A Shipping Container Costs About $2,000. What These People Did With That Is Beyond Epic

from realfarmacy.com

A luxury home doesn’t always necessarily mean thousands of square footage, towering great rooms and gilded toilets. Take these homes for example: to begin building one of these epic houses, all you need is $2,000. That $2,000 will buy you a shipping container. What you do with that shipping container… well, that’s completely up to you.

Some creative people have found a way to transform this rudimentary “room” with metal siding into luxury housing that blows us away. These homes are epic.

7 Tax Breaks Every First-Time Homebuyer Must Know

good considerations from gobankingrates.com

7 Tax Breaks Every First-Time Homebuyer Must Know
Several tax breaks are available to the first-time homebuyer.

The tax landscape changes yearly. Congress meets occasionally to review and adjust the tax code, so first-time homebuyers must keep on their toes to understand year-to-year tax changes.

The government provides tax breaks for homeowners as a means of getting people to buy homes. Homeownership offers multiple home tax deductions and other breaks that aren't available to those who rent. If you bought your first home in 2016 -- or you're hoping to buy one in 2017 -- it can pay to familiarize yourself and claim current deductions and credits.

Home Mortgage Interest Deduction

The mortgage interest deduction is one of the biggest home tax breaks. It covers interest paid on loans of up to $1 million, or $500,000 if you're married but filing a separate return.

The deduction can be especially beneficial for borrowers with new loans because interest charges on mortgages are typically steeper in the early years of the mortgage's term.

"The way loan amortization works, your first payments have the highest ratio of interest to principal," said Andrew Christakos, an accredited investment fiduciary with Westfield Wealth Management in Westfield, N.J.

You must itemize on Schedule A of your tax return to claim the home mortgage interest deduction. To do so, add up all deductible expenses for the year, including those related to homeownership as well as other categories. Claiming the mortgage interest deduction can save you tax dollars if your itemized deductions are greater than your standard deduction.

Your loan provider should send you Form 1098 shortly after the tax year ends. It will show the amount of interest you paid the previous year.

Mortgage Interest Credit

The federal government's mortgage interest credit provides another opportunity for first-time homebuyers to claim a tax break for the mortgage interest they paid. Unlike the mortgage interest deduction -- which reduces your taxable income -- this mortgage interest credit directly counts against your tax bill, lowering what you owe.

"It's a little-known but very cool program," said Deb Tomaro, a Bloomington, Ind.-based broker with RE/MAX Acclaimed Properties. "Depending on the purchase price of your home, a buyer can get 20 to 30 percent of the interest they pay every year back as a straight tax credit."

For example, imagine you prepare a return and find that you owe the IRS $1,000 in taxes. However, completing IRS Form 8396 for the mortgage interest credit shows that you're eligible for a $1,000 credit. In that situation, you can apply the credit and not owe the IRS anything.

The credit is not refundable, so you will not receive a check if the credit is larger than what you owe in taxes.

To be eligible, a state or local government must have issued you a Mortgage Credit Certificate. This typically occurs at the time you originate the mortgage. The certificate tells you how much interest you can claim as a credit. If you also claim a mortgage interest deduction, you must reduce the credit by that amount -- no double-dipping is allowed.

Mortgage Points Deduction

You can also deduct what you pay in points to obtain the mortgage loan in the first place. Mortgage points are prepaid interest that can help a borrower qualify for a lower interest rate over the life of the loan. And, they can qualify for a tax deduction as well.

"Most homeowners overlook the deduction of points they pay to secure a mortgage loan," said Yvette Best, controller and senior tax accountant at the Fayetteville, Ga.-based tax preparation company Best Services Unlimited. "Buying points to lower the interest rate on your mortgage loan is one of the best tax breaks available right now. The return on investment is twofold because you get to deduct the cost of the points and the amount on interest paid in the same year as the home purchase."

You must itemize on your return to claim this deduction, and your settlement disclosure statement must specifically cite these fees as "points." Your home loan must be for $1 million or less, just as with the mortgage interest deduction.

Tax-Free IRA Withdrawals

Saving money for a down payment and closing costs is a major consideration for most people when they're getting ready to buy a home. The IRS says you can pull funds from your IRA to help.

"First-time homebuyers who break into their IRAs to come up with the down payment do not have to pay the 10 percent penalty normally applied to withdrawals taken before age 59½," said Lisa Greene-Lewis, a certified public accountant and blog editor at TurboTax. "This incentive applies to current homeowners as well because you're eligible for first-time buyer status if you haven't owned a home in two years."

