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Issue # 96       
February 2016  
Dear (Contact First Name),  

We strive to keep you informed of the real estate market and trends that may affect your relocation, investment, or purchase decisions.  

You have expressed an interest in properties or rentals in either South Florida or Western North Carolina in the past and these periodic newsletters will help to keep you current of what is happening in the real estate industry nationwide and locally.   
 
The forecast for 2016 is bright with the real estate market appearing to return to a normal market with reasonable sales volumes and price increases.  Inventory still remains tight resulting in increased new home construction at more price points than in the past year. do to a shortage of inventory home builders have increased their offering and new home sales are up 14% from a year ago.  If you are an investor, rents continue to rise making existing properties even more profitable and new investments generating higher ROIs.

Please feel free to call me to discuss any and all matters relating to the real estate market in South Florida or Western North Carolina. 

Happy Leap Year!


Contact Kim N. Bregman, Optima Properties


Lic. Real Estate Broker, FL & NC
REALTOR, MBA, ABR, NAEBA, FEBA 
 
In This Issue
Buyer's Guide  
 
Answers to common questions, resources, and tools.
 
 Finance Center

 

Articles, Calculators, Tools, and Advice  






 





Mortgage Rates:
As Of January 31, 2016
 
Average RateAverage Points
30 year FRM3.88
0.6

15 year FRM		3.07
0.5
5/1 ARM
2.90
0.5
1 year ARM2.540.3
   




Mortgage rates move lower for the fourth consecutive week as the Fed held interest rates steady
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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2012 Head shot 
Kim N. Bregman    

Optima Properties 

 Lic. Real Estate Broker, FL & NC, REALTOR, MBA, ABR 

The greatest compliment that I can receive is a referral from clients, friends and co-workers.  Thank you for your trust.   

 Florida:
17914 Foxborough Lane
Boca Raton, FL 33496
561-251-7170 Cell
561-477-0676 Office
561-892-0937 Fax

North Carolina: 
581 Tsalagi Trail

Maggie Valley, NC 28751 
828-400-7953 Cell
828-400-7953 Office
561-892-0937 Fax

kim@optimaproperties.com
www.OptimaProperties.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
In The News!
 
 
Home Prices Rise and U.S. New-Home Sales Soar

U.S. home prices increased at a faster clip in November, the gains fueled by solid hiring growth, historically low mortgage rates and a shortage of houses on the market. Chief Economist, Ted Jones, is quoted as stating that "people who purchased a home a year ago basically got their first year of ownership free, based on increase in home value".
The Standard & Poor's/Case-Shiller 20-city home price index rose 5.8 percent from a year ago, up from a 5.5 percent pace in October, according to a Tuesday report.
Home values nationwide have nearly recovered to their July 2006 peak, as the real estate market has slowly recovered from the housing bust that triggered the Great Recession.
 
Buyers crowded back into the housing market last year. Sales of existing homes rose 6.5 percent over the past year to 5.26 million, according to the National Association of Realtors. More Americans have been able to purchase homes as employers have added 2.7 million jobs and borrowing costs remain low. But the number of available listings has fallen 3.8 percent from a year ago, causing tight inventories that have fueled escalating prices.
 
Current interest rate remain low, below 4 percent. Falling mortgage rates in recent weeks has offset the challenges caused by rising home values. Mortgage buyer Freddie Mac says the average rate on a 30-year fixed-rate mortgage declined to 3.81 percent last week from 3.92 percent a week earlier.
 
Americans rushed to buy new homes in December at the strongest pace in 10 months, a sign of the positive momentum carrying the housing market in 2016.
 
The Commerce Department says new-home sales surged 10.8 percent last month to a seasonally adjusted annual rate of 544,000. It was the third consecutive monthly gain since sales collapsed in September. The increase nearly pulled the sales rate even with the level of 545,000 in February 2015.
 
Sales of new homes accelerated sharply in 2015, rising 14.5 percent on the entire year. Steady job growth that cut the unemployment rate to a healthy 5 percent has given many home buyers increased confidence, while relatively low mortgage rates improved affordability.
 
Economists are predicting continue steady growth in home sales and prices in 2016.
 

Advice For Buyers!
Home Buying Tax Deductions  
 
One of the major differences between owning a home and renting one is the allowable home buying tax deductions.
 
The tax deductions can have a serious impact on the overall cost of comparing renting vs. buying. One of the advantages of owning a home is the tax savings benefit.
 
