John Robinson's Hilton Head Island News

Mortgages in a Nutshell

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sat, 04 Apr 2009 20:30:50 -0500

In these challenging times it is easy to think that it is impossible to get a mortgage if you spend too much time watching the news. The truth of the matter is that there is still plenty of mortgage money still available, but the qualifying guidelines have changed somewhat. If you are considering purchasing property, but are wondering if you can meet the qualifying guidelines there are a few simple steps you can take to give yourself some confidence.

The first step for someone considering purchasing a new home and taking on a new mortgage is to consider the additional expenses they will be incurring. They need to determine the new Real Estate Taxes, Homeowners insurance, POA fees, and the mortgage payment. Once they have a reasonable estimate of this number they can evaluate for themselves if it is something they can handle. The best way to come up with this estimate is to work with a professional Realtor, like John Robinson, and a mortgage professional. John will help you figure out the taxes, insurance, and homeowners association fees, and your mortgage professional can help put together the mortgage numbers.

Once you have determined your proposed monthly expenses you can begin to pull together your financial documents to support your loan application. When you begin working with your lender they will review your information and be able to give you an idea if you are credit qualified. This means your credit score is acceptable and your income and asset document support enough income for you to mange the mortgage payments for the foreseeable future. If at this time you do not qualify, your mortgage lender will be able to help you identify the issues and help you make a plan to correct them.

In a nutshell, the most important thing for a prospective buyer is to know approximately how much their purchase will cost them. These costs need to be considered from multiple perspectives; funds at closing and monthly ongoing expenses. If the buyer is personally comfortable with these costs, they are most likely in a good position to qualify for a mortgage.

“Who is buying Real Estate Now”?

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Wed, 11 Feb 2009 10:20:55 -0600

I had a client ask me this today and I thought I would share the answer with you.

On Hilton Head Island, South Carolina there are approximately 339 pended listings as of this writing. Of the pended listings, 242 are homes with an average price of $710,198, 56 are villas with an average price of $368,549, and 41 are lots with an average price of $404,129.

Because of this statistic, we can expect in the next 30-45 days there will be 339 more homes SOLD!

Today's buyer is savvy, smart and confident. They know the rule to ‘buy low and sell high'. Some people on the other hand know the cost of everything and the value of nothing.

These new buyers are educated on both cost and VALUE. They know that Hilton Head Island historically has some of the lowest priced oceanfront real estate on the east coast. They know that the town has protected over 1100 acres from development and they know that it cost the town $144,000,000. This new buyer knows when to take advantage of a great deal while selection is still inviting.

These buyers might be your neighbors, co-worker, clients, or family. This new buyer could be a couple preparing to retire, a young couple or family seeking to build wealth for their future and their family's future, while creating memories that will last a lifetime.

They are the people at the party that talk about what they have done in their lives, their experiences and travels. These new buyers would rather listen to a story about Spanish Moss and moon beams before a story about a stock certificate hidden away in a safe deposit box.

I guess a better question is, "Are you one of these people"?

There has never been a better time to be a buyer.

I look forward to hearing from you soon!

WHY IS HILTON HEAD ISLAND, SOUTH CAROLINA SO SPECIAL?

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Mon, 09 Feb 2009 13:02:16 -0600

Here are a few reasons why 39,000 residents call Hilton Head home and countless others have made it their primary destination to vacation and relax.

Did you know:

1) Hilton head was one of the first "eco-planned" communities in the country. Charles Fraser, the visionary developer of Sea Pines Resort, set the stage with his very aggressive approach to preserving nature for the entire Island.

2) 70% of our population is under the age of 60 years of age. The largest segment of our population (18.2%) is under 18 years of age and the median age on the Island is 35.4 years. Hilton Head is much more than a retirement community.

3) We have one of the best climates on the east coast. We have a semi-tropical climate with an average daytime temperature of 75 degrees and an average evening temperature of only 55 degrees. Our winters last only a few weeks.

4) Nearly 100,000,000 potential visitors live within only a 15 hour drive to Hilton Head and more than 1,000,000 enplanements and deplanements happen at the Savannah Hilton Head International airport.

