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Mortgage Insurance Deduction Proposed
The Mortgage Insurance Companies of America is pushing for legislation that would allow home owners making any type of mortgage guaranty payment to deduct the insurance premium from their taxes, provided that they earn less than $100,000 per year. The Internal Revenue Service currently allows homeowners to claim deductions only on mortgage interest; but New York tax attorney Paul J. Housey insists that mortgage insurance should be deductible as well because it is paid solely for the use of money, is based on the risk level of the loan and offers no other service to the borrower. If approved, over 10 million home owners would benefit — possibly as early as this year. Moreover, research sponsored by the mortgage insurance industry reveals that such a deduction would make homeownership more affordable for as many as 100,000 families. (www.signonsandiego.com)
San Diego Union-Tribune (02/23/03) P. I-6; Harney, Kenneth R.
First-Time Home Buyers Getting Younger
In the Seattle area, more and more people are buying their first home at a younger age as interest rates are comparable to those from the mid-1960's (below 6%). They are motivated by the satisfaction of ownership, making improvements, and redecorating; homes also serve as reliable investments. Still, the Seattle market is the 13th most costly in the nation, and homes often increase monthly payments dramatically. Nationwide, the average age of first-time home buyers was 31 in 2001, compared to 32 in 1999, says the National Association of Realtors. Moreover, 321,136 people under the age of 25 bought homes in 2001, compared to 305,192 in 1999. First-time home buyers in the state of Washington also averaged 31 years of age in 2001 and had a medium income of $45,200. The state's average home price was $170,00 in 2001. Meanwhile, several loan programs are allowing first-time buyers to put 0%, 3% or 5% down, in contrast to the traditional 20% of the past. (www.seattlep-I.com)
First-Time Home Buyers Getting Youner
Wireless Tech Transforming How We Work and Play
Mobile phones equipped with wireless capabilities have evolved from the analog signals and digital technology of the first and second generations, respectively, to “third generation,” or 3G networks, whose faster speeds allow for enhanced messaging, email attachments, high-speed Internet access, secure data transmissions and digital imaging, among others. 3G technology is useful to both consumers and businesses. For instance, digital camera technology lets businesses transfer images in the field, while consumers take advantage of the capabilities to send pictures to far-away relatives. University of Houston's Studies of the Future graduate program Chairman Peter Bishop expects the technology to change the face of work by allowing companies to adopt results-based management practices; making the Internet a standard feature in every aspect of daily life; and letting people continue to work during their retirement years. Meanwhile, PDA's, pagers, laptops, cameras and phones will combine to become highly efficient “smart devices,” ultimately boosting worker productivity. Instead of asking people whether they own a wireless phone, the question of the future will become, “What can your wireless phone do to make you more productive and improve your overall quality of life?” (www.sanantonio.bcentral.com)
San Antonio Business Journal Online (02/24/03) Mickey, Jim
Going Up, the Easy Way
An increasing number of home owners are installing elevators to help them age in place as well as move luggage, furniture and other heavy items to the upper floors of their residence. In fact, industry experts say only about a quarter of residential elevators are purchased by home owners with long-term disabilities. While many hide the elevators behind closet doors or bookcases, others incorporate unique designs and use them to enhance the home's architecture. Upscale elevators can cost as much as $125,000 and feature stone floors, cherry paneling, cloud ceilings, chandeliers, paintings, mirrors, and stained glass, among other touches. Elevators are more popular among luxury home owners as well as among residents of beach and mountain communities, where the high cost of land and small size of lots makes multi-story design the most efficient use of acreage. The starting price for a standard elevator model in a new home is $15,000, but adding one to an existing property can double the costs and take months to install. The elevators are fairly quiet; powered by electricity; and include locking gates, brakes, alarms, a phone and battery backup. Elevator sales are expected to rise due to the popularity of multi-story homes and the anticipated surge in the elderly population to 70 million over the next three decades. (www.latimes.com)
Los Angeles Times (02/26/03) P. E9; Eastman, Janet
Creative License: Naming Housing Developments Often Is All About Image
Developers have been known to exaggerate slightly when choosing names for their subdivisions, christening small lots as “estates” and condominiums as “manors.” Developments named after bodies of water, as another example, may not be located on the waterfront at all; and ranches may be closely packed with little along the lines of open space. “We're trying to build something that will be legendary in its creation,” says Spectrum Skanska Vice President and Chief Marketing Officer Gabe Pasquale of the company's Legends at Half Hollow and Legends Yacht & Beach Club. According to 'Picture Windows: How the Suburbs Happened' author Rosalyn Baxandall, immigrants who moved to Long Island after World War II preferred developments with Anglo-American words like “Colonial,” “Olde” and “Towne” to disassociate themselves from their ethnic roots. While some developers invent names to create an atmosphere, others try to incorporate the property's history. Garden City-based Ornstein Leyton Co., for instance, named its Imperial Estates after the 50-year-old Imperial Nursery that once stood on the property. Meanwhile, the Long Island subdivisions of Deerfield Estates, White Birch Landing, Rolling Meadow and the Preserve at Baiting Hollow conjure up images of the landscapes wiped out to make way for the homes. (www.newsday.com)
New York Newsday (02/25/03) P. B6; Thomas, Katie
Technology Roadmap
