Sacramento CA Real Estate Podcast with Thomas March

Turn on the television or scroll through Facebook, and chances are you'll see at least one advertisement for a group or “guru” who promises to teach you how to “get rich quick” through real estate investing. The truth is, much of what they're selling are high-risk tactics that aren't a good fit for the average investor. However, there is a way to make steady, predictable, low-risk income through real estate investing. In this blog post, we'll examine the tried-and-true tactics that can be used to increase your income, pay off debt … even fund your retirement!WHY INVEST IN REAL ESTATE?One of the basic principles of real estate investment lies in this fact: everyone needs a place to live. And according to the Bureau of Labor Statistics' most recent Consumer Expenditures Survey, housing is typically an American's largest expense.1 But there are other reasons why real estate is a great investment choice, and we've outlined the top five below:1. AppreciationAppreciation is the increase in your property's value over time. History has proven that over an extended period of time, the value of real estate continues to rise. That doesn't mean recessions won't occur. The real estate market is cyclical, and market ups and downs are natural. In fact, the U.S. housing market took a sharp downturn in 2008, and many properties took several years to recover their value. However, in the vast majority of markets, the value of real estate does grow over the long term.The S&P CoreLogic Case-Shiller National Home Price Index, which tracks U.S. residential real estate prices, released its latest results on August 29 with the headline “National Home Price Index Rises Again to All Time High.”2While no investment is without risk, real estate has proven again and again to be a solid choice to invest your money over the long term. 2. Hedge Against InflationInflation is the rate at which the general cost of goods and services rises. As inflation rises, prices go up. This means the money you have in your bank account is essentially worth less because your purchasing power has decreased. Luckily, real estate prices also rise when inflation increases. That means any money you have invested in real estate will rise with (or often exceed) the rate of inflation. Therefore, real estate is a smart place to put your money to guard against inflation.3. Cash FlowOne of the big benefits of investing in real estate over the stock market is its ability to provide a fairly steady and predictable monthly cash flow. That is, if you choose to rent out your investment property to a tenant, you can expect to receive a rent payment each month. If you've invested wisely, the rent payment should cover the debt obligation you may have on the property (i.e. mortgage), as well as any repairs and maintenance that are needed. Ideally, the monthly rental income would be great enough to leave you a little extra cash each month, as well. You could use that extra money to pay off the mortgage faster, cover your own household expenses, or save for another investment property.Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase, until you own the property free and clear … leaving you with residual cash flow for years to come.As the owner, you will also benefit from the property's appreciation when it comes time to sell. This can be a great way to save for retirement or even fund a child's college education. Purchase a property when the child is young, and with a little discipline, it can be paid off by the time they are ready to go to college. You can sell it for a lump sum, or use the monthly income to pay their tuition and expenses.4. LeverageOne of the unique features that sets real estate apart from other asset classes is the ability to leverage your investment. Leverage is the use of borrowed capital to increase the potential return of an investment. For example, if you purchase an investment property for $100,000, you might put 10% down ($10,000) and borrow the remaining $90,000 in the form of a mortgage.Even though you've only invested $10,000 at this point, you have the ability to earn a profit on the entire $100,000 investment. So, if the property appreciates to $120,000 – a 20% increase over the purchase price – you still only have to pay the bank back the original $90,000 (plus interest) … and you get to keep the $20,000 profit. That means you made $20,000 off of a $10,000 investment, essentially doubling your money, even though the market only went up by 20%! That's the power of leverage. 5. Tax AdvantagesOne of the top reasons to invest in real estate is the tax benefit. There are numerous ways a real estate investment can save you money each year on taxes:DepreciationWhen you record your income from a rental property on your annual tax return, you get to deduct any expenses associated with the investment. This includes interest paid on the mortgage, maintenance, repairs and improvements, but it also includes something called depreciation. Depreciation is the theoretical loss your property suffers each year due to aging. While it's true that as a home ages it will structurally need repairs and systems will eventually need to be replaced, we've also learned in this post that the value of real estate appreciates over time. So getting to claim a “loss” on your investment that is actually gaining in value makes real estate an appealing investment choice.Serial Home SellingEven if you're not interested in owning a rental property, other types of real estate investments offer tax advantages, as well. Generally, when you own an investment property you pay a capital gains tax on any profits you make when you sell the property. However, when you sell your principal residence, you are exempt from paying taxes on capital gains (up to $250,000 for singles and $500,000 for couples). The Internal Revenue Service (IRS) only requires that you live in the house for two of the previous five years. That means you can purchase an investment property, live in it while you remodel it, and then sell it for a tax-free profit two years later. This can be a great way to get started in real estate investing.Section 1031 ExchangesIn addition to profiting off of your personal residence tax free, it is possible to sell an investment property tax free if you do it through a 1031 Exchange. If structured properly, the IRS Tax Code enables an investor to sell a property and reinvest the proceeds in a new property while deferring all capital gains taxes.Tax-Deferred Retirement AccountIt's a common misconception that you can only purchase financial instruments (i.e. stocks, bonds, mutual funds, etc.) through an Individual Retirement Account (IRA) or 401(k). In actuality, the IRS allows individuals to invest retirement funds in real estate and other alternative types of investments, as well. By purchasing your investment property through an IRA, you can take advantage of all of the tax savings these accounts offer.Be sure to consult