs to be someone at the head of this ship,” he said. “… This gives them the opportunity to maximize (the project's) value.”
Comments[0] |
Wed, 27 August 2008  August 27, 2008 Solar-powered mid-rise in SouthPark? SouthPark could become home to the city's first fully eco-friendly mid-rise if one Charlotte man gets his way.David Thompson has filed a rezoning request to build SolarPark, an 80-foot residential building that would run entirely on solar power and electricity. The building would sit on one acre near Park and Comments[0] |
Tue, 26 August 2008 August 26, 2008 Comments[0] |
Mon, 25 August 2008 August 25, 2008 Home Prices Are Down, but Stabilizing
Lynnsy Logue The Real Estate Lady and Condo CanDo in
Comments[0] |
Fri, 22 August 2008 August 22, 2008 Charlotte-area colleges named among bestSeveral schools in the In addition, U.S. News asked the experts who respond to its peer assessment survey to identify schools that fit the profile of "up and coming." Davidson came in first, with the most nominations. Queens University of Charlotte ranked No. 20 among private master’s universities in the South. That category includes institutions that provide undergraduate and master’s-level programs but offer few, if any, doctoral programs. In the category of baccalaureate colleges in the South, Schools in that category focus on undergraduate education but grant fewer than half their degrees in liberal arts disciplines. U.S. News & World Report evaluates the following criteria to determine each institution’s ranking: class size and student/faculty ratio, retention of freshman, student selectivity, financial resources and alumni giving.
Comments[0] |
Thu, 21 August 2008  August 21, 2008 New life for First Ward project Daniel Levine makes pitch for $26 million in funding Daniel Levine has a new plan for his key stretch of First Ward property. And, for the first time, the developer appears to have a key partner on board — taxpayers. The massive project he unveiled to the city this week includes 2 million square feet of office space, 2,150 residential units and 282,000 square feet of shops and restaurants on 20 acres he controls. Plans now call for a public investment of as much as $26 million in tax-increment financing from the city and county. The funding would pay for parking decks and other improvements. As much as $8 million more could be spent by the city for road improvements. The county would also kick in the construction cost for a park of at least 3 acres. “Our enthusiasm has never wavered,” says Levine, who has been pitching various development options for the site for a decade. “I am going to be excited when this moves from the drawing boards to breaking ground. We’re patient and we’re committed to bringing the best development to the city.” A $46 million UNC Charlotte classroom building planned for the corner of East Ninth and The formal request for public money gives hope to political leaders and uptown boosters that Levine is serious this time. Real estate experts remain guarded, saying Levine’s past starts and stops have left them wary. “It’s been a long time coming,” says John Lassiter, chairman of Charlotte City Council’s economic development committee. Adds Jim Palermo, executive-in-residence at The complex deal still has a long way to go before it becomes reality. Next week, City staff hopes to have a final deal for council to consider by year end. The county would likely puruse a similar schedule. Construction on Levine’s first phase of development, dependent upon county agreement for a park and tax-increment financing for 1,300 of nearly 2,000 new parking spaces in First Ward, could begin in 2009. In all, Levine anticipates a 10- to 15-year schedule for building out all of the First Ward land. The county park, UNCC, underground parking and a 300,000- to 400,000-square-foot office building would be built first. Levine will build the office building with ground-floor retail. Next up would be a 1,500-car parking deck and a property encompassing 525 residential units, a hotel and street-level retail. Talks gained momentum during the past three months, as stakeholders gathered to discuss possibilities and negotiate the framework of a deal. What emerged mirrors several other high-profile public-private ventures assembled in recent years in and around uptown. These include: •A $1.3 billion South Tryon Street complex anchored by Wachovia Corp. and several arts venues. •The $225 million Metropolitan shopping, office and residential complex in midtown. •Merrifield Partners’ Bryant Park project near •Grubb Properties’ mix of offices, shops and restaurants in the In each case, substantial contributions for parking decks and other improvements near the projects were — or will be — paid for with city and county money. Levine credits the city and county for working with him while also negotiating a deal “that puts all the risk in the private sector.”
