Life in the Boondocks - or - Country Living

Bubble Trouble Rubbish

2006-09-07T09:24:00.000-04:00

NEW YORK -- Sept. 6, 2006 -- What if the housing market not only isn't going into a death spiral, what if the U.S. economy is less dependent on housing than we were led to believe?

Ray Dalio and Bridgewater Associates, the second biggest manager of hedge fund assets in the world, with more than $140 billion in assets asked that question.

Bridgewater believes that the housing market will likely enjoy a so-called soft landing, with prices dropping on average by only 7 percent -- the amount it says is likely needed to bring home prices back to average levels of affordability.

If that's the case, they say, the impact on GDP (gross domestic product) will be noticeable, but not too painful.

As for U.S. consumer spending, here too Bridgewater is betting that the indirect impact of rising home prices may have been overblown.

Although it is widely known that homeowners last year took out $530 billion in home equity and other home-related loans, Bridgewater believes with interest rates still relatively low, creative consumers are finding ways to replace that home piggybank with other types of financing from credit card companies and the like.

"The notion that a slowdown in housing leads to a slowdown in the economy is often true, but not because the housing market causes the slowdown," the Bridgewater report concludes. "Rather, interest rates generally are raised to a level that chokes off all activity and housing gets hit first. Our measures suggest rates are still too low to choke off the overall economy."

Internet Buyers Paying Thousands for Unbuildable Lots

2006-09-06T10:12:00.000-04:00

Internet users visiting sites such as E-bay, are buying land that's miles from civilization, has no roads or utilities and sometimes is underwater.

Known as "paper subdivisions," these undeveloped tracts are the remnants of developers' unfulfilled dreams -- if not outright scams -- particularly in Florida's Osceola, Polk, Volusia and Brevard counties. Buyers are paying thousands of dollars over assessed value for a lot that can't be built on in a subdivision that does not officially exist.

An acre-and-a-quarter lot -- usually assessed at $600 to $1,200 -- fetches 10 times that or more from unsuspecting buyers in Internet auctions. Florida officials estimate there are millions of these unbuildable lots in every part of the state.

Now, some buyers who say they were swindled are speaking up -- and getting results.

The state is responding to complaints from disgruntled buyers by forcing some sellers to offer to buy back the property, citing their failure to follow the state law regulating the sale of subdivided land. Violations can include a seller failing to register land with the state for sale.

According to one of the complaints, the investigation centers on the "alleged sale of undevelopable 'swampland' to buyers over eBay without full disclosure of all material facts relating to condition of land."

The land-sales division does not go looking for unlawful transactions on eBay, said Thomas Butler, deputy press secretary for the Department of Business and Professional Regulation. However, "We do investigate complaints from the public that may involve its use."

Deceptive land-sales practices are not new in Florida. For instance, in the 1960s, the Gulf American Land Co. sold thousands of lots in River Ranch Acres to unsuspecting buyers nationwide before going bankrupt.

Land throughout Florida was often sold in the 1960s and 1970s from telephone boiler rooms or through high-pressure sales meetings as retirement investments. The sales pitches, which often included a free dinner and a movie, would allow buyers to purchase land for a couple of hundred dollars down and interest-free payment of $50 a month. The developers, which often later declared bankruptcy, took cash and never filed the necessary paperwork with local governments or built roads and infrastructure.

Richard Lawrence said the current speculation is destroying the recreational uses of Osceola's Suburban Estates, where he has owned land for several years.

Like similar tracts in Polk and Volusia counties, the 10,449 acres in east Osceola has become a haven for those like Lawrence who enjoy the outdoors.

Suburban Estates is a mixture of cypress swamp, palmetto brush and scrub pine. Sandy roads wind through the property that has through the years turned into a secluded refuge for owners who like to hunt and drive vehicles through the challenging country. The area is gated, and keys are issued to only deed holders by an owners-group calling itself the Suburban Estates Preservation Association.

Osceola County does not issue construction permits in Suburban Estates. Once, it permitted hunting camps, but the lack of utilities and roads made even those problematic, a county zoning official said.

