More Details: http://www.houstonsolartour.com/the-tour/tour-project-sites/

Green Moderne Townhomes in HoustonBy Preston Koerner | August 20, 2010 | topics: LEED, Residential, Townhouse

Home builder, Green Mode Designs, LLC, recently finished this townhouse project on an infill lot near Memorial Park in Houston, Texas. Two of the homes are on the market for $450,000 – $470,000, while the third received LEED Gold certification and is already sold. This solar-powered home, based on the HERS Rating, is 56% more efficient than a standard home and uses 33% less water.

Maxie Moderne saves energy with 16 SEER HVAC zoned to each floor, tankless water heating, and Energy Star low-E windows, skylights, appliances, and air conditioning. There’s also some on-site energy production with a grid-tied 2.1 kW photovoltaic system.

To save water, Green Mode Designs installed Toto dual flush toilets and high efficiency water faucets and showerheads from Hansgrohe, Moen, and Cifial.

Other than saving water and energy, this green townhouse has bamboo floors, cabinet-integrated recycling systems, zero-VOC paints, low-VOC adhesives, Green Label Shaw carpet, motion sensitive ventilation in bathrooms and garage, and carbon monoxide monitors on each floor.

Notwithstanding the stucco exterior or the large round window pictured, these homes have a lot going for them with contemporary touches, a social rooftop deck, and elements to conserve both energy and water. And if you’re in the neighborhood, there’s an open house this weekend.

 Can a spacious, luxurious, multi-story townhome be environmentally friendly?

Green Mode Designs hopes visitors to the local firm’s new trio of units at 6120 Maxie St. see that the answer is yes.
Company director Wadhwa, who founded Green Mode Designs five years ago, have priced the three units just east of Memorial Park between $460,000 and $480,000.
After the firm’s last project at 1914 Ridgewood in Montrose sold out in six weeks, Thomas Wadhwa said the company wanted to move from that “light green” effort to a “dark green” build, complete with rooftop solar panels and a Leadership in Energy and Environmental Design, or LEED, rating under the U.S. Green Building Council’s guidelines.
“The goal for us is to make it friendly to your wallet but at the same time still make it green,” Thomas Wadhwa said, adding that many consumers desire green features but don’t fully grasp the implications until they experience them firsthand.

“I can tell them about the thicker walls, the thicker insulation, the better air-conditioning system and the solar panels, but when I show them the energy bills, that’s when it really hits home for people.”

In June, with the air conditioning set at 80 degrees, the electric bill was $60 in one of the 2,600-square-foot units. And that’s a cool 80 degrees, Thomas Wadhwa said – the interior feels cooler than a standard space because it is not polluted with heat from leaky windows and doors.

Though Wadhwa, Thomas Wadhwa and their LEED inspector, Clayton Farmer, agree consumers are beginning to demand green features in their homes, the marketplace has only recently gained momentum.
Houston boasts many commercial LEED buildings, but there are only 11 homes in the city with the certification, Wadhwa said. That number does not include the Maxie Street units, for which the paperwork still is being processed.
Potential homeowners are only now understanding that buying green makes financial sense, said Farmer, of Houston-based energy consulting firm Ontility.

A good resale

Green homes resell quicker than conventional builds, real estate listing services are beginning to list homes’ green features, home appraisers are being trained to evaluate energy-efficient components, and banks are asking for documentation of green claims, Farmer said.

“If your builder tells you, ‘I built you a house to code,’ you ought to smack him in the mouth because what he’s saying is, ‘I just built you the worst house allowed by law,’ ” Farmer said.

Building better also is affordable, these experts said.
To build a LEED-certified home requires 2 to 3 percent more construction costs than a conventional build, Pankaj said. To reach platinum, the highest level of LEED certification, costs 8 to 10 percent more.

No excuse not to start

There’s no excuse not to start building “dark green” now, Thomas Wadhwa said.
“If we don’t start thinking this way now, these (conventional) homes are going to be around for 50 or 60 years and they’re still going to be energy hogs,” she said.