Photo of Daniel Levine by Nancy Pierce Comments[0] |
Wed, 20 August 2008 August 20, 2008 Skybridge Terrace is up and running …
Project size: 144 condos in three buildings off the 1200 block of Prices: Units range from 500 to 1,078 square feet and sell from the $120,000s to $280,000s. Timeline: First of three buildings completed. Two others to be started as the market dictates. Features: Elevators in each building secure parking and controlled access, private balconies on most units, 10-foot smooth ceilings, double-bowl stainless-steel sinks, granite bar tops in kitchens and hardwood flooring in living areas. Now, residential revitalization is poised to be The Next Big Thing in development there. The first building in Skybridge Terrace, a planned 144-unit condo project, has been completed on The $22 million project occupies 2.2 acres with a greenway connection that provides pedestrian access to uptown via Third Ward and the Bank of America Stadium area. Farther out Morehead at the Ogunrinde, a principal in Neighboring concepts with Darrel Williams and Luis Tochiki, said the firm has been active on The commercial development under way in the corridor is setting the stage for future retail and residential development, he believes. The increased density has the potential to attract shops and restaurants to serve office workers and residents. And the area also could appeal to office tenants and condo owners seeking to enjoy center city amenities without paying center city prices. The remaining Skybridge Terrace condos – 500 to 1,060 square feet – are priced, for example, from the $120,000s to the $280,000s. Prices fall in the $250-a-square-foot range compared with $350 a square foot or more inside I-277. The project eventually will have three buildings – 48,000 square feet each – connected by sky bridges to give owners uptown skyline and Ogunrinde said the skyline side, with the largest and most expensive units, has been the most popular so far. Buyers put contracts on all the units, he said, but some are struggling to arrange financing and close in the uncertain lending market. Purchasers have been a mix of older professionals, young professionals and people seeking a second dwelling.
Comments[0] |
Tue, 19 August 2008 August 19, 2008
We can do so much if we believe we can. Hard times bring challenges. Yes, we can! Comments[0] |
Mon, 18 August 2008 August 18, 2008Lynnsy Logue The Real Estate Lady and Condo CanDo in Charlotte, NCWe Knew.....June 29, 2006 That Hissing Sound Robert Reich, pointing to leaks in the housing bubble, gives the Fed some advice: Market Meltdown: Say goodbye to the housing bubble, by Robert B. Reich, American Prospect: ...Americas housing bubble has not exactly burst. Its just sprung a leak the size of your average mortgage banker. Whats clear is the boom is over. All across America, backlogs of unsold homes are long. Price increases are slowing. In some markets, home prices are actually dropping... Its better that bubbles leak than burst. Gradual declines are always easier to manage than explosions. But the housing boom has been so large and important to the American economy over the past five years that even this slow leak will cause severe headaches. One will be experienced by millions of households that had turned their growing home values into piggy banks to finance their continued consumption. That easy route to cash is just about gone. The inevitable result will be less consumption, which will mean fewer jobs. A more immediate problem will arise for all the people making, financing, and selling houses. Here we are talking about a vast army of carpenters, plasterers, roofers, plumbers, electricians, mortgage bankers, home inspectors, real estate agents, architects, structural engineers and many more. According to Moodys Economy.com, housing-related employment has accounted for almost a quarter of the five million jobs that have appeared since 2003. These jobs pay well even though most of them dont require a college degree. Thats because they dont have to compete in global commerce. Workers in Beijing or Calcutta cant easily build houses in Phoenix or San Diego. ... But now with the housing boom over, many of these good jobs are over, too. In other words, without the housing bubble, the American economy will lose a lot of its fizz. I dont like bubbles, but from a jobs standpoint this recovery has needed all the fizz it can get. Median wages have gone nowhere. The ranks of the long-term unemployed have been unusually high. The percent of the labor force with jobs is lower than in 2000. Housing has been one of the few bright spots in the economy. All of which brings us to Ben Bernanke and his gang at the Federal Reserve Board Open Market Committee. They are determined to raise interest rates because they think the economy is too fizzy and still prone to inflation. I hope they listen carefully: The hissing sound they hear is air escaping the housing bubble. Theres less fizz in the economy than they think. Raise interest rates, and the Fed raises the likelihood the economy will deflate. We'll know more soon when the Fed announces its rate hike decision from today's meeting. That from June 2006. We Knew.Lynnsy Logue The Real Estate Lady and Condo CanDo in Charlotte, NC