But many investors don't know this, nor do they realize that land values in Suburban Estates have been stagnant for years.

Records show there are thousands of owners, which would make it almost impossible for any developer to buy up enough property to develop Suburban Estates. The same holds true for other areas.

Florida Hospital Association

2006-09-02T08:56:00.000-04:00

TALLAHASSEE, Fla. -- Sept. 1, 2006 -- The Florida Hospital Association (FHA) launched today a new consumer Web site to assist the public in researching and managing their healthcare information.

The Web site, www.floridainformedpatient.com, is designed to put a variety of healthcare information resources on the desktops of patients and consumers.

Patients can search for a hospital based on the types of services it provides and its location. The Web site also allows surfers to navigate directly to a hospital's Internet site.

The site provides checklists for patients to use when selecting a hospital, a physician, or a health plan and gives quick links to a variety of healthcare sites providing quality and pricing information.

The site serves as a pathway to a number of recognized Web sites providing information on physicians, health insurance companies, prescription drugs and general health information.

Information in choosing a hospital, understanding hospital bills, checking physician credentials, links to HMO pricing and quality, comparing drug pricing, and how to avoid medication errors also can be found on the site, which will be updated as new resources become available.

The Florida Hospital Association is a statewide advocacy and trade association representing 176 hospitals across the state.

My Safe Florida Home

2006-08-17T09:23:00.000-04:00

The My Safe Florida Home Program is now open for business and accepting applications from Floridians around the state for free home inspections.

Their mission is to help you learn what specific home improvements can be made to better protect you and your family against hurricanes and to help provide you with the information and resources necessary to make your home stronger and safer from storms. In fact, if you receive a free home inspection and decide to take steps to strengthen your home, you may be eligible to match your money through this program up to $5,000.

They are partnering with local governments and non-profit organizations to provide inspections and grants in 22 counties, and with the Legislature’s continued funding support, they hope to soon be able to provide inspections and grants in all 67 counties.

The open enrollment period for accepting applications will continue through November 15, 2006. To get started go to www.mysafefloridahome.com where you can find more information and apply for your free home inspection on-line.

Hurricane Preparedness in the Country

2006-06-05T09:24:00.000-04:00

Most of the normal preparations that you can find listed in a lot of places apply if you are living in the country.

Know where your closest shelter and evacuation routes are and remember that animals can not be taken to a shelter. If you are going to evacuate, book a hotel early, even if it is as far away as Atlanta GA. Fill up your vehicle with gas and keep a couple of containers full of gas too. Make certain you have a couple of flashlights and extra batteries.

The great thing about living out in the country if you are hit by a hurricane and your house is okay, as long as you have a generator, you will still have water, whereas in most cities, the water supply gets shut off. (This is one of the reasons you need to keep gasoline handy.) My personal opinion is that a generator is a must if you live anywhere where natural disasters could impact you. With a generator you can still have water if you have a well, you can save all the food in your refrigerator when the power goes out, and you may even still be able to have a hot shower. I even know people who were still able to get TV in the midst of a hurricane. Ideally, you need to have your home wired so that all you have to do is flip off the mains switch and plug the generator in, and it will run everything in your home if it is strong enough. (You would have to ask the dealer how strong it should be when you buy it.)

Another thing that happens in the cities if they get flooded, the sewers back up. Out in the country, as long as your septic system doesn't have water pooling over it, you should be okay. Just do remember that with the ground being soaked, the drain field will not work as efficiently as it should, so use water sparingly.

It is always a good idea to keep a couple of big bottles of drinking water just in case the well gets contaminated with all the flooding that may occur. In fact, you should probably not drink the water from your well for at least a week after a hurricane. Some canned food and dry food stocks are also a good idea.

If your home is low lying, you'll thank yourself for digging drainage ditches to channel the water away.

If you take life preserving medications, make sure you have all your prescriptions filled before a hurricane hits. A first aid kit is very important - they can be purchased in a lot of places, including Walmart and the basic ones don't cost a lot. You might want to make one up for your animals, too.