The Maxie Street project features rooftop solar panels, efficient windows positioned to maximize natural light, an efficient heating and cooling system, and plenty of recycled materials, both in the bones of the structure and the carpet, which is made of recycled soft-drink bottles.

Even 88 percent of the construction waste was diverted from the landfill, Wadhwa said, an important component of the overall LEED certification.

The units’ final LEED rating number, Farmer said, was 44, compared to 100 for a conventional build and 85 for a certified ‘Energy Star’ home.

“They did a very good job not only being that efficient but going that much better than everybody else,” Farmer said. “Even without the solar they were 40 percent better than code.”
View completed project photos at http://greenmodedesigns.com/for-sale/

Single Family Homes

For Sale: Solar-powered Maxie St. Green Homes: ONLY 1 LEFT!!

612o Maxie, Unit C, Houston, TX 77007

Townhomes:

Lots For Sale:

736 Lawrence, Houston, TX 77007

3505 Mosley, Houston, TX 77004 

In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home.  The credit was designed as a mechanism to decrease the over-supply of homes for sale. 

For 2009, Congress has increased the credit to $8000 and made several additional improvements.  This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. 

Tax Credits — The Basics

1.        What’s this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers.  Any home that is purchased for $80,000 or more qualifies for the full $8000 amount.  If the house costs less than $80,000, the credit will be 10% of the cost.  Thus, if an individual purchased a home for $75,000, the credit would be $7500.    It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. 

2.        Who is eligible?

Only first-time homebuyers are eligible.  A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3.        How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar.  Credits are claimed on an individual’s income tax return.  Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due.  Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill.  So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due.    ($9,500 – $8000 = $1500)

4.        So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?

This tax credit is what’s called “refundable” credit.  Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000.  The refundable amount is the difference between $8000 credit amount and the amount of tax liability.  ($8000 – $6000 = $2000)  Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.  

5.        How does withholding affect my tax credit and my refund?

A few examples are provided at the end of this document.  There are several steps in this calculation, but most income tax software programs are equipped to make that determination.

6.       Is there an income restriction?

Yes.  The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return.  Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000.  Married couples who file a Joint return may have income of no more than $150,000. 

7.        How is my “income” determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return.  AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements.  AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

8.        What if I worked abroad for part of the year?

Some individuals have earned income and/or receive housing allowances while working outside the US.  Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI).  Their eligibility for the credit will be based on their MAGI.

9.        Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

Not always.  The credit phases-out between $75,000 – $95,000 for singles  and $150,000 – $170,000 for married filing joint.  The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be.  The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return). 

For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:

 Couple’s income             $165,000

Income limit               150,000

 Excess income                  $15,000

The excess income amount ($15,000 in this example) is used to form a fraction.  The numerator of the fraction is the excess income amount ($15,000).   The denominator is $20,000 (specified by the statute).

In this example, the disallowed portion of the credit is 75% of $8000, or $6000

($15,000/$20,000 = 75% x $8000 = $6000) 

Stated another way, only 25% of the credit amount would be allowed.

 In this example, the allowable credit would be $2000 (25% x $8000 = $2000)

10.    What’s the definition of “principal residence?”

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%).  It is also defined as “owner-occupied” housing.  The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.  Even some houseboats or manufactured homes count as principal residences. 

11.     Are there restrictions on the location of the property?

Yes.  The home must be located in the United States.   Property located outside the US is not eligible for the credit.

12.    Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.  Congress eliminated the financing restriction that applied in 2008.  (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.)  Now, mortgage-revenue bond financing will not disqualify an otherwise-eligible purchaser.  (Mortgage revenue bonds are tax-exempt bonds issued by a state housing agency.  Proceeds from the bonds must be used for below market loans to qualified buyers.)

13.    Do I have to repay the 2009 tax credit? 

NO.   There is no repayment for 2009 tax credits. 

