Not only have home values have fallen up to 70% in many key markets, making homeownership more accessible to the average buyer, interest rates are at historic lows, meaning that once a home is purchased, monthly payments are smaller than in our recent past.
Today’s median home buyer can expect to pay about 17% of his monthly gross income on his mortgage, compared to a 25% average since 1975. In the 1980's, when interest rates were dangerously near 20%, this would take up nearly 45% of a buyers gross monthly income. In comparison, today's rates are very low.
The main obstacle to homeownership these days, is getting a loant. Although nearly one-third of all home purchases in recent months have been all-cash, that leaves the majority of the market shares requiring financing. So, while it is more difficult for many homeowners to get into the market in today's economy, for buyers who have good credit and adequate savings, homes may never have been more affordable.
Friday, May 6, 2011
Sunday, May 1, 2011
Saturday, April 30, 2011
Friday, April 29, 2011
Here is The BIG problem When You Want To Pay off you Mortgage
After Storms, Home Owners May Struggle to Rebuild
April 29, 2011
A powerful storm system on Wednesday ripped through Southern states, wiping out entire towns and killing at least 209 people so far.
Many home owners in Alabama, Mississippi, Tennessee, Georgia, Oklahoma, and Virginia are finding their homes torn apart, after 137 tornadoes were reported around the regions.
But as home owners look to rebuild, they may find a shortfall in adequate home insurance coverage to cover all of the damages, the USA Today reports.
Most home owner insurance polices provide coverage for tornadoes, and home owners do not have to buy extra coverage like they do for earthquakes or floods. However, research has shown that despite 96 percent of people having homeowners insurance, 64 percent of U.S. homes are undervalued for insurance purposes, according to a 2008 research by Marshall & Swift.
While home values have decreased in many areas, many home owners did not think they still needed to upgrade their insurance. However, building costs in many areas have gone up, insurance experts note.
So let's assume you have $500,000 home equity, there is an earthquake, or a storm or a fire and you lose your home. What happens to your home equity, you have built for the past decades?? IT WILL BE GONE OVERNIGHT, IN IN INSTANT, AS WELL AS ALL YOUR WEALTH.
DO NOT count on your insurance companies to get you all the money you expect to rebuild your house, because it will most likely not happen.
Thus if you want to protect your wealth, you must be prepared and the best way to do that is to MANGAE YOUR HOME EQUITY, SO YOU DO NOT PUT ALL YOUR EGGS IN THE SAME BASKET.
Call The Wealth Creation Team at 1-877 APPLYFREE.
April 29, 2011
A powerful storm system on Wednesday ripped through Southern states, wiping out entire towns and killing at least 209 people so far.
Many home owners in Alabama, Mississippi, Tennessee, Georgia, Oklahoma, and Virginia are finding their homes torn apart, after 137 tornadoes were reported around the regions.
But as home owners look to rebuild, they may find a shortfall in adequate home insurance coverage to cover all of the damages, the USA Today reports.
Most home owner insurance polices provide coverage for tornadoes, and home owners do not have to buy extra coverage like they do for earthquakes or floods. However, research has shown that despite 96 percent of people having homeowners insurance, 64 percent of U.S. homes are undervalued for insurance purposes, according to a 2008 research by Marshall & Swift.
While home values have decreased in many areas, many home owners did not think they still needed to upgrade their insurance. However, building costs in many areas have gone up, insurance experts note.
So let's assume you have $500,000 home equity, there is an earthquake, or a storm or a fire and you lose your home. What happens to your home equity, you have built for the past decades?? IT WILL BE GONE OVERNIGHT, IN IN INSTANT, AS WELL AS ALL YOUR WEALTH.
DO NOT count on your insurance companies to get you all the money you expect to rebuild your house, because it will most likely not happen.
Thus if you want to protect your wealth, you must be prepared and the best way to do that is to MANGAE YOUR HOME EQUITY, SO YOU DO NOT PUT ALL YOUR EGGS IN THE SAME BASKET.
Call The Wealth Creation Team at 1-877 APPLYFREE.
Wednesday, April 27, 2011
Life Insurance & It's Tax Benefit Implications
Most everyone believes that life insurance proceeds are tax free. This is true if there is advance planning in terms of how the policy is owned and paid for.
Many are not aware that while in most instances life insurance proceeds are not taxable as income those proceeds do not necessarily avoid estate taxes, and is a major failure in planning in many instances with very harsh if not rude awakening for the intended beneficiaries generally when they are in the most need of financial assistance when the main income provider of the family has passed away.
Life insurance should be a key element of a personal financial plan but part of the plan should be as to how that policy or policies are held. With some advance planning, the proceeds from a life insurance policy can be entirely free of taxes.
The main reason most people in the early part of family life have life insurance is to replace income for their young family that would be lost should they die prematurely. Life insurance death benefit payments can generally be received by policy beneficiaries free of any federal and state income taxes if the policies are purchased at the personal level as opposed to some corporate policy, which if properly planned for can also be excluded from income taxes. This is not to say that the proceeds escape estate taxes, they do not unless handled properly, and can be highly financially detrimental if the proceeds are in fact includable in the estate of the deceased.