5) You can get to everything you need including schools, hardware stores, restaurants, hospitals, theaters, dry cleaners and more in 15 minutes or less from anywhere on the Island.

Do you know why people come to Hilton Head Island:

1) 23 golf courses that are meticulously maintained including the famed Harbour Town Golf Links, home of the PGA's Heritage Golf Tournament.

2) We have hundreds of tennis courts. Four of our tennis resorts are listed annually in Tennis Magazine's Top-50 Resorts.

3) We have 12 miles of white sandy beaches.

4) Or maybe it is one of our many marinas on the Island.

5) Our Island has been preserved with the town purchasing and protecting nearly 1,168 acres at a cost of $144,000,000 or eliminating 4,000,000 square feet of commercial development and 1,365 hotel rooms and 4,210 residential and timeshare units.

6) We have 7 beach parks, 6 recreational parks, and 8 community parks. How many places do you know that have 21 parks for 39,000 residents?

7) Maybe it is because of the 100 miles of bike paths that encircle the island.

I guess the answer to "WHY" will be different for all of us but the place will certainly be the same HILTON HEAD.

Here is to Spanish Moss and moon beams!

Hope to see you soon!

Tradition National Golf Club Hosts Complimentary Golf Clinic

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Thu, 15 Jan 2009 12:55:16 -0600

Having trouble with your golf game or need a tune-up, but don't have the scratch to pay for a lesson?

Tradition National Golf Club at Tradition Hilton Head is hosting a complimentary golf clinic for all skill levels and age groups at noon Saturday, January 24.

The clinic will be led by David Wilding, Director of Golf at Tradition National Golf Club and a PGA Professional, and his staff. The session will cover all aspects of the game at Tradition National's new, state-of-the-art practice facility.

Special rates and winter promotions for rounds of golf will also be offered.

Tommy Fazio designed the new championship course, which has already hosted several tournaments, including the first-ever Under Armour College Golf Combine in July.

Space is limited, and golfers are urged to call Tradition National Golf Club at 208-5353 for more information and registration.

Hilton Head Island - Questions & Answers

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sun, 11 Jan 2009 17:05:14 -0600

Recently, I've had the opportunity to answer a few questions for an article highlighting Hilton Head Island in an upcoming issue of Cincy Magazine which is an upscale Cincinnati business periodical.

I'd like to share the following questions and my answers with you.

1. Cincinnatians have many choices when it comes to buying vacation homes. In terms of location, what makes Hilton Head desirable? Obvious reasons include pristine beaches, manicured golf courses, immaculate tennis facilities, full-service marinas, fabulous shopping and a vast array of world-class restaurants. In addition, the Island offers a variety of communities including private & gated neighborhoods, townhome complexes close to the beach, villas, and golf course communities. I've driven to Cincinnati a few times and love your city! The drive to Hilton Head seems very straight forward and easy and I know a flight to Hilton Head or Savannah is very quick.

2. Why is now an ideal time to buy a vacation home in Hilton Head? As a buyer, there may never be a better time to buy a beautiful home or villa on Hilton Head Island. Inventory is abundant, prices have declined significantly, interest rates are at record lows, gas prices are not an issue, and sellers understand the need for qualified buyers in today's market. As a buyer, you have many choices and options that may not have been available 4 or 5 years ago.

3. What current market prices and interest rates can qualified buyers expect? It is always difficult to predict what market conditions will be like in the coming months, but we have been enjoying historically low mortgage interest rates over the last few months and they have dipped even further as 2009 has begun. These low rates have helped contribute to the outstanding affordability we are currently seeing. I have actually seen rates in the mid 4% range!

4. How do these market prices and interest rates compare to years past? These are the lowest rates I have seen in my career. So if you are looking at affordability from the perspective of monthly payments, we are looking at unprecedented levels. There are opportunities out there that buyers have not seen in years. It is somewhat like turning back the clock.