You can take up to $10,000 from your IRA without penalty to buy a home, although you'll still need to pay taxes on the money. Your 401k plan does not qualify for the exception to the 10 percent penalty.

Property Tax Deduction

Taxpayers who itemize deductions on Schedule A are also eligible to deduct real estate taxes paid on a primary residence, said Laurie Samay, a New York-based certified financial planner with Palisades Hudson Financial Group.

You can deduct property taxes paid during the year for which you're filing. If you purchase a home midway through the tax year, you can claim all taxes paid from the date of sale onward.

Home Improvement Tax Breaks

Improvements you make to a home can qualify for a tax break. If you use a home equity loan or other loan secured by your home to finance improvements, the loan will qualify for the same mortgage interest deductions as your main mortgage.

Keeping track of capital improvements to the home also can help you out when you sell the home. If your home sells for more than you paid for it ­-- your tax or cost basis -- that extra money can be considered taxable income at capital gains rates subject to certain thresholds and rules. But home improvements can lower your taxes by increasing your tax basis.

"You can include the cost of improvements made to the property in the cost basis of the property when you're determining any capital gains on the sale," Christakos said. "Make sure you keep your receipts for major improvements so you can prove the costs you claim."

Home Energy Tax Credits

Now for the bad news: Two property-related home improvement tax credits have been eliminated as of Jan. 1, 2017. That means both credits will no longer apply beginning with the 2017 tax year.
•Nonbusiness Energy Property Tax Credit. This credit covered 10 percent of the cost of qualified home energy-efficient products between $50 and $500.
•Residential Energy Property Tax Credit. This credit was equal to 30 percent of the cost of installing renewable energy sources.

You can still claim these credits if you made qualifying improvements to your home during the 2016 tax year. However, you won't qualify for the credit if you write the check before the clock runs out and the contractor does the actual work in 2017.

"The 30 percent Residential Energy Property Tax Credit applies to the cost of installing these products, including labor and installation, but must be taken in the year the item was placed in service," said Jayson Mullin, founder of Top Tax Defenders in Houston.

Keep all receipts and contracts from the installation, and file for this credit using Form 5695.

Mortgage rates fall for the second week in a row

Some good news from Washington Post on mortgages and rates...

Mortgage rates pulled back again this week as the exuberance that led to their rapid rise is beginning to temper.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average tumbled to 4.12 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.2 percent a week ago and 3.92 percent a year ago.

After escalating for nine consecutive weeks, the 30-year fixed rate has fallen the past two weeks. It is back to where it was in early December.

The 15-year fixed-rate average slipped to 3.37 percent with an average 0.5 point. It was 3.44 percent a week ago and 3.19 percent a year ago. The five-year adjustable rate average sank to 3.23 percent with an average 0.5 point. It was 3.33 percent a week ago and 3.01 percent a year ago.

[Washington home prices in 2016 matched record set during housing boom]

Home loan rates tend to follow the movement of long-term U.S. Treasuries. When the yield on the 10-year bond falls, rates usually follow.

Since peaking at 2.6 percent in mid-December, the yield on a 10-year Treasury dropped to 2.38 percent this week.

“After absorbing a mixed December jobs report, the 10-year Treasury yield fell eight basis points,” Sean Becketti, Freddie Mac’s chief economist, said in a statement. “The 30-year mortgage rate moved in tandem with Treasury yields falling eight basis points to 4.12 percent, the second decline since the presidential election. The December jobs report showed 156,000 jobs added, barely meeting many experts’ expectations, while wage growth was at the high end of expectations at 0.4 percent. If strong wage gains persist, they may push inflation and interest rates higher.”

[Rising sale prices and mortgage rates mean you’ll have to fork over more for that home purchase this year]

Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed believe rates will remain relatively stable in the coming week.

“Even with some volatility in the market, the mortgage rate is pretty much at the same level as four weeks back,” said Shashank Shekhar, chief executive of Arcus Lending in San Jose. “In the absence of any market moving reports, I don’t expect any major movement this week.”

Meanwhile, with rates falling, mortgage applications picked up last week, according to the latest data from the Mortgage Bankers Association. The market composite index — a measure of total loan application volume — grew 5.8 percent from last week. The refinance index rose 4 percent, while the purchase index increased 6 percent.

The refinance share of mortgage activity accounted for 51.2 percent of all applications.