Comments[0] |
Fri, 15 August 2008 August 15, 2008 Comments[0] |
Thu, 14 August 2008 Dear Lynnsy Logue, 08/01/08 This week President Bush signed the Housing and Economic Recovery Act of 2008, immediate measures that will help homeowners facing foreclosure find ways to refinance and will help strengthen mortgage markets. The package also includes a very substantial tax credit available to first-time home buyers. In this email, you will find a series of links that provide comprehensive details of the legislation package. We hope you will share this good news with your agents. To summarize, the legislation package includes Federal Housing Administration Modernization that will simplify and make FHA-backed mortgages more available while helping thousands of families refinance existing mortgages and keep their homes. Other important components of the bill are reform of the government-sponsored enterprises (Fannie Mae and Freddie Mac), permanent increases to both GSE and FHA loan limits, a first-time home buyer tax credit and a program to expand FHA that would allow more homeowners to refinance their mortgages. “Realtors® are in the business of building communities, and our 1.2 million members understand that this legislation will go a long way in helping people buy and keep their homes,” says Dick Gaylord, NAR’s2008 president. Wendell Bullard, 2008 president of the NC Association of REALTORS®, agrees. “This is good news for our more than 43,000 members and even better news for our clients,” Helpful links: http://www.ncrealtors.org/en/TaxCreditChart.pdf http://www.ncrealtors.org/en/RefinanceChart.pdf
Comments[0] |
Wed, 13 August 2008 August 13, 2008 While the presidential campaign was mired in the egregious and the trivial last week, there was a hearing in Put aside for a moment all the talk about alternative fuels. They are important and the wave of the future, but the fastest, cheapest, easiest and cleanest step toward a sane energy environment is the powerful combination of efficiency and conservation. That was the message delivered again and again at a hearing of the Joint Economic Committee that carried the title, “Efficiency: The Hidden Secret to Solving Our Energy Crisis.” Two political leaders who are no longer very fashionable were on to this long ago – former Gov. Jerry Brown of It may be hard to believe, but largely because of far-reaching efficiency and conservation measures imposed by Brown's administration, Sen. Chuck Schumer of A national to-do list It's not widely understood how profound a change in overall energy consumption could be realized from a big-time, coordinated efficiency and conservation effort. In addition to the obvious need for more fuel-efficient vehicles, we should be demanding more efficiencies from utilities, we should be requiring states to revamp their commercial and building codes; and we should be trying to weatherize homes from coast to coast, including the homes of families without enough money to make such improvements themselves. And, of course, there are the everyday good energy deeds that would help make a world of difference: car-pooling; taking public transportation when possible; using more efficient lighting; dropping the thermostat a couple of degrees; buying more efficient appliances; unplugging appliances that aren't in use, and so on. A leadership shortage Combining the development of alternative fuels with a real efficiency and conservation effort is the winning hand in the global energy crisis. People in many parts of the country are already frightened, in the heat of the summer, about next winter's heating bills. Families are worried about having to choose between mortgage payments and fuel bills, or fuel bills and medicine. The Senate considered but was unable to pass a measure that would have substantially increased financing for the Low-Income Home Energy Assistance Program. It was a bad sign. If the government can't get that done in the current atmosphere, it hardly seems likely that it could move to an even more important step: finding a way to get the homes of these cash-strapped families weatherized so they use substantially less fuel each winter. We know what we should be doing. What we lack is the leadership, the common sense or the will to get it done. Comments[0] |
Tue, 12 August 2008 August 12, 2008| “And the commonly used herbicides are chemical first cousins of Agent Orange, which was used in