a tax professional regarding all tax matters related to your real estate investments. If structured correctly, the profits you earn on your real estate investments can be largely shielded from tax liability. Just another reason to choose real estate as your preferred investment vehicle.TYPES OF REAL ESTATE INVESTMENTSWhile there are numerous ways to invest in real estate, we're going to focus on three primary ways average investors earn money through real estate. We touched on several of these already in the previous section.1. Remodel and ResellHGTV has countless “reality” shows featuring property flippers who make this investment strategy look easy. Commonly referred to as a “Fix and Flip,” investors purchase a property with the intention of remodeling it in a short period of time, with the hope of selling it quickly for a profit.This is a higher-risk tactic, and one for which many of the real estate “gurus” we talked about earlier claim to have the magic formula. They promise huge profits in a short amount of time. But investors need to understand the risks involved, and be prepared financially to cover additional expenses that may arise. Luckily, an experienced real estate agent can help you identify properties that may be good candidates for this type of investment strategy… and help you avoid some of the pitfalls that could derail your plans.2. Traditional RentalOne of the more conservative choices for investing in real estate is to purchase a rental property. The appeal of a rental property is that you can generate cash flow to cover the expenses, while taking advantage of the property's long-term appreciation in value, and the tax benefits of investing in real estate. It's a win-win, and a great way for first-time investors to get started. And according to the U.S. Bureau of Labor Statistics, rents for primary residences have increased 21.9 percent between 2007 and 2015 as demand for rental units continues to grow.3. Short-term RentalWith the huge movement toward a “sharing economy,” platforms that facilitate short-term rentals, like Airbnb and HomeAway, are booming. Their popularity has spurred a growing trend toward dual-purpose vacation homes, which owners use themselves part of the year, and rent out the remainder of the time. There are also a growing number of investors purchasing single-family homes for the sole purpose of leasing them on these sites.Short-term rentals offer several benefits over traditional rentals, which many investors find attractive, including flexibility and higher profit margins. However, the most profitable properties are strategically located near popular tourist destinations. You'll need an experienced real estate professional to help you identify the right property if you want to be successful in this highly-competitive market.DOES REAL ESTATE INVESTING SOUND TOO GOOD TO BE TRUE?We've all heard stories, or maybe even know someone, who struck it rich with a well-timed real estate purchase. However, just like any investment strategy, a high potential for earnings often goes hand-in-hand with an increase in risk. Still, there's substantial evidence that a well-executed real estate investment can be one of the best choices for your money.Purchasing a home to remodel and resell can be highly profitable, as long as you have a trusted team in place to complete the remodel quickly and within budget … and the financial means to carry the property for a few extra months if delays occur.Or, if you buy a house for appreciation and cash flow, you can ride through the market ups and downs without stress because you know your property value is bound to increase over time, and your expenses are covered by your rental income.In either scenario, make sure you're working with a real estate agent who has knowledge of the investment market and can guide you through the process. While no investment is without risk, a conservative and well-planned investment in real estate can supplement your income and set you up for future financial security.If you are considering an investment in real estate, please contact us to set up a free consultation. We have experience working with all types of investors and can help you determine the best strategy to meet your investment goals.Sources:1.     Bureau of Labor Statistics Consumer Expenditure Survey Annual Report  – https://www.bls.gov/opub/reports/consumer-expenditures/2015/home.htm2.     S&P Dow Jones Indices Press Release –https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/574349_cshomeprice-release-0829.pdf?force_download=true3.     Durden, T. (2016 November 29). US Home Prices Rise Above July 2006 Levels, Hit New Record High [blog post] ZeroHedge  –http://www.zerohedge.com/news/2016-11-29/us-home-prices-rise-above-july-2006-levels-hit-new-record-high

If you’re in the market for a new home or investment property, one of the first questions you’ll probably ask is, “What can we afford?” Many buyers become so caught up in how much they can afford that they don’t realize their total buying power—that is, the total amount of purchasing potential they actually have.Buying Power DefinedYour buying power is comprised of the total amount of money you have available each month for a mortgage payment. This means the money you have each month after fixed bills and expenses. Any money you’ve saved for a down payment, the proceeds from the sale of your current home, if applicable, and the amount of money you’re qualified to borrow all impact your buying power as well. When you take all of this into account, you may find you are able to purchase a larger home or a home in a more desirable neighborhood, or you might realize you should be looking for homes in a lower price range.What About Housing Affordability?Housing affordability is a metric used by real estate experts to assess whether or not the average family earning an average wage could qualify for a mortgage on the average home.1 Although this figure is essential to creating a comprehensive overview of the real estate market, it’s not a factor you should consider in your home search. What may be considered affordable to you based on your income and other factors may be different than what’s affordable to the average buyer.Why Buying Power MattersA common misunderstanding is that a home’s list price determines whether or not you can purchase it. Although it’s important to look at the price tag, it’s essential to consider what your monthly payment will be if you own the home. After all, the purchase price doesn’t include the housing-related expenses, such as annual property taxes, homeowner insurance, associated monthly fees and any maintenance or repairs. Figuring out the payment will prevent you from overestimating or underestimating your buying power. After all, you’ll live with your monthly payment, not the sales price.Once you have clarity on your buying power, you’ll be able to buy the home you want, instead of settling for a home because you feel it’s the only one you can afford. It will also prevent you from becoming “house poor,” a common term for someone who’s put all their money toward the down payment, leaving them nothing left over for fees outside of their monthly house payment. Both scenarios can negatively impact the lifestyle you want to live. Understanding your buying power can help you get the home you want without sacrificing the lifestyle you desire.If you haven’t sold your current home yet, a Comparative Market Assessment (CMA) will give you a general idea of how much you may get for your home based on what other homes have sold for in your area. Contact our team for a FREE CMA!  