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Eugene and Springfield Homes For Sale

by Galand Haas

If you are thinking about purchasing a home in the Eugene and Springfield area there are two  easy and effective ways to make sure that you get complete details on all homes listed for sale that meet your search criteria.  

The fist one is by going to the web site www.eugeneoregonhomesfor sale.com.  This helpful site will allow you to search live for all homes currently listed for sale.  You can also set up a search and this site will automatically notify you just as soon as a new home hits the market that meets your needs.  This is the easiest to use and most dependable home search site available in the Eugene and Springfield area.

The second way is through a mobil search.  If you are using an I Pad, I-Phone or Android and you are frustrated with trying to look at homes in a format that doesn't work well on your mobil device, the site www.eughomes.info will solve your problems.  This is a new state of the art home search site specifically designed for mobil devices.  The cool thing about this site is that it offers a fantastic map search tool as well.                                                                                                                                                                        

Happy House Hunting!

 

 

 

 

 

Is There a Real Estate Transfer Tax attached to Obamacare?

by Galand Haas

Good Monday Morning!

Is a Natiinal Real Estate sales tax fact or fiction?  Read this interesting article from Realty Times for complete details that just might shock you!

On January 1, 2013, the Net Investment tax went into effect. Despite numerous articles and columns reminding consumers that this tax does not apply to every real estate sale, rumors continue to keep flying all over the country, claiming that the Health Reform legislation Congress enacted includes a sales tax on all real estate sales. While there is a tax, it does not apply to everyone.

The Health Care and Education Reconciliation Act of 2010 was signed into law by President Obama on March 30, 2010. It is a comprehensive and extremely complex piece of legislation. One section (1402) is entitled "Unearned Income Medicare Contribution" and does impose a 3.8 percent tax on any profit on the sale of real estate – residential or investment.

But it is aimed at high-income consumers, who comprise a small majority of American citizens.

Let's look at the true facts of this new law.

First, it is not a sales tax, nor does it impose any transfer or recordation tax. It is often called a "medicare" tax because the moneys received will be allocated to the Medicare Trust Fund, which is part of the Social Security System.

Next, if your income (technically called "adjusted gross income) is less than $200,000, you are home free. The income thresholds are clearly spelled out in the law. If you are married and file a joint tax return with your spouse, the law will apply only if your income is over $250,000. (If you and your spouse opt to file a separate tax return, the threshold is reduced to $125,000. For all other taxpayers, you have to earn more than $200,000 in order to be under the new law.

The up-to-$500,000 exclusion of gain for married couples filing a joint tax return (or up-to-$250,000 for single taxpayers) has not been repealed. Nor has the right to deduct mortgage interest and real estate tax payment been eliminated.

How is the tax calculated? It is a complex formula that could be called "the accountant's protection act". As a taxpayer, you (or your financial advisor) must determine which is less: the gain you have made on the sale of your house or the amount that your income exceeds the appropriate threshold.

Complicated? Yes. Let's look at these examples. Your adjusted gross income is $150,000. You sell your house and made a profit of $400,000. There is no change in the way you determine your gain: you take your purchase price, add any major improvements you have made over the years, and subtract that number from the net sales price. Based on this formula, you and your spouse have owned and lived in the property for at least two out of the five years before it was sold. Accordingly, you are eligible to exclude all of your profit; you are not subject to the new 3.8 tax. Keep the money and enjoy.

Change the example so that your adjusted gross income is $300,000. Since you are eligible to take the profit exclusion of up-to-$500,000, once again you do not have to pay the Medicare tax; your entire gain is excluded, and thus there is no profit to tax.

But let's assume you strike it rich and have made a profit of $600,000. Your income is $300,000. You can only exclude $500,000 under current law, so you will have to pay capital gains tax on the remaining balance. The rate currently is 20 percent, so you will owe Uncle Sam $20,000 ($100,000 x 20%).

But since your income is over the threshold, you now have to pay the 3.8 percent tax. But on what amount?

As indicated earlier, the tax is based on lesser of your profit or the difference between the threshold and your income. Your profit is $100,000. The difference between your income and the threshold is $50,000 ($300,000 - $250,000). In our example, the lower number is $50,000, and you will have to pay an additional $1900 to the IRS (3.8% x $50,000).

According to statistics provided by the National Association of Realtors, the median average sales price for homes in the United States (as of July, 2014) was $213.400. Clearly, none of these homes could make a profit of even $250,000, so if you qualify for the exclusion of gain requirements, you will not be impacted by this new law. Those requirements are: you have to have owned and used the property as your principal residence for two out of the five years before it is sold.

Of course, in homes where a large profit will be made, some home owners may be hit with this tax. But the large profit that you make should offset the nominal tax that has to be paid.

Since the law applies to all forms of real estate, including vacation homes, you should consider consulting with your tax and financial advisors as to your exposure.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

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141 KOURT DR
Price: $240,000 Beds: 3 Baths: 2 Sq Ft: 1846
Beautiful energy star rated home! New laminate floors and carpet, interior sprinklers, vaulted ceiling, skylights & architectural ledges. Living room with gas fireplace, kitchen with eating bar opens to dining room with slider to back. Master suite ...



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good News On the Mortgage Front

by Galand Haas

Good Monday Morning!

There is some really good news on the mortgage front.  100% home financing is back.  A new home loan program is now available for those buyers qualifying for FHA financing in the Eugene and Springfield market areas.  This new home financing option is called the OMT 100 loan.  It consists of a 96.5% first loan and a 3.5% second loan. The interest rate is at whatever the going FHA rate is at the time of the loan application.  All homes that would qualify for FHA finacing will qualify for this loan program.