5. Given the current economic crisis, many Cincinnatians might be reluctant to spend money on a vacation home. What would you say to someone who is considering buying a vacation home but is worried about what the future might hold? If you're considering purchasing a vacation home or villa on Hilton Head Island, then I say 'congratulations!' There is no place in the world more charming and inviting than this beautiful Island. Consider your investment as a long-term proposition and you will be more comfortable as American real estate has always been a smart investment, especially in areas which are highly sought after and desireable. In fact, do as I do and consider your vacation home on Hilton Head Island as an 'investment with a sunset!'

Why Do I Love Hilton Head Island?

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Tue, 09 Dec 2008 22:43:10 -0600

Well...here goes...

I moved to Hilton Head almost 19 years ago when I was hired as a tennis pro at the Sea Pines Racquet Club right after college. As a tennis pro, Hilton Head Island was (and is) the premiere location in the United States as there are over 300 tennis courts with 4 tennis resorts included in Tennis Magazine's Top-50 Resorts list each year.

The ambiance of the Island coupled with the fact that so many happy people reside and vacation here make life on the Island very appealing. Aside from the miles of incredible beaches, the purest green fairways you can imagine, and the thousands of tennis balls smacked back and forth, one of my greatest and most comforting pleasures of being a resident is when I see a friend, customer, past tennis student, or acquaintance at the grocery store or post office. To live in a "big city" means rarely seeing folks that you know out and about, but on Hilton Head Island, it often feels like the small town of Mayberry with an international magnetism.

After 14 years as a tennis pro, I decided to take the next step in my life to pursue a career in residential real estate on Hilton Head Island, Daufuskie Island, Bluffton, Hardeeville, and Ridgeland, South Carolina.
Hilton Head Island is truly the gem of South Carolina while Daufuskie Island is our version of Gilligan's Island with its unpaved roads, lush tropical climate and surroundings, and a unique exclusivity due to the fact that you can only get to Daufuskie Island by boat. You would be amazed at the oceanfront opportunities you'll find on Daufuskie Island!

Bluffton is a fast-growing small town which offers a tremendous variety of community styles, homesites, townhomes, villas, and new communities such as Tradition, Mill Creek, Hilton Head Lakes, and Abbey Glen just to name a few. Bluffton is also the proud host of several very exclusive gated country club communities such as Colleton River Plantation, Belfair Plantation, Berkeley Hall Plantation, Hampton Hall Plantation, Hampton Lake, and Hampton Pointe.

Hardeeville and Ridgeland are two sleepy small towns with healthy growth planned over the next several years and offer opportunities for large parcels of land at minimal pricing. This is appealing to many buyers as these two towns are within 25 miles of the coastline!

Over the past several years as a REALTOR, I have researched and learned a tremendous amount of vital information pertaining to Hilton Head Island and the Lowcountry including coastal insurance, property taxes, rental issues, construction materials, quality builders, and of course the ebb and flow of our local real estate market.

As a young tennis pro, many of my tennis students asked me "Where do you go on vacation"? My response has always been the same: my vacation is on-going and is part of every day on Hilton Head Island. If you have a tennis racquet and a can of balls, a set of golf clubs, a pair of walking or running shoes, a beach chair and sunscreen, a pair of sunglasses, a love for boating & fine dining, and an interest in experiencing the great outdoors, then Hilton Head will offer you a lifetime of vacation memories every day you wake up.

Because of my infatuation for all things Hilton Head, I feel very lucky to be a realtor on Hilton Head Island where my job requires me to assist future residents and/or investors in choosing their dream home.

I'd love to hear other stories of Hilton Head Island and what the Island means to you!

Hilton Head Island, SC REALTOR

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Thu, 27 Nov 2008 08:53:28 -0600

Hello Cincinnati! I just joined the group and wanted to say hi. I'm a realtor on Hilton Head Island, SC. I'll have an ad this winter in your Cincy Magazine hoping for interested beach-going Cincinnati customers. I appreciate your help!

Floyd Wickman SMART Program -- I Graduated!

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Wed, 26 Nov 2008 21:40:30 -0600

I had the pleasure and opportunity to attend the Floyd Wickman Program this fall on Hilton Head Island.

My broker at Dunes Marketing Group organized for a Floyd Wickman trainer (Robyn) to give our group of 100+ agents a presentation highlighting the Floyd Wickman Program. After the presentation, several agents and I registered for the course.