Calculating Your Buying PowerYou might be wondering, “How do I know what my buying power is?” Buying power is calculated by adding the money you’ve saved for a down payment and/or the money you made from selling your home (minus fees and mortgage payoff) to all of your sources of income and investments that could be used to make your monthly payment. Make sure to include your monthly pay, commissions or tips, dividends from investments, payments from rental properties or other monthly income you receive as well as the loan amount you’re willing to finance and qualify for.Most lenders advised buyers to spend no more than 35 to 45 percent of their pretax income on housing, meaning all your income and sources of revenue prior to paying taxes. Make sure you factor in not only your mortgage payment, but also property tax and home insurance to the cost of housing.2 However, other financial experts advise spending no more than a very conservative 25 percent of your after-tax income on your housing expenses.2  Whether you plan to spend the average, play it conservative or split the difference is up to you.Traditionally, mortgage lenders have targeted the ideal housing expense amount to be a ratio of 28 percent or less.3 However, these figures bring up an important point: you don’t have to spend all of your savings and available monthly income on a mortgage payment. It’s important to set money aside for regular home maintenance, unexpected repairs and monthly fees, such as a condominium or homeowners association fee. While the above ratios are commonly accepted, a lender will look at your total financial picture when they decide how much they’re willing to lend. It may be tempting to take out a large loan in order to purchase the home of your dreams, but keep in mind the less money you have to borrow, the stronger your buying power may be.4 Things That Impact Buying Power1. Credit score. A great score can help you lock into a lower interest rate.2. Debt-to-income ratio. The lower the ratio, the better risk you may be to lenders as long as you have an established credit history.3. Assets, including the documentation of where the money for the purchase is coming from and the mix of your investments.4. Down payment. The more you’re able to put down, the less you will have to borrow. With a down payment of 20 percent or more, you won’t have to purchase private mortgage insurance (PMI) and you may also be able to negotiate a lower interest rate.How to Save for a Down PaymentIf you’re thinking of buying a home one day, one of the first steps to take is to start saving for a down payment. Here are some tips to make saving easier.First-time buyers:1. Set a savings goal. One way to figure out how much to save is to use the average sales price for homes that are similar to what you want and figure out your target down payment percentage. For example, if homes are selling for $200,000 in your area and you want to put 20 percent down, you’ll have to save $40,000. Set a goal to save that amount within a specific time frame; just keep in mind the longer you save, the more the average selling price will change. Although the majority of buyers saved for six months or less, 29 percent of all buyers (and 31 percent of first-time buyers) saved for more than two years for a down payment.42. Cut back on expenses. Review your monthly expenses and look for ways to save. Twenty-nine percent of buyers cut spending on non-essentials items and 22 percent cut spending on entertainment while they were saving for a home.4 Think about items you can live without or cut back on temporarily while you’re saving.3. Look for ways to boost your income. Get a side job or sell items online or at a garage sale to increase your income in a short amount of time. Be sure to save any windfalls you get, including your annual income tax refund or work bonuses.4.  Check out home-buying programs. Your state, county or local government may offer special programs, such as grants, for first-time buyers to use.5. Ask your family. Thirteen percent of all buyers, and 24 percent of first-time buyers, were given money from family or friends to use toward the down payment of their home.4 Repeat buyers:More than 52 percent of repeat buyers used the proceeds from the sale of their primary residence toward the down payment on their next home.4 Similarly, 76 percent tapped into their savings accounts.4 If you’re thinking of buying another home, here are more ways to save more money, in addition to the tips listed above:1. Rent a room. If you have an income flat (or mother-in-law unit) attached to your home, rent it out and channel the income into a high-interest savings account.2. Make your money work for you. If you don’t plan to buy for at least five years, invest it and let the compound interest work for you. Discuss this option with your financial planner or broker to see if this is ideal for you and your goals.3. Tap into your 401(k). If you have a 401(k) plan, you may be allowed to borrow a portion of it, the lessor of up to $50,000 or half of its value, for your down payment. Remember, it’s a loan so you’ll have to pay it back. If you leave or lose your job before you’ve repaid the loan, you’ll have between 60 to 90 days to repay the balance or face stiff taxes and penalties.If you want to buy an investment propertyWhether you’re buying a second home or a rental property, here are a couple tips to save for a down payment.1. Tap into your equity. If you’ve paid off or paid down your mortgage on your primary home, you may be able to tap into your equity to purchase another property. Contact your lender to learn more about a HELOC or home equity loan.2. Get a partner. Find a friend or relative who’s willing to purchase property with you. Typically, you’ll split the costs and profits equally. Just make sure to work with an attorney to create a partnership agreement to fit your situation.Work Out Your Buying PotentialWhat’s your buying potential? Fill out this worksheet to get an estimate. Housing Expense Ratio: 1. Monthly income before taxes $ 2. Multiply line 1 by 0.28 X 0.28 3. Monthly mortgage payment (PITI) should not exceed this amount = $ 4. Monthly income before taxes $ 5. Multiply line 4 by 0.36 X 0.36 6. Total monthly payments on all debts (including mortgage) should not exceed this amount = $ 7.  