Amendment 3 to stop double taxation will appear on the November ballot

Make sure to vote “yes” to prohibit real estate transfer taxes

There’s good news for Missouri homebuyers and sellers as Amendment 3, which if approved, would prohibit double taxation on real estate, will be placed on the November 2 ballot. The initiative had been stalled when the state of Missouri challenged the number of petition signatures to get the initiative on the ballot.

Amendment 3, supported by the Vote “YES” To Stop Double Taxation Committee and the 21,000-member Missouri Association of Realtors, would prohibit real estate transfer taxes on a sold property. The advocates see transfer taxes as double taxation because Missourians already pay property taxes on real estate, often over many decades of ownership. Missouri is one of just 13 states that do not impose the transfer tax, including all of Missouri’s neighboring states.

The Missouri Association of Realtors believes the transfer tax places undue stress on low-income Missourians who typically spend a larger percentage of income on their home.

Add the mix of Missourians who have lost their jobs, had pay cuts and have been forced to sell their homes or experienced a drop in property values, and the transfer tax just isn’t good for the recovering Missouri economy.

Here’s the simple and straightforward proposal: “Shall the Missouri Constitution be amended to prevent the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”

The state's dismissal of its appeal to the Missouri Supreme Court followed positive talks between the Vote "YES" To Stop Double Taxation Committee and the offices of Secretary of State Robin Carnahan and Attorney General Chris Koster. Together, they agreed to ask Cole County Circuit Judge Paul Wilson to modify his ruling in the committee's favor. The judge agreed to the modification, addressing the state's issues while declaring there were more than enough valid signatures of registered voters to place Amendment 3 on the ballot.

The next step is encouraging massive voter turnout on November 2 to insure Missouri sellers and buyers are not assessed yet another financial burden.

MIssouri transfer tax on real estate tax

Say YesToSaveHomes.com and no to a transfer tax on real estate sales

Yet another tax on real estate transfers is double taxation. A petition drive to prohibit the tax would protect buyers and sellers from additional expense.

With deficit budgets and declining revenues, legislators are looking for new sources of revenue and a transfer tax on real estate sales is potentially viable. The Missouri Association of REALTORS® (MAR) is working proactively to prohibit such a tax in Missouri by sponsoring a grassroots petition drive to place a state constitutional amendment on the November ballot prohibiting such a tax.

A transfer tax is a tax levied by a governmental entity when ownership of a home, land or other real estate properties. When the tax is approved by legislators, the rate can be increased without a popular vote.

Homeowners already pay property taxes and Realtors consider a transfer tax as double taxation. The tax would also lower homeowner equity, negatively affect the buying and selling process, and target property owners and lower income residents equally.

To engage public support and encourage Missourians to sign the petition, the MAR website YesToSaveHomes.com is a convenient way to learn more about this initiative and register your support for no tax transfer fees. The group needs more 157,000 signatures from registered voters to place the amendment on the November ballot.

Here is the proposed amendment: "Shall the Missouri Constitution be amended to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?"

Because of the wording required by the Missouri Secretary of State, a vote of “yes” is necessary to pass the amendment. When it comes to tax increases, voters are used to a “no” response, but in this case that would be a vote for transfer taxes.

The past few years have been difficult at best for Missourians and additional taxation will only have a negative impact. Thirty-seven states have a transfer tax; Missouri Realtors want to head off taxation in this state so as not to be the 38th state.

St. Charles County Real Estate

Written by Myra Vandersall

Stop Missouri Double Taxation on real estate and say Yes to a new constitutional amendment and log on to YesToSaveHomes.com.

Let’s stop Missouri politicians from penalizing homeowners and buyers

Missouri is one of 13 states that does not levy a transfer tax on home sales, and a coalition of property owners, businesses and the Missouri Association of REALTORS™ want to keep it that way.

The group sees transfer taxes as double taxation because Missourians already pay property taxes on real estate. A petition drive and a website have been created to help homeowners and potential buyers reach lawmakers who have the power to levy such a tax.