Please make certain your animals are catered for. They won't understand what's happening, so keep your dogs and cats indoors in a safe place. Horses, cows, sheep, goats, pigs, etc. pretty much have to fend for themselves but don't leave them in a small pen where they could get flooded out. If it's possible to give them some shelter I'm sure they will appreciate it.

Oh, and buy some OSB board before there is a hurricane threatening - you don't want to be standing in one of those long lines!! Here's hoping for a mild season.

FLOOD INSURANCE: DECIDE NOW

2006-05-29T15:02:00.000-04:00

With hurricane season only a few weeks away, it's time for homeowners
to assess their risk and consider whether they should get flood
insurance. To learn whether a homeowner needs flood insurance, start
by finding out whether the property is in an area designated by the
Federal Emergency Management Agency as a high flood risk. Simply
enter the property’s address on FEMA's Flood Smart Web site
(http://www.floodsmart.gov). If the Web site says the area is high risk,
it’s smart -- and probably required by mortgage lenders -- to have
insurance. But even if the Web site indicates that the property has a low
to moderate risk of flooding, it is worth consulting neighbors and the
local planning agency about past floods in the area. The government
sets rates so premiums are the same no matter where the insurance is
purchased. Policies are restricted to $250,000 on the structure and
$100,000 on contents -- sold separately with a discount for buying both.

Halcyon Days Over for FSBO’s?

2006-05-28T09:50:00.000-04:00

The days when you can just put a sign in your yard, a directional sign on a busy corner and a classified ad in the local newspaper are no longer.

The market is changing, and with each quarter percentage rise in interest rates a huge number of buyers may no longer be able to afford the monthly payments on your property.

Now more than ever, Price and Marketing are of the utmost importance.

With every thousand dollars over market price you could be eliminating a hundred more potential purchasers. It is imperative that you have a Competitive Market Analysis (CMA) done to determine a marketable price for your property cognizant with supply and demand. Calculating the saturation rate in your local area will give you a good idea of how long you can expect it to take before you will find a ready, willing and able buyer.

Marketing is imperative – you need to get the word out to as many buyer prospects as possible. Selling your home yourself means you do not have access to the local MLS. This is the marketplace, where all local real estate professionals go to search for properties for their buyer customers and clients.

In this Information Age, buyers also do their own research. If your home is listed on any local MLS, it will automatically be displayed on realtor.com – arguably the largest real estate database in the world. This is where, according to the National Association of Realtors, more than 75% of all online property searches are performed.

Only REALTORS®, real estate licensees who have elected to join the National Association of REALTORS®, subscribe to a real estate association and local MLS. They are the only ones whose listings are displayed on realtor.com. They pay a fee to belong to these organizations.

Real estate professionals also pay to market your home in a variety of other media – newspapers, real estate magazines and publications. Some advertise on local radio or TV stations. Many have their own personal websites, and if they understand the principles of SEO (Search Engine Optimization), their sites will be in the forefront when buyers use certain key search phrases.

The big real estate companies are also an important source of marketing – RE/MAX.com now features all properties on every MLS in the nation, and Prudential has joined forces with Yahoo.com.

If you are thinking of selling your property yourself to avoid paying a brokerage fee, maybe you should ask yourself this - if time is money, how much will you save by selling your home quicker and moving forward with your new plans?

823.14 - The Florida Right to Farm Act

2006-05-25T11:52:00.000-04:00

This act was implemented to protect the rights of farmers. It basically means that if you move to a country home and your neighboring property is a farm, you may not sue the farmer for carrying on regular farming activities, even if they cause dust, noise, fumes and odor.

You may have a legitimate complaint if the there are unsanitary conditions that could cause a health hazard.

823.14 Florida Right to Farm Act.--

(1) SHORT TITLE.--This section shall be known and may be cited as the "Florida Right to Farm Act."

