When showing houses, I run into some pretty neat ideas from time to time and just want to share one of those with you today. One of the biggest challenges for those living in smaller homes is storage space. We always hear of the storage sheds or garage storage solutions and they are certainly something to think about. However, what about the space between the studs in the walls?
At first it sounds kind of crazy, but they actually make medicine cabinets specifically for this type of placement. I have also seen these types of cabinets used in sewing rooms, home offices and garages to get additional storage space without loosing an inch of space. It reminds me a little of the old telephone nooks where your phone would reside literally in “the wall”. Maybe I’m showing my age here but they really did exist. It’s just another idea to have in your tool belt of ideas when looking at storage options in a small home.
One of the best things you can do to make a space look bigger no matter if it’s a bathroom, bedroom, kitchen or living room is to use mirrors. Mirrors make a space feel bright and spacious. Though you can use one large mirror, think about using a series or grouping of mirrors.
I recently was in a home that had a grouping of mirrors hung over an armoire on a very tall wall and it made the room look incredibility larger than it really was. The mirrors also caught the sun shining through the windows and brightened the room with an array of natural light. Because the mirrors were of different shapes and sizes, the light seemed to be diffused and softer than a direct stream of light. It was a wonderful effect that would be very easy to emulate, and on a budget as well.
From all the information I have received and read up to this point, this is what I have come to understand about the potential solution put forth by the Treasury Department.
The government is offering to purchase the bad debt ( and potential bad debt) the financial companies have accumulated for a small percentage of the value of said debt. This allows the financial companies the ability to get these debts off their books so they don’t have to hold capital in reserve for these debts. This allows those financial companies to free up the capital they have been required to hold back and interject it back into the credit markets keeping them viable.
Of course this is not to say that the lending practices will be allowed to go back the way they were. There have been changes over the last 18 months that have made the mortgage markets and other credit markets much tighter with stricter guidelines and regulations. Once the government has the bad debt they will try to sell it for more than they bought it for so the taxpayer doesn’t loose money.
What no one seems to be able to predict is whether this will really work or not; whether this will devalue the dollar even further; will this stimulate the housing market thus keeping the economy moving in the right direction; and how much will this actually cost the taxpayer? Like I said, this is only how I understand this situation thus far and it could change tomorrow. I am just glad there are those smarter than I who are dealing with this ongoing situation.
Here is the best explanation I have come up with in regard to the financial situation and how it will affect the real estate and mortgage business if left unchecked. The first thing that most people do not know is that the banks have to hold money in reserve (capital) against current losses and potential future losses of the bad debt (loans).
This has taken a lot of money that is normally in the market to lend, out of the market. As more and more loans become delinquent, more money is held back in reserve (by law) to cover the potential delinquencies. This market behavior will eventually tip the balance and cause a lack of liquidity, take money out of the market for lending and cause the credit markets to freeze up. This is where we are right now as there is little to no new capital coming into the mortgage market and other credit market areas.
Despite some of the recent press about Downtown Nashville condo development, the fact is, Downtown is seeing continued growth. While the suburbs somewhat mirror the slow down in the overall housing market, recent data indicates that there have actually been more sales of condos downtown in the first two quarters of 2008 than the entire 2007 year. It is also expected that over 900 additional units will close between now and the end of the year.
This is indicative of the trend that had been predicted in recent years of people moving back to urban centers from the suburbs. Some think this was exacerbated by the current economic uncertainties including food and gas prices. Whatever the reason, this trend is gaining strength as there is more and more demand to come back to the cities and live in metro areas.
For those who are wondering about condo prices, information released by the Greater Nashville Association of Realtors June data for 2008 shows that the median price of condominiums surpassed the medium price of single-family homes in Nashville. This is the first time this has ever happened in our area. The average condo sold for $185,500, which is a 19% increase over the previous year.
During the past year with all the reports of such a gloom and doom picture with the price of gas and the housing crisis that is still apparent leading the way to a potential recession, it is no wonder that consumer confidence is at a 16 year low. What you’re not being told that affects us here in Nashville is that the Office of Federal Housing Oversight issued a report indicating that our real estate market remains stable and will most likely not realize downward pressure in housing prices.
