Wednesday, December 30, 2009

Tax Credits for Replacing Heating and Cooling Systems

Article From Houselogic.com
By: Suzanne Cosgrove
Published: 21, 2009


Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and up to $1,500 on your tax bill.

Replacing an aging heating and cooling system can save you money on energy costs. According to Energy Star, the federal government's program to promote energy-efficient products and practices, the average household spends about $1,900 a year on energy bills, with about half of that amount going toward heating and cooling. Upgrading your heating, ventilation, and air conditioning (HVAC) to energy-efficient units can cut utility costs by about 20%, or $200 annually, on average.

This type of home improvement doesn't come cheap. Prices vary widely based on where you live, unit specifications, and the condition of your home, but figure a high-efficiency furnace will start at around $3,500, including installation, estimates Corbett Lunsford, executive director of Chicago-based Green Dream Group. A standard furnace may cost $2,400. To help offset the price difference, the IRS allows a tax credit worth up to $1,500 on eligible HVAC systems put into service during 2009 or 2010. Consult a tax adviser.

PAY ATTENTION TO EFFICIENCY RATINGS
To earn an Energy Star rating, furnaces must be more efficient than standard units, with annual fuel utilization efficiency ratings, or AFUE, of 85% for oil furnaces and 90% for gas furnaces. The Energy Star seal of approval alone isn't enough to garner the federal tax credit. Credit-eligible(http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#c3) gas furnaces (either natural gas or propane) must have AFUE ratings of 95% or greater; oil furnaces, 90%. A boiler must have an AFUE of 90%.

Heating by burning a fuel is inherently inefficient. Simply put, high-efficiency furnaces have components that are better designed to get more heat out of the combustion process, Lunsford says. You'll need to hire an HVAC contractor to calculate the size of the equipment needed for your home. Beware bidders who take a one-size-furnace-fits-all approach. Air source heat pumps (http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=5799) and advanced main circulating fans(http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=5592&p_created=1236263253&p_sid=VhonSBsj&p_accessibility=0&p_redirect=&p_lva=5592&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MSwxJnBfcHJvZHM9MCZwX2NhdHM9JnBfcHY9JnBfY3Y9JnBfcGFnZT0xJnBfc2VhcmNoX3RleHQ9NTU5Mg**&p_li=&p_topview=1) can also qualify for the $1,500 tax credit.

Technically, a homeowner could replace either a furnace or a central air-conditioning unit and be eligible for the tax credit. Practically speaking, you probably will have to replace both for the A/C to qualify, says Enesta Jones, a spokeswoman for the U.S. Environmental Protection Agency. Most homes have split systems(http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=5830&p_sid=zr7envIj&p_lva=5697) made up of an outdoor condenser and compressor that are connected to an indoor air handler that's part of the furnace. Split systems must have a SEER rating(http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=3041&p_sid=zr7envIj&p_lva=5697) of at least 16 and an EER rating of at least 13. The higher the rating, the more energy efficient the unit. A package A/C system, which houses all of its components outdoors, requires lower ratings.

HVAC'S VALUE GOES BEYOND SAVINGS
It typically takes about a decade's worth of energy savings to recoup the investment in a new HVAC system, Lunsford says, though that time frame can vary greatly depending on how much fuel prices fluctuate. Less apparent in dollar terms are increasing the comfort level in your home and lowering your household's drain on non-renewable fossil fuels. Then there's the effect on your home's value when it comes time to sell.

You're going to enhance a home's salability by moving to a more energy-efficient heating and cooling system, says Frank Lesh, president of Home Sweet Home Inspection Co. in Indian Head Park, Ill. That doesn't mean adding a $5,000 furnace will add $5,000 to the sale price. Rather, potential buyers are less likely to push for repairs or negotiate a credit if the HVAC is in good shape. Evaluate systems older than 10 years for possible replacement.

But before you do, conduct a wider energy audit(http://www.houselogic.com/articles/conduct-your-own-energy-audit/) of your home. Lunsford, also manager of consumer education for the U.S. Green Building Council's Chicago Chapter, says he rarely recommends replacing a furnace as the first step in making a home more energy efficient. Instead, start by sealing it against air leaks. Do-it-yourself caulking and weather-stripping help, as does adding insulation in the attic. Professional air sealing, which is more effective, can cost as much as $5,000 for a large house, he says. The payoff: Energy costs should go down, and you might be able to get by with a smaller HVAC system.

GETTING TAX CREDIT FOR YOUR UPGRADES
The federal energy tax credit is based on 30% of the cost of an eligible HVAC system. Installation charges count too. A $5,000 bill would max out the credit. You'll need to owe more in taxes than you're trying to claim in credits to qualify. Use IRS Form 5695. Save receipts for your records, as well as manufacturers' certification statements(http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=5781&p_sid=AMebpRzj&p_lva=5697&p_accessibility=0&p_redirect=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MzcyLDM3MiZwX3Byb2RzPTAmcF9jYXRzPSZwX3B2PSZwX2N2PSZwX3BhZ2U9MQ%2A%2A&p_li=). If part of a new HVAC system qualifies for the credit but another part doesn't, ask the contractor to itemize the receipt.

The tax credit is aggregated for all qualifying energy upgrades-insulation, roofs, windows, and so on-so you can't claim separate $1,500 credits for each project. Only improvements to your existing primary residence count. New homes and second homes are excluded.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Suzanne Cosgrove, who spent nine years as an editor at the Chicago Tribune, has written for a number of business and real estate publications. She has a 90-year-old house and a long list of home-improvement projects.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2009. All rights reserved.

