HOME, CHEAP HOME

Those doubting that the U.S. real estate market is on the cusp of a sustainable recovery may want to consider this: Americans have not seen a more affordable housing market since 1965.

The household income required to qualify for purchasing an existing home reached $30,000 last month, the lowest level since the early 1990s, notes National Bank Financial analyst Stéfane Marion.

To put that into perspective, look at the wages the average American brings home. Mr. Marion divided the qualifying income by the average hourly earnings of employees on payrolls, which stood at $19.54 in December. His conclusion: an average household must work 1,600 hours a year to afford a home, far below the historical average of 2,700 hours.

One surprising aspect of this is that two incomes are no longer essential to afford a home. Assuming a 35-hour work week, one person works 1,850 hours a year, well above the 1,600-hours minimum needed to enter the home market.

“For the first time since the mid 1960s, even households composed of a single full-time wage earner can thus afford homeownership – provided a financial institution is willing to lend them,” Mr. Marion said.

Source: www.theglobeandmail.com

The tradition of eating 12 grapes at the New Year midnight is popular in many countries. However, this tradition is cherished particularly carefully in Mexico; in this country it is not a race game but rather an analytical process. At each clock stroke one grape has to be eaten, since each grape symbolizes one of the months. Mexicans examine taste of each grape carefully, as the taste tells them what that month will be like for them.

The people of Europe like to make tons of noise on the New Year’s night.  However, French honor this tradition most carefully. This tradition is based on an old belief that noise will chase bad spirits away, which are most active on the New Year’s Eve when the coming year replaces the previous one. So, French cities are extremely noisy on New Year’s night.  The French believe that the first person to enter the house on the first day of the new year symbolizes what that year will be like for the owners of the house. The midnight guest must be male in the first place, since he will bring fortune.

Children in Philippines have to jump 10 times at the New Year’s midnight if they want to grow tall. Also, Philipinos believe that a table filled with various fruits in various colors and clothes with polka dot or any other round ornament on them will bring prosperity.

Happy New Year!

Access Code: Jan

With the RE/MAX Masters Real Estate app, you can:

• Get MLS property listing information anytime, anywhere with your iPhone, iPad or Android.
• Search for nearby properties using GPS technology or by entering a specific address.
• Refine your search based on property type, price range, number of bedrooms, and more.
• Save notes, photos, and information about your favorite properties.
• Receive alerts that will let you know when a property meeting your criteria has been added to the market.
• Find information about the demographics of each neighborhood, including population characteristics, education, and the average income of local residents.
• Get school data, including all public and private schools located in the community.

Downloading the app is easy and only takes a minute:

For iPhone/iPad:

1. Click this link: RE/MAX Masters App - iTunes

Or Access Apple’s App Store directly from your iPhone or iPad then enter "REMAX Masters" in the search field.

1. Click "Install" and the app will load to your phone/iPad.
2. On the phone/iPad a window will appear where you will type in this VIP access code: Jan.
3. Click "Download" to complete installation.

For Android:

1. Click this link: RE/MAX Masters App - Android

Or Access The Android Market directly from your Android phone then enter "REMAX Masters" in the search field.

1. Click "Install" and the app will load to your Android.
2. On the phone a window will appear where you will type in this VIP access code: Jan
3. Click "Download" to complete installation.

Enjoy the app! Please forward this email to anyone else you think might enjoy using the app.

Happy Friday!

Summer is over and here we are ready for a beautiful Colorado Fall season.

My husband and I enjoy our annual drive up in the mountains to take in the breathtaking color change of the aspens. I have also found several other Fall events that I truly enjoy.

Larimer Square Annual Oktoberfest, September 23-25m www.oktoberfestdenver.com

Fort Collins -Oktoberfest 2011 September 25th, www.downtownfortcollins.com

Greeley- Oktoberfest 2011, September 23 & 24th, www.greeleydowntown.com / 970-356-6775

97th Annual Fruita Fall Fest, September 23-25, www.fruitafallfestival.com

Enjoy Your Fall Weekend!

Jan Mueller

Home sales are experiencing the equivalent of an Indian summer.

August home sales are up year-on-year, as nationwide house prices continue to fall, according to Denver-based real estate agent network RE/MAX.

August home sales reached a level 18% higher than August 2010, according to the latest RE/MAX national housing report.

Normally, June is the highest sales month for homes. This year both July and August show higher numbers.

"We’re pleased to see transactions pushing higher in August and without any artificial stimulus," said Margaret Kelly, CEO of RE/MAX, in a statement. "Although the housing recovery will continue to be uneven, the market is struggling to return to normal despite uncertainty in the economy and stubborn unemployment rates."