For estate tax purposes life insurance is part of your personal estate if you are the owner of the policy on your own life. There is an exemption if the proceeds go to your surviving spouse, and he or she is a U.S. citizen. This is a key issue with the increase in foreign nationals now residing here in the U.S. and further planning in those instances is necessary.
When death benefits go directly to a non-spouse beneficiary, such as a child or sibling (even without passing through your estate), the proceeds are includable in your taxable estate.
Should your estate exceed $5 million (for 2011 or 2012) including life insurance coverage, property net of any debt, investments, cash, and any other assets net of any liabilities your heirs will stand second in line behind the Internal Revenue Service and possibly the state.
An overall plan should be in place should your estate exceed the exemption amount, and even estates of lesser value should in fact have an estate and trust in place coordinated with your life insurance to avoid other possible legal and tax problems. The issue is that once you have passed away you have no say so, nor can you assert your desires as to how your beneficiaries are to be taken care of financially without a plan in place before you pass on. Without a written plan many estate problems occur as there are many differing agendas in play by those that you leave behind.
One planning technique to avoid estate taxes is to have the life insurance policy placed in an irrevocable life insurance trust which is a separate entity all unto itself and outside your estate. The trust is required to pay the premiums, and the death benefits go to whomever you name as the trust's beneficiaries. By utilizing this technique the entire death benefit escapes the estate of the deceased and therefore avoids federal estate tax on the death benefits.
Setting up an estate plan is a fairly sophisticated legal procedure which requires the assistance of an experienced team of at the minimum an estate planning attorney, an accountant conversant in such matters, and your life insurance agent.
Many are not aware that while in most instances life insurance proceeds are not taxable as income those proceeds do not necessarily avoid estate taxes, and is a major failure in planning in many instances with very harsh if not rude awakening for the intended beneficiaries generally when they are in the most need of financial assistance when the main income provider of the family has passed away.
Life insurance should be a key element of a personal financial plan but part of the plan should be as to how that policy or policies are held. With some advance planning, the proceeds from a life insurance policy can be entirely free of taxes.
The main reason most people in the early part of family life have life insurance is to replace income for their young family that would be lost should they die prematurely. Life insurance death benefit payments can generally be received by policy beneficiaries free of any federal and state income taxes if the policies are purchased at the personal level as opposed to some corporate policy, which if properly planned for can also be excluded from income taxes. This is not to say that the proceeds escape estate taxes, they do not unless handled properly, and can be highly financially detrimental if the proceeds are in fact includable in the estate of the deceased.
For estate tax purposes life insurance is part of your personal estate if you are the owner of the policy on your own life. There is an exemption if the proceeds go to your surviving spouse, and he or she is a U.S. citizen. This is a key issue with the increase in foreign nationals now residing here in the U.S. and further planning in those instances is necessary.
When death benefits go directly to a non-spouse beneficiary, such as a child or sibling (even without passing through your estate), the proceeds are includable in your taxable estate.
Should your estate exceed $5 million (for 2011 or 2012) including life insurance coverage, property net of any debt, investments, cash, and any other assets net of any liabilities your heirs will stand second in line behind the Internal Revenue Service and possibly the state.
An overall plan should be in place should your estate exceed the exemption amount, and even estates of lesser value should in fact have an estate and trust in place coordinated with your life insurance to avoid other possible legal and tax problems. The issue is that once you have passed away you have no say so, nor can you assert your desires as to how your beneficiaries are to be taken care of financially without a plan in place before you pass on. Without a written plan many estate problems occur as there are many differing agendas in play by those that you leave behind.
One planning technique to avoid estate taxes is to have the life insurance policy placed in an irrevocable life insurance trust which is a separate entity all unto itself and outside your estate. The trust is required to pay the premiums, and the death benefits go to whomever you name as the trust's beneficiaries. By utilizing this technique the entire death benefit escapes the estate of the deceased and therefore avoids federal estate tax on the death benefits.
Setting up an estate plan is a fairly sophisticated legal procedure which requires the assistance of an experienced team of at the minimum an estate planning attorney, an accountant conversant in such matters, and your life insurance agent.
How To Price a Home For Sale
Your reasons for selling and how long you can wait will be an important part of your decisions on pricing your home. The value of your home is almost entirely dependent on what someone is willing to pay for it and how long you are willing to wait to find that person. Most sellers are not in the position to wait for the "ideal" buyer who will pay their "ideal" price. They want to find the optimum price at which their home will sell in a limited amount of time.
Typically, the most interest is generated in the first few weeks a home is listed. If you want to sell your home fast, you'll want to price it so that it stands out from your competition and comparable homes on the market. If you are willing to wait and to endure continuous showings, you can afford to price it above the competition. Sellers who try to hold out for the highest price, however, may find themselves reducing the price down the line. A house that has been on the market beyond the average marketing time generates little interest from buyers, even when the price is reduced dramatically. Most buyers will assume that the home has problems that they, understandably, want to avoid.
Typically, the most interest is generated in the first few weeks a home is listed. If you want to sell your home fast, you'll want to price it so that it stands out from your competition and comparable homes on the market. If you are willing to wait and to endure continuous showings, you can afford to price it above the competition. Sellers who try to hold out for the highest price, however, may find themselves reducing the price down the line. A house that has been on the market beyond the average marketing time generates little interest from buyers, even when the price is reduced dramatically. Most buyers will assume that the home has problems that they, understandably, want to avoid.
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