Tuesday, December 22, 2009

Tax Credits for Adding or Replacing Insulation

Article From Houselogic.com
By: Gil Rudawsky
Published: 09, 2009

Adding insulation is one of the easier and cheaper ways to improve your home's energy efficiency and cut your heating and cooling bills.

If putting a dent in your home's heating and cooling bills is a priority, then adding insulation needs to be at the top of your to-do list. It's a relatively affordable home-improvement project, and the savings can be felt almost immediately. Some DIYers can even tackle the project themselves over a weekend.

For a 2,200 square foot home, adding insulation to an attic can cost from $1,000 to $2,500 including labor, depending on how much you put in and how easy it is to install. Effort and expense go up when you add insulation to exterior walls or around hard-to-reach ductwork.
A federal energy tax credit worth up to $1,500 can help defray the cost.


IT ALL COMES DOWN TO R-VALUE
Insulation is measured in R-value, the resistance to heat flow. The higher the number the better the insulating power. The U.S. Department of Energy recommends R-values(http://www1.eere.energy.gov/consumer/tips/insulation.html) between 30 and 60 for most attics. Take a peek in yours. If your insulation is level with or below the attic floor joists, then you probably need more.

There are different types of insulation, including fiberglass, cellulose, mineral wool, spray foam, foam board, and cotton batting. The most familiar is pink fiberglass roll insulation. If you're not sure what's best suited for your home, check with an insulation contractor. Just about all insulation qualifies for the energy tax credit (more below) as long as its primary purpose is to insulate-insulated siding, for example, doesn't count-and it brings your home up to recommended R-value guidelines.

Energy Star(http://www.energystar.gov/index.cfm?c=home_sealing.hm_ improvement_insulation_table), a joint program of the DOE and U.S. Environmental Protection Agency, suggests R-38 insulation for most attics (or about 12-15 inches, depending on the insulation type). In colder climates, R-49 may be required. The DOE's online calculator (http://www.ornl.gov/sci/roofs%2bwalls/insulation/ins_16.html) can recommend R-values
for all areas of your home's "envelope": attic, walls, floors, basement, and crawl spaces.

Generally, most homes built before 1980 have inadequate insulation. The easiest insulation to add is blown loose-fill insulation. You'll probably need to hire a contractor. Since insulating an attic isn't too complicated, you can get quotes-at least three-by phone. However, get a copy of the quote in writing before work starts, and be sure it specifies R-value. Michael Kwart, executive director of the Insulation Contractors Association of America (http://www.insulate.org/), recommends rolled insulation for do-it-yourselfers.
New insulation can be added on top of existing insulation.

SAVINGS AND SUSTAINABILITY CAN ADD UP
Depending on where you live and how much insulation you already have, adding more can trim heating and cooling costs anywhere from 10% to 50%. A homeowner in the Northeast with an uninsulated attic, for instance, can save about $600 a year by adding about 15 inches of insulation (R-38) between the rafters, according to the Energy Department. Just 6 inches can net annual savings of about $200.

The $1,500 federal tax credit(http://www.energystar.gov/index.cfm?c=tax_credits.tx_index) can be applied toward 30% of the cost of insulation installed in your primary residence during 2009 and 2010. Let's say you spend $1,760 on enough R-38 roll fiberglass to insulate the attic of your 2,200 square foot home. That's $40 per 50 square feet retail, a fair estimate. You'll be able to subtract $528 (30% of $1,760) straight off the top of your tax bill, as long as you paid more in federal taxes than you're claiming in credits.

Since a typical homeowner won't be able to use up the entire tax credit on insulation alone,
the remainder can be applied to other qualifying energy-efficiency upgrades like new windows(http://www.houselogic.com/articles/tax-credits-replacing-windows-doors-and-skylights/) or roofing(http://www.houselogic.com/articles/tax-credits-replacing-your-roof/). Just keep in mind that the total credit claimed for all of these improvements
can't exceed $1,500 for the two-year period.

Save receipts, and if a contractor did the work, get a receipt that's itemized. Labor costs, typically 25% of the total bill, according to Kwart, don't count toward the tax credit. There's no need to file receipts when you claim the credit on Form 5695, but the IRS could ask you to cough one up later. Also hold on to product stickers from packaging that show R-values and manufacturers' certification statements that attest to tax-credit worthiness. Check manufacturers' websites for
a copy of the statement. If you're building a new home, you're out of luck; only existing homes qualify for this tax credit, which can't be carried over into future years.

ADDING INSULATION IS JUST THE BEGINNING
In conjunction with adding new insulation, conduct a whole-house energy audit(http://www.houselogic.com/articles/paid-energy-audits-the-costs-and-benefits/)
to find other ways to reduce power consumption and save even more on monthly bills.
Caulk around drafty windows and doors, and stop gaps in siding and the foundation,
says Matt Golden, president and founder of San Francisco-based Sustainable Spaces (http://www.sustainablespaces.com/). Reducing a home's air leakage by 25% can lower
annual energy costs by about $300, according to the Lawrence Berkeley National Laboratory (http://www.lbl.gov/).

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded
that tax laws may vary by jurisdiction.

Gil Rudawsky has been covering business and consumer issues as a reporter and an editor
for 18 years, most recently as a business editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home's character in mind when making upgrades.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2009. All rights reserved.