14.    Do 2008 purchasers still have to repay their tax credit?

YES.  The $7500 credit in 2008 was more like an interest-free loan.  All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return. 

Some Practical Questions

15.    How do I apply for the credit?

There is no pre-purchase authorization, application or similar approval process.   All eligible purchasers simply claim the credit on their IRS Form 1040 tax return.  The credit will be reflected on a new Form 5405 that will be attached to the 1040.  Form 5405 can be found at www.irs.gov.

16.   So I can’t use the credit amount as part of my downpayment?

No.  Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction. 

17.   So there’s no way to get any cash flow benefits before I file my tax return?

Yes, there is.  Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments.  Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer.  In many cases their withholding would decrease and their take-home pay would increase.  Those who make estimated tax payments would make similar adjustments.

Some “Real World” Examples

18.   What if I purchase later this year but can’t get to settlement before December 1?

The credit is available for purchases before December 1, 2009.  A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser.  Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.

19.    I haven’t even filed my 2008 tax return yet.  If I buy in 2009, do I have to wait until next year to get the benefit of the credit?

You’ll have a helpful choice that might speed up the process.  Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008.  Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009.  They actually have three filing options. 

• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income-tax filing until as late as October 15, 2009.  (The IRS grants automatic extensions, but the taxpayer must file for the extension.  See www.irs.gov for instructions on how to obtain an extension.)
•  If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X.  (Form 1040X is available at www.irs.gov) 

Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return.  Their 2009 tax return is due on April 15, 2010.

20.    I purchased my home in early 2009 before the stimulus bill was enacted.  I claimed a $7500 tax credit on my 2008 return as prior law had permitted.  Am I restricted to just a $7500 credit?

No, you would qualify for the $8000 credit.  Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year.   This amended return will enable them to obtain the additional $500 credit amount.

21.    If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?

No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.

22.    I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return.  My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in.   Will he qualify for the $8000 credit, as well?

No.  Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit.  Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first-time homebuyer. 

23.    I live in the District of Columbia.   If I qualify as a first-time homebuyer, can I use both the $5000 DC credit and the $8000 credit?

No; double dipping is not allowed.  You would be eligible for only the $8000 credit.  This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.

24.    I know there is no repayment requirement for the $8000 credit.  Will I ever have to repay any of the credit back to the government?

One situation does require a recapture payment back to the government.  If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it.  A few exceptions apply.   (See below, #24).  Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008.  This provision is designed as an anti-flipping rule.

25.   What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?

The repayment rules are eased for many circumstances.  If the homeowner who used the credit dies within the first three years of ownership, there is no recapture.  Special rules make adjustments for people who sell homes as part of a divorce settlement, as well.  Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.

26.    I have a home under construction.  Am I eligible for the credit?

Yes, so long as you actually occupy the home before December 1, 2009.

WITHHOLDING EXAMPLES: 

Note:  The impact of estimated tax payments would be the same.

Situation 1:  Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year.  When she fills out her 1040, her liability is $6000.  She has had $6000 withheld from her paycheck.  She also qualifies for the $8000 homebuyer credit. 

Result:  Sally’s withholding satisfies her tax liability and reduces it to zero.  She will receive a refund of the full $8000.

Situation 2:  Nick and Nora file a joint return.  Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary.  When they compute their taxes, their combined withholding and estimated tax payments are $11,000.  Their income tax liability is $9800.  They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit. 

Result:  Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 – $9800 = $1200).  Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)

Situation 3:  Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return.  When they file their income tax return, their combined withholding is $5000.  However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 – $5000).  They also qualify for the $8000 first-time homebuyer tax credit.

Result:  Cesar and LuzMaria have been under-withheld by $2200.  Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties).  Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability.  In addition, they will receive an income tax refund of $5800 ($8000 – $2200 = $5800).  If they owed penalties and/or interest, that amount would reduce the refund.