There is good news, though: More and more towns are enacting neighbor-notification laws, requiring residents to issue warnings before spraying so people can shut their windows or even clear out with their kids and pets (the health danger lasts for days for the commonly used insecticides and weeks for the herbicides). If your town doesn’t have this law, ask neighbors to let you know when they’re spraying — and what they’re using. On your own turf, do only integrated pest management (IPM), a gentler, environmentally sensitive way of preventing, monitoring, and controlling pests. Safer ecofriendly and organic lawn sprays and other nonchemical options — from aphid-eating ladybugs to heat (electrocution) for termites — are surprisingly effective. Caveat: You may not have the most manicured lawn on the block, but to keep your family safe you have to learn to live with a few dandelions. Your child's toy box If you have little ones, consider lead the number-one danger in your home, Landrigan says. In very high doses, lead can cause convulsions and brain damage in young children. But if children are exposed to it in even small amounts, they can have a loss of IQ, a shortening of attention span, and behavioral problems. They’re also more likely to have dyslexia and to drop out of school. Checking every toy in the house for lead may not help because not all home tests are accurate. Instead, make smart buys. Research toys at www.healthytoys.org before you go shopping. Other ways to protect your kids: Have them wash their hands after playing and before eating, and get them tested for lead. Your closet And your work clothes swathed in dry-cleaning bags? They harbor perchloroethylene, the most common dry-cleaning chemical, which causes cancer in lab animals, according to the Environmental Protection Agency (EPA). Heavy exposure to this substance can cause dizziness and confusion, even in adults, so it’s best to minimize your use of dry cleaning. Machine-wash whatever you can on the delicate cycle (not everything labeled “dry-clean only” needs it). Another option: Find a professional cleaner who uses less-toxic solutions, like CO2, or does wet cleaning (a combo of water, biodegradable soap, and steam in special machines). If you have an item conventionally dry-cleaned, remove it from plastic and air it outside for several hours before hanging it in the closet. This will give the chemicals time to evaporate, reducing the health risk. Your cat's litter box Your home office At your office, avoid printers and copiers in your immediate work space and take 10-minute walks outside during the day to get fresh air. At home, keep printers and fax machines out of the bedroom, crack windows, and add chemical-removing plants. (See below.) Plants that help Areca Palm removes xylene (from permanent markers and rubber cement). Boston fern removes formaldehyde (from fiberboard furniture, glues and adhesives, and permanent-press fabrics). English ivy removes benzene (from oven cleaners, detergents, furniture polish, and spot removers).
Comments[0] |
Mon, 11 August 2008 August 11, 2008 Giving to help others keeps We're No. 10. Hold on. That's good. In a national ranking of 50 major If there's an activity where we should welcome being in the top 10, it is in volunteer service. Volunteer work is evidence that people care about their neighbors and the health and welfare of the communities they reside in. Now, that's puffing-out-your-chest worthy. The largest percent of Nationwide, nearly 61 million Americans volunteered in 2007, giving 8.1 billion hours of service, estimated to be worth $158 billion, according to the Volunteering in And though Consider the amount of time volunteers and non-volunteers spend watching television. Volunteers report spending 15 hours watching TV while non-volunteers spend 23 hours doing so. That eight-hour difference adds up to more than 400 volunteer hours a year, the report said. Volunteers make time to do this important work. They are increasingly necessary as economic difficulties push more Americans into the need category. Don't stand on the sidelines and applaud these volunteers. Join them. It is vital to the health and prosperity of communities and the nation that people commit to such service, and that public and private entities encourage and enable their efforts. Comments[0] |
Sat, 9 August 2008 August 9, 2008 Lynnsy Logue The Real Estate Lady and Condo CanDo in Based on the current sales pace, it will take ten months to clear out the inventories of new homes. Comments[0] |
Fri, 8 August 2008 August 8, 2008
Comments[0] |
Thu, 7 August 2008 August 6, 2008Drivers in the SouthPark area are fond of using the tiny streets in When They didn't expect it to become a popular driver shortcut with high-speed traffic. Now residents and businesses in the center find themselves conflicted about what to do. They want to slow down – even deter – traffic so pedestrians feel safe walking to and from the shops. On the other hand, the businesses need traffic to drum up interest. “We bought these units knowing we weren't on a cul-de-sac,” said Thomas Golen, president of the Piedmont Row Residential Condo Association. “The volume of traffic is just so high, though, that we feel things could have been planned better.”
