George's Blog

First Time Home Buyers Tax Credit

George McGowan (Sibcy Cline Realtors) — Tue, 19 Aug 2008 22:06:14 -0500

By now, you might have heard about the tax credit offered to first time home buyers. The government is offering a $7500 (or 10% the value of the home, which ever is less) tax credit to first time home buyers that purchase a home between April 9, 2008 to June 30, 2009. There are some income restrictions on the tax credit.

Obviously, this can be a significant tax incentive for a first time home buyer but I do have some mix emotions about this incentive. According the house bill, 2 years after a person claims this tax credit they have to start re-paying the tax at 6.67% per year for the next 15 years. If the individual decides to sell the property prior to paying the full the amount back, the remaining balance is due in that year. So, what this credit amounts to is an interest free loan.

My concern is when a person goes to sell the home and have to pay back the remaining balance. Most repeat buyers use the equity in their current home for the down payment on their next home. Although I feel this tax incentive can be helpful in kick starting the current market, what damage are we doing to any future markets. Are we creating situations where home owners will be stuck and are unable to sell in the future?

In short, I do feel first time home buyers should take advantage of this credit or interest free loan but I do believe that we as Real Estate Professionals need to make sure they understand the future effects so that they can plan accordingly.

The social aspect of owning your own home.

George McGowan (Sibcy Cline Realtors) — Wed, 06 Aug 2008 14:49:16 -0500

There are a number of benefits of owning your own home and not all of them are tax breaks and building of equity.

Homeowners also enjoy many social benefits. They tend to be more active in their community due to the greater financial stake they have in their neighborhoods. Because home owners are more involved, they tend to form relationships with other home owners as well as business owners.

With homeownership also comes stability, according to the US Census from 2005 to 2006 only 7.1% of homeowners moved. This is way less than the 30.2% of renters that move. It only tends to reason that the longer you live in a community the more involved that you will become.

Buying vs Renting

George McGowan (Sibcy Cline Realtors) — Wed, 16 Jul 2008 14:10:31 -0500

Topic: Monthly Costs

Renting

Advantage

More Fixed Costs for the term of lease.

Disadvantage

Although in the short run costs are more fixed, over several years rent payments can increase.

Buying

Advantage

Over the long term it is possible for the cost to be more fixed if you choose a fixed rate mortgage. The actual mortgage payment will stay the same for the live of loan. (If you escrow taxes and insurance through you mortgage payment, it is possible for your payment to increase if these items increase.)

Disadvantage

There are more variable costs in the short term.

Topic: Equity

Renting

Advantage

You will not lose equity in a down market.

Disadvantage

No matter what happens with the value of the home, you will never gain equity.

Buying

Advantage

Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase.

Disadvantage

Equity may go up, down, or stay stagnant. In the short term, this may cause problems if you need to move.

Topic: Work to maintain or improve the property

Renting

Advantage

There is generally less work in maintaining a home or apartment.

Disadvantage

There is usually limited or no ability to personalize your living quarters.

Buying

Advantage

You have the ability to remodel or decorate the home to match your needs/desires.

Disadvantage

Work needs to be done by you or paid for by you.

Topic: Other monetary considerations

Renting

Advantage

You need a smaller amount of cash up-front to rent.

Disadvantage

There are not tax advantages to renting. Your landlord gets any and all tax breaks that are available.

Buying

Advantage

There can be tax advantages associated with home ownership. Consult your tax professional to learn more.

Disadvantage

There is generally a larger initial investment in the down payment when purchasing the home.

Managing your Finances!

George McGowan (Sibcy Cline Realtors) — Wed, 09 Jul 2008 21:10:08 -0500

The best way to organize your finances in order to spend your money wisely, save money for emergencies, and invest in your future is to create a personal budget plan. Your personal budget plan should show your total monthly income; list all your necessary monthly expenses; include enough money to pay your federal, state, and local taxes at the end of each year; and set aside some money for savings each month. Because life is unpredictable, financial experts recommend that you have at least six months' worth of necessary expenses maintained in a savings account to cover emergencies, as in the event of a job loss. Whatever money remains at the end of each month is called discretionary income, which is the money that should be used for investing in your future.