Each market is different so listening to the national housing numbers provides no better gauge of how the market is doing than listening to a national weather report does.

If you remove all of the foreclosure sales from the overall market, pricing is only down fractionally (1.2 percent in February), because the median sales price of a foreclosed home is in the $80,000 range, versus the $165,000 median for non-foreclosure home sales.

Recent Accolades for Houston Real Estate Market:

·         Site Selection magazine: “Top Metro Market” for corporate location and expansion activity

·         Builder magazine: called Houston the healthiest housing market in the nation.

·         BusinessWeek: Katy was named the second fastest growing residential community in the U.S.

·         BusinessWeek.com: Friendswood was named the most affordable suburb in Texas in 2009

·         Association of Foreign Investors in Real Estate: ranked Houston as the 8th best investment market in the world

·         Allied Van Lines’ 41st Annual Magnet States Report: Texas has taken its place as the No. 1 destination state for residential relocations for the fourth year in a row

·         Forbes: Houston was ranked as the sixth strongest housing market in the country

A January 2009 research report by Goldman Sachs listed Houston as the number one major metropolitan real estate market in the country, with an expected eight percent increase in prices during the next two years (meaning four percent per year).  Only two other cities (Dallas and Denver) were even expected to see rising prices during the same two-year period.

While the national months’ inventory is 9.7 months, Houston is only 5.9 months, which means we have a much better balance between the supply and demand.

Economists believe that Houston will rebound before the nation because we have a stronger local economy, which generated 26,800 new jobs in 2008 alone, according to the Texas Workforce Commission—the most of any city in the country.

NAR Chief Economist Lawrence Yun named Houston and Denver as his expected top two real estate markets in 2009.

Timing the market can be tricky so rather than looking for the “bottom,” consumers should determine if their current particular financial position makes it a good time to buy considering the various incentives, historically low interest rates and available choices on the market.

We are at mortgage interest rate levels not seen since the 1950s.

Opportunities are often greatest when markets are in a period of adjustment. The American Dream of Homeownership can become a reality and is particularly favorable in a stronger market such as Houston.

For those who might consider a foreclosed home to purchase: there are many great homes out there that can be purchased for significantly less than you might have been able to when they were built.  Seize the opportunity now.

In this issue:

-Texas Tops Nation in Job Growth

-Five Texas Cities Named Healthiest Housing Markets

-Stimulus Package Explained: With Respect to Real Estate

- First Time Home-Buyer Credit Increased to $8000 and doesn’t need to be repaid-

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INVESTOR’S CORNER

The “List”…
Houston Innerloop Foreclosure List (Updated Daily).

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TEXAS TOPS IN JOB GROWTH

 Texas was top in job growth last year, according to a recent analysis by bizjournals.com.  Five Texas cities ranked among the top 10.

Houston added 57,300 jobs in 2008, giving it the best year of any U.S. market. Dallas-Fort Worth was next with 43,300 additional jobs, then San Antonio, which was up by 14,900 jobs.  Austin ranked 5th with 9,600 jobs added.

Bizjournals.com examines markets that have at least 250,000 nonfarm jobs and compares employment figures for the final month of the past 2 years. 72  out of the 88 markets studied suffered declines in employment in 2008.

-St. Paul Business Journal

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FIVE TEXAS CITIES NAMED HEALTHIEST HOUSING MARKETS.

Five Texas cities swept the top spots on Builder magazine’s list of “Healthiest Housing Markets for 2009.” 
 
Houston ranked 1st, Austin 2nd, Fort Worth 3rd, San Antonio 4th, and Dallas 5th.

Rounding out the top 10 were Raleigh, N.C., Seattle, Indianapolis, Ind., Fayetteville, Ark., and Washington D.C. 
 