Subtract the total monthly payments on all outstanding debts (e.g., car loans, credit cards, student loans, etc.) - $ 8. The monthly mortgage payment should not exceed this amount $ 9. Look at line 3 and line 8. The lower figure is an estimate of the maximum mortgage payment in consideration of your income and debts. $ 10. Multiply line 9 by 0.80 X 0.80 11. This equals portion of your mortgage payment that is the principal and interest only $ 12. Use the table below to see the size of the loan you may be able to obtain with this monthly mortgage payment. Monthly Payment on 30-Year Fixed Rate Mortgage Loan amount 3% 3.5% 4% 4.5% 5% 5.5% 6% $50,000 211 225 239 253 268 284 300 $75,000 316 337 358 380 402 426 450 $100,000 421 449 477 506 536 568 600 $150,000 632 674 716 759 804 852 900 $200,000 842 898 954 1012 1072 1136 1200 $250,000 1052 1123 1193 1265 1340 1420 1500 $300,000 1263 1347 1431 1518 1608 1704 1800 Didn’t see your desired loan amount? Use the table below to estimate your monthly payment (principal and interest) per $1,000 of your loan. To figure out an estimated loan payment, multiply the factor by the number of thousands in the amount of your mortgage. For example, if you intend to borrow $400,000, with a loan term of 30 years at 4% interest, multiply 4.77x 400 = $1908 per month. Interest Rate 15-Year Term 30-Year Term Monthly Payment Monthly Payment 3% 6.90 4.21 3.5% 7.14 4.49 4% 7.39 4.77 4.5% 7.64 5.06 5% 7.90

The current trends are all about utilizing rich color, maximizing texture and creating comfortable interiors you can’t wait to relax in. Use these trends to get inspired to makeover your home’s interiors and create spaces you love that also appeal to your personal style. Remember, if you plan to sell in the next few years, you may want to avoid doing anything dramatic and instead incorporate small changes that would appeal to buyers.Why are these trends gaining popularity?The underlying theme of these trends is creating a home environment you love; one that appeals to your emotions and feels like a retreat from the stresses of the world. Although the home is a place where you can relax and spend time with loved ones, work expectations are beginning to blur the line between work and home. Even if people don’t work from home specifically, many are stretching their work hours into their evenings and weekends to complete work projects. It’s no wonder the Nordic concept of hygge (most often pronounced “hoo-gah”) has become a hot trend. A centuries-old concept, incorporating hygge in the home means creating simple and comfortable spaces that make you feel cozy and safe and appeal to your senses.1 The emphasis is on simplicity and fostering positive experiences, whether you’re spending time with family, reading a good book or catching up on work emails.WARM AND RICH COLORS.Whether you want to play with a bold color or stick with neutrals, one thing is clear—paint is the foundation of a great design. Painting your interiors has a return on investment of about 75 percent and is a relatively inexpensive project to complete, costing between $25 to $100 for paint alone.2 If you’re thinking of refreshing your home’s interiors with a coat of paint, popular colors include warm taupe, fresh green and dark tones. These colors are popular choices because they evoke feeling of warmth and coziness when you walk into a room.Wondering how to pair these colors? Taupe is the perfect alternative to traditional neutrals, such as gray and white, and goes well with cool blues, earthy greens and deep shades of wine.  Green goes well with other earthy shades, such as copper and moss, as well as deep plum and bright pink. If you’re hesitant to paint your walls green, incorporate it into your home by way of accent pillows, rugs, lamps, vases and other accessories or add a few house plants.                 If you’re interested in adding more drama to a room, include bold, dark colors.  Dark shades add color and sophistication to any space. Plum and dark gray pair well with pale blues, warm whites and light gray.Try one of these Colors of the Year: Poised Taupe – Sherwin Williams            Greenery - Pantone Shadow – Benjamin MooreRICH MATERIALS.Lux materials create a space in which you can’t wait to kick off your shoes and relax at the end of the day. The Danes use a mixture of materials and pattern as a way of adding character and interest; however the overall look still needs to adhere to a color palette to prevent it from looking distracting. Natural materials and textures allow you to maximize the comfort of the bedroom, living room or family room. Wood accents give rooms an earthy feel. Incorporate rustic wood sculptures, trays and furniture into your space. Choose furniture made with sustainably harvested wood certified by the Forest Stewardship Council (FSC) or use reclaimed wood for an environmentally friendly alternative.If natural elements aren’t your style, but you want to add more visual interest to your room, try mixing patterns. Although it may have been avoided in the past, mixing stripes, florals and geometric prints actually help ground a space as long as the patterns feature complimentary colors or different shades of one color. If you’re worried about going overboard and making your room look “busy,” focus your mix in one area of the room. For example, add throw pillows in a variety of patterns to your sofa.GOING GREEN.According to a recent study from the American Psychological Association, people are more stressed than ever, with 24 percent of adults reporting they’re experiencing “extreme stress.”3 Top sources of stress include work and money. By incorporating small changes, like making your house more energy efficient, you can start to lower your bills and get back to relaxing and enjoying life like the Danish do (who consistently top the polls as the happiest people).Save money on your energy bills by sealing the “envelope” of your home, which includes the windows and doors, walls, floor and roof. The better insulated your home is, the less heat will escape and the lower your energy bill (and stress level) will be.  The most heat loss occurs through the walls of the home: up to 35 percent of heat loss, to be exact.4 Ceramic insulating paint is a space-inspired coating of paint mixed with ceramic compounds and applied to interior or exterior surfaces. It seals your walls and prevents heat from escaping, which means reduced energy bills all year long.THE FUNCTIONAL HOME OFFICE.Twenty-four percent of employed people do some or all of their work at home.5 Since more people are working remotely than ever, home offices are becoming more popular. Even if you don’t plan on working from home, a home office gives you a place to pay bills, work on personal projects, plan your family’s schedule and more. Home offices tend to be multifunctional, serving as a guest room when family and friends visit, and have the potential to meet other needs that arise. The key idea behind hygge is to enjoy the environment around you and for each room to be a sanctuary to sink into at any given moment. Your home office is no exception! Maximize your productivity, efficiency and focus by painting the walls shades of green or blue.6 If space is an issue, create a nook by installing docking and tech cabinets that are big enough to store a printer and other small office equipment and files without taking over the room.If you don’t have room in your home for an office, look no further than your backyard. Shedquarters, small structures or sheds built in the backyard for use as an office or home-based business, are an attractive option for homeowners who don’t have a room to dedicate to an office and don’t wish to add on their homes. while the jury is out on how much value these structure add to a home, they can convert easily into a storage shed if you plan to sell in the future.          