The next step is to research, study, and learn more about investment risks vs. potential rewards. Some investments are riskier than others and some offer more potential returns than others. There is no one single type of investment that is best for everybody. One traditional principle of investing is to start with small transactions to learn which kinds of investments works best for you, and then increase the amount of money you put into the types that bring you maximum returns. It is always a good idea to diversify your investments into different categories such as stocks, bonds, money market accounts, long-term certificates of deposit, or real estate so that potential losses will be offset by potential gains.

Reasons to Buy a Home!

George McGowan (Sibcy Cline Realtors) — Tue, 08 Jul 2008 13:33:02 -0500

(1) You have a place of your own!

- A place to raise your children and pets.

- You can become part of community.

(2) Tax Savings.

- 3 Major income tax deductions:

1. Interest on the home mortgage

2. Property Taxes

3. Points connected with the loan.

- It is possible after figuring these factors that you may pay less to own a home than you would to rent.

(3) Possible fixed monthly payments.

- If you choose a fixed rate mortgage (a mortgage that stays the same for the life of loan) you'll pay the same mortgage payment each month for the entire life of the loan. (Caution: If your property taxes go up, your escrow will go up which would increase your monthly payment)

- According to the National Association of Realtors most recent Commercial Real Estate Outlook report, the average rent is to rise 5.3% in 2008. This is after an average increase of 3.1% in 2007.

(4) Building a Nest Egg.

- For most individual owning a home and building equity is the single greatest source of financial security.

- A Federal Reserve study has shown that the average homeowner's net worth is 46 times the net worth of the average renter.

Everyone wants a say?

George McGowan (Sibcy Cline Realtors) — Thu, 03 Jul 2008 10:01:56 -0500

Have you ever had a good idea and proceed to act on the idea and then run into resistance from your boss or co-worker because you didn't discuss it with them first? Have you ever thought that the only reason these people were upset was because you thought of the idea first? Have you ever noticed the more people are involved with a particular project or situation the less likely they are to complain?

I used to be involved with coaching of youth soccer. I used to watch many coaches that had problem parents try to keep them less and less involved with the team. It almost never worked. I did the opposite. If I felt a parent was going to be a problem, I would give them a job to do for the team. This didn't always work but in some cases it helped the situation greatly.

People want to feel involved. They want to have a say in the project or situation. It gives them a feeling of control. They are able see the big picture more clearly and understand the goals if they are involved.

Do you want a good example? Since it's almost July 4^th, I will use the American Revolution.

Many people believe that Taxes caused the American Revolution. Although the taxes annoyed many of the American Colonists, I don't believe it was the cause of the Revolution. If you do some research about the American Revolution, you will find that taxes were 5 times higher in 1698 than in 1773(The start of the American Revolution). Furthermore in England, taxes were much higher than in the American Colonies. What angered the American Colonies is that the taxes were imposed without consent from American's directly elected individuals. So, grew the phrase "Taxation without Representation."

Again individuals want there opinion heard. They want to feel involved with the out come. They want a feeling of control.

Getting Ready to Move?

George McGowan (Sibcy Cline Realtors) — Mon, 30 Jun 2008 20:46:23 -0500

If you are planning a move, begin by researching allowable tax deductions for moving; you can deduct some moving expenses under certain circumstances if your move is related to a new job. Keep all receipts related to moving expenses in your tax file. Two months prior to moving, consider having valuable jewelry, antiques, and works of art appraised. If you have children, arrange to have school records transferred. Consult with your doctor and/or health care provider about recommendations for another provider in your new location, and arrange to have prescriptions, medical files, and dental records transferred. If you have pets, obtain copies of veterinary records. Make a list of friends, relatives, and business contacts who need to be notified. File a change-of-address form with your local post office.

One month prior to moving, contact utility companies and schedule disconnection of services for the day after you move. Schedule to begin utility services at your new home one day prior to your arrival. If you are moving yourself, reserve your rental truck and obtain packing boxes. Tune up and service your automobile.

Two weeks prior to moving, transfer or close bank accounts, clear out safety deposit boxes, and notify creditors of your move. Cancel newspaper delivery and change the address for magazine subscriptions. The day before moving, drain gas and oil from your lawnmower and other power motors. The last thing to do before you leave is check every room, closet, and cabinet to verify that everything has been taken.