To compile the list, Builder analyzed the top 75 housing markets in the country, ranking them based on population trends and job growth, perennial drivers of housing demand. They also looked at home prices and the number of building permits.
Top 15 Listed (in reverse order) here…

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 How Much Does it Take to be ‘Middle Class’ in America?  – Cities ranked

This CNNMoney.com data show that earning as little as $50,000 in Houston gets you the same Standard of Living as earning $123,000 in NYC.  See these series of graphs for more…

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Texas Nation’s Top Exporter
 
Texas has been declared the nation’s top exporter by the U.S. Department of Commerce. 

According to Gov. Rick Perry’s office, Texas exports totaled $192 billion last year, about $24 billion more than the year before.  The top five recipients of those exports were Mexico, Canada, China, the Netherlands and Brazil. 
 
This marks the seventh year in a row in which Texas has ranked first.

-Dallas Business Journal

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Texas Attracts International Investors 
 
Despite increasing global real estate turmoil, Texas remains an attractive play for foreign investors looking for opportunities in the United States, a report shows.

The Association of Foreign Investors in Real Estate ranks members’ top cities for U.S. and global investment in 2009. Houston ranked fifth, while Austin ranked 11th, tying with Las Vegas, Phoenix, Orlando, Atlanta, San Diego and San Jose, Calif.  Washington D.C. claimed the 1st spot.

The United States ranked first among nations in terms of opportunities for capital appreciation.  Conducted in fourth quarter 2008, the survey polled the association’s members who collectively hold about $1 trillion in real estate worldwide. - Austin Business Journal.

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HOME BUYER’S CORNER

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Home Buyer Credit Amount Increased
 
The $790 billion stimulus package hammered out by House and Senate conferees last week increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years. 
Read the rest of the details here…

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What does this Stimulus Package Really Boil Down to for Real Estate?
 
The American Recovery and Reinvestment Act contains important housing provisions:

• Homebuyer tax credit: The bill provides for an $8,000 tax credit for first-time homebuyers who purchase a principal residence between Jan. 1, 2009, and Dec. 1, 2009. Unlike before, this credit does not require repayment.
• FHA, Fannie Mae, and Freddie Mac loan limits: The bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans.
• Neighborhood stabilization: The bill provides $2 billion in additional funding for the Neighborhood Stabilization Program, which provides grants to states and localities to address problems that can be created when whole neighborhoods are decimated by foreclosures.
• Commercial real estate: HR 1 bill provides significant funds for state energy programs, which could be used to support commercial property owners’ investment in energy-efficiency upgrades.
• The law also includes $7.2 billion for projects and programs that will protect and promote both green jobs and a healthier environment.
• $100 million for competitive grants to evaluate and clean up former industrial and commercial sites. 
  

Details here…

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QUICK LINKS

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Six Home Fads Going Out of Style (Fireplaces, Carpet etc)

Obama’s Foreclosure Prevention Plan, Explained.

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ARCHIVED ISSUES

Jan. ’09

Dec. ’08

Nov. ’08

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Please join our Mailing List.

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Cheers,

 
Ruby Thomas Wadhwa, Founder. 
www.HoustonDwell.com

In this issue:

-Forbes Article: America’s 25 Strongest Housing Markets

-So Long McMansions: Says Downsizing Homebuyers

-Texas Home Prices at Least Risk

- First Time Home-Buyer Credit.

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INVESTOR’S CORNER

The “List”…
Houston Innerloop Foreclosure List (Updated Daily).

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Forbes Article: America’s 25 Strongest Housing Markets

Houston Housing Market tops out among the country’s strongest real estate markets.  Thanks in part to the fact that these markets never really partook in a housing price bubble/ boom.  The January edition of Forbes Magazine ranks America’s 25 Strongest Housing Markets. 

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Top 10 Priciest Real Estate Markets in the Nation
 
More than 43% of sellers of luxury homes have had to reduce their prices, according to one study of high-end home sales.  See a list of the country’s most expensive housing markets and their astounding price per square feet! More…

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HOME BUYER’S CORNER

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Home Buyer Tax Credit: How it Works
 
First-time homebuyers in 2008/9 may take an income-tax credit on their purchase, thanks to passage in Congress earlier this year of the first-time home buyer tax credit.