SPLURGING ON KITCHEN RENOVATIONS.The kitchen is often the busiest, most hectic room in the house and one of the top renovation projects with a high return on investment.7 We do more than cook meals there; it’s where homework is done, bills are paid, weeks are planned and more. Kitchen remodels consistently show a respectable return on investment. According to the 2017 Cost vs Value Report from Remodeling magazine, a minor kitchen remodel touts an 80.2 percent return on investment.8 You don’t need to overhaul your entire kitchen to make it more hygge. Smaller additions can transform it into a relaxing and functional space you enjoy spending time with friends and family in.What does a “minor kitchen renovation” entail? In addition to replacing the fronts of your cabinets and drawers, it also includes replacing out-of-date appliances and fixtures. You may also consider replacing countertops. Quartz and quartzite are becoming more common as are other green laminate options, including ones that mimic stone, wood and concrete. Laminates install in less time, often over the existing countertop, make it an ideal choice for busy homeowners as well. Other hot kitchen trends include incorporating sustainable materials like bamboo into your countertops and floors and water filtration systems.                 Want to improve the look and feel of your home’s interior? Are you thinking of upgrading to a home that better fits your changing needs? Call us—we’d love to help you achieve all of your home-related dreams.Sources:  1. Time, Hygge, the Nordic Trend That Could Help You Survive 2016                2. Quality Smith                3. American Psychological Association, 2015 Stress in America4.  Department of Energy5. Department of Labor                6. Entrepreneur, How the Color of Your Office Impacts Productivity                7. Realtor.com                 8. Remodeling Magazine, 2017

You can't avoid paying taxes, and we all need to pay our fair share. However, paying your fair share shouldn't place an unjust burden on you.As a homeowner, your tax burden is doubled because you pay both income and property taxes. To decrease that burden and boost your tax savings, take advantage of these homeowner tax deductions. As a result, you can use your tax savings to go on a vacation, increase your child's college fund, build upon your retirement fund, or complete another home improvement project. HOME IMPROVEMENT TAX DEDUCTIONYou spend so much of your time at home, and you try to make it as comfortable a place to live as possible. If your home needs some upgrades, consider improvements that will help foot the bill for themselves. Switching out your old windows for energy-efficient ones could earn you $200. This credit expires this year on December 31st. So, this year will be your last chance to take advantage of getting tax credit for making your home more energy efficient. Also, installing equipment that uses renewable sources of energy makes you eligible for the Renewable Energy Efficiency Property Credit. The credit covers 30 percent of the cost of equipment and installation. This credit also expires this year on December 31st.  MORTGAGE INTEREST AND REFINANCINGIf your mortgage payment makes you cringe each month, you’ll be glad to know you can deduct taxes on the following:* Interest towards mortgage* Mortgage payments for additional property* Rental properties* Refinancing and home equity lines of credit (HELOC) up to $100,000 of debt. If you own multiple properties, the mortgage interest on additional property is deductible as well. The cool thing is that it doesn't have to be a house. It can be a boat or RV; as long as it has cooking, sleeping, and bathroom facilities, it counts as additional property. Regarding using your second home as a rental, you need to vacation at least 14 days at the property or spend more than 10 percent of the number of days you rent it out. Furthermore, you can claim points on your mortgage the year you paid them if the following happened: * The loan was to purchase or build your main home * Payment of points is an established business practice in your area and the points were within the usual rangePROPERTY TAXESNow, this is the big one.The amount of property taxes you paid for the year shows up on your lender's annual statement. You must deduct them as an itemized expense on your Schedule A tax form.First-time homebuyers, look at your settlement sheet to see additional tax payment data. You may deduct the portion of property taxes you paid during the first year of your homeownership. PROTESTING YOUR ASSESSMENT TO LOWER YOUR PROPERTY TAXESMany homes get overvalued because assessors err in valuing a home and homeowners don't pay attention to these mistakes. Consequently, homeowners unwittingly pay more than they should in property taxes. However, if you’ve owned your home for more than a year, you can potentially lower your property tax burden by showing that your home has been overvalued, meaning that your tax assessment claims your property is worth more than it is. Even if the number on the tax assessment seems close, you should still consider protesting your property tax. Typical savings from a successful tax protest is over 15%! According to SmartAsset, the national median property tax paid is roughly $2,839.00. That's about 1.192 percent of a home valued at $238,200.00.If you're able to reduce your assessed value by 15 percent to $202,470.00 and consequently save 15 percent on your tax bill, your new tax bill will be about 2,413.00. That’s a savings of $426.00!To get started protesting your property tax, read your assessment letter. Your assessment letter will list data about your property and the assessed value of your house and land. Make sure your assessment letter has the correct information about your property. Understanding that assessors can make mistakes assessing your home value will help you with your appeal. There are three key mistakes assessor make when assessing property. These mistakes include: Outdated Historic Sales Data: Sometimes assessors will use sales data from previous years. Because the real estate market is fluid, this data changes quickly, as a