To place a state constitutional amendment on the November 2010 ballot to prohibit Missouri lawmakers from passing the tax initiative, the group needs more than 157,000 valid signatures. To make voters more aware of this issue, a new website, www.YesToSaveHomes.com is now online to help consumers learn more about the tax, calculate the tax based on the home’s sale price, and get involved.

Here’s the simple and straightforward proposal: “Shall the Missouri Constitution be amended to prevent the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”

As an example, here’s a calculation on a St. Charles County home sale. The home sold for $150,000 and at the St. Charles County taxation rate of 7.0750%, the amount would be an additional $10,612.50.* Jane Mendenhall, president-elect of the Missouri Association of Realtors, believes the transfer tax places undue stress on low-income Missourians who typically spend a larger percentage of income on their home.

Add the mix of Missourians who have lost their jobs, had pay cuts and have been forced to sell their homes or experienced a drop in property values, and the transfer tax just isn’t good for the recovering Missouri economy.

Legislators are looking around to fine new sources of revenue. The transfer tax is one of those sources politicians are eyeing. With the help of voters and homebuyers, the transfer tax will not be an additional burden on Missouri residents.

* This number is based on area percentages.

Written by Myra Vandersall

Lake Saint Louis is one of the BEST places to live in America!

Congratulations to the residents of Lake St. Louis! The community placed ninth in the top 10 places to live in Money magazine’s annual listing of the best 100 places. SCHNEIDER Realtors’ own Jane Nicoletti can testify first hand–she’s lived there for more than 20 years and loves Lake Saint Louis.

“Now my grandchildren can enjoy the pool, the parks and walk along the boulevard,” she says. “and there’s shopping galore. How great is it that we made it in the top 10 cities to live list!”

Money magazine’s criteria for the top 100 list is based on school ratings, home prices, employment levels and crime statistics. The magazine judges communities between 8,500 and 50,000 residents.

With it’s five parks, two lakes, three golf courses and a 650-horse equestrian center, Lake Saint Louis has evolved from a resort town to a thriving family-centered community that is projected to have a strong job growth over the next five years.

Last year St. Peters, O’Fallon and St. Charles made the list. Seems like our little corner of the world is doing just fine!

Check out homes in these great places to live!

How Big is Your…

How Big is Your…

…following?

Is it more important to have a lot of people following you on Facebook or Twitter, or a smaller group with whom you interact more frequently? This seems to be the new debate of the social media world. With a lot of interest in Social Media as a potential source of business, some really traditional behavior has entered this untraditional venue.

People that used to assemble huge mailing lists now assemble huge numbers of followers using different techniques or APIs rather than building relationships. Auto DMs on Twitter that say “Thanks for following I look forward to exchanging much valuable information” seems to have taken the place of actually seeing if you have something in common with the people in your community.

On Facebook, you have people asking to be your friend that have nothing in common with you, or whom you have no relationship to. And then sending you information on their services and products in a space that is really not designed for that. Twitter has numerous APIs that offer to find people to follow you, and social media gurus who suggest manipulating the Twitter system to increase the number of people in your distribution chain.

Me, I find that offensive and I have lately been terminating the relationship if it seems to be completely commercial. I want the social network to be social. I want to choose my trusted advisors rather than have them thrust information on me at their convenience.

Are You All Hat and No Cattle?

We have all heard that you need to “sell the sizzle not the steak”, but are you all sizzle and no steak? Do you have lots and lots of followers and very little dialogue? Is there anything in your interaction that brings value to your community?

If the effective part of social networking is gaining the trust of your community so that they are predisposed to do business with you when they are ready, then the size of your following should be substantially less important than the quality of your interaction and the focus of the community’s needs.

If you contribute to the conversation, provide content and information for your community members, and become an influencer in that community, I would submit that you have a more effective grasp of the benefits of social media than the person who has a huge number of people following them that don’t react to their posts and tweets.

Grow Organically

We see large important social media influencers with large groups of followers and confuse the form with the substance. The audience came because they were important, they didn’t become important because they got an audience.

They got that huge audience because they had things to share that people wanted to hear. They had knowledge about topics that people wanted to learn about. They generated interest because of the way they spoke or the way they wrote, or who they were in real life.

So connect with the people you know, or the community where you live, and particpate in the conversations they are interested in. You need to overwhelm them with what you know not who you know.