The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009. Get the details here…

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U.S. News & World Report Article: Top 5 Blunders of Internet Home Buying
 
How to avoid the common pitfalls of online real estate searching…
 
According to the 2008 NAR (National Association of Realtors) Profile of Home Buyers and Sellers, 87% of home buyers used the Internet to search for homes in the past year.  To help make your online real estate searching more effective, here’s a look at the top five Internet home-buying blunders and what you can do to avoid them. Detailed Article…

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So Long McMansions, Say Downsizing Homebuyers
 
Economic realities have an increasing number of American consumers rethinking supersized homes. 

An online survey conducted Better Homes & Gardens found that what homeowners want in 2009 are homes that are right-sized, organized and economized.  Owners are ready to give up the McMansions, the trophy homes, and the redundant rooms that have no use for homes that are the right size and arrangement for how they live now.

When asked how their next home will compare in size to where they live now, 32 percent of the survey respondents said they expect a new home to be either somewhat smaller or much smaller. And that home will be family-focused. 56% of respondents said they prefer a combined kitchen-dining-family room, what Butler referred to as the “lifestyle triangle.”
 
Despite the trend toward downsizing, additional private bathrooms held strong at 66%, as did home offices (59%).  Consumers also want to cut down on luxuries and go green.

90% plan to have energy efficient heating and cooling systems in their next homes, and 31% plan to have geothermal heat.  Finally, 69% of respondents would prefer having no wasted space. They also want more storage, indicating that being organized is fast becoming an important issue to homeowners.

 Source: Better Homes & Gardens, @ International Builder’s Show.

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HOME OWNER’S (SELLER’S) CORNER

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Rising Property Taxes Really Hit a Nerve
 
Politicians all over the country are preparing legislation in response to angry homeowners who are demanding property tax rollbacks even as municipalities move to raise those same taxes.

 ”People are just astounded that this year, of all years,” the assessed value “of their property has increased,” said Georgia Rep. Larry O’Neal, a Republican and chair of the state’s House Ways and Means Committee. More…

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Texas Home Prices at Least Risk
 
Amidst a nation of MSAs (Metropolitan Statistical Area) hosting tumbling home prices, the Lone Star State’s own metropolitan areas have held tight to their home values, in a 12-month period ending in September 2008.

 According to PMI Group’s Winter 2009 Risk Index, Dallas, Houston and San Antonio were the least likely large MSAs in the country during third quarter 2008 to experience lower home prices in the next two years. Each had a risk index of less than one. 
 
Overall, Texas MSAs averaged a 2.8% increase in home prices between September 2007 and the same month in 2008.

 PMI’s U.S. Market Risk Index uses economic, housing and mortgage market factors (including home price appreciation, employment, affordability, excess housing supply, interest rates and foreclosure activity) to determine the probability of lower home prices in the future.

For the full study, including more rankings for Texas MSAs, see PMI Group’s Risk Index. 
 
Source: PMI Group

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QUICK LINKS

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2009′s Top 9 Design Winners:
AIA (American Institute of Architects) selects top 9 building projects

From U.S. Dept. of Energy:
Ten Ways to Cut Energy Bills this Winter
 
Top 10 Home Improvement Paybacks:
See chart of the Top 10 Home-Improvement project paybacks here

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Please join our Mailing List.

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Wishing you a 2009 filled with success!

 
Ruby Thomas Wadhwa, Founder. 
www.HoustonDwell.com

In this issue:

-NY Times Article on why right now is the perfect time to Buy

-First Time Home Buyer Tax Credit: A reason to Buy now

-Top 10 Home Remodeling Paybacks (ranked according to resale price appreciation).

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INVESTOR’S CORNER

.The “List”…
Houston Innerloop Foreclosure List (Updated Daily).

