The Bains

If I buy a house today, will it be cheaper tomorrow? Lots of buyers waiting on the sidelines. For prices of homes to increase, the inventory of unsold homes needs to hoover around 6.5 months. With our inventory about 10 months, then prices have a tendency to drop. If a typical house is selling for $170,000 & a distressed one at $145,000, then the median price drops, but the typical house can still fetch the $170,000. The bad apple does not reflect the price of good apples. Also the quality of distressed properties is often very poor- stained carpet, stripped copper wiring, etc. Just means the good apples are still good for the typical house. The risk of home price decline in Texas is low, says Ali Anari, PhD at the TX A&M Real Estate Center. Texas’s lower than national average housing costs leaves Texans more money to spent on non-housing good & services & the state’s economy is strengthened & more folks attracted. TX employers are able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy. Prices still may drop, but interest rates at still at a low. Hard to know when to jump in!

13% of sales in Texas represent foreclosures, while the nation is 26%, but Nevada has 57% & Arizona 50% according to RealtyTrac, the organization who keeps up with this data. The average foreclosure sales price in the Lone Star state was $142,049, which is 27% lower than the average non-foreclosure price. Even in states with high foreclosures, the numbers are lower than the 2 precious years.

(1) You Have to Itemize Your Return to Claim Your Deductions. 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. (2) Plan Ahead & Be Strategic When Taking a Home Office Deduction, but cannot take that space as a deduction when you sell. (3) Tax Relief for Loan Modifications, Short Sales & Foreclosures is ONLY around through 2012. IRS figures this on Cancellation of Debt Income or CODI. Must act now as months to go thru these procedures. (4) Project the Income Tax Consequences of a Refinance or Property Tax Appeal. As you lower your monthly payment, you also lower your taxes & interest, which are your largest deductions. (5) Don’t Forget Those Closing Costs. Origination fees or discount points are tax deductible. Refer to your HUD-1 settlement statement to find these fees.

Water is precious & fortunately less of a problem in East Texas or east of the highway from Dallas to Houston. Property owners own the water under their land, but the state owns the water in creeks & rivers. If a creek runs through your property that water belongs to Texas. The rule of capture, meaning you can pull up as much ground as you like, but there can be limits on that. You may deplete your neighbor’s ground water. The Regional Groundwater District is important as the East Texas one includes about 13 counties. Water is a commodity and it has a price. As an aside, 2/3 of the migratory birds travel to the Texas gulf coast.