Sunday, December 20, 2009

Tax Credits for Replacing Windows, Doors, and Skylights

Article From Houselogic.com
By: Gil Rudawsky

Published: 09, 2009

If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable.

Does it feel like money is escaping through your home's drafty windows, doors, and skylights? You might be able to keep at least some of that cash in your pocket by taking advantage of federal energy tax credits for retrofitting your house with qualified energy-efficient replacements. You can claim a tax credit of up to $1,500 for upgrading the windows, exterior doors, and skylights in your primary residence during 2009 and 2010.

The credit is based on 30% of the cost of materials, so a $5,000 purchase would max it out. But a tax credit alone isn't reason enough to start calling contractors. Do a little homework first. The true value of replacing aging windows, doors, and skylights isn't always an open-and-shut case.


FOLLOW THE 15-YEAR RULE FOR WINDOWS
A good rule of thumb for window replacement: Don't bother if they're less than 15 years old, says Jim Rooney, a home inspector in Annapolis, Md. The savings on your energy bills likely will be negligible since window technology hasn't changed that radically and the integrity of your windows should still be intact. Shoddy installation or poor manufacturing may call for exceptions to the 15-year rule. Windows that are 20, 30, or more years old are prime candidates for replacement.

Most of your focus should be on windows, since they're more numerous, but skylights are notorious for energy loss too, not to mention water leaks. Exterior doors tend to outlast windows, so keep them unless the upgrade is purely for aesthetic reasons. Besides, weather stripping and snug sweeps can boost the energy efficiency of exterior doors for a whole lot less money.

ADDING UP THE COSTS-AND SAVINGS
With windows, doors, and skylights, you get what you pay for. Expect to shell out between $500 and $1,000 per window including installation, or about $10,000 total for a moderately sized house of about 2,000 square feet. New energy-credit-qualified doors and skylights are also in the $500 to $1,000 range, including installation.

Tom Herron, of the National Fenestration Rating Council(http://www.nfrc.org), says products on the higher end of the cost scale are usually better constructed and more energy efficient. NFRC is a non-profit organization that administers the rating and labeling system for the energy performance of windows, doors, and skylights.

It could take years to recoup the upfront costs, but you should see an immediate reduction in your energy bills. In general, you'll save $126 to $465 a year if single-pane windows in a 2,000 square foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a trade group. That's 15% to 40% off the typical energy bill.

DO MY REPLACEMENTS QUALIFY?
A label alone doesn't guarantee your new windows, doors, and skylights qualify for the energy tax credit, but it does provide critical information related to eligibility. To qualify, windows, doors, and skylights must have a U-factor(http://www.efficientwindows.org/ufactor.cfm) of 0.30 or less and a Solar Heat Gain Coefficient(http://www.energycodes.gov/support/shgc_faq.stm) (SHGC) of 0.30 or less. The U-factor measures how well a product prevents heat from escaping, and the SHGC gauges how well a product blocks heat from the sun. Labels also carry information on light transmission, air leakage, and condensation resistance.

Herron, of the NFRC, says about 80% to 85% of the manufacturers in North America provide NFRC labels. All Energy Star qualified windows carry an NFRC label(http://www.nfrc.org/Label.aspx), according to Energy Star, a joint program of the U.S. Department of Energy and the U.S. Environmental Protection Agency that promotes energy-efficient products and practices. Resist the urge to trim costs by purchasing cheaper windows, doors, and skylights with poor U-factor and SHGC ratings. Not only will you miss out on the tax credit, energy bills won't come down much.

TAKING ADVANTAGE OF THE TAX CREDIT
A credit is especially valuable because it directly reduces the amount of tax owed, as opposed to a deduction, which lowers the amount of taxable income. To be eligible for the full credit you must owe more in federal taxes than you're trying to claim. Use IRS Form 5695 to take advantage of the credit, which is cumulative for 2009 and 2010 only. You can't claim $1,500 for each tax year, but you can spread the $1,500 over the two-year period.

Uncle Sam may want proof that your new windows, doors, and skylights meet energy-efficiency standards, so be sure to save receipts, product stickers, and certification statements. The latter can often be found on packaging or manufacturers' web sites. As for receipts, ask contractors to itemize expenses. Installation costs aren't eligible for the credit; only materials are.

Keep in mind that a variety of energy-efficiency improvements to your existing home, including insulation, roofs, and HVAC, count toward the credit limit. You can't claim separate $1,500 credits for each upgrade, nor can you claim the credit for a newly built home. Matt Golden, president and founder of San Francisco-based Sustainable Spaces (http://www.sustainablespaces.com), says homeowners can often lower energy costs for a lot less, and still get the tax credit, by insulating attics(http://www.houselogic.com/articles/
save-money-with-insulation-upgrade/) instead.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home's character in mind when making upgrades.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2009. All rights reserved.

Questions You should Ask your Real Estate Agent

Are you a Realtor?
Not every Real Estate Agents are Realtors. There are strict codes of ethics that need to be followed as Members of the National Association of Realtors. To have this 'title' of 'realtor' you must be a member. If the strict codes aren't followed, their membership can be revoked. You must also be a member to have access to the MLS (Multiple Listing Service) which is what gives Realtors access to almost every home for sale in their market area.

How long have you been in the business?
A Real Estate Agent's experience is KEY! During the first year of their experience, a new agent will learn a great deal. For every transaction following they will continue to learn more. A new agent can bring freshness and energy to the transaction, and will most likely have time to spend with just you. If you do go with a newer agent, make sure they have a support system behind them.