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Mortgage Rates Plunge to 37 year lows

Record Low: Mortgage rates for 30-year loans haven’t fallen this low in 37 years! (5.17%). Read on…

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Get off the fence…now 

“Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for home buying,“wrote Ron Lieber in a Dec. 6, 2008 New York Times article.

If you are still on the fence you must read this NY Times article before…well, its too late. 

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Investors Not Happy with 4-loan limit (new rule)
 
Some real estate investors are up in arms over a new Fannie Mae-Freddie Mac policy which states that a person cannot hold more than four real estate loans simultaneously.

The rule, which took effect Dec. 1, 2008 prohibits an investor from obtaining even a fifth mortgage no matter how much money he puts down or how much income documentation he provides. It offers no exceptions for assets or history of success as a real estate investor. More…

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HOME BUYER’S CORNER

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First-Time Home Buyer Tax Credit: A Reason to Buy Now
 
The $7500 homeownership tax credit that the federal government created earlier this year is a hard-won tool to encourage you to jump off the fence and get into the home buying market. (Credit slated to expire mid-2009). Get the details here…

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Home Equity Outlook for Texas MSA’s

A recent study predicts homeowners in many Texas Metropolitan Statistical Areas (MSAs) will see an increase in their home equity between now and 2012.

The study, conducted by the Center for Economic and Policy Research is based on purchases of homes priced at 75% of the median price and financed at between 6 and 8% interest.
 
According to RECON’s chief economist, Dr. Mark Dotzour, “This confirms that there never was a price bubble in any Texas city, and, consequently, the likelihood of equity increase is higher.”  (Center for Economic and Policy Research).

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HOME OWNER’S CORNER

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 Top 10 Home Remodeling Paybacks

 Results are in.  Exterior remodeling projects (specifically, replacement projects that boost curb appeal: siding, windows, and decks) are the best investments.

• Wood deck additions and all types of siding replacements: returned more than 80% of project costs upon resale.
• Window replacements: returned more than 76% of costs.
• Midrange kitchen remodel: returned 76% of project costs.

Least profitable remodeling projects in terms of resale value:

• Home office remodels, sunroom additions, and back-up power generators, returning only ~50% of project costs. 

See chart of the Top 10 Home-Improvement project paybacks here.

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 Great Time for Home Improvements

It may not be an easy time to sell your home, but if it needs repairs or upgrades, now is the opportune time to complete those projects. Consumer spending on home improvements has decreased and this has led to declining prices on building materials and lower contractors’ fees.
 
With contractors hungry for work and willing to negotiate, homeowners can hire better contractors at lower prices. Homeowners can expect to save at least 10 percent on the cost of a renovation and possibly much more, depending on where they live and the project they choose. (Money Magazine).

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Property Tax Payment Plan to Help Ike Victims

 Houston residents whose homes were damaged by Hurricane Ike may qualify for a property tax payment plan authorized under the Texas Property Tax Code.  Under the plan, 2008 property taxes can be paid in installments, without interest/ penalty in 2009.

To qualify, homeowners must submit a request to their tax office in writing by Jan. 31. They will also need to provide evidence of damage caused by Hurricane Ike (i.e, pictures, insurance claims, repair receipts). For more information, contact HCAD.

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QUICK LINKS:

From U.S. Dept. of Energy: 10 Ways to Cut Energy Bills this Winter
 
New HUD website for Newbies: (on Financial Literacy/ Healthy Home Ownership) 
My Money, My Home, My Future
 
Market Guru Corner: Great 2-page white paper on the Housing Crisis solutions
 

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TECH. CORNER

Green + Wired = One Smart Home

You hear a lot about “smart” homes these days, but what does it really mean?

Now’s your chance to find out. See this smart home and all the cool details in the video. This pre-fab home is a permanent exhibit at the Chicago Museum of Science & Industry.  See More…

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Happy Holidays!

 
Ruby Thomas Wadhwa, Founder. 
www.HoustonDwell.com