result; this data can over value your home. Mass Appraisal Methods: Also, when assessors use mass appraisal methods, they do not take into account all the market adjustments that occurred over time. Consequently, there sales data can't always produce useful comparable properties to set future sales. Living Area: Assessors notoriously make mistakes about the living area of your house. This is especially true if you live in a 1.5 or 2 story home. Check any previous appraisals to ensure correct measurements and description of our home. Does the assessment letter show the right number of bathrooms and bedrooms? Does it report the correct size of your lot? .5 acres differs greatly than 5.0 acres. After reading your assessment letter, consult a Realtor. We can find three to five approximate values of comparable properties similar to yours, and these comps can then be used to support your claim that your home is overvalued. This is especially useful if the assessor used poor historical sales data. You can speak with an assessor on the phone or request a formal review. You'll then need to fill out a form and follow specific instructions regarding your supporting evidence. Typically, it's not necessary for you to appear at the review. The review can take one to three months to complete, and you'll receive a decision in writing. The majority of assessment appeals are successful. However, if at first you don't succeed, appeal. You'll need to pay a small filing fee for an independent appeals board to hear your second appeal. This process could take up to a year to complete, so you'll need to decide whether it's truly worth it.As a homeowner, you have plenty of options available to decrease your tax burden. The benefit is that you can use your tax savings for major life events such as weddings, vacations, and home improvements. To find out more about your tax saving options as a homeowner, check out tax information for homeowners. You can also CLICK HERE to contact The Thomas March Group directly and we'll gladly lead you in the right direction towards saving you money on your taxes. 

There are many great Placer and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Did you know that in a recent survey 68% of buyers said they were not satisfied with their real estate agent's home buying process? Statistically, 70% of buyers choose to work with the first agent that they come into contact with. When you look at it this way, it's no surprise that so many people are unsatisfied with their agent. For instance, 85% of sales agents have no specific certification or designation related to working with buyers.I am a certified home buying expert advisor. What does this mean? Well, it means we have a proven, repeatable system backed by market research to find the best home negotiated at the best price and terms. This system has been featured on major news networks, such as CNBC, CNN, MSNBC, CBS, Fox News, and ABC, So, if you're looking at hiring the first person you come across, chances are you won't be working with someone who has the skills necessary to accomplish your goals.Did you know there is no single price of a home? The value is determined by 115 different variables. Our proprietary VIP Elite Buyer Preferred System has identified over 80 variables involved in the home buying process. These need to be managed correctly to ensure you find the perfect home. Without a proven system, you risk overpaying when you buy, or possibly missing out on your dream home altogether.If this is the first time you've heard this, you're not alone. Most agents don't even know about these variables and the process. Our One of a Kind Buyer Elite Preferred System is a guarantee of sorts that you are going to have success. I am a certified negotiator, which means my team has the skills to negotiate the best price and terms for your home. We are so confident we'll get the job done right that we guarantee to save you at least $5,000 on your home purchase or we'll pay you $1,000 out of our pocket.We're really invested in not just finding you a home at a great price, but finding you the right home. Our one of a kind Love It or Leave It Guarantee protects you, as we've seen that some buyers are unsure about their purchasing decisions. We'll get your home at the best possible price, plain and simple. If you purchase a home and aren't happy with the home within 24 months of working with us, we'll either buy it back from you or sell it for free. That's how sure we are about our services.If you're interested in these one-of-a-kind programs, give us a call or shoot us an email. We would love to make your real estate dreams a reality!*Not all properties qualify and some conditions apply

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } There are many great Placer and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions. If you want to be an informed buyer or seller in the Sacramento area, you need to be familiar with market trends and conditions. To keep you up-to-date, I want to share the latest numbers for Sacramento County:Homes for sale: 3,016, up 4.2%Homes sold: 1,620, down 9.2%Pending sales; 1,968, up 18.4%Average price per square foot: $186Inventory: 1.9 months, up 18.5%Average days on market: 40 days, up 11.1%So, what do these numbers mean for you? Well, for one, it means we have more homes on the market, which means multiple offer situations are down and it's a less competitive market for buyers than it once was. For sellers, the sooner you list, the better, as the market seems to be normalizing.If you have any questions about how you can take advantage of current market conditions, or if you need real estate assistance of any kind, don't hesitate to give me a call or shoot me an email. I would love to hear from you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } There are many great Placer and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Today I just wanted to give you a brief real estate market update for the Sacramento area. If you're planning on buying or selling anytime soon, you should find this very useful.As of June 15th, we had 2,894 homes for sale, which is a 10.5% increase over last month. 