WHAT DOES THE FLOYD WICKMAN TEAM DO?

They help brokers and their agents increase sales by causing them to:

Master the art of Listing and selling real estate.
Build and maintain a Salable Book of Business.
Become and stay organized.
Value the benefits of Teamwork and Mentoring.
Live by 5 client- and company-friendly Core Values.

S.M.A.R.T. PROGRAM: 7 weekly sessions teaches agents how to prospect their sphere of influence and FSBO's; generate referrals; control the complete listing appointment; price the listing so it is salable in the toughest of markets; service the listing; convert incoming and Internet inquiries into office appointments; sell more properties; create a business plan and focus for achieving that plan; work as part of a mentor group.

Includes:

1. 8 CD's

2. 1 DVD

3. Course Manual

4. Online resources

CORE VALUES CLUB: 1 year follow-up to the S.M.A.R.T. program (no additional charge) designed to help the agent fine tune all of the listing and selling skills taught during the 7 weekly sessions; and, to master the personal success characteristics necessary to achieve long range success.

Includes:

1. 12 monthly audio messages

2. Online resources

THE MASTER SALES EVENT: A 3 day event during January, limited to Floyd Wickman graduates designed to recognize achievement and to create a business plan for the New Year. To help agents achieve at a higher level.

Includes:

1. National speakers

2. Added value workshops

3. Referral sharing

4. Higher level skills

Housing Affordability Is Up!

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Thu, 20 Nov 2008 12:07:27 -0600

The Home Builders Association of South Carolina published a very interesting article in their latest newsletter.

With housing prices down, and rates still historically low, housing affordability is the best in 4 years.

Click HERE to read the full article.

The Difference Between Pre-Qualification and Pre-Approval

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Wed, 19 Nov 2008 14:25:58 -0600

Ben Russ, Vice President of Hilton Head Mortgage sent me the following pertinent information regarding financing for a home on Hilton Head Island.

Pre-qualification is the first step in obtaining mortgage financing.

A potential borrower answers a few questions to provide the loan consultant with a quick snapshot of the borrower's income, existing debt, accumulated savings and whether or not there is a co-borrower. Signatures allow the loan consultant to run a credit report and begin to determine what loans are good candidates for this particular client. However, there are literally thousands of loan programs available.

It is important for the loan professional to know the long-term financial objectives of the prospective homeowner.

Pre-approval is a written documentation that proves the borrower has full support of a lender.

It means the form 1003 Uniform Residential Loan Application has been completed and reviewed by an underwriter. Based on the borrower's income, debt ratio and savings, the underwriter will provide a dollar amount this borrower is eligible for.

Now the borrower has the convenience of shopping for a home in the price range agreed upon by the lender.

Pre-approval allows potential homeowners to shop as cash buyers, and that means negotiating power. The seller will take an offer from a pre-approved shopper much more seriously and may even accept a lower bid because they know the financing is in place and the deal is secure.

For more information regarding the home-buying lending process on Hilton Head Island, South Carolina, or for real estate information, email me with your questions at HiltonHeadJR@aol.com.

Avoid Foreclosure with Deed-In-Lieu

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sat, 15 Nov 2008 14:06:38 -0600

A common way to protect your property from being taken away by the lender on account of non-payment of your mortgage is a deed-in-lieu of foreclosure.

Deed-in-lieu is a process in which the borrower failing to satisfy the loan obligation hands over his property to the lender. The lender may then sell the property in order to retrieve a part or whole of the amount borrowed from the sale proceeds.

What is the process all about?

When you go for a deed-in-lieu in order to avoid foreclosure, you need to sign legal documents such as the Agreement in Lieu of Foreclosure and a Warranty deed, quit claim deed or a grant deed.

The first document reveals the terms and conditions of the deed-in-lieu, and is signed by both the lender and borrower.

The second document, which is the deed, conveys legal ownership of the property to the lender.