Working Online Leads

George McGowan (Sibcy Cline Realtors) — Thu, 19 Jun 2008 20:59:10 -0500

I recently read an article about handling on-line leads. The article was written by Michael Russer and was called "6 Best Practices for Online Leads". I didn't agree with everything that he wrote but I did find it full of good ideas so I decide to share. Below are the 6 Practices that he listed and a link to the article.

Best Practice #1: Respond in Kind

Best Practice #2: Don't Call Them

Best Practice #3: Always Include Your E-mail Signature

Best Practice #4: There's No Such Thing as Too Fast

Best Practice #5: Keep in Touch, Or Else

Best Practice #6: Treat Online Leads Like Human Beings

http://www.realtor.org/rmomag.NSF/pages/AskMrInternet200806?OpenDocument

Four Reasons that First Time Home Buyers should get off the Fence!

George McGowan (Sibcy Cline Realtors) — Tue, 17 Jun 2008 14:32:32 -0500

In many ways today's Real Estate market conditions are favorable for 1^st time home buyers. Below I have listed a few reasons 1^st time home buyers should consider making the jump to home ownership:

(1) More Choices- According to the National Association of Realtors current inventory levels of homes for sale are at 10 months in most markets, the normal inventory levels are 4 to 5 months. This means more of a selection for home buyers. Many sellers are getting frustrated with longer market times and should be much more willing to negotiate. Plus with higher inventories, it means more competition for the seller.

(2)Financing at historic low rates- Although we have noticed interest rates starting to inch up, they are still at historically low levels. Interest rates obviously control our purchase power. The lower the rate is the more that a potential buyer can afford.

(3) They don't have to sell an existing home- Again this means more negotiating power for the first time home buyers. Sellers have run up against interested buyers that need to sell a home to purchase the sellers property. Sellers are going to be much more willing to negotiate with an individual that is ready to purchase and does not need a contingency on the sale of there existing home.

(4)Vacancy rates down- According to NAR most recent Commercial Real Estate Outlook report, vacancy rates are down from last year and average rent is to rise 5.3% in 2008. This is after an average Rent increase of 3.1 % in 2007.

Father's Day

George McGowan (Sibcy Cline Realtors) — Wed, 11 Jun 2008 21:26:37 -0500

A woman by the name of Sonora Smart Dodd thought of the idea for Father's Day while listening to a Mother's Day sermon in 1909.

Having been raised by her father after her mother died, Sonora wanted her father to know how special he was to her. Sonora's father was born in June, so she chose to hold the first Father's Day celebration in Spokane, Washington on the 19th of June, 1910.

In 1926, a National Father's Day Committee was formed in New York City. Father's Day was recognized by a Joint Resolution of Congress in 1956. In 1972, President Richard Nixon established a permanent national observance of Father's Day to be held on the third Sunday of June..

Don't forget about your Dad this Fathers Day!

Take Care of Your Skin

George McGowan (Sibcy Cline Realtors) — Mon, 09 Jun 2008 22:56:53 -0500

According to the American Cancer Society, the number of cases of melanoma-the most dangerous form of skin cancer-tripled in the United States between 1980 and 2003. Skin functions as one of the human body's first lines of defense against bacterial, viral, and fungal infections that can cause disease. The primary cause of skin cancer is excessive exposure to the sun's ultraviolet radiation. Skin cancer is cumulative and research indicates that it can take 20, 30, or 40 years to develop. Skin cancer is a known threat to our health, but it is a threat we can protect against.

Dermatologists recommend avoiding direct exposure to the sun during the hours between 10 a.m. and 4 p.m. whenever possible because that is when ultraviolet radiation is most intense. If outdoor activity is necessary during those times, apply a protective sunscreen cream or lotion on a daily basis. Try to use a sunscreen that has a sun protection factor (SPF) of at least 15, even on cloudy days because ultra-violet radiation penetrates through clouds.

Dry, itchy skin is another very common problem that can be avoided. According to the Mayo Clinic, the most common causes of dry, itchy skin are harsh soaps and detergents, antibacterial soaps, deodorants, frequent hot baths or showers, and central heating and air conditioning. One good idea is to use a mild moisturizing body cleanser instead of soap in the bath or shower. It is also very beneficial to apply an herbal moisturizing lotion after bathing or showering.