1,713 homes sold last month, which was a 12% increase over last month. There were 1,842 homes pending, and that is a 26% increase over last year at this time. The average days on market was 30 days and there is only a 1.7 month supply of homes. Placer County is a little different. We're seeing 1,287 homes for sale, which is a 5.3% increase over last month. However, 655 homes sold, which is a 12.9% increase over last month. Also, 631 homes went pending for sale, which is a 3% increase over last year. The average price per square foot dropped a little bit, but it's still very high. Inventory is still very small, and we only have 2 months of inventory. What does this mean for you? We're in a stable market with appreciation. We don't expect interest rates to increase as dramatically as we had previously thought, and this is great news for buyers. Because it's an election year, we don't believe rates will rise as sharply as they have in the past. Inventory is still very low, so it's a good time to sell, especially in the next month or two. Buyers will be pulling out of the market in the next few months, and you may have to wait until spring to get top dollar on your home.If you're looking to buy, you'll need to make strong offers and act quickly on homes that you like. Inventory will be declining soon, so make sure to start your home search soon. Also, prices will only continue to rise as time goes on, so the sooner you buy, the better off you will be. Hopefully this has been helpful to you. If you're looking to buy or sell in Sacramento, please don't hesitate to contact me. If you're looking for more detailed information on your neighborhood, please ask us and we can provide that to you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } There are many great Placer and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Hey everyone, thanks for joining us. A question I've been getting asked more and more lately is, "Are we in a housing bubble?" Let me first say that my answer is, unequivocally, NO!My opinion is that we are at a stable appreciation level now, after seeing double-digit appreciation over the last few years. That stabilized, and now we are into single-digit appreciation in most areas across the nation. The market is pretty stable right now. We are not seeing people coming up and buying everything they can handle anymore.The market is normal, where buyers are buying and sellers are selling. The investors who were snatching things up before are not around as much. Next year is an election year, and historically, interest rates do not go up during these years. Economically, we will see interest rates remain pretty stable over the next year or so.We're seeing low supply in a lot of areas, but the builders aren't building fast enough to match the demand. With little supply and a high demand, there is no bubble on the horizon.If you're looking to buy, now is a fantastic time. Rates are going to stay low for a while, but prices are increasing fast. For sellers, there is a huge demand for inventory right now. You can sell for top dollar and with multiple offers. This is great for those who are thinking of upsizing or downsizing.If you have any other questions for us, give us a call or send us an email. We would love to speak with you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } There are many great Placer and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Today I'd like to give you a brief real estate market update in order to give you a clearer picture of our local market.In Sacramento County we had 2,620 homes for sale, which was an increase of 8.8% over last month, but a decrease over last year at this time. 1,905 homes are pending for sale, which is an increase of 10.3% over last month, and a 24% increase in home sales over last year.The average price per sq. ft. in Sacramento was $184, which is an increase of 6.7% over last year.Our average days on market was 34.The sale to list price ratio is sitting at 98%, and the median home price is at $290,000.Now let's take a look at Placer County There were 1,222 homes for sale, and 560 homes actually sold. More good news is that 665 homes are pending for sale right now, which is nearly a 30% increase over last year.Average price per square foot is $202, which is a 3% increase.Average days on market is right at 37, and the average sale to list price ratio is right at 97%.The median homes price is currently $403,000 dollars, which is up from $380,000 last year.In most areas, we have less than a two month supply of homes, which is putting us in a strong seller's market. This shouldn't scare away buyers though, because interest rates are still sitting at historic lows. However, they're not going to get any lower, so you should buy as soon as possible if you've been thinking of buying.Please don't hesitate to reach out to us if you need help buying or selling in Sacramento. I would love to serve you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }  There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.We do everything we can to make sure your buying or selling experience goes as smoothly as possible. We strive to exceed expectations and ensure all your real estate goals are accomplished. Don't believe us? Check out what a valued past client had to say about us!Sanjay Varshney:"I moved here 10 years ago from Syracuse, New York. When I moved here, it was a very interesting time - the market was climbing very quickly and homes were selling very fast. We had less than a day to figure out the market and find a home. We were very lucky to meet Thomas March. He was our guy - in one weekend he took us all over the place. We found a home in Folsom and bought it. Thomas was instrumental in helping us find a home because he knew the market and was able to execute a deal in a short amount of time.""To find the right home was imperative, as the move from Syracuse to Sacramento was a huge task. My wife and I had a large home filled with many things we have collected over the years, so the move would not have been easy without the help of Thomas March. After a year at our home in Folsom, we decided we wanted to move into a bigger home. The first person we thought to call was Thomas March because he did such a great job the first time. We were truly amazed by how he was able to help us.""The market has come a long way since 2004, homes aren't selling now like they were then. The prices, while they have come back quite a bit, are still tough for sellers. In order to sell in the market we sold in, we had to do all the right things in order to achieve our selling goals in a short period of time. Thomas March was fantastic - he had the right marketing plan, was very knowledgeable about the market, understood the key pricing concepts, and had the sophistication to figure out what the market was willing to bare and act quickly.""I'm very business driven. I didn't want to waste my time looking at the wrong people, chasing the wrong things, and being promised things that will never be delivered. I told him what I wanted from my home sale and what I was willing to do to make it happen. I found Thomas March to be very honest and sincere about his effort. He staged our home to make it look stunning and helped us accomplish our selling goals.""We had a very professional experience in an industry that is not always professional. We were very pleased - you don't see people use the same Realtor® twice very often, but we did. If I had to use someone a third or fourth time, I would call Thomas March!"Sanjay isn't the first person we've helped accomplish their buying and selling goals, and he won't be the last. If you want a professional experience with an agent you can trust to get the job done for you, give us a call! We would love to help you make the most of your real estate experience! 

