Rental Housing Boom Set to Explode
Check out this graphic from John Burn’s newsletter.
Joe Curtis
President
Pickford Escrow & The Escrow Firm
RESPRO - on One Stop Shopping
Interesting Read.
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
2012 Housing in One Graphic - from John Burns Consulting
Housing in One Graphic
The following graphic summarizes the U.S. housing market. The red boxes are a small percentage of the total, yet are receiving all the media and political attention.
click the graph to view the full size
Let's not forget the overwhelming positives:
- 22% of American households own their home free and clear of any mortgage
- 34% of American households own their home and have equity in it
- 34% of American households rent
That totals 90% of American households.
Of the 40.6 million who rent,
- 42% rent in a small apartment building
- 27% rent a single family home
- 20% rent in a large apartment building
- 6% rent a condo
- 5% rent a mobile home, boat, etc.
So I have a few questions:
- Why are some of our leaders asking 90% of Americans to bail out the 10% who have no equity in their home?
- What happens when the 1.5 million excess vacant homes are filled, which is already occurring in many neighborhoods across the country?
- Why is the apartment REIT market so popular with institutional investors, when it is less than 20% of rental units?
- What happens when the family renting a home for $1100/month cleans up their credit and buys the same home with a mortgage payment of $800?
Americans make astute financial decisions, at least in the short-term (our addiction to debt will hurt us in the long-term). We will bailout very few homeowners. We will increase construction by building in the ever-increasing number of areas that need homes and builders can make a profit. We will figure out how to make portfolio investments in the massive single-family rental market. We will buy homes if it makes financial sense for us to do so.
I am reminded of a famous Winston Churchill quote: "You can always count on Americans to do the right thing - after they've tried everything else." The excesses from the housing bubble are gradually clearing.
P.S. Special thanks to SVP Wayne Yamano for putting this graphic together.
Source: John Burns Real Estate Consulting (Newsletter)
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
May 2012 Escrow Examiner - Downloadable
Attached you’ll find the MAY 2012 Issue of The Escrow Examiner, our monthly newsletter designed to provide you with valuable information about the Real Estate Market you can re-purpose for your clients, website or blog.
In this edition you’ll find:
· What is an Escrow Fiduciary?
· Testimonials – What people are saying about our people!
· 5 Ways to GREEN Your Home
Don’t forget to request Market Trend Reports if you are looking for up to date weekly market data that can be narrowed down by zip code; provided free to our clients.
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
Pickford Escrow App - On Google PLAY
Check it out!
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
Revisiting the Anti-Deficiency Statute
Revisiting the Anti-Deficiency Statute
Over the past few months, there have been questions regarding the revised anti-deficiency statute, specifically who and what it covers. There has been an anti-deficiency statute on the books since the 1930s in the form of California Code of Civil Procedure Section 580. This law provided that no deficiency judgment could be entered against a homeowner on purchase money mortgages. In other words, if the borrower used the money to purchase the residence, the lender was limited to regaining possession of the property and could not go after the borrower for any deficiency. The statute only addressed foreclosure situations and thus, the borrower was not protected in the event of a short sale.
Effective as of July 15, 2011 Section 580(e) was added to the statute which expanded the anti-deficiency rules to include the sale of the property for less than the remaining amount of the indebtedness outstanding at the time of sale upon written consent of the lender, in other words, in the case of a short sale.
This law also made it clear that the lender cannot ask for additional funds to be paid by the borrower to secure the consent to sell nor can the lender require the borrower to sign an agreement to repay the deficiency in exchange for consent to sell. If the lender requests such payment or repayment document, it is considered fraud by the lender and the borrower can seek damages against the lender.
Initially, we saw a lot of lenders trying to condition consent in violation of the statute, but more recently, the lenders appear to be complying with the law.
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
What to see what a $7.4mm short sale file looks like?
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
Property Taxes are due Tuesday, April 10th!
Property Taxes are due Tuesday, April 10th!
Just a friendly reminder to pay your Property Taxes! Your payment must be made or post-marked by Tuesday, April 10th to avoid a penalty!
For San Diego County - click HERE to view or pay your Property Taxes
For Orange County – click HERE to view or pay your Property Taxes
For Riverside County – click HERE to view or pay your Property Taxes
For Los Angeles County – click HERE to view or pay your Property Taxes
If you are currently in escrow on a property, please have a Cashier’s Check made payable to the County Tax Assessor for your specific county and deliver to your Escrow Holder immediately! They will forward to the Title Company handling your transaction and assure your payment is posted on time. Sending your payment to the Escrow Holder will also assure that a portion of your Seller’s proceeds are not held pending clearance of a recently made payment!
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
April 2012 Escrow Examiner! [downloadable]
Attached you’ll find the APRIL 2012 Issue of The Escrow Examiner, our monthly newsletter designed to provide you with valuable information about the Real Estate Market you can re-purpose for your clients, website or blog.
In this edition you’ll find GOOD NEWs:
· US Homes Resales Have best winter in 5 years
· Testimonials – What people are saying about our people!
· CA February Home Sales see an increase
· Eight of SoCal’s counties had their busiest February in 5 years
Don’t forget to request Market Trend Reports if you are looking for up to date weekly market data that can be narrowed down by zip code; provided free to our clients.
As always, we appreciate your support of our business.
CAPITAL GAIN TAXES GOING UP, WAY UP - API
Here’s an attention getting article from our 1031 Exchange Partner – API. (www.apiexchange.com)
CAPITAL GAIN TAXES GOING UP, WAY UP (#135) | |||||||||||||||
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TAX INCREASE #1 - 20 PERCENT CAPITAL GAIN TAX IN 2013 The Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 extends the Bush era tax cuts until the end of 2012. Beginning January 1, 2013, the tax rate will revert from the current 15 percent rate back to the former 20 percent capital gain tax rate that was in effect prior to 2003. TAX INCREASE #2 - 3.8 PERCENT MEDICARE TAX IN 2013 Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income. Also of relevance for rental property owners, this new tax applies to a real estate investor’s rental income if they have income above the $200,000/$250,000 income thresholds. The net effect of both capital gain tax increases is a new 23.8 percent tax rate for higher earners—the highest rate for long-term capital gains since 1997. The Joint Committee on Taxation estimates the new Medicare tax on investments will cost taxpayers over $30 billion annually. Additionally, the modified adjusted gross income threshold at which this Medicare tax will apply will not be indexed for inflation, which means an increasing number of taxpayers will be snared by this tax provision. Overall, the economic impact of these tax increases will be felt by the very investors who help promote long-term economic growth. In 2007, taxpayers with incomes greater than $200,000 reported 47 percent of all interest income, 60 percent of all dividends and an amazing 84 percent of all capital gains. THE COMING TAX INCREASES - A COMPARISON
A SOLUTION AND WAY TO DEFER TAXES - 1031 EXCHANGES Since 1921, 1031 tax deferred exchanges have been a proven tax saving strategy that helps real estate investors improve their investment position through the ability to not recognize Federal or state capital gain taxes. Contact the 1031 experts at API to learn more! |
Joe Curtis
President
Pickford Escrow / The Escrow Firm
"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."
Joe Curtis
President of Pickford Escrow and The Escrow Firm - providing outstanding Escrow Service and meaningful resources for Agents, buyers and sellers - Please let me know what type of information is the most meaningful to you!