(2) LEGISLATIVE FINDINGS AND PURPOSE.--The Legislature finds that agricultural production is a major contributor to the economy of the state; that agricultural lands constitute unique and irreplaceable resources of statewide importance; that the continuation of agricultural activities preserves the landscape and environmental resources of the state, contributes to the increase of tourism, and furthers the economic self-sufficiency of the people of the state; and that the encouragement, development, improvement, and preservation of agriculture will result in a general benefit to the health and welfare of the people of the state. The Legislature further finds that agricultural activities conducted on farm land in urbanizing areas are potentially subject to lawsuits based on the theory of nuisance and that these suits encourage and even force the premature removal of the farm land from agricultural use. It is the purpose of this act to protect reasonable agricultural activities conducted on farm land from nuisance suits.

(3) DEFINITIONS.--As used in this section:

(a) "Farm" means the land, buildings, support facilities, machinery, and other appurtenances used in the production of farm or aquaculture products.

(b) "Farm operation" means all conditions or activities by the owner, lessee, agent, independent contractor, and supplier which occur on a farm in connection with the production of farm products and includes, but is not limited to, the marketing of produce at roadside stands or farm markets; the operation of machinery and irrigation pumps; the generation of noise, odors, dust, and fumes; ground or aerial seeding and spraying; the application of chemical fertilizers, conditioners, insecticides, pesticides, and herbicides; and the employment and use of labor.

(c) "Farm product" means any plant, as defined in s. 581.011, or animal useful to humans and includes, but is not limited to, any product derived therefrom.

(d) "Established date of operation" means the date the farm operation commenced. If the farm operation is subsequently expanded within the original boundaries of the farm land, the established date of operation of the expansion shall also be considered as the date the original farm operation commenced. If the land boundaries of the farm are subsequently expanded, the established date of operation for each expansion is deemed to be a separate and independent established date of operation. The expanded operation shall not divest the farm operation of a previous established date of operation.

(4) FARM OPERATION NOT TO BE OR BECOME A NUISANCE.--

(a) No farm operation which has been in operation for 1 year or more since its established date of operation and which was not a nuisance at the time of its established date of operation shall be a public or private nuisance if the farm operation conforms to generally accepted agricultural and management practices, except that the following conditions shall constitute evidence of a nuisance:

1. The presence of untreated or improperly treated human waste, garbage, offal, dead animals, dangerous waste materials, or gases which are harmful to human or animal life.

2. The presence of improperly built or improperly maintained septic tanks, water closets, or privies.

3. The keeping of diseased animals which are dangerous to human health, unless such animals are kept in accordance with a current state or federal disease control program.

4. The presence of unsanitary places where animals are slaughtered, which may give rise to diseases which are harmful to human or animal life.

(b) No farm operation shall become a public or private nuisance as a result of a change in ownership, a change in the type of farm product being produced, a change in conditions in or around the locality of the farm, or a change brought about to comply with Best Management Practices adopted by local, state, or federal agencies if such farm has been in operation for 1 year or more since its established date of operation and if it was not a nuisance at the time of its established date of operation.

(5) WHEN EXPANSION OF OPERATION NOT PERMITTED.--This act shall not be construed to permit an existing farm operation to change to a more excessive farm operation with regard to noise, odor, dust, or fumes where the existing farm operation is adjacent to an established homestead or business on March 15, 1982.

(6) LIMITATION ON DUPLICATION OF GOVERNMENT REGULATION.--It is the intent of the Legislature to eliminate duplication of regulatory authority over farm operations as expressed in this subsection. Except as otherwise provided for in this section and s. 487.051(2), and notwithstanding any other provision of law, a local government may not adopt any ordinance, regulation, rule, or policy to prohibit, restrict, regulate, or otherwise limit an activity of a bona fide farm operation on land classified as agricultural land pursuant to s. 193.461, where such activity is regulated through implemented best-management practices or interim measures developed by the Department of Environmental Protection, the Department of Agriculture and Consumer Services, or water management districts and adopted under chapter 120 as part of a statewide or regional program. When an activity of a farm operation takes place within a wellfield protection area as defined in any wellfield protection ordinance adopted by a local government, and the adopted best-management practice or interim measure does not specifically address wellfield protection, a local government may regulate that activity pursuant to such ordinance. This subsection does not limit the powers and duties provided for in s. 373.4592 or limit the powers and duties of any local government to address an emergency as provided for in chapter 252.