What certifications do you have?
A GRI is the most time consuming certification to acquire. Having certifications doesn't establish that the agent is a good one, but it does prove that they serious about their career.

What is your specialty?
Agents usually classify themselves as either residential or commercial Agents. Within the Residential category, agents will specialize in Buyers, Sellers (or both), or Renters.

Who is your Broker? Can I call him/her?
Some Real Estate Agents us large brokerage houses. This may mean that they haven't met their Broker. Find out if they have a contact number for any questions.

How many sales did you complete last year?
A good rule of thumb is, if an agent has completed at least 15 sales that year, he or she is a good agent.

Is this your full time job?
You need to find someone who handles real estate transactions full time. This way you will know you are hopefully in good hands.

Make sure you find an agent through a good source or one who comes highly recommended.

Wednesday, December 16, 2009

JUST LISTED! Cute Bungalow



$189,000
6024 N Wilbur Ave., Portland, OR

Bank Owned Bungalow in North Portland. 2bd/1ba. Fir Floors, newer granite counters, newer bathroom, private fenced yard on a tree lined street.
For more information, go to www.realtysolutionspdx.com

November 2009 Marketing Stats
















Thursday, December 10, 2009

Price Reduction!



$115,000
16945 NE Glisan Street, Portland, OR

Bank owned fixer-2bd/1ba, 864sf, 1-car garage on .55 acre lot zoned CMF. Fenced back yard. Check with county for uses. Investment opportunity knocking on your door.
For more information, go to www.realtysolutionspdx.com.

Price Reduction!Scappoose Move-In Ready Home!


$219,900
33691 Pickle Place, Scappoose, OR

Scappoose 4-bd/2.5 ba built in 2005. It is 1840sf, has a 2-car garage, vaulted living room,
formal dining. Convenient commute to PDX and Washington County.
Bank-owned.
For more information go to www.realtysolutionspdx.com

Thursday, November 19, 2009

Reduced Price on Tigard Home!



$210,000
11290 SW 79th Ave.
Tigard, OR 97223

Great Tigard Ranch on huge .31 acre lot. Plenty of room to expand or build a shop/garage. 3bd/1.5ba, hardwood floors, new roof, paint in & out, doors, light fix. Appliances, ceiling fans, flooring & more. Covered Patio and fenced yard. Walk to shops, transportation and easy access to I5 and 217. Cleaned and ready to move in!

REDUCED PRICE-OREGON CITY HOME!


$319,900
14682 Holcomb Blvd.
Oregon City, OR 97045

Oregon City remodeled home that backs off the road on 1.42 acres. 2 Master suites/2 living areas/4 car garage, 3 fireplaces, Trex deck, Sauna, fenced yard, patio, nice fixtures, sprinklers. Lower level wheel chair accessible-no stairs w/outside entrance. Close to I-205. Bank owned-- Reduced Price!

New Rules for First Time Home Buyer Tax Credit


Background
In July 2008, the Housing and Economic Recovery Act established a temporary refundable first-time home buyer tax credit equal to 10% of the purchase price of a principal residence, up to $7,500 ($3,750 if married filing separately). The credit applied to first-time homebuyers who purchased a home on or after April 9, 2008, and before July 1, 2009. Generally, you qualified as a first-time home buyer if you, and your spouse if you were married, did not own any other principal residence during the 3-year period ending on the date of purchase. The credit was phased out for individuals with higher incomes, and had to be paid back over 15 years in equal installments (repayment would be accelerated if the home were to be sold during the 15-year period or if the home ceased to be the principal residence of you or your spouse during that time).

In February 2009, the American Recovery and Reinvestment Act of 2009 extended the credit to homes purchased by qualified first-time home buyers through November 30, 2009. The new legislation also expanded the credit. The credit remained 10% of the purchase price of the home, but the dollar limit increased to $8,000 (half that amount for married individuals filing separate returns) for home purchases made after December 31, 2008, and before December 1, 2009. In addition, for a home purchased in 2009, there was no requirement to pay back the credit over time, provided the home remained the principal residence of the homebuyer for 36 months.

New legislation
On November 6, 2009, President Obama signed into law the Worker, Home-ownership, and Business Assistance Act of 2009. The Act extends the first-time home buyer tax credit to principal residences purchased before May 1, 2010. (If you purchase a principal residence before July 1, 2010, you can still qualify for the credit provided that you enter into a written binding contract prior to May 1, 2010.)

The new legislation also makes a number of changes, effective for purchases made after November 6, 2009:

Higher income limits now apply. The credit is reduced if your modified adjusted gross income (MAGI) exceeds $125,000 ($225,000 if married filing a joint return) and is completely eliminated if your MAGI reaches $145,000 ($245,000 if married filing a joint return).
You can't claim the first-time homebuyer tax credit if the purchase price of your principal residence exceeds $800,000.
You may qualify for the credit even if you're not a first-time home buyer. The new legislation allows some existing homeowners to qualify for the credit when they purchase a new principal residence. If you (and your spouse, if you're married) have maintained the same principal residence for at least 5 consecutive years in the 8-year period ending at the time you purchase a new principal residence, you could qualify for a credit of up to $6,500 ($3,250 if you're married and file separately).
If you purchase a qualifying principal residence in 2009, you can elect to treat the purchase as if it were made on December 31, 2008--allowing you to claim the credit on your 2008 federal income tax return. If you purchase a qualifying principal residence in 2010, you can elect to treat it as if the purchase occurred on December 31, 2009.

