Posted on 07/24/2012 2:11:09 PM PDT by Cincinatus' Wife
........."We see the strength of the Houston housing market as a direct reflection of improving consumer confidence in the local economy as a whole," said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. "One of the principal factors in the demand for homes throughout greater Houston has been steady job gains that the Texas Workforce Commission reports has amounted to more than 90,000 hires over the past year. In its July economic outlook, the Greater Houston Partnership said 'Houston is the strongest of all the major metro economies in the U.S., and if job growth continues at the current pace, this may be one of the best years on record for the region.”
.....The low interest rates and the age group, Cornelius believes, are helping to drive this market. Plus the uncertainty over the Novemember elections.
“That’s a fact,” she said. “One way or another, it could go either way. Interest rates can’t stay down this low forever but I think they will for a while.”
Lowe said a lot of sales recently are cash transactions.
“When you have buyers paying cash then therefore they want a little better deal,” she said.
Lowe also agreed that concerns about the market after the November elections has been mentioned by some buyers or sellers. The new health care legislation, if implemented, is expected to include new taxes on certain real estate transactions.
“I think the 3.8 percent tax on the sale of the home under certain conditions that the seller must pay at closing to the federal government, that’s going to drive the price of the home down,” Lowe said.
(Excerpt) Read more at yourhoustonnews.com ...
Expect a crash in housing, along with the rest of the economy, if BO cheats and lies his way back into office. These glimmers of hope are solely based on the possibility that the First Dictator will lose.
I suspect the Clear Lake area (which includes Friendswood, if only on the western fringe) has worked through the worst effects of the Great Space Shuttle Massacree of 2011. Most of the displaced space workers have either (like me) found new jobs in the oil industry or moved on to other things. (Lots of my former co-workers still in aerospace are now in Mesa, Everett, WA, or Charleston, SC. working on commercial aircraft.)
I now work on the west side of Houston (Beltway 8 near I-10), but the commute isn’t bad enough to motivate me to move from League City. Actualy the drive is all at highway speed, except for a stretch of the Gulf Freeway near Dixie Farm Road when I go through (I work from 6:30 am to 3:30 pm).
Folks can do a lot worse than Friendswood or League City.
I suspect the Clear Lake area (which includes Friendswood, if only on the western fringe) has worked through the worst effects of the Great Space Shuttle Massacree of 2011. Most of the displaced space workers have either (like me) found new jobs in the oil industry or moved on to other things. (Lots of my former co-workers still in aerospace are now in Mesa, Everett, WA, or Charleston, SC. working on commercial aircraft.)
I now work on the west side of Houston (Beltway 8 near I-10), but the commute isn’t bad enough to motivate me to move from League City. Actualy the drive is all at highway speed, except for a stretch of the Gulf Freeway near Dixie Farm Road when I go through (I work from 6:30 am to 3:30 pm).
Folks can do a lot worse than Friendswood or League City.
http://www.realtor.org/small_business_health_coverage.nsf/pages/health_ref_faq_med_tax?opendocument
Q-11: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
A: Maybe. The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the “taxable gain”), and only if the seller has AGI above the $200K/$250K AGI thresholds.
So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000 taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.
I can’t believe the National Assn of Realtors isn’t in full-throated cry over this issue. They must not be awake because this tax will KILL what’s left of their industry.
Even if Doofus Obumble loses, Obumblecare must still be repealed and I doubt the Stoopid Party will be able to find enough testosterone to git ‘er done.
Read my post at #5 and you will see it applies to a tiny number of transactions.
For now homes around $500,000 are selling somewhat better than the lower priced ones. Local realtors seem to think the huge influx of people from other states who are used to paying substantially more is driving this portion of the market.
Most of our immediate area which is adjacent to Friendswood has a number of homes priced from $200,000 to $250,000 which are generally 4 bedroom, 3 bath and very nice. Considering financial times, it would seem to be to be more prudent to buy a less expensive home and save or invest the remaining funds elsewhere. There certainly is no guarantee that the Texas economy will always remain as strong as it is now. Certainly such spending habits are one of the things that contributed to the current economic stress being experienced by many families today.