Protect your Deck

George McGowan (Sibcy Cline Realtors) — Wed, 28 May 2008 20:56:13 -0500

Many homeowners like to have a deck in their backyard to provide an easily clearable, beautiful space for entertaining friends and to serve as a flat, stable surface for chairs so that people can sit comfortably. There are many different types of decking materials, including brick, tile, concrete, flagstone, and wood. Wood decks are very popular because they are relatively inexpensive to install and many people like the appearance of natural wood. But because wood is an organic material and wood decks are exposed to the weather, they require more protection than other types of decks.

Water may be necessary for life, but rainwater can be detrimental to unprotected wood decks. Prolonged exposure to moisture can cause wood to decay and rot. Airborne molds, mildew, and fungi tend to grow on wet wood and accelerate deterioration. Wet wood also tends to either shrink or swell, allowing cracks to form. Because of these kinds of problems, many different products have been developed to protect wood decks.

Water repellents are a general class of products containing a component that enables surfaces to repel water. Water repellent preservatives also include various chemicals such as fungicides that inhibit the growth of molds, mildew, and fungi. The percentage of the water repellent component varies from approximately 1% to 3% in different products.

All water repellents need to be reapplied periodically in order to maintain their effectiveness. As a general principle, products that contain higher percentages of a water repellent component tend to provide better protection.

History of Memorial Day!

George McGowan (Sibcy Cline Realtors) — Wed, 21 May 2008 22:08:42 -0500

Memorial Day was officially proclaimed on 5 May 1868 by General John Logan, national commander of the Grand Army of the Republic and was first observed on 30 May 1868, when flowers were placed on the graves of Union and Confederate soldiers at Arlington National Cemetery. The first state to officially recognize the holiday was New York in 1873. By 1890 it was recognized by all of the northern states. After World War I the holiday changed from honoring just those who died fighting in the Civil War to honoring Americans who died fighting in any war.

Many Americans nowadays have forgotten the meaning and traditions of Memorial Day. At many cemeteries, the graves of the fallen are increasingly ignored, neglected. Most people no longer remember the proper flag etiquette for the day.

While spending time with our friends and family this weekend, let's remember the real purpose of the holiday! Make sure to remember that the holiday is for the men and women that have given there lives for this country.

8 Tips for Buying a Home!

George McGowan (Sibcy Cline Realtors) — Mon, 19 May 2008 21:20:00 -0500

•(1) Homes are long term investments. When looking to purchase a home plan on living in the home a few years before moving to you next home.

•(2) Check your credit. Shore up your credit by getting a copy of your credit report and clean up any discrepancies.

•(3) Meet with a loan officer. They can help you clean up those discrepancies on your credit as well as get you pre-approved. Pre-approval can help you save time and grief of looking at a house you can't afford.

•(4) Explore different loan options and determine how large you mortgage can be. Don't be house poor. Make sure you don't over extend yourself.

•(5) Decide what kind of house you want to purchase and where you want to live.

•(6) Study the area and familiar yourself with home prices in the area.

•(7) Make sure to consider items like property taxes, insurance and association fees.

•(8) Get help. Hire a Realtor to help you with these items.

How Mother's Day started?

George McGowan (Sibcy Cline Realtors) — Thu, 08 May 2008 22:02:35 -0500

The history of Mother's Day is centuries old, the ancient Greeks held festivities to honor Rhea, "the mother of the gods". The early Christians celebrated the Mother's day on the fourth Sunday of Lent to honor Mary, the mother of Christ. In 1872 Julia Ward Howe organized a day for mothers dedicated to peace.

In 1907, a Philadelphia schoolteacher named Anna M. Jarvis, began a movement to set up a national Mother's Day in honor of her mother, Ann Maria Reeves Jarvis. The first Mother's Day observance was a church service honoring Anna's mother. Anna handed out her mother's favorite flowers, the white incarnations, on the occasion as they represent sweetness, purity, and patience. In 1914, President Woodrow Wilson proclaimed the second Sunday in May as a national holiday in honor of mothers.

Slowly and gradually the Mother's day became very popular. Mother's Day has flourished in the United States. The second Sunday of May has become one of the most popular days of the year.

Spring brings warmer weather and hard work!