Additional limitations and provisions
The new legislation also includes additional limitations on the credit, effective for purchases made after November 6, 2009. You can't claim the credit unless you (or your spouse, if you're married) are 18 years of age. You also can't claim the credit if you purchase your principal residence from someone who is related to you or your spouse, or if you can be claimed by someone else as a dependent. The legislation also imposes new documentation requirements.

Special rules are established for members of the uniformed services and others who receive government orders for qualified official extended duty service.

Summary of rules for first-time home buyer tax credit:



The accompanying pages have been developed by an independent third party. Forefield's content and information is provided for informational and educational purposes only. Neither Forefield Inc. nor Forefield Advisor provides legal, tax, insurance, investment or other advice and should not be relied upon for such purposes. Waddell & Reed does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific financial planning and investment needs, please discuss your individual circumstances with your Financial Advisor.

The accompanying pages may include information regarding retirement plans, estate planning, business planning or a variety of other topics that involve tax and legal issues beyond the scope of Waddell & Reed's area of practice and expertise. Such information is intended to explain or illustrate planning topics, options or strategies that you may wish to consider in advance of, or at the time of, seeking the assistance of legal and/or tax advisors in implementing your plans and should not be considered as an authoritative or comprehensive explanation of any of the particular planning topics, options or strategies described. The information in the accompanying pages describes the general aspects of various planning topics, options or strategies but does not necessarily address all the pertinent facts and issues of your personal situation.

Waddell & Reed does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice or may be relied on for the purpose of avoiding any federal tax penalties. The selection of appropriate planning options or strategies should be made on an individual basis after consultation with appropriate legal, tax and financial advisors. It is important that you retain the services of legal counsel to plan and implement any legal documents that you may require and that you consult a tax advisor for an explanation of the tax effects of any particular planning options or strategies on your personal financial situation.

Waddell & Reed financial advisors are able to offer insurance products through arrangements with insurance companies. Guarantees provided by insurance products are subject to the claims-paying-ability of the issuing insurance company.

Prepared by Forefield Inc. Copyright 2009 Forefield Inc.

Tuesday, November 3, 2009

Reduced Price!



$219,000
11290 SW 79th Ave.
Tigard, OR 97223

Great Tigard Ranch on huge .31 acre lot. Plenty of room to expand or build a shop/garage. 3bd/1.5ba, hardwood floors, new roof, paint in & out, doors, light fix. Appliances, ceiling fans, flooring & more. Covererd Patio and yard. Walk to shops, transportation and easy access to I5 and 217. Cleaned and ready to move in!
For more information and to see more listings, go to realtysolutionspdx.com.

Price Reduction!



$229,900
33691 Pickle Place
Scappoose, OR 97056
Scappoose 4-bd/2.5 ba built in 2005. It is 1840sf, has a 2-car garage, vaulted living room,
formal dining. Convenient commute to PDX and Washington County. Bank-owned.
For more information and to view more listings, go to realtysolutionspdx.com.

Bank-Owned Fixer!



$125,000
16945 NE Glisan Street
Portland, OR
Bank owned fixer-2bd/1ba, 864sf, 1-car garage on .55 acre lot zoned CMF. Fence yard. Check with county for uses. Investment opportunity knocking on your door.
For more information and to view more properties, go to realtysolutionspdx.com

Saturday, October 24, 2009

OPEN HOUSE-10/25/09----1-4

11290 SW 79th Ave, Tigard, OR

Great Tigard Ranch on huge .31 acre lot. Plenty of room to expand or build a shop/garage. 3bd/1.5ba, hardwood floors, new roof, paint in & out, doors, light fix. Appliances, ceiling fans, flooring & more. Walk to shops, transportation and easy access to I5 and 217. Cleaned and ready to move in!

More Information at www.realtysolutionspdx.com
or
Call Jim Hannah at 503-703-0628

Wednesday, October 21, 2009

Four-Plex perfect owner occupied investment---$549,000



Financials





Four-Plex perfect owner occupied investment. Owner unit is 1456sf, 3bdrm/2.5 bth, 1- car garage with drive way (each unit has 1-car garage and driveway), fireplace, whirlpool, large kitchen, all appliances, tile floor, central A/C nice patio and yard. 3 units tenant occupied. Numbers work for FHA financing with 3.5% down. Great place to start your portfolio.
Go to www.realtysolutionspdx.com for more information and more listings!

Thursday, October 8, 2009

OREGON CITY REMODELED HOME!
PRICE REDUCED! $339,900!

Oregon City remodeled home that backs off the road on 1.42 acres.
2 Master suites/2 living areas/4 car garage, 3 fireplaces, Trex deck, Sauna, fenced yard, patio, nice fixtures, sprinklers. Lower level wheel chair accessible-no stairs w/outside entrance. Close to I-205. Bank owned-- Fantastic price. Go to www.realtysolutionspdx.com for more info. and listings!