Getting through the choked intersection can be slow. So during rush hour, dozens of drivers funnel onto the tiny arteries running through
Some residents have unaffectionately dubbed the route the “Barclay Downs Bypass.” Restaurant managers in the area say they don't mind the increased traffic because it can be used to boost business. “Our problem isn't that we can't get people here,” said Brian Boyce, general manager of Dolcetto wine bar. “The problem is they can't get out when they do want to leave.” Boyce said he and other business owners have thought about how they might capitalize on the situation, perhaps providing to-go services. Food, bottled wine and other products could be delivered to customers' cars while they're sitting in gridlock. A similar idea has occurred to Paula Cocking, co-owner of The Dinner A'Fare, a meal-preparation business at The streets in Residents and business owners have considered installing speed slowing measures such as speed humps or the gentler speed “tables.” Cocking and others said something will have to be done before someone gets hurt. Lynnsy Logue The Real Estate Lady and Condo CanDo in
Comments[0] |
Wed, 6 August 2008 August 6, 2008
Post Properties Inc. has scuttled plans to build Post Plaza South, a 300-unit apartment complex on The Atlanta-based developer, citing difficult market conditions, says it will also terminate its contract to buy the site. Post Properties disclosed the decision Tuesday in its second-quarter earnings report. A company spokesman was unavailable for comment. Among its holdings in the In its financial report, the company says it lost $27 million, or 61 cents per diluted share, in the second quarter. In the same period last year, Post Properties earned $62 million, or $1.40 per diluted share. Post Properties (NYSE:PPS) incurred a loss on its funds from operations of $12.6 million, or 29 cents per diluted share, in the latest quarter. In the same period last year, its funds from operations totaled $22.1 million, or 49 cents per diluted share. Funds from operations is the primary earnings measure for real estate investment trusts. Post Properties operates in 10 markets across the country. The company owns 22,435 units in 62 developments. Comments[0] |
Tue, 5 August 2008 August 5, 2008 She was the secret guest that caused Now we know the identity of the secret guest whose visit to It was Martha Stewart. Stewart, the lifestyle guru, was the guest of billionaire developer David Murdock on Thursday and Friday. She visited the North Carolina Research Campus in Kannapolis and made a quick shopping trip in the Last week, city workers took down banners honoring Earnhardt after an official at Murdock's real estate company and a local tourism official said some of the banners were dirty and torn and might upset a Murdock guest, who wasn't identified. Lynne Scott Safrit, president of Castle & Cooke, Murdock's development company, said Stewart's visit had been planned for months. It's hard to work around those schedules, she said. Stewart had dinner with Murdock late Thursday evening and left During her visit Thursday, she toured a research laboratory with Murdock. It's scheduled to open later this year. The banners honoring Earnhardt had been placed along
Comments[0] |
Mon, 4 August 2008 August 4, 2008 New-home starts drop, but that's good trend for a market full of unsold houses and foreclosures. The latest local housing market stats confirm the slump continues, but they also show the week's second positive trend. Charlotte-area homebuilders started 49 percent fewer homes during the second quarter, compared with the same period in 2007, according to data released Friday by Metrostudy. The 3,011 new home starts marked the second consecutive quarter below 4,000, a level last seen in 2003. Metrostudy, a The firm's method differs from those that compile building permit and sales data from public records. Results of the two methods tend to track fairly closely. New-home closings fell nearly 40 percent in the second quarter but exceeded the number of houses started, according to Metrostudy research. That's important because it means builders are cutting back in response to weak demand rather than adding to a market glutted with foreclosures and other houses awaiting buyers. That's a welcome shift from the last two quarters, when area builders started more houses than they sold, said Bill Miley, Metrostudy's “ Earlier this week, a popular index showed Comments[0] |