So-called 'intelligent' buildings are growing in number across North America. By harnessing certain technologies to create buildings that are comfortable, accessible and secure for end users, building owners and managers can offer a better atmosphere for occupants while conserving individual costs. Findings of the Federal Interdepartmental Forum on Construction Technology in 1999, which drew together Canadian officials and building industry members to discuss smart building methods, are included in the Technology Roadmap for Intelligent Building Technologies. These include a number of common-sense aspects of intelligent buildings, and benefits such as standard building network wiring — facilitating easier improvements to control systems; improved individual environmental control, which can encourage increased building and leasing value; zone control based on a time-of-day schedule for management of consumption expenses; computer or telephone interface for occupants to manage building systems after hours; tracking of usages of the after-hours system; tracking of service and replacements by relay and zone use; and application of one 'human resources' interface to modify various systems. The group also identified the potential difficulties inherent to intelligent building, including significant financial issues and the need for construction plans that involve integrated design and solutions that address contracts, divisional specifications and the relationship of design, management and construction staff. Also central to intelligent buildings is the ability to react to problems with components and systems more efficiently than traditional systems do, and that calls for improved training and better practices among suppliers. Additionally, officials must guarantee code and practice standards and support the establishment of intelligent buildings. (www.buildings.com)
Buildings (02/03) Vol. 97, No. 2, P. 22
Partners Complicate Small-Business Taxes
Small-business owners with partners or fellow shareholders find that they must complete extra paperwork for their income tax returns. A prime example is Schedule K-1, Partner's (or Shareholder's) Share of Income, Credits, Deductions, etc. This form requires information from other Internal Revenue Service documents, and its data must be conveyed to yet more forms. Certified public accountant Bob Doyle recommends professional help for those small-business owners who are unfamiliar with the process. Sole proprietors must attach Schedule C to their 1040s, which involves other forms for some deductions; but having multiple owners means Form 1065 and a Schedule K-1 for each owner, filed separately from the 1040s. Information from the K-1 form may be needed to complete other 1040 schedules. This is complicated by the fact that partners can structure companies and split profits as they like. S corporations — the designation for many small business — need Form 1120S and Schedule K-1 in addition to Schedule E and other 1040 schedules. More information is available at http://www.irs.gov/. (www.indystar.com)
Indianapolis Star (02/24/03) Rosenberg, Joyce M.
Demand for Entry-Level Housing Fueled January Rise in Home Sales
Favorable interest rates and high demand relative to supply helped keep California's housing market robust for January — a month when the median price of a home in the state surged 17.3% from a year earlier to hit $278,000. Statistics released from DataQuick Information Systems also showed that total home sales of 39,500 last month in California were up 3.6% from January 2001, with activity especially strong in the southern half of the state. There, DataQuick analyst John Karevoll and local real estate agents say the vacation-property market is thriving as more and more consumers channel their investment dollars into real estate instead of stocks and other riskier vehicles as the United States moves toward war. The January growth in the residential property market also was driven by continued demand for entry-level residences, particularly in rapidly expanding markets such as Riverside and San Bernardino. (www.ap.org)
Associated Press (02/25/03) Gentile, Gary
Home Builders: 'Affordable' Homes Too Costly to Build
An increasing number of builders and developers are finding it difficult to construct affordable housing in Manatee County, Fla., and still turn a profit. Some say they will no longer be able to offer garages, while others have stopped building lower-cost homes in the county altogether. Though much of the problem can be attributed to Manatee's $6,500 in impact fees and $103,000 price cap, builders say soaring land costs, higher worker's compensation and liability insurance premiums, and the stricter Florida Building Code are also to blame. To ease the burden, most builders and developers want the county to scrap or scale back impact fees; increase the maximum home price; allow higher-density projects; cut road, sidewalk, water, sewer and other infrastructure costs by approving narrower lots; offer county-owned surplus land at a discount; step up downpayment and closing-cost assistance for prospective buyers; and concentrate on single-family homes, rather than the high-vacancy rental market. “I don't think anybody should build less than a three-bedroom, two-bath and one-car garage, and that needs to be $114,000 to $115,000,” says Kendar Homes Corp. President Darrell Reha. Manatee County Community Services Department human services manager Cheri Coryea is willing to work with developers to formulate partnerships and creative ways to boost profits, but she does not support a higher price cap because it would make homes less affordable for low-income residents. (www.bradenton.com)
Bradenton Herald (02/23/03) Mason, Nick
Panel Asks for Nevada Construction Liability Changes
A task force of builders, insurers, developers and trial lawyers established by Nevada Insurance Commissioner Alice Molasky-Arman in response to a wave of construction-defect litigation has recommended that contractors be allowed to correct flaws before home owners can file suit. The task force also wants the Legislature to scrap joint liability, which holds builders accountable for work performed by subcontractors. Meanwhile, a bill sponsored by Sen. Mike Schneider (D-Las Vegas) would assemble a state panel to handle disputes between home owners and builders, hopefully avoiding the litigation process. Under Schneider's bill, builders would have to be present before construction-defect tests could be performed. (www.ap.org)
Associated Press (02/25/03) Pearson, Ryan
Bill Aims to Make Sacramento an Affordable Housing Model
In Sacramento earlier this week, Assemblyman Darrell Steinberg (D) took the wraps off legislation that would compel the city's close-in, surrounding suburbs to build thousands of affordable apartments and houses. Steinberg hopes the bill, AB1426, will help the Sacramento metro area serve as a model for a state that is increasingly out of reach for millions of apartment renters and potential home buyers. AB1426 does represent a change in focus by Steinberg from growth management and sprawl to affordable housing development; and, so far, the measure has been praised by home builders and business groups alike. It requires that 10 of all new residential units in 18 cities of metro Sacramento be affordable to lower-income workers, with the goal being to more evenly distribute low-income housing throughout the region. (www.ap.org)
Associated Press (02/25/03) Wasserman, Jim
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