Tuesday, October 6, 2009

OPEN HOUSE
OCT. 11/2009
1:00PM-4:00PM

11290 SW 79th Ave., Tigard, OR
$229,900 Price Reduction!

Great Tigard Ranch on huge .31 acre lot. Plenty of room to expand or build a shop/garage. 3bd/1.5ba, hardwood floors, new roof, paint in & out, doors, light fix. Appliances, ceiling fans, flooring & more. Patio and fenced yard. Walk to shops, transportation and easy access to I5 and 217. Cleaned and ready to move in!
Jim Hannah, Realty Solutions, 503-703-0628
PRICE REDUCTION!
$229,900
941 E. 12th Street, Lafayette, OR

Lafayette home built in 2006, 4bd/2.5ba, family room/living room, kitchen w/lots of cabinets and counters, gas stove & refrigerator. Master with his & her 8'6x5' walk-in closets & bath. Large 14x15 bdrm could be bonus room, upstairs laundry. Large fenced backyard.
Clean and move-ready.
For more information or to view more listings, go to http://www.realtysolutionspdx.com/.

Thursday, October 1, 2009

Mortgage Rates Hit Four Month Low!

Portland Business Journal

Mortgage rates resumed their decline this week falling to the lowest level in four months.
Freddie Mac says 30-year fixed-rate mortgages averaged 4.94 percent with an average 0.7 point for the week ending Oct. 1, down from last week when they averaged 5.04 percent. Long-term mortgage rates a year ago averaged 6.1 percent.
The last time the 30-year fixed rate average was below 5 percent was the week ending May 28, 2009, when it averaged 4.91 percent. Rates fell to a record low of 4.78 percent in March.
The 15-year fixed-rate mortgage average fell to 4.36 percent with an average 0.6 point, down from last week when it averaged 4.46 percent and the lowest since Freddie Mac started tracking it in 1991.
A year ago, 15-year fixed rate mortgages averaged 5.78 percent.
The one-year Treasury-indexed adjustable rate mortgage averaged 4.42 percent this week down from last week when it averaged 4.51 percent.
“Low mortgage rates are helping to stabilize home sales,” said Freddie Mac chief economist Frank Nothaft. “New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983.

Wednesday, September 30, 2009

Woodstock Bungalow!


$167,900
5031 SE Martins Street, Portland, OR
Woodstock Bungalo-2bd/1ba, built-ins, newer windows & roof. Built-ins, unfinished basement, fenced lot. Walk to Shops, library, trader joes, park and public transportation. Bank Owned.
For more information: go to http://www.realtysolutionspdx.com/

Tuesday, September 22, 2009

Lafayette Home, $239,900



941 E. 12th Street, Lafayette, OR
Lafayette home built in 2006, 4bd/2.5ba, family room/living room, kitchen w/lots of cabinets and counters, gas stove & refrigerator. Master with his & her 8'6x5' walk-in closets & bath. Large 14x15 bdrm could be bonus room, upstairs laundry. Clean and move-ready. Large fenced backyard.

Ranch with garage apartment, $179,900


9107 SW Boise Street, Portland, OR
Ranch with garage apartment on large .23 acre lot. Possible third lot or dwelling. Zoning MR3-ck w/city. 3bd-/1ba, living room, den, kitchen in main house. 1bd/1ba + office in upstairs apartment. Fenced, patio, cross fenced.
For more information, go to realtysolutionspdx.com.

Beautiful 1915 farmhouse, $795,000

1122 SE Barnes Rd., Gresham, OR
Beautiful 1915 farmhouse on 1.85 acres. 3 bd/3ba home, large country kitchen with stainless appliances, lots of counter space, living and family room, full bath on main floor, double pane vinyl windows, huge master suite with balcony.
Development potential. 700 sf unfinished basement.
Award winning rose gardens, abundance of fruit trees/berries, covered patio, open patio, dog-run, garden, rv parking, 30x40 shop with new roof, 10' garage door, security lights, double carport.
go to realtysolutionspdx.com for more information

Aloha Ranch, $189,900

1860 SW 192nd Ave., Aloha OR
Aloha 3bd/2ba ranch on large 8331sf fenced lot. Great room plan with fireplace, 2-car garage. Bank-Owned. For more information, go to realtysolutionspdx.com

Monday, August 31, 2009

TIGARD HOME BACKS TO ENGLEWOOD PARK, $379,900


11255 SW Willow Wood Ct., Tigard, OR
Popular Beaverton Schools. Minutes to Wash. Sq, Hwy217, WES and TriMet. Air conditioned, 200SF Private Deck, New '08 roof, fresh Exterior/Interior paint. Sport court, Large .32 Acre Lot On Quiet Cul-de-Sac. 3 out of 5 bedrooms with baths! Deck, sprinkler, athletic court.
For more information, go to www.realtysolutionspdx.com

CONTEMPORARY CRAFTSMAN, $344,900

5908 NW Lark Meadow Terrace, Portland, OR
Built in 2006-has Tons of upgrades... cherry floors, graite island/counters, wood blinds, tiled master bath with soaker tub + separate shower. Huge Master with gas fireplace & 2 walk ins.
4th bedroom has french doors & can double as a study/office. Covered patio, fenced, patio, sprinkler, yard. Own this beautiful craftsman style JLS home for Short Sale price.
For more information, go to www.realtysolutionspdx.com

ONE LEVEL HOME IN GREAT DAVID DOUGLAS SCHOOL DISTRICT! $159,900

3251 SE 119th Ave., Portland, OR
Gas Furnace, Basement good height, use for storage or workshop. Good sized tree-filled lot on a shady street north of Powell. Hardwood floors under carpet in all rooms! Deck, porch.
Great house... just needs a little TLC.
For more information, go to www.realtysolutionspdx.com

