Real Estate Information

Happy new year, Ringwood!    I hope that you and your family enjoyed a very happy holiday season, and that 2008 is off to a great start for you.  Did you avoid making a new year’s resolution this year?  It’s not too late to make a few resolutions that are easy to keep . . . and why not make them real-estate-related?  Here are some ideas to get you started:

• Know your credit!  Make a resolution to stay on top of your credit in 2008.  Begin by getting a detailed credit report so that you know where you stand as the year begins.  Check again at the end of the year to see how much your credit has improved!
• Keep a budget.  This can be a difficult one to stick to.  Many people start the year with an idealistic budget, but soon let it go out the window – oftentimes, along with any hopes of saving for real estate investment!  Begin with a goal of either setting aside a certain amount for a down payment on a real estate investment or putting away enough to make one extra mortgage payment in 2008.
• Research real estate web sites.  Be a snoop in 2008!  Use web sites like mine to keep tabs on what homes in your neighborhood are selling for, where the foreclosures near you are, and what the general market is like in your area.  When you are ready to make a real estate investment, you will already have a good feel for the local market.
• Out with the old!  Even if you are not planning to move in 2008, it never hurts to clean out your closets, garage, or attic and donate to charity.  You’ll make your home more appealing to prospective buyers if you are selling, and you’ll feel more organized if you are staying put.

Best wishes for a happy and prosperous 2008!

For more information about Ringwood NJ real estate, please visit HomesByOrly.com or call me at 973-962-5410.  To begin searching for Ringwood NJ homes, please use my complimentary MLS search!

Many homeowners have heard of a “1031 Exchange,” but few understand the basics of what an exchange actually entails.  This week I want to cover just a few of the basics of the process, as it can be an invaluable method of homeownership for investment homeowners.

What is a 1031 Exchange?

Put simply, it is the sale of one property in exchange for the purchase another property of similar value without the required payment of capital gains tax, all performed within a specific time frame.  An example of when you might use a 1031 Exchange, as opposed to selling a home and purchasing a new one outright:  you want to sell your current vacation home and purchase a new, similar one that has a few better features.  You have not yet owned your current vacation home for two years, so you are subject to substantial capital gains taxes when you sell it.  If you were to use a 1031 Exchange, you could “exchange” your current home for a new one and be relieved of the capital gains requirement.  It is this difference between "exchanging" and not simply buying and selling which, in the end, allows you, the taxpayer, to qualify for a deferred gain treatment. In a nutshell: sales are taxable with the IRS and 1031 exchanges are not. US CODE: Title 26, §1031. Exchange of Property Held for Productive Use or Investment

Important Rules of 1031 Exchange

1.       The total purchase price of the replacement "like kind" property must be equal to, or greater than the total net sales price of the relinquished, real estate, property.

2.       All the equity received from the sale, of the relinquished real estate property, must be used to acquire the replacement, "like kind" property.

1031 Timelines and Rules

Identification period – the seller has exactly 45 days from the sale of the original property to identify other replacement property(s) that he proposes or wishes to buy. 

Exchange period – the period during which the seller of the relinquished property must receive the replacement property.  This period ends exactly 180 days after the date on which the person transfers the property relinquished or the due date for the person's tax return for that taxable year in which the transfer of the relinquished property has occurred, whichever situation is earlier.

If you want to learn more about strategies for buying and selling investment properties, or are interested in Ringwood NJ real estate, please call me at 973-962-5410 or visit HomesByOrly.com.  To get started searching for Ringwood NJ real estate, please use my complimentary MLS search.

Happy new year - see you in 2008!

The whirring of the helicopter announced the arrival of Santa in the Fieldstone shopping center in downtown Ringwood on Skyline Drive on December 9, 2007.

Every year for as long as most of us can remember our shopping center is transformed into a magical place where Santas house awaits bright eyed and anxious children all waiting for Santa Claus to arrive by Helicopter ( provided by John Joseph).  The tradition brings with it the begining of the Holiday season whereby the children can take pictures with Santa in his little house provided by the Ringwood Womans Club.  Half the parking lot is blocked off by police tape making this the focus of the afternoon with Coldwell Banker provided hot cider, candy and balloons to the patiently waiting children.

At the end of the afternoon everyone gets ready for the Annual Tree Lighting which takes place on Skyline Drive by the Wachovia Bank.  Sponsored by the Ringwood Chamber of Commerce are refreshments of Hot Choclate, Coffee and doughnuts.  At 5:00 pm after the Lakeland High School Band has played some wonderful Holiday songs and the speeches have been made the Tree is lit with an adornement of lights.

What a wonderful way to bring the town together to mark a joyous occasion that can be shared by everyone.

“Going green” has been one of the biggest trends of 2007, with more and more homeowners seeking to make environmentally-friendly choices on everything from cleaning products to flooring.  So shy shouldn’t our concern for the environment carry over to our holiday decorations this year?  Even if you’ve already “decked your halls” for the holidays, here are some “green” ideas you can still use:

·        Use LED lights – using LED lights to decorate the inside and outside of your home will bring you many benefits.  The lights last a whopping 50,000 hours – that means you could actually pass these lights down to your grandchildren some day!  Adding to their cost effectiveness is the fact that you will be using 90% less energy with LED bulbs – resulting in an electricity bill that the Griswald family would envy!  LED lights are also safer – they don’t produce as much heat and considerably reduce the risk of fire, always a concern during the holiday season.