Thank you for the link.
“New Medicare Tax on “Unearned” Net Investment Income”
“Q-1: Is there a 3.8% real estate “sales tax” or a transfer tax created in health care bill?
A: No. There is neither a real estate “sales tax” nor a real estate transfer tax under any federal law. The Internet has generated several viral items describing such a tax. Those Internet postings are totally false. The 2010 health care legislation did create a new 3.8% tax, but it applies only to a limited group of taxpayers.”
[[[[[BUT]]]]]]
Q-2: So who will be subject to the new tax? When is it effective?
A: The new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. The new Medicare tax on unearned income will take effect January 1, 2013. Proceeds from the tax will be allocated to shoring up the Medicare fund.
Q-3: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)
Q-4: Are the $200,000 and $250,000 thresholds indexed for inflation?
A: No.Thus, over time, more individuals may become subject to this tax.
Q-5: What is “unearned” net investment income?
A. Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business. The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.)
Q-6: So the new tax will apply to rents from investment properties that I own?
A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and interest expense associated with debt service. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax.
For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-7, below. See also Q-8 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)”........
MORE: http://www.realtor.org/small_business_health_coverage.nsf/pages/health_ref_faq_med_tax?opendocument
[[[Note]]]
“Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.”
[[[Note]]]
..........
Q-17: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?
A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income. The chart below reflects the impact of those changes, presented based on implementation of current law effective dates..............
*Several special calculations actually increase the marginal tax rates of many upper income individuals. These include the loss of the personal exemption, loss of some itemized deductions and special self-employment tax deductions and rate adjustments. This chart does not reflect those special calculations because their impact will vary from taxpayer to taxpayer.
The factor that means this won’t apply for most folks anytime soon is that it only applies to home value GAINS for the seller.
“so the $30,000 gain would be subject to the new 3.8% tax”
No. If it’s a married couple, the taxable gain needs to be higher than $500,000 to trigger the tax - $30,000 isn’t going to do it. This is another “soak the rich” tax.
THEY WILL MESS WITH NUMBERS AND this WILL go up and up. We’re all going to be “rich” before we’re poor.
*...........If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income. The chart below reflects the impact of those changes, presented based on implementation of current law effective dates..............
Several special calculations actually increase the marginal tax rates of many upper income individuals. These include the loss of the personal exemption, loss of some itemized deductions and special self-employment tax deductions and rate adjustments. This chart does not reflect those special calculations because their impact will vary from taxpayer to taxpayer.
I’m rich already, LOL.
But this particular part of the AHCA is one of the most misunderstood and misquoted items on FR.
Under current law, very few real estate transactions are going to trigger this tax, and I don’t want any FReeper being scared off from doing something because of it.
It’s another “soak-the-rich tax” for NOW. Just wait.
Someone is going to do this.
From the report:
Attorneys for anyone accused of a criminal offence signed into statute by President Obama under Art. I, s. 7, have the right to request access by their forensic investigators to the Hawaii Health Department’s original birth record for Mr. Obama to satisfy them that the President is the President, the statute the statute and the alleged offence an offence. he suppression by the prosecution of evidence favorable to an accused upon request violates due process [14th Amdt.] where the evidence is material either to guilt or to punishment”. Therefore, the courts will be obliged to grant any such defence request. By the supremacy clause (Art. 6), Hawaii must comply.
By the precedent set in Brady v. Maryland (373 US 83, 1963), “T Does the issue matter? Advice from an eminent constitutional lawyer is that it does: “The Constitution is the supreme law of the US. We amend it, or we abide by it.” He expects a credible court challenge to the authenticity of Mr. Obama’s birth certificate soon. If it occurs, and if the certificate is a forgery, the constitutional consequences will be grave.
Standing, by virtue of direct, personal harm involved in a criminal indictment/conviction? What types of cases would this involve?
http://www.freerepublic.com/focus/f-bloggers/2900297/posts
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