The lender marks the borrower's note as "paid" and provides the latter with two forms - one which states that the debt is canceled and the other which refers to the waiver of the right to a deficiency judgment (the lender's right to ask for the unpaid debt amount if it is not recovered totally by the property-sale).

The agreement for deed-in-lieu is executed through an escrow company which receives the borrower's note (marked as "paid") from the lender. The escrow then records the deed used for transferring legal ownership of the mortgaged property and sends the note to the borrower. The borrower is thus released from the liability of the mortgage payments.

Does a borrower need to pay tax in the process?

Once a borrower gets a release from the loan, he may have to pay deed tax provided he doesn't qualify for the tax relief under the Mortgage Debt Forgiveness Tax Relief Act applicable till the end of 2009.

As per the Act, one need not pay tax on canceled debt (unpaid loan balance which is forgiven by lender) resulting from deed in lieu. The tax is calculated on the basis of unpaid balance.

Now, even if the lender may not collect deficiency, the borrower may pay cash towards the unpaid debt to avoid a negative impact on his credit report. This extra cash serves to reduce the amount of unpaid debt which is the basis of the deed tax.

It may happen that the lender pays the borrower a certain sum of money in return for the deed-in-lieu when there is some equity in the property. In such a case, the cash offered to the borrower is added to the unpaid debt in order to determine the basis of the deed tax.

More questions? Contact me at HiltonHeadJR@aol.com if you need more information regarding foreclosures, short sales, etc.

Quit Claim Deed vs. Warranty Deed - A Difference Indeed

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Tue, 11 Nov 2008 21:25:32 -0600

A quit claim deed is the legal way that one person (the grantor) transfers real property, such as a house or land, to another person (the grantee). As an example, a divorcing husband may quit claim his interest in certain real estate to his ex-wife.

While the concept is simple and straightforward - relinquishing all ownership claims to a particular property - it's also important to note what a quit claim can't do.

In renouncing claim, the grantor makes no guarantee or promise that the property is free of debt. Another important distinction is that the grantor makes no promise that no one else claims to own the property. Tracing its origin to Anglo-Norma times (circa 1,000 CE), the quit claim deed says, in effect, that the grantor is signing over whatever ownership he or she may have in the property. It does not even guarantee that the grantor has any ownership interest at all. By accepting such a deed, the grantee assumes all the risks.

Furthermore, many title companies are reluctant to insure title when a quit claim deed was used previously to transfer title, and therefore, recommend use of a warranty deed instead. A warranty deed conveys full title to the property and warrants that title against defects such as tax liens, legal judgments and unpaid debts.

To figure out the differences between a simple quit claim and a warranty deed, I recommend you consult your real estate attorney for more information.

Good News for Home Insurance

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Tue, 11 Nov 2008 21:07:48 -0600

Due to the efforts of our Insurance Commissioner, Scott Richardson, we now have many new insurance companies willing to write business for real estate in our area. All of the companies are A-rated or better and admitted to the State. This means that the insurers are bound by South Carolina's Guarantee Act.

These new companies are competitive and give us options so that we are, in most cases, no longer bound to the expensive Lexington and Lloyds products.

As a generalization, I would say that insurance prices have dropped to about 1% of the purchase price of the home, sometimes less. This is a considerable drop from the previous year's when it was as much as 2%.

I hope this gives you a little insight into the insurance market. My thanks to Kristin Hayrinen at Kinghorn Insurance for her insights. Please email me hiltonheadjr@aol.com if you have further questions.

TRANSFER FEES - Realtor Perspective and Property Management View

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Wed, 28 May 2008 21:09:33 -0500

TRANSFER FEES: REALTOR PERSPECTIVE

It seems there are several new fees cropping up (just like taxes), that affect the value of your real estate. You may not notice them until you sell, but they could lessen the value of the house you live in. The following explains why.

We have always had deed recording fees, one type of transfer fee.

While most of these monies go to the state, some go to the county. Many people are familiar with the Town of Hilton Head Island's transfer fee, which remains on the island. It's hard to guess how much the former adds to the value of your property, but it's easy to drive around the area, see the open spaces the Town has purchased, and realize the value added to all properties by our local transfer fee.