George McGowan (Sibcy Cline Realtors) — Mon, 05 May 2008 21:19:21 -0500

Spring is here...and so are all the really fun spring yard projects. Raking leaves doesn't have to be a hard and boring chore. It can be an opportunity to have family fun by raking the leaves into big piles and watching the children jump joyfully into them before bundling up the leaves for disposal. It can also be a chance to add some photographs to the family collection. Consider these scenarios:

Now what about all those flowers we talked about planting while we were sitting comfortably in our warm living room during the winter? Let's get out and plant them and let's all vote on where they should go. Majority rules. Kids can outvote parents if there are more of them. And isn't it about time that Harold Jr. learned to operate the power lawn mower? He's only 14 but he's strong and he will have fun relieving Dad of the necessity to mow the lawn all the time. Let Dad relax with Mom, share some ice-cold lemonade, and watch Harold Jr. mow the lawn.

Crazy idea - what about inventing new projects? Maybe we need a bird feeder. Shopping for an attractive, colorful bird feeder can be fun. Figuring out where it should go, installing it, stocking it with birdseed, and then watching the birds come to eat will be even more fun. We can turn our yard projects into family fun projects if we use our imaginations and work together as a team.

Plan ahead for your 2008 Taxes

George McGowan (Sibcy Cline Realtors) — Wed, 30 Apr 2008 22:41:15 -0500

If you are like me, then you think about your personal taxes starting in February and through April 15. Then once the taxes are filed, I don't think about until the next February. Unfortunately, that is too late to manage your taxes properly. In the April addition of the Realtor Magazine, they list 10 tax changes for 2008. I have listed them below.

10 Tax Changes for 2008

Plan now and you'll be in a better position to know what you'll owe Uncle Sam this time next year.

1. More money for gas. The standard mileage deduction for business increases to 50.5 cents per mile. Note that mileage rates for medical or moving purposes fall to 19 cents per mile.

2. More money for retirement. You can contribute $5,000 to your IRA ($6,000 if you're over 50) in 2008.

3. No breaks for sales taxes. The provision permitting taxpayers to deduct state sales taxes - a big plus in states with no income tax - expired at the end of 2007.

4. More tax breaks for retirement savings. Married taxpayers with joint income of up to $85,000 will be able to deduct IRA contributions if they file jointly; individuals with income of up to $53,000 can take the deduction.

5. Higher standard deduction. If you're one of the two thirds of taxpayers who don't itemize, you'll be able to deduct $10,900 as a married couple filing jointly ($5,450 for singles) in 2008.

6. No tax on some capital gains. Joint filers whose taxable income doesn't exceed $65,100 and single filers with income that doesn't exceed $32,550 don't have to pay any tax on capital gains they realize in 2008; the rate for other taxpayers remains at 15 percent.

7. More time to sell a house when you lose a spouse. Taxpayers who lose a spouse now have up to two years after that death to take the maximum exclusion of $500,000 in gain on the sale of a principal residence. The other requirements for the exclusion must have been met before the death.

8. Less money back for some hybrid cars. While buying a hybrid car can still save you taxes, the tax credit has been phased out on many popular models such as the Toyota Prius. Check out the 2008 Model Year Hybrid List at http://www.irs.gov/before you buy.

9. Tougher taxes for kids. Children 18 and under or fulltime students up to 24 years old will pay taxes at their parents' tax rate for investment income over $1,700. Note that this rate doesn't apply to wages a child earns.

10. Higher cutoffs for Social Security. The maximum amount of earnings subject to Social Security tax increases to $102,000 in 2008.

When should I work out?

George McGowan (Sibcy Cline Realtors) — Mon, 28 Apr 2008 21:24:22 -0500

There is more than one theory about the best time of day to exercise. The first school of thought is "Mornings are best." This is obvious to proponents of this theory because exercising before eating breakfast causes the body to burn calories that have been stored as body fat. Fewer distractions and schedule interruptions occur during the early morning hours, temperatures are cooler, and morning exercise causes people to begin their day with a feeling of increased energy, improved mental acuity, and a metabolism that has been kicked into high gear in preparation for the day's challenges.

A second school of thought says, "Examine the facts." Research studies have shown that when body temperature is low, workouts are less productive and when body temperature is high, workouts are more productive. Because body temperature is at its lowest about 1 to 3 hours before waking up in the morning and body temperature reaches its peak during the late afternoon, research indicates that exercising later in the day produces better performance and more power.

