Friday, June 25, 2010

MHDC program

I have copied a quote from our Jefferson City MO Area Board of Realtors. Please see below.

"News You Can Use for June!
Under the Home Ownership Purchase Enhancement (HOPE) program, MHDC provides incentives up to $1,750 to encourage Missourians to purchase homes. $15 million was allocated to the program and is available on a first-come, first-served basis; there is currently more than $12 million still available for qualified homebuyers. Please note this significant change: to qualify, a homebuyer must complete the purchase of their home by August 31, 2010, and MHDC must receive the HOPE application by September 30, 2010. Homes purchased after August 31, 2010 will not be eligible for the HOPE program. Additional program information and documents are available on their website,"

Wednesday, June 23, 2010

WCR meeting

The speakers today in our meeting gave us the happenings in Jefferson City & Cole County. They spoke of Adrians Island, the new Animal Rescue facility, the unexpected high use of the Greenway & other Parks, our good streets, recycling, a new hazardous waste site, new jail, and many other things. In fact, tomorrow, Thursday, June 24th, downtown is going to be transformed into a beach. There will be sand volley ball and other attractions. This will be the last Thursday celebration for the summer. See you there.

Jefferson City is a great place to live.

Monday, June 21, 2010

Multiple Offers

Who says the market is bad? Over the weekend, my buyer made an offer on a property. Concurrently another buyer made an offer on the same property. One had to lose and one had to win. Fortunately my buyer won. The subject property had been on the market approximately 30 days. We looked at it when it was brand new on the market. Then we looked at others and nothing else compared for the price. It was immaculately cared for, had beautiful updates, and had a manicured yard. It was a great value. Obviously, another buyer felt the same way.

Thursday, June 17, 2010

Home Buyer Tax Credit

Got word that the U.S. Senate passed a bill extending the closing date deadline for the home buyer tax credit from 6/30/10 to 9/30/10. This applies to already pending residential property closings that were under contract prior to 5/1/10. Next the bill goes to the House for deliberation and a vote. Keep tuned for further developments.

Monday, June 14, 2010

Open House

This Saturday we are having a very nice home open on 1565 Skyview, Holts Summit, MO 65043. It is a very nicely maintained 1 1/2 story home on a landscaped yard with private back yard. In fact, there is access to a fishing lake behind the land. Come on out and bring your fishing pole! The time is 11-12 p.m., Saturday, June 19th.

Tuesday, June 8, 2010

Rural Development loan

Central Bank in Jefferson City, MO said they can make Rural Development Loans now in anticipation of the money being appropriated. From what I understand, the money should be available in October.

Friday, June 4, 2010

Profit from Investments

I just finished GRI 412 today in Sunrise Beach MO. Tom Lundstedt presented an excellent program "Profit from Investment Property". Some of the highlights I gleaned from this class: before buying any investment property fill in a pre printed form called "Investment Property Worksheet" (it is a step by step process of determining your return on investment), secondly always get a Schedule E from the investment owner, thirdly compare the return of investment among several properties before buying, and fourthly bifurcate your depreciation.

Bifurcation is very interesting. It is a separation of depreciable items. For example, there are 3 depreciable items to consider: land improvements, personal property, and the building. Land, of course, is not depreciable. So during bifurcation start with the total cost of the investment, subtract the value of the personal property and the land improvements. This leaves the land with the building. If you want, you can use the Assessor's ratio of land and building value. Subtract the land value from the building. With all components separated, then calculate the depreciation for each component. The building depreciates at different rates depending on whether it is a residential or non residental investment, the personal property depreciates at another rate, and the land improvements depreciate at even another rate.

We also talked about capital gain tax rates. If you ever sell a fully depreciated investment, watch out. You will feel like you got hit by a 200 ton train. To avoid capital gain tax, use the Section 1031 (Starker) tax free exchange.

Something else for current investment property owners to consider is their current rate of return on equity? Is it still as strong as it was originally?

I could go on and on. If you ever get the chance, I recommend attending Mr. Lundstedt's class.

Wednesday, June 2, 2010

Interest Rates

Inconceivable, the 15 yr interest rates today were 4.25% and the 30 yr. rates were 4.875%. What a time to buy! Currently there is an oversupply of homes for sale and the owners of those properties are competitively priced.