A third type of fee has recently been imposed by more and more planned unit developments (PUDs), and some fees are very high ($15,000 or more). If you are considering buying property in a PUD, you should ask about these fees. They should be listed on the Residential Property Disclosure Statement, Item 21, supplied by every seller.

The fees are used to pay for capital improvements, enhancements, maintenance of common areas and amenities, funds (such as insurance), or whatever the Board of Directors and/or homeowners decide is needed. These fees are the same as an assessment, or a tax, but they are levied on buyers of properties, rather than on all owners. In other words, if lagoons in a PUD need to be cleaned out, present owners can avoid the additional fee by taxing new property owners.

The Realtors Association is concerned about the feasibility of such assessments on new owners of real estate in PUDs that have these types of "transfer fees." For one thing, it is impossible to properly plan for improvements when no one knows how much revenue will be coming in to pay for them.

For example, if a PUD needed to improve roadways, knew the cost would be $1 million, and planned to assess each new owner between 1/4 and 1/2 percent of the sale price, how many sales would it take to cover the cost? And what if you knew the number of sales for 2005 and planned based on that number? Sales in 2006 were down one-third from 2005, so you might have to delay the project or raise the percentage.

On the other hand, let's say you had 5,000 property owners. You could raise the $1 million by charging each of them $200, properly plan for the road repairs and have the money almost immediately. (The present owners are the ones who wore down the roads anyway, so they shouldn't complain, right?)

Realtors have expressed their concerns to the governing bodies of most of the PUDs in the area. They have encouraged PUDs to take a fairer approach (and one that doesn't make buyers cringe) by evenly distributing the fees, to improve all properties, among all homeowners. Those voting for transfer fees may not intend to sell their properties and can avoid the expense of assessment by attaching the fees to new owners.

The truth is, however, that, sooner or later, everyone sells. And even though the purchaser is supposed to pay transfer fees, these fees (like all fees) are actually negotiable. So the seller will either pay them, or the purchaser will reduce the offered price - either way, the result is less of a net amount to the seller. Can you see the possible loss of value of a home in a PUD?
All owners want to add value to their properties. If you think a transfer fee will do this, you should support it. If you think transfer fees should be split between all owners who will benefit, then you should let your decision makers know your thoughts before they establish new transfer fees, or increase the ones they currently have in place.

Written by Eleanor Lightsey O'Key, EVP, HH Area Assoc. of Realtors

PROPERTY MANAGEMENT PROFESSIONALS OFFER A DIFFERENT PERSPECTIVE

Hilton Head Island is known as a world-class resort community that draws investors from all over the globe who purchase property in the area's gated communities. But as these communities and their amenities age they must remain competitive, not only in the area, but also in the global real estate market. Otherwise, people will go somewhere else to retire, play golf and vacation.

To remain competitive and up-to-date, property managers are faced with the challenge of finding funding for continuous improvements. And rather than assess property owners with fees on a project-by-project basis, many planned urban developments on Hilton Head have implemented a Capital Transfer Fee to create a special fund for continuous improvements. In theory, buyers will pay this fee when they purchase property in the community as part of the real estate sale contract. In reality, everything in a property sale is negotiable. So sellers may end up paying, depending on contract terms.

Regardless of who pays the fee, property managers assert that this is a benefit. According to property managers, communities and their amenities must be kept up to date in order to maintain property values in these gated communities. One Hilton Head Island community recently implemented a Capital Transfer Fee of one-quarter percent of the sales price, while another south end community passed a Capital Transfer Fee of one half percent in their March 2006 meeting.

According to a few property managers, the enhancement fee is placed in a special account and must be plowed back into the community. This account is only tapped for special projects, such as bike paths, pools and clubhouse improvements. The money can't be used to pay salaries or to cover other expenses that the regular community fees are used for. And according to property managers, they haven't had any trouble passing these fees with the community boards of directors and property owners.

Property managers also argue that owners don't want special assessments and they don't want their fees to double. And several communities in the area have implemented these fees.

Historically, the only source of improvement funds was to constantly assess a membership when a new project was needed, said property managers. This approach means selling each project to the community property owners, gaining approval for the one-time fee and collecting the money.