More sellers holding mortgages for buyers

2006-05-25T11:18:00.000-04:00

Seller financing is making a comeback. Carry-back loans allow sellers to avoid paying large capital gains tax amounts all at once.

Tax in any given tax year is only payable on the amount received from the seller in that year. Mortgage rates are generally higher with seller financing, and it provides a steady monthly income. Having the loan serviced by an agency for a monthly fee makes administration and record-keeping easy.

Buyers can benefit by being able to obtain loans on otherwise non-financeable properties - like older single wide mobile homes or homes that have been built around them and are still classified as trailers and other non-conforming properties like geodesic domes and A Frame homes. Buyers can also save money that would usually be spent on appraisals, fees and points.

If sellers want to cash out, there are companies who will buy the note although it is usually sold at a discounted price.

Country or rural property buyers are most likely to benefit from seller financing.

CHECK YOUR INSURANCE

2006-05-25T11:16:00.000-04:00

There have been repeated warnings that this year's hurricane season will match
or exceed the destruction wrought in 2005.

Many homeowners are still inadequately insured and/or are unaware of how much
coverage they have or the specifics of that coverage, and most are unaware of their hurricane risks.

Do yourself a favor this year - pull out your policy and read it now, before hurricane season starts, then make a copy and put it in a bank safety deposit box or another safe place away from your home. It is surprising how many home owners cannot lay their hands on their insurance policy after disaster strikes and some cannot remember their agent's name or contact information.

If you there is anything you don't understand, please call your agent and ask them to explain.
Make sure you have wind, fire and flood coverage and that you understand the difference between replacement value and depreciated value.

If your assets are high in value you may want to go over your policy with an attorney to be sure that you are adequately covered.

Copyright(C)Patricia Jackson 2006 All Rights Reserved

Aah... Those Country Odors!

2006-05-22T10:52:00.000-04:00

Freshly mowed grass is my most favorite country odor - it reminds me of playing in the haystacks, making tunnels or leaping from tree branches and sinking deep into the grass; or making horse jumps using hay bales; and how about that smell of horses -it brings back all those exhilarating emotions one feels when one is galloping so fast that one's eyes tear up.
There's also driving on dirt roads and that unmistakable dust smell, and the fresh, dry-earth smell that comes with the first rain storm of the season, or the rich earth odor when the tractor is ploughing.

One thing we don't smell out in the country is exhaust fumes and factory waste -these are the odors that can cause illness and death. We do have unpleasant odors here, though - manure as in a dairy farm when it's rained a lot - feed lots, and hogs farms - some people may think these are sweet, but not me.

One thing's for sure, though, they are all unmistakably "country".

What Living in the Country Sounds Like

2006-05-14T13:43:00.000-04:00

There are certain noises that you associate with living in the country, and for me, the most significant is the sound of a rooster crowing. When you live in a city for a while and move back into the country, that early morning "cock-a-doodle-doo" is what lets you know you're home.

Cows are the other thing that makes me think of being out of the city. I love hearing them "moo".

Does anyone have anything to add to this?

Florida's North East Lake Region

2006-05-13T13:10:00.000-04:00

Located between Gainesville and Jacksonville and within commuting distance to both cities, this area has become an important bedroom community. Keystone Heights, Melrose and Starke are the major towns in the area, all of them small and rural.

Crystal clear spring fed lakes with white sand beaches varying in size from 1000+ acres to around 1 acre are dotted throughout the region, and lakefront living is common here. The topography is rolling hills and the area is naturally forested with oaks, pines and hardwood trees.

If you want to live out in the boondocks this is the place for you!! Land is still relatively inexpensive and there are some nice tracts available - many with lake frontage. They are being bought out rapidly and lots of new big horse ranches are springing up, so hurry!