(Source agentgenius.com)

4 Tips to Make a Home More Inviting

Model homes are important tools for builders because they help buyers fall in love with a home.

Phyllis Ryan, president of the model-home division of Interior Concepts, a Maryland design firm that specializes in furnishing new homes, has some tips that might benefit anyone who is selling a home.

• A stylish kitchen appeals to many buyers. If a sellers has upgraded cabinets and granite countertops, that’s good. If they don’t, it may help to display some stylish touches like an espresso machine, a retro toaster or just some luscious fruit.
• Lots of light makes spaces feel larger. Turn on all the lights even during the day and add a few extra lights if necessary.
• The master bedroom should seduce a buyer. Play soft jazz, pile the bed high with a cushy comforter and pillows. Stack plush towels in the bathroom.
• Add drama to a bottleneck or a dead end space. Prop an oversize mirror against the wall. It visually ops a space and adds drama.

Source: Washington Post, Elizabeth Razzi (03/14/2009)

MORTGAGE NEWS – Maximizing the Housing Tax Credit and mortgage rates

The real estate market has really started to rally and part of that success can be attributed to the new Housing Tax Credit for first-time homebuyers.

Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000 or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they've already filed their tax return.

The filing options to consider are:

• File an extension - Taxpayers who haven't yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later - Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return - Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008 - For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.

The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.

As always, consult with your tax adviser if you have any questions about the Housing Tax Credit and which option would be best for your situation.

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Top 10 Reasons to Buy Real Estate Today… Window of Opportunity

10. The First Time Home Buyer Tax Credit of $8,000 can generate $100,000 Net Equity or Net Worth in 8 years with an average of 5% annual appreciation!

9. 8 out of 10 economists agree homes will appreciate over the next 5 years.

8. St. Charles has been selected by Forbes & Money Magazines as the “Top 100 places to live” and one of the Top 10 areas poised for early Real Estate recovery.

7. Home prices and Interest rates are low and home inventories are plentiful, this is a true Buyers Market.

6. It has been proven that it is Better to “Buy Real Estate and Wait” than to “Wait and Buy Real Estate”.

5. Historically, real estate downturns have lasted from 18 to 24 months. This current market peaked at its highest values in July 2006, suggesting we are at or near the current down trough.

4. 70% of Loans today are FHA Assumable Loans. If a buyer today locks a 30 year rate of 5%, this will make that home more marketable in the future when it is time to sell.

3. Interest rates are the lowest in our lifetime nearing 5%! In the last two Buyer’s Markets, rates were 18% to 20% in the early 1980’s and 11 to 12% in the early 1990’s. The average Mortgage Rate over 44 years was 9%.

2. A 1% increase in Mortgage Rate on a $150,000 home equates to a $100 per month increase in payment or $1,200 per year and $36,000 more over a 30 year loan. It is twice that on a $300,000 home or $72,000. Waiting has its perils.

1. Buy Low / Sell High…Basic Investing Economics at play.

All Indicators suggest the time to buy…is NOW!!!

Just Met with my financial planner

If you're like me your wondering if you should add to your SEP account by April 15th to avoid paying as much in taxes as possible. With the stock market falling daily it's scary and sometimes leads to confusion. I sat down with my financial planner to discuss my options and thought I'd share some excellent points he made. He showed me a chart of the last 10 years and believe it or not there have been three times the stock market has fallen to it's current 7500 level. I was shown two more graphs showing what would have happened with a $100,000 investment in 1987 (8/25) right before the crash if an invester liquidated his assets & placed them in a CD (until June 30,2008) he would have $185,999; If he would have waited until after the crash and waited until assets reached $100,000 then placed it in a CD he would have gained $265,329 BUT if he stayed invested in the market the entire time his gain would have been $541,894!!!! I have read may financial books and listened to many tapes on the subject and they all say the same thing, stay invested, don't panic. With all the negative news, unemployment rising and a stimulus package that seems outrageous one can begin to waiver. I was glad I took the time to sit down with my planner and left reassured and convinced that NOW is the time to invest not only in Real Estate but in our own retirement accounts. Things will get better- always have- always will.