Another twist to this loan is the fact that in many cases, the home seller can contribute towards the buyers closing costs and create a situation where the buyers bring little or no money to the table for the home purchase.  This loan program will make homes affordable to many who were stuck because they could not come up with the money needed for a down payment.

Reemember, mortgage loan interest rates are still bouncing around at historic low levels. This is not going to last forever, so if you have been left out of the ability to purchase a home because of not having enough money for the down payment, this is your opportunity to jump in and take advantage of the current attractive home purchase environment.

Call me or e-mail me for information on the OMT 100 mortgage loan program.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING! 

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2097 LAKE WIND DR
Price: $265,000 Beds: 3 Baths: 3 Sq Ft: 1789
Serene and Stylish! Enjoy the beautiful, gated subdivision of Lake Shore Estates. Contemporary styling, slate tile, Shaw flooring, Hunter Douglas blinds, cherry cabinets, high ceilings, recessed lights, Great Room layout. Two level home functions as...



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Nationally, Home Sales for June Are Up !

by Galand Haas
VideoVideo

Good Monday Morning!

Nationally, home sales were up in June of 2014.  The average home sales price increased as well.  This is good news that the nations housing market trend continues to rise.  Over the past several months, this same trend seems to be headed downwards in the Eugene and Springfield home market areas.  It will be interesting when June statistics come out in a week as to whether our local market is also starting to rebound again.

Mortgage interest rates remain very stable and are still hovering at just slightly over 4%.  For home buyers there is still time to take action on a home purchase while home prices remain a bargain and interest rates continue to hold at historic low levels.  Right now there is plenty of good home inventory to choose from in the Eugene and Springfield market as well.

Have An Awesome Week!

 

THIS WEEKS HOT HOME LISTING!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-July-2014

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1669 ELANCO AVE
Price: $203,000 Beds: 3 Baths: 2 Sq Ft: 1182
Darling home in culdesac. Enjoy privacy in this efficient & updated ranch style home. Living room with gas fireplace opens to dining area with slider. Kitchen with under-mount sink, eating bar and pantry. Master bedroom with vanity, bath & large clo...



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

IS NOW THE PERFECT TIME TO PURCHASE A HOME?

by Galand Haas

Good Monday Morning!

Is this the right time to purchase a home?  Here are some compelling reasons that will say yes.  In fact you may never find a better time to purchase than rihgt now.  Just when we thought the mortgage interest rates would start going back up and home price would begin soaring, just the opposite has taken place.  With current low interest rates and affordable home prices, right now is when you need to take action.  Here is an articel from Realty Times that gives yoou some great reasons for purchasing a home now!

The nature of market bottoms is that it's hard to tell one's occurred until prices and sales volume start to rise again. That's why the best time to buy is when market conditions suggest a bottom.

That means there's still some risk for homebuyers, since no one has a crystal ball that predicts the future. To take advantage of low mortgage interest rates and home prices still well below previous records, you may have to take a risk, such as riding out another short-term dip in property values.

But the rewards may be well worth it. Here are five reasons to buy a home right now.

1.   More jobs are available Total nonfarm payrolls rose by 217,000 in May, and the unemployment rate is 6.3 percent, according to the U.S. Bureau of Labor Statistics. Employment increased in professional and business services, health care and social assistance, food services and drinking places, and transportation and warehousing.

2. Houses are a great hedge against inflation The Labor Department also says the May Computer Price Index is up 2.13 percent year-over-year. The index for all items less food and energy rose 0.3 percent in May, its largest increase since August 2011.The CPI excludes volatile food and energy, so you can bet that the accelerating cost of things, otherwise known as inflation, also includes housing. You may be paying more for goods and services, but if you're a homeowner, you're better off financially. A major asset such as a home, purchased at a fixed cost, becomes more valuable when prices inflate.

3. Housing price increases are slowing The median existing-home price was $213,400, over 5 percent above May 2013. Considering that the national median existing-home price was $158,800 in January 2011. That's when the PMI Insurance Company said home prices relative to income are below market fundamentals in more than half of U.S. states. Prices overcorrected during the recession, and then they soared by the double-digits in 2013.Now housing is correcting once again from an overcorrection. Now's the time to take advantage of better homebuying conditions.

4. Mortgage interest rates are still low During the recession, mortgage interest rates for a benchmark 30-year, fixed-rate loan, averaged 4.32 percent. Now they're close to that and there's no recession. That means mortgage rates have nowhere to go but up.

5. Pent-up demand ready to release

 Since the recession, household formation fell dramatically to one percent of the national population. But considering that the leading age of the largest generation ever - 81 million Echo Boomers -- is now over 30, the numbers should be closer to the 2.3% annual growth of the 1970's, when 78 million Baby Boomers reached adulthood.The National Association of Homebuilders (NAHB) said about 2.1 million households delayed formation due to the recession which allegedly ended in 2011. Now there's pent-up demand for housing that should continue to drive home prices higher.

The takeaway A housing recovery doesn't occur in a straight line. There are surges and dips. Buyers could wait for better conditions, but the present alignment of falling mortgage interest rates, slower home prices, and larger selection is highly unlikely to reoccur.

 This may not be the bottom, but it's close enough

Have An Awesome Weekl

THIS WEEKS HOT HOME LISTING!

Image Unavailable
1669 ELANCO AVE
Price: $203,000 Beds: 3 Baths: 2 Sq Ft: 1182
Darling home in culdesac. Enjoy privacy in this efficient & updated ranch style home. Living room with gas fireplace opens to dining area with slider. Kitchen with under-mount sink, eating bar and pantry. Master bedroom with vanity, bath & large clo...

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Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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