Sat, 2 August 2008 August 2, 2008 Lynnsy Logue The REal Estate Lady and Condo CanDo in Charlotte, NC FIRST-TIME HOMEBUYER TAX CREDIT Frequently Asked Questions As part of its major housing legislation (H.R. 3221), Congress has created a tax credit to provide an incentive for first-time homebuyers. The $7500 credit will be available for the purchase of a principal residence on or after April 8, 2008 and before July 1, 2009. The Basics Who qualifies for the new tax credit? Only first-time homebuyers are eligible for the credit. A first-time homebuyer is defined as an individual who has not had an ownership interest in a principal residence in the previous three years. The 3-year period is measured as of the date of the purchase of the eligible principal residence. Is there an income restriction? Yes. The income restriction is based on the tax filing status of the tax return the purchaser files. Individuals whose Form 1040 filing status is Single are eligible for the credit if their adjusted gross income is no more than $75,000. Individuals who file a Joint return may have income of no more than $150,000. Do individuals with incomes greater than the $75,000 or $150,000 limits lose all the benefit of thecredit? No. The credit has a phase-out. A formula is provided so that the credit is gradually reduced as an individual’s income reaches $95,000 (single return) or $170,000 (joint return). Adjusted gross income above $95,000 ($170,000 joint) will receive no tax credit. Is the amount of the credit tied to the price of the home? Yes. The credit is for 10 percent of the cost of the home, up to a limit of $7500. What’s the definition of “principal residence?” Generally, a principal residence is the home where an individual spends most of his/her time. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of dwelling. Are there restrictions on the location of the property? Yes. Eligible property must be located in the United States. Property outside the US is not eligible for the credit. What if the purchaser is eligible for a $7500 credit but owes only $6000 of income tax? The tax credit is a so-called “refundable” credit. Thus, in this example, the purchaser would receive an income tax refund of $1500. The refundable amount is the difference between $7500 and the amount of tax owed. Why is the credit sometimes referred to as an interest-free loan? Unlike most other tax credits, this tax incentive must be paid back. Eligible purchasers will be required to repay the tax credit over 15 years. The statute specifies that the repayment amount will be 6.67% of the credit amount each year. Thus, a buyer who qualifies for the full $7500 credit will repay $502.50 each year. There will be no interest charge on outstanding balances. Some Practical Questions How do I apply for the credit? There is no application or approval process. Eligible purchasers will claim the credit on the appropriate IRS Form 1040 tax return and/or on any special forms the IRS might devise. So I can’t use the credit amount as part of my downpayment? Presently, there is no mechanism available for claiming the credit any earlier than the 2008 tax return that will be filed in 2009. Congress tried to devise a mechanism that would allow pre-funding of the credit, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction. So there’s no way to get any cash flow benefits before I file my 2008 tax return? Any first-time homebuyers who believe they would be eligible for all or part of the credit would be allowed to make adjustments to their income tax withholding (through their employers) or to their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their take-home pay would increase. If I don’t make an eligible purchase until 2009, do I claim the credit when I file my 2009 tax return in 2010? Qualified first-time homebuyers who make their purchase between January 1, 2009 and before July 1, 2009 are permitted to make an election to treat the purchase as if it had occurred on December 31, 2008. This election allows them (depending on the timing of the sale) to claim the credit on their 2008 tax return that is due on April 15, 2009. They may also elect to extend their 2008 tax return by filing for an automatic extension. If they file their 2008 return before they have purchased the home, they may utilize this election and file an amended 2008 tax return. My sister and I are both single and want to purchase a home together. Will we each receive a $7500 credit? No. The purchase of a residence will generate a tax credit amount that will total up to $7500, no matter how many unmarried purchasers are buying the house. My sister and I wish to purchase a home together. She previously owned a principal residence but sold it 2 years ago. I’ve never owned a residence. Can I qualify for a partial credit? Possibly. The statute is somewhat ambiguous. It specifically provides that for a married couple to be eligible for the credit, both must be first-time homebuyers. Similarly, the statute provides that if a married couple files their tax return as Married Filing Separate, then the credit is limited to $3750 each. By contrast, the statute directs the IRS to determine how the credit can be shared when two or more unrelated individuals purchase a home. In that case, the statute does not specify whether all the unrelated purchasers must be first-time homebuyers. I made an eligible purchase of a principal residence in May 2008. If my brother, also a first-time homebuyer, wishes to move in with me and purchase a partial interest in the home in 2009, will he qualify for the credit, as well? No. Any purchase of a principal residence from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any interest in the home that he purchases from you. I’ll be working outside the US for part of 2008, so part of my income will be eligible to be excluded from tax. I want to buy a home when I come back. Can I disregard my non-taxable overseas income when figuring whether I am eligible for the credit? No. To