CONDO W/ WILLAMETTE VIEW, $224,000


930 NW Naito Parkway, Portland, OR
Willamette view from living room, Granite counters in kitchen and bath, light oak floors,
2 large storage closets, custom colors throughout. Covered Carport for 1 car. Quiet section of this complex. Access to pool, jacuzzi, river walks & views.
For more information, go to www.realtysolutionspdx.com

SPACIOUS LIGHT & BRIGHT UPPER CONDO, $135,000

11814 SW Boones Bend Rd., Beaverton, OR
Upper unit with huge loft/possible 3rd bedroom, vaults, lots of square footage, tons of storage, new windows, new siding, all appliances stay including washer/dryer. Convenient location, EASY to freeways, shopping & Washington Square. Two heated pools, tennis, well-maintained complex, near Fanno Creek Trail. Sold as is.
For more information, go to www.realtysolutionspdx.com

FOUR-PLEX, PERFECT OWNER-OCCUPIED INVESTMENT, $549,000

462 NE 176th Ave., Portland, OR
Owner unit is 1456sf, 3bdrm/2.5 bth, 1-car garage with drive way (each unit has 1-car garage and driveway), fireplace, whirlpool, large kitchen, all appliances, tile floor, central A/C nice patio and yard. 3 units tenant occupied. Numbers work for FHA financing with 3.5% down.
Great place to start your portfolio.
For more information, go to www.realtysolutionspdx.com.

MOTIVATED SELLER! $305,000

15859 SW Bristlecone Way, Tigard, OR
Motivated seller! You'll love this nice, bright & open floor plan! Area of newer well maintained homes. Brand new carpets on main, new interior paint, newly stained large deck off dining room, large breakfast area off kitchen. Master Bedroom has large walk-in closet w/bath, including new waster/dryer, refrigerator, deck, fenced, porch, yard. Close to Schools, shops, minutes to I-5/217.
For more information, go to www.realtysolutionspdx.com.

CUTE & COZY RANCH HOME IN BEAVERTON, $210,000

18010 SW Ewen Drive, Beaverton, OR
Cute ranch home on quiet culdesac with huge park-like backyard. Freshly painted inside
and out. 2-car attached garage. Hardwood floors newly finished. Immaculate. You'll love the cozy feel to this home. Fenced, Garden, Patio, Porch, Yard. Vacant and quick close possible.
For more information, go to www.realtysolutionspdx.com.

OREGON CITY REMODELED HOME, $355,900

14682 Holcomb Blvd., Oregon City, OR
Home backs off the road on 1.42 acres. 2 Master suites/2 living areas/4 car garage, 3 fireplaces, Trex deck, Sauna, fenced yard, patio, nice fixtures, sprinklers. Lower level wheel chair accessible-no stairs w/outside entrance. Close to I-205. Bank owned-- Fantastic price.
For more information, go to www.realtysolutionspdx.com

CHEERY FOREST GROVE HOME, $254,900


703 Roxe Drive, Forest Grove, OR
4-bd/2.5ba, 1560 sf, built in 2003 on a cul-de-sac! Open kitchen, gas cooktop. Living room has Hardwoods, Gas fp, French Doors to back deck. Master br--vaulted ceiling, dbl vanity. Walk in shower & big walk in closet. Upper Laundry rom has tile floors, a window, deep sink and cabinets. Yard is filled with fruit trees and berries, garden, deck, water feature and it's fenced.
For more information, go to www.realtysolutionspdx.com.

SOUTHRIDGE RANCH, $234,900

9821 SW 130th Ave., Beaverton, OR
New Gas furnace on 3/29/09, New paint, granite face FP, separate eating area. Updates: some electrical, lighting, refinished red mahogany stained kitchen cabinets, travertine/marble/tiled counters, stainless sink/faucet, bath mirrors. 2-car Garage, Wood siding.
For more information, go to www.realtysolutionspdx.com.

OAK GROVE 8-PLEX, $475,000.00


2001 SE Oak Grove Blvd., Milwaukie, OR
5-2bd and 3-1bd units. Solid, well maintained units.
Long-term tenants. Lifetime roof, new paint, deck in '06. Close to bus line.
For more information go to http://www.realtysolutionspdx.com/.

Wednesday, July 22, 2009

Is your Personal Residence an Investment?

I received this article from Sandy Sanderson of www.WanderingStar.com. Wanderingstar has some of the best Investment analysis software around.
They also have a great blog. Sandy read this article in the Wall Street Journal and was kind enough to share with her customers. I think it really say's it all about home ownership.

My wife and I have sold all of our four previous homes for more than we paid for them—sometimes a lot more.

We’ve been pretty lucky. We’ve never overpaid much for a house, we’ve always bought in good school districts and decent neighborhoods, we’ve lived in neighborhoods where prices soared during the real-estate bubble, and we’ve been hurt but not decimated by the bursting of that bubble.

When I constructed a very basic cash-flow model for our home-buying history—selling price minus purchase price, renovations and repairs—it showed a roughly 3.5% annualized return on investment, from 1991 through the summer of last year. That’s when we sold our last home and bought our current one.

Then things got ugly. If we were forced to sell our current home, which I estimate has lost 5% or so of its value in our 10 months of ownership—despite the more than $20,000 we’ve made in improvements—our cumulative return over the years sinks to approximately 2% annually. And if prices keep falling in our northern New Jersey neighborhood, as is likely for a while, that return will shrink even further.