Gainesville - College Town Surrounded by Farms

2006-05-13T12:49:00.000-04:00

Gainesville is home to Florida's largest and oldest university, and is one of the state's centers of education, medicine, cultural events and athletics. The University of Florida and Shands Hospital at UF are the leading employers in Gainesville and provide jobs for many residents of surrounding counties. Known for its preservation of historic buildings and the beauty of its natural surroundings, Gainesville's numerous parks, museums and lakes provide entertainment to thousands of visitors. Because of its beautiful landscape and urban "forest," Gainesville is one of the most attractive cities in Florida.
The population of Alachua County is around 240,000. The major industry is agriculture, and there are many picturesque farms and horse ranches, with huge, spreading oak trees and rolling, grassy hills close to the city's boundaries. Living in Gainesville is kind of like living in the country, but not really!! If you're a "city slicker" and want to test out life in the country, this may be a good place to start!

Burn Ban Set For Clay County

2006-05-10T15:29:00.000-04:00

A burn ban has been set for Clay County, effective immediately. This ban, which is effective for a minimum of seven days, prohibits the outdoor burning of debris, yard waste, or campfires of any size. It also prohibits the disposal of incendiaries (i.e. cigarettes) in a manner which may start a grass or brush fire.
The increasingly hot and dry conditions statewide have led many counties to prohibit outdoor burning as a precaution to slow the wildfires-many which begin as outdoor debris fires. Residents can be held liable for both property damage and for Division of Forestry suppression efforts for residential outdoor debris fires which escape and do damage.
Today, the Keetch Byram Drought Index (KBDI) for Clay County is 558 (mean), with variances from 333-614. Last year at this time, the Clay mean KBDI was 129. The drought conditions for the entire state may be viewed on the DOF website www.fl-dof.com/wildfire/index.html.
Parents are urged to speak to their children regarding the dangers of matches and lighters, as some wildfires are the result of careless fires set by juveniles.
Officials stress the ban is to prevent damage to homes and property, and to ensure the safety of residents during this dangerous wildfire season.
Any outdoor burning should be reported to Clay County Fire Rescue via 911

Young Homebuyers - What They Want

2006-05-08T14:47:00.000-04:00

Young buyers like a pretty house, so if a house won’t sell, Mark Nash, author of 1001 Tips for Buying and Selling a Home, urges home sellers to make these simple cosmetic updates.

• Expose hardwood floors and buff them until they shine. Nash, who sells homes in the Chicago area, says an increasing number of younger buyers dislike homes with wall-to-wall carpeting. ''It's amazing how often I hear from young clients who won't even look at a place unless it has hardwood floors,'' he says.
• Remove antiquated furnishings. Many young buyers have eclectic tastes. Get rid of matched sets of look-alike furniture from the ’70s and ’80s then rearrange what’s left to make the house feel more contemporary.
• Take down your old draperies and light fixtures, including old-style track lightings. Nash says outdated lighting and heavy, elaborate draperies (the kind with swags and valances) turn off young buyers.
• Remove wallpaper. Young buyers are unwilling to purchase any home that needs wallpaper removal—it’s just too daunting.
• Repaint your walls. Nash encourages home sellers to stick with neutrals or calm earth tones, like a light sage green. Using bold tones can be very tricky, he cautions. “I call these ‘commitment colors.’ Chances are good that your buyers won't like them as much as you do,'' he says.