A third school of thought says, "Just do it." Proponents of this theory are alarmed about a recent report from the Centers for Disease Control and Prevention showing that 60% of Americans don't exercise enough and over 25% are physically inactive. According to an official spokesperson for the American Council on Exercise, the most important factor in an exercise regimen is consistency, so whatever time works best for your schedule is the best time for you to exercise.

Aspirin: can it save your life?

George McGowan (Sibcy Cline Realtors) — Wed, 23 Apr 2008 22:00:31 -0500

There has been a lot of news in the media about the health benefits of aspirin, including reports suggesting that aspirin can be effective in preventing heart attacks, colon cancer, and other types of cancer. A study performed at Johns Hopkins Hospital presented evidence that a daily low dose of aspirin can lower blood clot formation in both men and women. The American Heart Association recommends seeking immediate medical care in the event of a heart attack and chewing 325 milligrams of aspirin as soon as the symptoms of a heart attack are evident. The American Heart Association also advises people who have had a previous heart attack or who have atherosclerosis to take 50-100 milligrams of aspirin per day.

Medical researchers believe aspirin prevents blood platelets from sticking together and forming the kind of blood clots that cause most heart attacks and strokes. The U.S. Food and Drug Administration supports the idea that aspirin can help prevent a heart attack or clot-related stroke by lowering the clotting action of the blood's platelets. But the FDA also warns people about aspirin's side effects. Aspirin has been shown to cause such problems as stomach bleeding, hemorrhages in the brain, and kidney failure. Adverse reactions can occur between aspirin and certain prescription drugs, and also between aspirin and some vitamins and herbs. So the FDA advises you to consult with your doctor before deciding whether daily aspirin use is an appropriate course of preventive medical action for you.

What Buyers Desire?

George McGowan (Sibcy Cline Realtors) — Mon, 21 Apr 2008 22:28:11 -0500

I found this interesting. NAR publish this top ten list on there website. It shows the top ten home features that buyer's desire. I have listed them below. In my experience items like Central Air, Cable/Satellite TV and High Speed Internet are expected. Items that I am running into are No HOA fee, lot size, and open floor plan.

1. Central Air Conditioning
2. Garage (2 or more spaces)
3. Walk-in closet in master bedroom
4. Backyard/play area
5. Cable/Satellite TV-ready
6. High-speed Internet Access
7. Separate shower enclosure in master/main bath
8. Patio
9. Fencing
10.Home less than 10 years old

Master Bedroom

George McGowan (Sibcy Cline Realtors) — Tue, 15 Apr 2008 15:16:41 -0500

The modern bedroom is more than merely a place to sleep. The bedroom has become a place to exercise, to meditate, to read, to study, and to simply find peace and solace away from the hectic world.

Families who love television have also discovered that having a TV in the bedroom, in addition to others in the home, avoids arguments over who can watch what, and when.

Repainting a room with a new color scheme is the most inexpensive way to change the way a room feels. Interior designers recommend you use soft blues and greens, or earth tones like light brown and taupe, to create a calm and inviting effect. To achieve a brighter and lighter feeling, try a mellow shade of yellow. Combinations of green, brown, beige, and tan interspersed with floral prints or photographs of flowers lend a warm, tropical feeling. Color specialists say that blue makes a room feel more formal, violet makes a small room seem larger, and dark colors should be avoided because they tend to make a bedroom feel oppressive.

One of the most popular trends in bedroom decorating involves dressing up the bed. Try using quilts, top-of-the-line sheets, wool and silk throws, and different types of accent pillows to create a uniquely comfortable appearance for your bed.

You can also use more than one lighting scheme to achieve different moods at different times. Subdued lighting creates a quiet, peaceful effect, and an inexpensive indoor trickling water fountain provides a bedroom with the calming sound of peaceful water quietly flowing.

Saving for a Rainy Day

George McGowan (Sibcy Cline Realtors) — Thu, 10 Apr 2008 11:44:29 -0500

Most financial advisors agree that people should have a special fund set aside to deal with unexpected emergencies, with the amount of the fund equal to at least 3 months' worth (preferably 6 months' worth) of basic living expenses. Basic living expenses consist of rent or mortgage, bills such as credit card and car payments, and food costs. The purpose of the fund is to be able to pay for unplanned expenses like repairing roof leaks, replacing plumbing pipes or electrical wiring, dealing with a car breakdown, or paying for medical bills that are not covered by medical insurance in the event you lose your job or become disabled. Without an emergency fund, you might be forced to incur more credit card debt or sell an investment at a loss in order to deal with an unexpected crisis.

