HOT HOUSING MARKETS
From Home Valuation Track Veras:
Hottest real estate market for 2011 you ask? The envelope please…. San Diego, California is predicted to be up 3.5%, the only one from California in the top 5. The others:
- Kennewick, Washington
- Pittsburgh, Fargo (you betcha)
- Washington D.C. Coldest
- Reno down 7.2%, trailing is 3 Florida towns and Boise, Idaho.
RENTS
All reports in California are indicating that residential rents are rising. For example, in an Orange County listing from Marcus & Miller’s 2011 National Apartment Report rents are expected to rise 4.5% this year, concessions will be less, the vacancy rate will fall to 4.4%, etc. Some reasons:
- more job creations
- only 300 new units being added this year
- roommates moving out and others losing their homes to foreclosure.
Now could be the time to buy some rentals
TAX LIENS
From Sandra Black, USA Today
The IRS announced last week that it’s significantly reducing the number of liens it issues, and will make it easier for taxpayers with existing liens to get out from under them.
The biggest change affects the trigger for a tax lien. Now, the IRS won’t issue a tax lien unless you owe at least $10,000 in back taxes, double the previous mark of $5,000. This is the first time the IRS has raised the threshold since the 1980s. IRS Commissioner Doug Shulman said the higher threshold will mean that “tens of thousands of people won’t be burdened by liens.”
The IRS also said it’s offering relief to taxpayers who already have liens. What’s new:
- Once they’ve met their obligations, taxpayers can request that the IRS update its public records to show that the lien has been withdrawn.
- Lien filings cause a taxpayer’s credit score to drop an average of 100 points.
- Taxpayers can have tax liens withdrawn by entering into a direct debit installment agreement, as long as the amount of back taxes they owe is $25,000 or less.
If you can’t pay your taxes by the deadline, which is April 18 this year, the worst thing you can do is fail to file a return, Hoffman says.
The penalty for not filing is usually 4.5% of the unpaid taxes for each month the return is late, up to 22.5% of the amount you owe. That’s in addition to interest and late-payment penalties on your unpaid taxes.
THIS OLD ADAGE IS WRONG
Myth: “Take it easy and don’t work so hard. You’ll live longer.” A new book, “The Longevity Project” states after 20 years of Stanford study that people who are still working in their 70’s live longer, so hang in there. I’m still working and my DRE license number is 257862 which means 50 years of licensure this December. I sure hope they’re right in their prediction.
LIGHT BULBS
- Incandescent 75 watt bulbs – no more after 2013
- Incandescent 40 & 60 watt bulbs – no more after 2014
You will be using compact fluorescent bulbs sooner than you think. Just an update so you property managers can stock up on your favorites.
SOCIAL SECURITY REDUCTION
Some of you higher earning couples will receive an extra $4,000 this year from this tax reduction. This extra cash started coming in January. A problem: no one is spending it. Come on, you got extra money, so spend it and help the economy. It is your patriotic duty to get more in debt. Deleveraging is for the weak. Upward and onward.
Also, you can deduct your PMI for 2011 which means about $250 more this year. That is a lot of In & Out Burgers (best restaurant value according to Zagat). Be sure to order your In & Out Burger protein style, no salt. That means wrapped in lettuce instead of a bun, less calories, sodium & fat.
QUICK FACT
From Basex Research:
Business productivity losses due to the cost of unnecessary interruptions from Facebook, Twitter, Yelp, Skype, You Tube, Quora, Zyrga, Video Games, etc. was estimated at $650 billion in 2007. What would you estimate the cost would be in 2011?