Florida Real Estate Taxes Among the Highest

2006-05-08T14:45:00.000-04:00

Fla. -- March 7, 2006 -- While overall state and local taxes in Florida are reasonable compared to the other 49 states, the state's per capita documentary stamp and real estate transfer taxes -- already the nation’s highest -- rose another 28 percent in 2004, according to Florida TaxWatch'sannual report.Florida TaxWatch, a private, non-profit, non-partisan research institute, provides independent research and education on government revenues, expenditures, taxation, public policies and programs. While the tax cost of buying and selling real estate remains high, per capita local property taxes collections compare reasonably well. Florida property owners pay an average of $918.81, and the state ranks No. 21 nationally. At No. 1, New Jersey residents pay an average of $1,870.85 in local property taxes while last-ranked Arkansas residents pay $190.85. From 2000 to 2004, Florida’s total state tax collections grew 24 percent, third largest in the nation; nationally, growth averaged 10 percent. Looking at the state tax burden, Florida ranked No. 35 per capita, which is five points higher than one year earlier. When combined with local taxes, the tax burden on Floridians ranks at No. 32 in the most recent study. Other findings:
• State taxes take 6.0 percent of Floridians' personal income, and state and local taxes combined take out 9.4 percent. This compares to the national average of 6.5 percent and 10.5 percent, respectively.
• Transaction taxes (general and selective sales taxes) account for 77 percent of all Florida's state tax collections, compared to the national average of 49 percent. Sales tax revenue is the third-highest in the nation, though that cost is offset by the lack of a personal income tax.
• Florida is one of seven states without a personal income tax. Of the four largest states, Florida and Texas have no personal income tax.
• Businesses pay nearly half (48 percent) of all state and local taxes in Florida. This is the 13th highest percentage in the nation and higher than the national average of 43 percent. To read the full report from Florida TaxWatch, visit their Web site (http://www.floridataxwatch.org) or download it directly in PDF format at http://www.floridataxwatch.org/resources/pdf/HFCfinal2706.pdf. © 2006 FLORIDA ASSOCIATION OF REALTORS®

Deeds

2006-05-08T14:18:00.000-04:00

A deed is the document that transfers ownership of real estate. It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property.

A quitclaim deed transfers whatever ownership interest you have in the property. It makes no guarantees about the extent of your interest. Quitclaim deeds are commonly used by divorcing couples; one spouse signs all his rights in the couple's real estate over to the other. This can be especially useful if it isn't clear how much of an interest, if any, one spouse has in property that's held in another spouse's name.

A grant deed transfers your ownership and implies certain promises -- that the title hasn't already been transferred to someone else or been encumbered, except as set out in the deed. This is the most commonly used kind of deed, in most states.

A warranty deed transfers your ownership and explicitly promises the buyer that you have good title to the property. It may make other promises as well, to address particular problems with the transaction. The person who signs the deed (the person who is transferring the property) should take the deed to a notary public, who will sign and stamp it. The signature must be notarized before the deed will be accepted for recording. You should "record" (file) the deed in the land records office in the county where the property is located.

A trust deed (also called a deed of trust) isn't like the other types of deeds; it's not used to transfer property. It's really just a version of a mortgage, commonly used in some states (California, for example). A trust deed transfers title to land to a "trustee," usually a trust or title company, which holds the land as security for a loan. When the loan is paid off, title is transferred to the borrower. The trustee has no powers unless the borrower defaults on the loan; then the trustee can sell the property and pay the lender back from the proceeds, without first going to court.

Your Home as a Tax Shelter

2006-05-08T14:12:00.000-04:00

Your home shelters you from the elements, but it is also a valuable tax shelter.