My Financial planner recommends creating an emergency fund by depositing some money every month (i.e., $25, $50, $100) into a checking or savings account. Checking accounts and saving accounts are FDIC-insured, so they are both safe and easily accessible. The idea is to think about this fund as if it were just another monthly bill that needs to be paid. Your success in building up your emergency fund depends on your ability to stick with your plan and resist the temptation to tap into it to buy something you want that happens to be on sale or for anything other than a real emergency.

Getting Ready for Spring!

George McGowan (Sibcy Cline Realtors) — Tue, 08 Apr 2008 21:49:07 -0500

Curbside appeal is very often the determining factor that persuades potential buyers to venture into a home that is for sale. Once inside, the best way to help ensure these lookers stay is to offer an interior that is just as inviting as the outside.

Sprucing up your yard before you sell doesn't necessarily have to be costly in terms of time or money. As an example, sellers can help increase the curb appeal of their property by pruning the shrubs, especially those around the windows and doors to provide more light inside and safer accessibility through entrances.

Other tricks that can help make a home more inviting to potential buyers include keeping your lawn watered in warmer months to maintain a healthy green color, planting flowers along a walkway or around a lamp or sign post, or placing attractive flowerpots on the porch. Finally, items such as grills, children's toys, bicycles, tools and machinery should be stored away neatly, as well.

It’s Tax Time of Year

George McGowan (Sibcy Cline Realtors) — Mon, 24 Mar 2008 22:03:26 -0500

The Mortgage Forgiveness Debt Relief Act of 2007 allows homeowners to exclude a portion of their qualified principal residence indebtedness. The IRS defines a principal residence as the home where a person lives most of the time. The phrase "qualified principal residence indebtedness" refers to a mortgage used to buy, build, or substantially improve a principal residence.

Some other changes in the tax regulations that may benefit you include the following:

✔ You may now be able to deduct up to $5,000 for an IRA contribution, and up to $6,000 if you will be 50 years old or older by the end of 2008. You may also be able to deduct an additional $3,000 if you participated in a 401(k) plan and your employer was in bankruptcy during a previous year.

✔ Rates for business mileage deductions have increased from 48.5 cents per mile to 50.5 cents per mile.

✔ You may deduct 19 cents per mile for mileage related to medical or moving purposes.

✔ You may deduct 14 cents per mile for driving on behalf of a charitable organization.

Some of the tax provisions that were scheduled to expire at the end of 2007 include:

✔ The deduction for qualified tuition and fees

✔ The credit for non-business energy property

✔ The exclusion from income of qualified charitable distributions

✔ The itemized deduction for state and local general sales taxes

IRS regulations concerning allowable tax deductions can be very complicated and difficult to understand. It is better to consult with a reputable tax professional than to assume anything incorrectly and make a mistake on your tax return. A licensed Certified Public Accountant (CPA) can be a reliable source of tax information and assistance. You can also obtain help from the IRS by calling 1-800-829-1040.

Who is the Easter Bunny in Real Estate?

George McGowan (Sibcy Cline Realtors) — Tue, 18 Mar 2008 12:50:36 -0500

The Easter Bunny originally started in German. It was 1^st mentioned in German writings in the 1500's. The Hare and Rabbit were the most fertile animals known at the time and they served as a symbol of new life during the Spring Season. The first edible bunnies were made in the Germany during the early 1800's.

The Easter Bunny was introduced to American culture by German Settlers who arrived in the Pennsylvania Dutch country during the 1700's. The children believed that the Easter Bunny would lay a nest of colored eggs if they were good. The children would build their nest in a secluded place in the home, the barn, or garden.

Since it was considered a sign of life during the Spring Season, I thought it would be fun to try to figure out who is the Easter Bunny for the Real Estate Market. What is a symbol of life for the Real Estate Market?

Is it the FHA Reforms that are taken place in the mortgage Arena?

Is it the tax Rebates that many American's will be receiving?

Or is it simply the warming of the weather?

We constantly hear through the Media and other forums of all the problems and Reason's why the Real Estate Market is down right now. I thought it would be fun to look for some positive things that are taken place right now.

Let me know your thoughts!