But assessments can come at a bad time for property owners and they may be reluctant to approve them. Plus, many feel that one generation of property owners shouldn't have to pay for something that will remain in the community forever. Assessing current property owners means that one generation is paying for something future generations will use, said property managers.

Because communities need regular upgrades, new developments and many existing communities are addressing this on-going desire for improvements as someone buys into a community rather than assessing them after the fact.

With Capital Transfer Fees, a buyer knows the investment they are making up front and that there will be guaranteed funds to keep their property competitive, thus helping to insure property appreciation.

Although some feel that Capital Transfer Fees will have a negative impact on property values, property managers argue that current and future owners will be excited about being part of a community that is dedicated to continuous improvement. And if planned urban developments want to remain competitive, this is the most painless way to do it, according to property managers.

Property managers feel that the majority of developers are building in this type of fee in new properties, and existing communities are modifying their documents to include such a fee if one does not exist. And they argue that the mission of any property association is to maintain and improve property values and improvements are essential for those goals to be achieved.

Home Insurance Rates on Coast May Fall

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Tue, 15 May 2007 13:01:52 -0500

On May 9th, there was an article in The Island Packet that says "Rates on Coast May Fall". It was written by Seanna Adcox, and references legislation that received "key approval in the house" on May 8th.

The new Insurance Director, Scott Richardson, is formerly from Hilton Head Island. This article has not been posted yet online, but I will keep an eye out for the article link.

I will also be sure to keep you posted as more good news arrives regarding coastal home insurance issues...

SOUTH FOREST BEACH CURRENT MARKET CONDITIONS

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Mon, 14 May 2007 23:15:05 -0500

We here at Dunes Marketing Group continuously monitor local real estate statistics to keep our clients informed and ahead of the real estate trends. Below you will find up-to-date South Forest Beach villa real estate statistics as of today's date.

I have chosen villas in the South Forest Beach area which include Tanglewood Villas, Courtside Villas, Surf Court Villas, Shorewood Villas, and Ocean One Villas. All of these villas are located either oceanside or within walking distance of the beach.

Currently on the market: 43
Under contract: 3
Closed sales since January 1, 2007: 6

As you can see, it certainly is a great time to purchase a villa in South Forest Beach!

To find the value of your own home with a free, over-the-net home evaluation, please visit my website at http://www.hiltonheadexpert.com/

If you would like a list of homes for sale in the South Forest Beach area, more information about Hilton Head Island, or if you'd like to hear about hot new listings before other buyers do, then contact me at:

John Robinson, REALTOR^®
Dunes Marketing Group
(cell) 843-422-3767
www.HiltonHeadExpert.com
HiltonHeadJR@aol.com

1031 Tax Deferred Exchange Information

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sat, 12 May 2007 18:07:22 -0500

Interesting Stuff!

What is a 1031 Tax-Deferred Exchange? In a nutshell, it's a way for owners of investment real estate to sell their property and buy other like kind property without paying the Capital Gains tax. These transactions are known as deferred exchanges, or 1031 exchanges, and allow the investor to continue their investment in another property without losing investment equity to taxes.

CONSIDER THE FOLLOWING:

● You may have some non-income producing real estate investments, such as raw land, which are not giving you any cash flow. You could exchange this for property that is income producing, such as a duplex or a rental home. Not only could you start realizing a cash flow, but you can also get income tax deductions such as depreciation, which you did not have with your raw land.

● Often people find that they have been holding properties long after their appreciation has topped out. You can start rebuilding your equity by disposing of those properties and acquiring new ones.

● The area your rental properties are located in has become economically depressed or is deteriorating. Why not trade those properties for others in a better location or neighborhood?

● If you have rental properties with problem tenants or they are in need of expensive maintenance or repairs, sell the properties and acquire other rentals with fewer problems. This may also give you an increase in appreciation.

● Many people think about selling and reinvesting into more income or investment property. One would be foolish not to do a tax-deferred exchange! If you sell and reinvest, you will pay income taxes on the realized gain. However, if you call it an exchange, you will pay no taxes. This means that more money is available as leverage for acquiring your next properties. Look at it as a free loan from the government!