The list below summarizes the deductions that many people forget about when buying Real Estate. While those that have owned a home before may be familiar with some of these tax deductions many first time homebuyers are not.
 
This is just a guideline for you to have a more detailed conversation with your tax professional. Tax laws change each year and those who pay state income taxes may have other deductions available to them as well.
 
Mortgage Points:
Points paid when taking out a mortgage are tax deductible if they are used to reduce the mortgage interest rate. Points or origination fees paid when you buy a home or other Real Estate are generally valid home buying tax deductions in full for the year that you pay them. It should be made clear that origination charges from the lender that constitute a "service fee" are not tax deductible.
Another method you could make is to amortize the points over the term of the mortgage. This choice is usually made only when your itemized deductions are less than the standard deduction for the year you purchased the home.
 
Additionally when you refinance a mortgage the points must be deducted over the term of the loan. If you deduct points over the term of the loan and sell the home or refinance it again before the loan expires, you can deduct in the year of the sale or refinancing any points that you didn't previously deduct.  
 
Prorated Mortgage Interest:
When you are buying a home, depending on when in the month the home is closed, the buyer pays either a small or large amount of pro-rated mortgage interest for that month they close. This amount of prorated mortgage interest can be written off. Refer to your final HUD settlement statement for the exact figure.
 
Real Estate Taxes:
Real estate taxes are only deductible in the year they are actually paid to the government. Thus, if in year 2015, your lender held in escrow moneys for taxes due in 2016, you cannot take a deduction for these taxes when you file your 2015 tax return.
 
Prorated Real Estate Taxes:
Sometimes a seller will pay the local tax collector's office for Real Estate taxes prior to the closing. In some circumstances, however, the buyer will pay a pro-rated portion of the taxes for the year at closing.  
 
Construction Loan Interest For New Homes:
As long as the construction period doesn't last more than two years before you make the new home your "principal residence," you can write off the interest for that new construction loan.
 
Mortgage Prepayment Penalties:
It is not all that common today to find mortgages with prepayment penalties, however it is certainly not impossible to have one.  If your mortgage does include a prepayment penalty and you finish all the loan payments early, the penalties will be tax deductible. While not all that common it is still a tax break worth checking into.
 
Mortgage Interest Tax Deduction:
From a tax perspective one of the best features of owning a home or other real estate is the ability to claim a mortgage interest tax deduction on your tax return.  Mortgage interest is tax deductible on mortgages of up to 1 million dollars ($500,000 if married and you are filing separately) as long as you use the money to buy, improve, or build an addition on your home and the mortgage is secured by the property.
 
Additionally, the interest you pay on loans secured by your home and used for a purpose other than to buy, build or improve your home is tax deductible for loans up to $100,000 ($50,000 Married Filing Separately). In other words if you used a home equity line of credit to purchase a car the interest on this 2nd mortgage would be tax deductible as well.
 
Mortgage lenders are required to send an annual statement to borrowers by the end of January of each year, reflecting the amount of mortgage interest the homeowner paid during the previous year.
 
This is a home buying tax deduction you absolutely do not want to miss!
 
 

Vacation Rental
snowboard-jump-man.jpg
Looking for a Luxury Home Vacation Rental in the Western North Carolina Mountains?

Winter in NC
Come to the Mountains this winter and enjoy all the mountains have to offer!  

Couple Skiing
Skiing and snowboarding at Cataloochee Ranch & Ski Resort, visit eclectic Asheville,  visit Tube World in Maggie Valley, hike in Smoky Mountain National Park and Pisgah Forest, see the Cataloochee Elk, gamble at Harrah's Casino, drive on the Blue Ridge Parkway and visit Cherokee.
 
Soaring Eagle Retreat, Luxury Log Home in
winter waynesville
Waynesville/Maggie Valley available for rental. Just 15 minutes from the Cataloochee Ski Resort and Ranch 30 minutes from the National Parks and 30 minutes from Asheville and Cherokee.
 
 
Kim's Blog
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Optima Properties has beeen working as Exclusive Buyer Agents for 25 years. 

We service customers specifically looking for properties in South Florida and Western North Carolina. 

We act as consultants, advisors, advocates and negotiators for our clients rather than as a salesperson.

I look forward to speaking with you and representing YOUR INTERESTS in future real estate transactions.

Sincerely,
Kim N. Bregman Lic. Real Estate Broker
FL & NC, REALTOR, MBA, ABR, NAEBA  

 

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