·        Use solar-powered decorations – the “new kid on the block” when it comes to holiday décor, these lights not only save you money on energy – they don’t use any energy at all!  Place the solar panels where they can collect light during the day, and the lights will automatically light up when it gets dark and shine for about 8 hours. 

·        Use mother nature’s decorations – forget going out to shop for decorations.  Some of the best décor can be found right in your own backyard!  Use a real Christmas tree rather than a manufactured, non-biodegradable one.  Even better, buy a young tree with roots and re-plant it after the holiday season!  A basket of pinecones make a beautiful and rustic centerpiece, and fresh pine straw can be made into a lovely and fragrant wreath to display.

Happy tree-trimming!

To learn more about Ringwood NJ real estate, please visit HomesByOrly.com or call me 973-962-5410.  To receive a complimentary home value analysis, pleas visit RingwoodHouseValues.com.

Although the real estate market is slow in many areas, a down market does not have to mean that you cannot sell your home or buy a new one if you are facing a situation such as a job relocation.  You just have to re-think the way you play the game!

This article from CNNMoney.com offers advice on how you can still make a smart move in this unpredictable real estate market.  I wanted to share some of the top tips:

• Sell smart – if you are trying to sell your home, make sure you set a realistic price based on the current market.  You will also want to discuss with your Realtor the current average “days on market” that most properties are taking to sell.  This will help you better plan for your move.  If you are not willing to list for the current market value, and you are not comfortable with the current market times consider waiting out this down market, as real estate tends to work in cycles.
• Spend wisely – try to follow the rule of thumb of spending no more than 20% of your home’s value on renovations.  At a time when your home may be worth less than it was this time last year, this is not the time to be sinking money into it.
• Foreclosures are still your problem – remember that, even though you are not facing foreclosure, the other properties in your neighborhood that are foreclosed upon will decrease your home’s value.  As a general rule, for every home that goes into foreclosure in your neighborhood, your property value drops about 1%.  That value will stay depressed for about two years.  To find out where the foreclosures are in your area, go to realtytrak.com or foreclosurenet.net and type in your zip code.
• Recheck your mortgage – many homeowners do not know what kind of mortgage they have.  If you are one of them, pull out your old closing documents and find out how often you're rate will increase and what caps there are to how much that increase can be.  This information should be on the Adjustable Rate Rider, among the first few pages in your documents.

Remember, the Ringwood real estate market is always changing from month to month and neighborhood to neighborhood.  To find out what your home is worth, visit RingwoodHouseValues.com for a complimentary market analysis.  You may also visit HomesByOrly.com to learn more about Ringwood NJ real estate, or call me at 973-962-5410.

Now that we’ve rolled our clocks back an hour and are beginning to adjust to the earlier onset of evening, our homes can seem darker than usual even during the daytime.  But there are ways to use the natural light that is available in your home to brighten things up.  Money Magazine has published a list of “Do’s” and “Don’ts” for adding light to any home – among the topics covered are:

• Skylights (pick ones that open and choose carefully where to put them)
• Big windows (install them to showcase your best views, but don’t forget to add small windows above or below them that open)
• Window height (put windows high on the wall, but not tight to the ceiling)
• Window grouping (group several windows together, but don’t separate them with fat supports)
• Window shades (install shades in windows that face east, west, and south; avoid using UV-inhibiting coating)

Following these tips for adding light to your home will help to increase your home’s value.  To receive a complimentary comparative home value analysis, visit RingwoodHouseValues.com.  For more information about Ringwood NJ real estate, please visit HomesByOrly.com or call me at 973-962-5410. 

May your Thanksgiving be blessed with the bounty of the season and the love of family and friends!

We’ll be back next week with more of the latest Ringwood NJ real estate news and information!  In the meantime, please feel free to contact me at 973-962-5410 or visit HomesByOrly.com.

Many potential first-time homebuyers put off the purchase of their first home because they simply think they won’t be able to qualify for a loan.  However, applying for a mortgage is very different than it was 10 or 20 years ago – thanks to all sorts of creative financing offers that are available today, many people who are still giving their money to a landlord could be purchasing their own home.  FreddieMac.com has put together a great list of “myths” about becoming a homeowner, and it shows just how feasible homeownership can be for most people.  Here are just a few of the Many Myths About Homeownership:

Myth: You need great credit to become a homeowner.
Fact: You may still be able to buy a home with less-than-perfect credit. And remember, you can improve your credit over time.

Myth: You need to put 20% down to buy a home.
Fact: There are many types of mortgage products and programs that allow low and no down payments. But remember to factor in other costs such as closing costs, property taxes, moving

Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared.

Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income.

If you are ready to get on the path to homeownership in Ringwood NJ, please call me today at 973-962-5410 or visit HomesByOrly.com.  You may also begin searching Ringwood NJ real estate here!