● With proper estate planning you can keep exchanging properties throughout your lifetime. Neither you nor your heirs will ever pay income taxes on the gains.

● By doing a tax-deferred exchange, you can conserve your equity by not having to pay taxes on your net profits.

Step One: Sale of the Relinquished PropertyBefore the sale of the first property the Exchanger must complete the proper 1031 Exchange documentation. At closing, the proceeds are delivered directly to a Qualified Intermediary.

Step Two: Identification of the Replacement PropertyThe Exchanger must identify the property to be purchased (generally called the "Replacement Property") within 45 days following the sale of the Relinquished Property. The taxpayer may generally identify three properties as a potential Replacement Property, or more under alternate rules of identification.

Step Three: Purchase of the Replacement PropertyThe Exchanger must obtain the Replacement Property within 180 days following the sale of the Relinquished Property, which must be identified property, subject to the rules listed above. At closing, the proceeds are paid directly by the Qualified Intermediary, and the Exchanger receives the Deed to the Replacement Property.

Replacement Properties must be identified within 45 days of the sale of the Relinquished Property and must be purchased within 180 days of the sale of the Relinquished Property.

If you are considering selling an investment property, I can help you explore your real estate investment options here on Hilton Head Island or anywhere in the country. Contact me today for more information.

Photos of Hilton Head Island Activities

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sat, 12 May 2007 18:03:41 -0500

Beautiful Hilton Head Island, South Carolina

Hilton Head Island Luxury Villa Community

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Sat, 12 May 2007 17:53:39 -0500

ANCHORAGE VILLAS

Hilton Head Island's Best Kept Secret ~ Shelter Cove Harbour ~

Interested in a unique Harbourside community on Hilton Head Island with primary, secondary, or investment opportunities? Anchorage is located at 3 Shelter Cove Lane, Hilton Head Island, South Carolina, within easy walking distance to the marina, shops and restaurants. Other nearby conveniences include a shopping mall (the only indoor mall on the island), grocery store and art center all of which can be accessed without entering the main highway. Owners also have access to all the amenities of Palmetto Dunes Resort. A free shuttle service, the Dunes Buggy, is available to any location within Shelter Cove and Palmetto Dunes from April 1 until after Labor Day including the beach, which can also be easily accessed by bike. During summer months, a fireworks display is held weekly and can be viewed from the property. A large community park is available as well as a newly established Veteran's Memorial.

The community consists of twelve two-story buildings with stucco exterior and eighty-eight owners. Each unit has two bedrooms, two full baths, including a whirlpool in the master bath, and a spacious living area. The dining area adjoins the kitchen and has a large garden window. Heating and cooling for each unit is individually controlled. A private deck overlooks the lagoons and magnificent landscape. Some units have a harbour view. There is a covered carport below each unit so that the first floor units are above ground. Each unit also has an outside storage room.

Anchorage has one of the lowest regime fees on the island and the property is debt free. There is a sizable reserve fund available for capital improvements and maintenance. Anchorage has never had a special assessment and does not anticipate one in the future.

Recent renovations include all new flat roofing and flashing replacement. New awnings have also been installed. All parking and paved areas have been sealed, and a current painting program for all buildings is in progress.

The pool and hot tub are second to none on the Island, with new renovations such as surface coating, new pumps and filtering system. The pool is one of the few on the island that is chilled for those hot humid summer days, and warmed during the cooler days to extend the spring and fall seasons. The pool also has a covered area with chairs, tables, refrigerator, serving counter, shower, and bathroom facilities.

Two lagoons on the property are fed from the harbour, with abundant marine life. Both have fountains lighted at night. One lagoon has a walking bridge and both are surrounded with immaculate landscape. Two grills are located on the lagoons for outdoor cooking.

New to Active Rain

John Robinson, Hilton Head Island, SC REALTOR (Dunes Marketing Group) — Wed, 18 Apr 2007 15:52:52 -0500

Hello Realtors:

I'm new to Active Rain...seems like a great site! Has anyone vacationed on Hilton Head Island, SC before?