Your home provides many tax benefits -- from the time you buy it until it's time to sell. Here's a summary of the tax benefits of home ownership; you can get details by visiting the IRS website at http://www.irs.gov.
Mortgage Interest
Joint tax filers can deduct all the interest on a maximum of $1 million in mortgage debts secured by a first and second home. The maximums are halved for married taxpayers filing separately.
You can't use the $1 million deduction if you pay cash for your home and later use it as collateral for an equity loan.
Points
There are a variety of lender fees associated with getting a mortgage, notably points. Each point equals 1% of the loan principal. One to three points are common on many home loans, which can easily add up to thousands of dollars. You can fully deduct points associated with a home purchase mortgage. You cannot deduct a mortgage broker's commission.
Refinanced mortgage points are also deductible, provided they are amortized over the life of the loan. Homeowners who refinance, however, can immediately write off the balance of the old points and begin to amortize the new.
Mortgage Tax Credit
A homebuying program called Mortgage Credit Certificate (MCC) allows qualifying first time homebuyers to benefit from a mortgage interest tax credit of up to 20 percent of the mortgage interest payments made on a home (it varies by jurisdiction). This credit is available each year you keep the loan and live in the house purchased with the certificate.
The credit is subtracted, dollar for dollar, from the income tax owed. For example, if you paid $10,000 in interest, your tax credit would be $2,000. The remaining 80 percent of the interest -- $8,000 -- is taken as a typical mortgage interest deduction.
Equity Loan Interest
You may be able to deduct some of the interest you pay on a home equity loan. However, the IRS places a limit on the amount of debt you can treat as home equity debt for this deduction. Your total home equity debt is limited to the smaller of:
$100,000 for a married couple filing jointly ($50,000 for those who file separately), or
the total of your home's fair market value -- that is, what you would get for your house on the open market -- less certain other outstanding debts against it.
The IRS rules about the home equity loan interest deduction are complicated. IRS Publication 936 explains the details.
Home Improvement Loan Interest
There is no limit on interest deductions for home improvement loans, provided the work is deemed "capital improvements" rather than repairs.
Qualifying capital improvements are those that increase your home's value or prolong your home's life, including a fence, driveway, new room, addition, swimming pool, garage, porch or deck, new built-in appliances, insulation, new heating/cooling systems, a new roof, landscaping and the like. (Do keep in mind that capital improvements that increase the square footage of your home could trigger a reassessment and higher property taxes.)
Work that doesn't qualify you for an interest deduction includes painting, plastering, wallpapering, replacing broken or cracked tiles, patching your roof, repairing broken windows and fixing minor leaks. Wait until you are about to sell your home to gain tax benefits from repair work. (See Selling Costs, below.)
Property Taxes
Often referred to as "real estate taxes," property taxes are fully deductible from your income. You can't deduct escrow money held for property taxes until the money is actually used to pay your property taxes. A city or state property tax refund reduces your federal deduction by a like amount.
Home Office Deduction
Along with ordinary business expenses, such as photocopies and professional memberships, you can deduct part of your rent or take a depreciation deduction to the extent that a portion of the home you own is used for business purposes.
Selling Costs
Real estate broker's commissions, title insurance, legal fees, administrative costs and inspection fees are all considered selling costs. They also include items otherwise considered repairs -- painting, wallpapering, planting flowers, maintenance and the like -- provided you complete them within 90 days of your sale and provided they were completed to make the home more saleable.
All selling costs are deducted from your gain. Your gain is your home's selling price, minus deductible closing costs, minus your basis. Your basis is the original purchase price, plus capital improvements, minus any depreciation.
Thanks to the Taxpayer Relief Act of 1997, many home sellers no longer suffer a taxable gain. Married taxpayers who file jointly now get to keep, tax free, up to $500,000 in profit on sales of homes used as a principal residence for two of the prior five years. Single folks and married taxpayers who file separately get to keep up to $250,000.
Moving Costs
If you move because you got a new job, you can deduct some of your moving costs. To qualify for these deductions, your new job must be at least 50 miles from the old and you must work full-time at the new workplace for 39 of the 52 weeks following the move. Deductions include travel or transportation costs and expenses for lodging and storing your household goods.
If you are self-employed, you must work full-time for at least 39 weeks during the first 12 months and a total of 78 weeks during the first 24 months after arriving at the new job location.
Other Tax Benefits
Many federal tax benefits are also available from local and state tax agencies. Contact your local tax agency for more information.
Tax Law Information
For more information on tax laws involving real estate transactions, visit the IRS website at http://www.irs.gov. You will find much useful information, including publications about selling your house (IRS Pub. 523), business use of your home (Pub. 521), moving expenses (Pub. 587) and home mortgage interest deductions (Pub. 936).

The Advantages of Living in the Country

2006-05-08T13:59:00.000-04:00

Nobody can tell you where to park your cars
Nobody can tell you where you can park your trailer
Nobody can tell you when you can water your lawn if they can't see your yard from the road
The stars are brighter
The air is less polluted
You can enjoy the birds and wildlife
You can keep horses
There are places to ride
You can keep just about any animals you want
You can have a loud party and your neighbors won't complain
Your kids can leave their bikes lying out in the yard and they won't get stolen
Your neighbors know to mind their own business
Your neighbors are nice