The median sales price for August was $189,831. This is just 0.6% below the price in July and 3.6% below the price in August 2010.

The report shows that in the 53 metro areas surveyed, 47 experienced a rise in home sales from 2010. The top risers are Pittsburgh, up 60%, Minneapolis, up 48.4%; Albuquerque, up 43.0%; Milwaukee, up 37.1%; Seattle, up 29.4%; Phoenix, up 26.4%; and Chicago, up 25.7%.

Write to Jacob Gaffney.

Follow him on Twitter @jacobgaffney.

______________________________________________________________________

There are a number of positive signs in August, 2011 MLS Statistics.  Compared to August of 2010 the combined MLS Residential Statistics had the following changes :

• The Number of Closed Sales had a significant increase (up 28.4%%, to 3,177)
• Average Days on Market increased slightly to 96 days
• Number of Active Listings decreased 24% to 13,436
• Absorption Rate declined a whopping 39% to 4.4 months
• Average Sold Price decreased slightly ( from $295,516 to $284,065)

 Kind Regards,

 Jan Mueller

Hello and I have some GOOD NEWS!!!!!  Finally you can pick up the morning paper or read your financial news online again and smile. 

I want to share what I have been reading..........

Regards,

Jan

It is very informative and a good resource to keep around.

Kind Regards,

Jan

NAR Frequently Asked Questions

Q-1: Who will be subject to the new taxes imposed in the health legislation?

A: Health Insurance Reform

NEW MEDICARE TAX ON "UNEARNED" NET INVESTMENT INCOME A new 3.8% tax will apply to the "unearned" income of "High Income" taxpayers. Another 0.9% tax will apply to the "earned" income of many of these same individuals. Both levies are referred to as "Medicare" taxes. (For a description of the new 0.9% tax, see separate Q&A entitled "NEW TAX ON EARNED INCOME: WAGES, SALARIES AND COMMISSIONS.")

Q-2: Who is a "High Income" Taxpayer?

A:Those whose tax filing status is "single" will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)

Q-3: Are the $200,000 and $250,000 thresholds indexed for inflation?

A: No . Thus, over time, more individuals may become subject to this tax.

Q-4: When does the new 3.8% Medicare tax take effect?

 A: The new Medicare tax on unearned income will take effect January 1, 2013.

Q-5: What is "unearned" net investment income?

A: Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.

NAR Frequently Asked Questions Health Insurance Reform

  The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term "net" investment income.) Thus, in the case of rents, the taxable amount would be gross rents minus all expenses (including depreciation) incurred in operating the rental property. So if gross rents were $100,000 with associated expenses of $40,000, net rents of $60,000 ($100,000 minus $40,000) would be included in Adjusted Gross Income (AGI).

Q-6: So the new tax will apply to rents from investment properties that I own?

A: Maybe . Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax. For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-8, below. See also Q-9 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)

Q-7: Does the tax apply to the yearly appreciation of an asset?

A: No . Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other appreciating capital assets. Net capital gains are taxable only in the year of sale.

Q-8: How is the new 3.8% Medicare tax calculated?

A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than $200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax Return.  

NAR Frequently Asked Questions Health Insurance Reform

 The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income.

For example, if AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000 ($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000 excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.

 If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be imposed on the smaller amount: the $75,000 of excess over $200,000.

 Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.

 Rather, the taxable amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net investment income OR (2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net investment income is the smaller amount, then the 3.8% tax is applied only to the net investment income amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply only to the excess amount.

Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply? A: Yes.  

Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.  

NAR Frequently Asked Questions Health Insurance Reform

  Q-10: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?

 A: So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would

 The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the "taxable gain"), and only if the seller has AGI above the $200K/$250K AGI thresholds. not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000 taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.

Q-11: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?

 A: If the home has been rented to others (including family members) for more than 14 days, then the rents (minus related expenses) would be considered as part of net investment income and could, depending on AGI and the calculations described above, be subject to the new tax.  

If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no associated expenses), then a gain on sale would be treated as net investment income and could be subject to the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be included in net investment income. The amount of the tax (if any) would depend on the calculation formula, above in Q-8.

The application of the tax will depend on whether the vacation home has been rented out, the period for which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents the property to others (including family members) for 14 or fewer days, there would be no net investment tax. (Note that no deductions for expenses would be available, as under current law.)

NAR Frequently Asked Questions Health

Insurance Reform  

Q-12: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?

 A: dividends income. (Capital losses reduce capital gains. If losses exceed gains, no more than $3000 of capital losses may reduce other income in any year.)

 Note that passive loss limitations will continue to apply to rental income and loss.

 Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply if there were any interest or

Q-13: All of my income is derived from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?

A: No.

 If the owner of rental properties has a "day job," however, real estate investments are

 If the ownership and operation of real estate you own is your sole occupation, then those activities are what’s called your "trade or business." Income derived from a trade or business is not subject to the new 3.8% tax, but could be subject to the 0.9% tax on earned income. not considered as a trade or business, but are rather considered as investments, even if they are a major source of income. Note that many Realtors engage in business activities are that are the "typical" selling, leasing and brokerage endeavors usually associated with the term "Realtor." If they also own real estate assets as part of their own personal investment portfolio, the rents from that portfolio could become subject to the new 3.8% tax on net investment income, depending on AGI.

Q-14: Is there a real estate "sales tax" or a transfer tax in the new health care bill?

 A: No.

 There is neither a real estate "sales tax" nor a real estate transfer tax in the bill. NAR Frequently Asked Questions Health Insurance Reform

Q-15: Will "High Income Filers" lose any portion of the Mortgage Interest they are allowed to deduct?

 A: No . The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.

Q-16: Why is this new tax called a "Medicare tax?"

A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social Security System. That fund is currently on shaky financial footing. The additional revenues generated from the new earned income and unearned income taxes are intended to shore up the Medicare Trust Fund.

Q-17: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?

 A: Marginal tax rates are the tax rates assessed on the "last" dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income. The chart on the next page reflects the impact of those changes, presented based on implementation of current law effective dates.

 NAR Frequently Asked Questions Health Insurance Reform

MARGINAL TAX RATES – 2010 – 2013*

The 500 Largest Brokers in the U.S.

RE/MAX Masters, Inc. Greenwood Village, CO   

Ranked 284th by Closed Transaction Sides for 2010

Ranked 215th by Closed Sales Volume for 2010

Top RE/MAX Affiliates Ranked 43rd out of 201

Top 25 Firms Ranked by Closed Transactions Per Office Ranked 21st

Top 25 Firms Ranked by Closed Sales Volume Per Office Ranked 5th

www.realtrends.com

This URL says it all.  Whether you want to take a free art class , fix your bike for a bargain price, feed your kids for free, or score deals on happy-hour bites, this wildly comprehensive site has what you need.

16357 E Hollow Horn Avenue

Parker, CO 80134

The average home price fell by 2.6 percent in Denver from February 2010, while the 20-city composite index declined by 3.3 percent during the same period. Only Washington, D.C., posted a year-over-year gain, with a 2.7 percent increase.

In Denver, average prices declined 1.2 percent between January and February, on the heels of a 1.1 percent drop from December to January.

Detroit was the only city with a month-over-month increase, at 1 percent.

The report assigns index values to the 20 cities based on current average home prices in relation to what they were in January 2000.

Denver’s index for February was 121.26, meaning that prices were 21.26 percent higher than they were in January 2000. The 20-city average index was 139.27 for February.

Each month from October 2009 through June 2010, the Case-Shiller report showed year-over-year increases in Denver-area home prices. That ended last July. Before October 2009, Denver saw 36 straight months of year-over-year price declines, peaking at a 5.7 percent drop in February 2009 from the year before.

Denver Business Journal

Date: Tuesday, April 26, 2011, 11:00am MDT

Access Code:  Jan

With the RE/MAX Masters Real Estate app, you can:

• Get MLS property listing information anytime, anywhere with your iPhone, iPad or Android.
• Search for nearby properties using GPS technology or by entering a specific address.
• Refine your search based on property type, price range, number of bedrooms, and more.
• Save notes, photos, and information about your favorite properties.
• Receive alerts that will let you know when a property meeting your criteria has been added to the market.
• Find information about the demographics of each neighborhood, including population characteristics, education, and the average income of local residents.
• Get school data, including all public and private schools located in the community.

Downloading the app is easy and only takes a minute:

For iPhone/iPad:

1. Click this link: RE/MAX Masters App - iTunes

Or   Access Apple’s App Store directly from your iPhone or iPad then enter "REMAX Masters" in the search field.

1. Click "Install" and the app will load to your phone/iPad.
2. On the phone/iPad a window will appear where you will type in this VIP access code: Jan.
3. Click "Download" to complete installation.

For Android:

1.  Click this link: RE/MAX Masters App - Android

Or    Access The Android Market directly from your Android phone then enter "REMAX Masters" in the search field.

1. Click "Install" and the app will load to your Android.
2. On the phone a window will appear where you will type in this VIP access code: Jan
3. Click "Download" to complete installation.

Enjoy the app!  Please forward this email to anyone else you think might enjoy using the app.