determine whether you are eligible for the tax credit, you are required to combine your nontaxable overseas income with any US income you earn in 2008. Thus, if you are single and had $45,000 of non-taxable overseas income and $55,000 of US income, you would be ineligible for the tax credit because your 2008 income ($100,000) exceeded even the $95,000 phase-out amount. If you had $45,000 of non-taxable overseas income and $40,000 US income, you would qualify for a partial credit because your total income would be $80,000. If you had $45,000 non-taxable overseas income and $20,000 US income, you would qualify for the full credit (assuming you met all of the other requirements). Similar rules would apply if you had non-taxable overseas income in 2009 and wished to purchase then. I live in the District of Columbia and am eligible for the DC Homebuyer Tax Credit. Can I use both credits? No. You must choose one or the other. Note that the $5000 DC credit has no repayment feature, while the new $7500 credit must be repaid as an interest-free loan. Repaying the Credit What is the repayment feature of the credit? The repayment feature of the credit is similar to a recapture provision: the tax system takes back all or part of a tax benefit. In this case, there is no precedent for repayment of an individual tax credit, so not much is known about how the repayment will occur, how it will be reflected at settlement or on the sales forms or how the IRS will collect and enforce the payments. The repayment is the equivalent of converting the tax credit into an interest-free loan. What are the terms for repayment? The credit amount is repaid in increments of 6.67% of the credit amount over 15 years. For individuals who take the full $7500 credit, the repayment will be $502.50 a year. Individuals who claim a credit of less than $7500 will also have a 15-year repayment period and will pay 6.67% of their credit each year. For example, an individual who claims a credit of $6000 will repay $400.20 a year ($6000 x .0667). When do I make the payment? The mechanics are not specified. Payments for credits claimed on 2008 tax returns will go into effect for the 2010 tax year. Payments for credits claimed on 2009 returns will go into effect for the 2011 tax year. What if I sell my house before the 15-year repayment period is complete? When the person who utilized the credit sells the home, any amount of tax credit that has not been repaid will be due in the year of sale. For example, if an individual still “owed” $4000 in repayments and realized $25,000 of proceeds from the sale, the $25,000 of proceeds would be reduced to $21,000 and $4000 will be remitted to the IRS. What if there’s very little (or no) gain on the sale and the proceeds won’t cover the repayment amount? If the proceeds of the sale don’t cover the amount that must be repaid, part of the liability is forgiven. For example, if the individual still “owed” $4000 but the gain on the sale was only $3500, then the seller would not be required to repay the IRS the $500 shortfall. Are there any other exceptions to the repayment rules? Yes. If the person who utilized the credit dies before the full credit amount has been repaid, then any balance that remains unpaid is disregarded. Special rules are provided that make adjustments for people who sell homes as part of a divorce before the credit has been fully repaid. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency). Lynnsy Logue The Real Estate Lady and Condo CanDo in Charlotte, NC Comments[0] |
Sat, 2 August 2008 August 1, 2008
There’s More to My Real Estate Day Than Meets The Eye… The journey. Comments[0] |
Thu, 31 July 2008  July 31, 2008
Never say never…
The unit I have has been lovingly cared for in every detail. The owners have replaced all four sliding glass door sets and all the rest of the windows. The entire unit has been repainted with neutral colors. New is everywhere: tile in the kitchen, new kitchen appliances, new countertops, new range/oven, new dishwasher, new light fixtures, newer carpeting…and pergo in the joining hall and foyer. The downstairs master suite bath has been remodeled from the studs out. The upstairs full bath has new flooring, new lighting, new paint, new fixtures and hardware. The rooms are large, every one of them. And the windows are many…the light is abundant. The living room, the dining room, the kitchen, and the downstairs master all lead to patios. The kitchen patio is oversized and rolls over to green space. Very park-like. Upstairs master has a trio of new windows overlooking green space. Large walk-in storage runs adjacent to the 3rd bedroom or home office. Carport and utility. Almost 2000 sq. ft for less than $220,000 in one of
Comments[0] |
The Real Estate Lady.com/Condo CanDo.com
Charlotte,NC Condos, The Tutorial,Condo Stats,Red Flags, Charlotte Real Estate News...
Categories
podcastsArchives
JanuaryFebruary
March
April
May
June
July
August
September
June
July
August
September
August
| S | M | T | W | T | F | S |
|---|---|---|---|---|---|---|
| 1 | 2 | |||||
| 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| 10 | 11 | 12 | 13 | 14 | 15 | 16 |
| 17 | 18 | 19 | 20 | 21 | 22 | 23 |
| 24 | 25 | 26 | 27 | 28 | 29 | 30 |
Syndication