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }  There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Where's the Market Heading and What Does It Mean For You?It's that time of year again! The holidays are upon us and the new year is right around the corner, making now a perfect time to stop and take a look at what's happening in the Sacramento market.Currently, there are 3,522 homes for sale, which is a 2.1% increase over last month and a 25.2% increase over last year. A total of 1,354 properties sold last month, which is a 5.6% decrease from last month and a 4.1% decrease over last year. These numbers are nothing to worry about, however, because the number of pending homes is up 11% over last year and we have 1,489 homes pending, which is a slight 1.4% increase since last month.What this tells us is we currently have a pretty stable market. There is still under three months of inventory here in Sacramento, which is technically a seller's market, but low interest rates make it a good time to buy as well. As we head into the winter market, many people think the market will slow down, as people are pulling out of the market for the holidays. Right now, if you're a buyer, you should take advantage of the fact that many buyers are pulling out of this very competitive market.We hear from many buyers that they would rather wait until spring to look for a home because there is a higher inventory. While that's true, there will also be a lot more buyers out there to compete with. We truly believe that the current market is one of the best ones to buy a home in. Interest rates are expected to rise sometime next year, so now may be the most ideal time to buy a home for years to come. Rising interest rates also affect sellers. When rates go up next year, many buyers are going to realize they can no longer afford homes they were initially interested in, or may find out that they are no longer eligible for financing. Since buyers are likely to leave the market in droves next year, now is also the time to sell, while buyers are still clamoring for homes. It's probably not in your best interest to wait until spring next year. These are just a few things to think about as the year comes to an end. If you would like to discuss what these conditions mean for you, or if you have any general questions about real estate, don't hesitate to give us a call or shoot us an email. We would love to hear from you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.What You Need to Know as a First-Time Home BuyerThe Sacramento real estate market has changed dramatically in the past year. We are seeing a lot more inventory on the market, as well as historically low interest rates. This surge in market activity has had us talking to a lot of first-time home buyers lately. Deciding to purchase your first home is a big step, and there is a lot of information you should be aware of. That is why we are joined today by our preferred lender Doug Jones. Doug is going to talk to us about some great programs that are out there, designed for first-time home buyers.There are some great programs out there right now for first time home buyers in the finance world. A lot of programs that require little down payments. There are a lot of reasons to put a small down payment on a home, but for first time home buyers, it's because you don't quite have the cash reserves to put $20,000 down on a home.There are 2 primary options that offer low down payment plans for 30-year fixed mortgages. FHA financing allows you to get into a home with just a 3.5% down payment. Conventional financing requires a minimum 5% down payment.The other 2 options are a little more complex. With VA financing, you aren't required to pay any down payment, but the catch is you will need to be either active-duty or retired military or national guard. If you have a document called the DD214, you are all but guaranteed a VA loan with 0% down. Another program is USDA. This is a rural program for unincorporated areas such as Lincoln, Loomis, and parts of Auburn. Those allow a small down payment as well. Another question that we get a lot from first time home buyers is what kind of down payment assistance we can offer. We can offer some great down payment assistance programs through CHDAP, or the California Housing Down Payment Assistance Program. This program is designed to be combined with an FHA loan to bring down the payment to between 1/2% and 1%.For conventional financing, while CHDAP doesn't lower the down payment from 5%, it allows you to use 3% of that 5% to cover closing costs. There are definitely a lot of great programs out there for first time home buyers. If you have any questions about mortgages, or about anything else real estate related, feel free to give us a call or send us an email. We would be more than happy to assist you!

There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Sacramento Real Estate Market Update for Fall 2014Hey there everybody. Welcome back to our blog. Today what we'd like to do is give you a brief market update on what has been going on in both Sacramento and Placer Counties lately. We hope you take the information from this market update and absorb it so you can know exactly what's going on in real estate. First, let's talk about Sacramento County.We currently have 3,349 homes for sale, a 41.2% increase over last year at this time.We have had 1,726 homes go pending so far this year, an increase of 8.3% over last yearRight now, the average price per square foot for a home in Sacramento County is $174, 14% higher than last yearOverall, Sacramento County sees positive signs for both buyers and sellers. Right now, we are selling homes at 101.2% of asking price and the average days our homes are on the market is under 21, so they are selling quick. On the other hand, extremely low interest rate and an increase in inventory give buyers more options and more savings. Now, let's talk about Placer County. Right now in Placer county:We have 154 homes on the market, a big 56.3% increase from the inventory we had at this time in 2013.The average price per sq. ft. in Placer County is $191There are less than 3 months of inventory on hand, making Placer County a better place for sellers.If you would like to get some more market statistics or just have any questions we can answer, please give us a call or send us an email. We'd love to help out!

There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.Sacramento Real Estate Market Update for Summer 2014Today we want to talk to you a little bit about all that has been happening in the Sacramento real estate market this summer. Let's get started. Here are some things you need to know, it's a pretty crazy market right now.We are seeing prices all over the placeIn the past month, we have seen a 10% increase in the number of homes that have gone on the market.We have seen an increase in pending home sales in the past month of 5.4% Compared to last year at this time, the number of homes available for purchase is up 57.6%. This is great news if you are looking to buy a home right now, as there are many more options to choose from compared to last year, when we had only about a month of inventory available.With interest rates continuing to be low, now is a great time to buy. We expect home prices to increase anywhere from 3-10% in the next year so locking in a mortgage rate with these prices is essential. Waiting is not in your best interest!Like we said before, prices are all over the place. It's important that you work with somebody who understands the market, knows the numbers, and is able to give you good advice on purchasing a home. We are seeing homes that are priced correctly going for top dollar and going fast, so now is a great time to buy as well.If you are looking to buy, sell or invest in real estate or know somebody who is, give us a call or send us an email. It's a great time to be buying or selling in the real estate market and we would love to help them accomplish their goals.