“Markets continue to adjust their expectations about the incoming administration and Federal Reserve policy,” said Lynn Fisher, MBA’s vice president of research and economics. “After seasonal and holiday adjustments, both home purchase and refinance application activity increased modestly last week. The pick-up was especially notable in the government sector, although the decrease in annual FHA mortgage insurance premiums announced earlier this week will not take effect until January 27th.”

6 things that’ll help sell a home faster

always good reminders from inman news.com

6 things that’ll help sell a home faster

Do these tasks before putting a house on the market

Key Takeaways

•Homesellers need to think of their property as a product instead of their home.
•As with curb appeal, the better the home looks, the faster it will sell.
•In most markets, the best strategy to attract the most buyers is to price just a bit low.

Often, what helps a home sell faster is also what helps a home sell for more.

Surprisingly enough, just having a low price isn’t the key. Homesellers need to think of their property as a product — something to market — instead of home. When they do, the result will be a fast sale at a great price.

6 tasks to sell a home faster

Try these six things to sell a home faster:

1. Stage the yard

The first thing people see when driving up to a home is the yard. Parking at the curb, hence the term “curb appeal,” buyers make an instant determination of how desirable a home is by how it looks. First impressions are everything, right?

A beautiful front yard makes a good impression that should continue when potential buyers walk in the house.

Remove weeds, rake leaves, trim hedges and anything else to clean it up.

Then, you can work on staging the yard.

Anything new including plants, grass or mulch will always brighten up a yard. Keep a realistic budget in mind, and skip the major projects (such as a new driveway) unless absolutely necessary.

2. Clean, clean, clean

The power of a good cleaning job, inside and out, can’t be emphasized enough. Start outside the house after staging the yard. Pressure washing the walls and cleaning the windows is a good start.

If the sellers are considering repainting, try cleaning first to see how the home looks. Often just removing dirt is enough to brighten the home’s look.

Inside the home, homeowners need to get into every corner and crevice to remove dust, grime or dirt. The places people will be most impressed by the work are the kitchen and bathrooms. The more “new” the house looks, especially in those rooms, the better the impression on buyers.

Why all the hard work? Buyers like move-in condition and will pay more for it.

3. Remodel or upgrade

The best returns come from the smallest improvements; new trim (door and window casings, baseboard, crown molding), new paint and new flooring all create a fresh new look around the home at minimal cost.

Stepping up from that includes upgrading appliances, fixtures (lights, faucets, etc.) and replacing windows. These will all make the home look newer and nicer, which helps the home sell faster.

Major remodeling, such as replacing the kitchen or bathrooms, should only be considered if necessary. Although doing major upgrades will help a home sell faster, the time it takes to do the upgrades could be long.

4. Declutter and stage the home

All the “little stuff” sellers have around their house, including collectibles and photos, should be put away.

After that, look at each room and see whether there are extra pieces of furniture that could be removed. The key to decluttering is less is more.

Buyers want to see large rooms where they can visualize living there. The more stuff they have, the harder it is to visualize.

Decluttering makes rooms feel larger, which makes the home more appealing to buyers.

Staging is often ignored or dismissed by agents as not important, most often because of cost. However, buyers and sellers, and their agents, all feel that staging increases the value and appeal of a home.

Equally important is how well a staged home shows in photography. As with curb appeal, the better the home looks inside, the faster it will sell.

5. Use professional photography and marketing

Use a professional photographer and produce professional marketing materials with the high-quality photos. All too often consumers don’t question the quality of the photos used to market the home.

With over 90 percent of buyers doing their shopping online, professional photos are essentially in attracting more buyers and selling the home faster and at a better price.

Good marketing makes a huge difference in how buyers see a home. Professional photos will be seen by buyers through the MLS and consumer real estate portals. All of which are designed to get buyers to fall in love with and buy the home.

6. Price effectively

A good agent will analyze recent sales and select a price that is designed to entice buyers to make offers. Pricing a home is not like pricing a car or TV. What the buyer ultimately pays is rarely what the list price is.

In most markets, the best strategy to attract the most buyers is to price just a bit low. This frequently results in multiple offers, competitive bidding and a fast sale at a high price.

The reason this works is that the lower price makes the home visible to more buyers and appears to be a bargain. When this pricing strategy is combined with all the steps mentioned above, buyers see a beautiful home in excellent condition at a great price. Of course, they want to write an offer!

Make it happen

Ultimately, the three key factors in making a home sell faster are cleaning and/or remodeling, staging and professional marketing. As a homeowner, doing all three will maximize both the speed of selling but also price. Although pricing is absolutely critical, the price offered by buyers will be driven by the other three points.