This is excellent news as Nashville posted a gain of 3.9% over the last year putting it in the top 20 percentile for metro areas. One reason we hear and see all the bad news is just that; it’s bad news and makes a great story. The fact that the housing price corrections have been limited to about one-third of the metro areas in the nation apparently is not news. That’s not to say those cities should be forgotten, but we need to be educated about what is really going on in our area and I hope this helps.
It’s the time of year we prepare for school to start back, football to begin (mainly the Tennessee Titans!) and start to clean up the yard as we get ready for the winter months ahead. It’s also a great time to lay the foundation for a yard or garden path.
We stop mowing the lawn as much and the flowers and gardens start to slowly fade away as growing comes to its bitter end. What a perfect time to get out and lay some paving stones, rock or slab. This will help the growth stay away next spring where you want it to, leaving you with a beautiful pathway!
If you lay newspaper underneath the stones or slab it will help suffocate that growth as well as deteriorate over time making the process “green”. My husband’s favorite part about working in the yard this time of year is the weather. The cooler mornings and evenings are perfect for a little yard work.
Every buyer needs to know some basic information about the electrical system of the home they are considering purchasing. Those questions are quit simple and do not require the assistance of an electrician. The seller’s agent (realtor) should also be able to tell you about it as well.
Here are some basic but important questions to ask:
- Where’s the fuse box? (AKA breaker box and main panel box)
- This allows you to take a look and make sure everything seems to be okay
- Does the home have 220 volt service?
- This will allow you to hook up modern day dryers, air-conditioners and other higher voltage appliances
- Are the plugs or outlets in the house grounded?
- Grounded plugs protect you from escaping electrical current
For some of you these questions will seem to be elementary but it is important when looking at older homes. As many older homes have been renovated and have upgraded their electrical systems, there are many that have not been renovated or upgraded and it’s important to ask these questions before you buy.
It wasn’t that long ago that Nicholas Tesla invented the current way we receive electricity at our homes. If history is correct, had he not won the alternate current verses the direct current, we would all have direct electric plants in our neighborhoods since this type of electricity can not go near as far as the alternating current can.
Alternating currents are generated by a power plant and sent to transformers that lower the voltage that your local distribution center can handle and get to your house safely. This is referred to as an “on grid” method and in most communities, you are required to be “on grid” by law.
However, electricity is changing with the advent of solar electrical systems and generators and wind turbines. These electricity generating systems can be added to your home and you can generate all the electricity you need and more.
You would think this would make the electric companies angry but you would be wrong. In fact, there are many electric companies that will buy the access electricity your system generates from you. It is defiantly something to consider if you are looking to build or renovate a home.
Have you heard about the latest tax credit for first time homeowners? If you purchase a home between April 9, 2008 and June 30, 2009, you may be eligible for a tax credit. You will need to check with your accountant or tax preparer to find out if you qualify for this credit or not. Like all such tax issues, this will depend on a number of factors.
But before you jump up and down with delight, you need to know that this credit is more like an interest free, fifteen year loan. In other words, you have to pay it back over time (15 years). You will be able to claim the lesser of $7,500 or 10% of the price of your home. Basically, any home over the selling price of $75,000 can claim $7,500 and a purchase price under $75,000 will be eligible to claim up to 10% of the purchase price.
There are nuances about when you have to start paying the credit back, what happens if you sell your home before you get the credit paid back in full and what if you sell your home at a loss? These are all things you will need to go over with a tax preparer.
If you have used another government program like THDA to buy a home during this time frame, you cannot qualify for this tax credit. A family or person can use only one type of assistance to get into a home. Just like THDA, there is an income cap that must be met for qualifiers. For this tax credit, if you’re single, the credit is not available if you earn more than $75,000 per year, or $150,000 for joint filers. It is unavailable completely if you earn $95,000 individually or $170,000 jointly.
The government is attempting to boost the housing market and get the economy started with this tax credit. However, be very careful and make sure you qualify for it before you start making plans to buy because if you don’t qualify, it could be a tax nightmare. Again, check with the person or company that does your taxes and make sure this is a good move for you to make.