So do I regret owning a home? Heck, no. It’s not a get-rich scheme, and Americans never should have viewed it as one. Owning a home has given my family a series of anchors to cling to as we’ve moved around the country for my job. It’s allowed us to live in pleasant neighborhoods where it would have been tough to find a rental house. And paying down a mortgage is a form of forced savings, which should help us in retirement.

Columbia Business School’s Christopher Mayer, who has studied housing markets, says our experience with home-price gains is pretty typical. Home appreciation nationally has run about 1% above inflation over time.

The big price run-ups from the late 1990s through 2006 or 2007 were an aberration. The biggest value you derive from home ownership isn’t appreciation. “It’s being able to live in it,” Prof. Mayer says, and avoiding the rent you would otherwise have to pay.

Once you add in imputed rent and subtract property taxes, Prof. Mayer estimates, my 2% annual home-ownership return looks more like 6%.

That’s why you should buy as much home as you need—but no more. A bigger home than you need isn’t an investment—it’s an extravagance, the equivalent of renting a bigger apartment than you need. You may choose to do so, but that doesn’t make it a smart move financially.

Another reason home ownership isn’t the road to riches: Most houses—especially the old ones my wife and I favor—are money pits.

Consider the house we owned in Verona, N.J., from 2001 to 2004. We bought it for $335,000 and sold it for $455,000 near the height of the real-estate boom. That’s nearly an 11% annualized return. The only problem was that we sunk $45,000 into renovating the bathrooms, spiffing up the kitchen, refinishing the floors and the like. The result: Our actual return was less than 7%.

Contrast that with our current house. Counting the money we’ve sunk into it and its decline in value, I estimate close to a 10% loss on our investment since we bought it last year. Prof. Mayer predicts house prices in the New York metropolitan area will fall an additional 10% over the next couple of years.

That’s the brutal financial reality of home ownership in today’s market. But the consolation is this: I really like our house, our neighbors and the quaint suburban town where we’re now putting down roots. In other words, I’m happy being a tenant in this building I happen to own.




Friday, July 17, 2009

Portland June 2009 Market Statistics

The June 2009 Market Stats for Portland have arrived. The good news is the inventory is decreasing and closed sales are up 24.5% from the previous month.
marketaction0609pg1

Friday, July 10, 2009

Forty Tips for a Faster Sale

“And this is the bathroom . . “ or
SHOWING THE PROPERTY

Showing the property is the most critical of phases of home buying yet the most often under emphasized. A well cared for, neat and attractive home will sell more quickly than an uncared for home. The following are but a few suggestions on preparing your home for showing:

HOT STUFF

Forty Tips For A Faster Sale

1. Reduce clutter. Sort through closets, drawers, and storage areas. Toss what you can, organize the rest. If you have too much furniture in your home, put some pieces in storage to make a better first impression.
2. Clean. Not only should your home be spotless, it must be clean. Apply elbow grease and strong cleansers to surfaces inside and outside your home. Clean the window sills. Consider painting if cleaning does not do the job.
3. Sparkling windows are a signal to buyers that you care about your home. Clean your interior and exterior windows. Repair cracked panes, torn screens, broken sashes, and ropes or cords. Whenever your home is being shown, open your curtains to let the light in - especially if the view is nice.
4. Make minor repairs. Tighten loose knobs, fix leaky faucets and discolored sinks, lubricate squeaky hinges, clean out clogged drains, replace filters, secure loose shingles, fix holes in screens, tighten loose banisters, repair doors, door knobs and remove stains.Clean all curtains and draperies; shampoo rugs and wax floors.
5. Arrange furniture to make each room appear larger.
6. Make sure all lighting fixtures work. Add new bulbs with the highest wattage allowed for each fixture to make your room seem brighter.
7. Appeal to the senses. Create an aroma during the open house. Burn candles or potpourri, boil a pot of cinnamon sticks, or put a dab of vanilla on cold light bulbs before turning them on. If you have pets or if someone in your home smokes, the odors can linger and lessen your home’s appeal. You might not notice these smells if you live with them every day, but an unchanged cat box or an ashtray filled with cigarette butts can mean your home will get no further attention.
8. Gussy up the front entrance. A coat of paint on the door; brass accents such as house numbers, a door knob, and a kick plat; and pruned bushes and blooming plants can help your home make a good first impression.
9. Make sure your doorbell works.
10. Paint. Light, neutral colors such as beige, white, off-white, or gray have a broader appeal and can make small rooms seem larger and airier. If you have dated wallpaper, remove the paper and paint the walls. Choose premium quality paint. Caulk and fill nail holes before painting.
11. Repair a leaky roof, and then paint over any water marks on the ceiling. Don’t paint to hide a problem, always fix and then paint.
12. Repair a wet basement as applicable. The problem can be as easy to fix as installing covers over window wells. If the moisture problem calls for more extensive repairs and you are not able to make them, be prepared to explain the problem to a buyer. Don’t try to cover up the signs of a wet basement.
13. Exterminate. One bug, dead or alive, can make a bad impression on a buyer. Call in a professional to rid your home of insects, and allow time for the smell of the pesticide to disappear before showing your home.
14. Organize the kitchen. Clear off the counters. Add drawer organizers to suggest efficient use of space. Store seldom-used small appliances and large baking pans.
15. Update the bath. If cleaning and painting can’t make a dingy bath dynamite, consider replacing the vanity and sink, installing a new floor covering, or resurfacing a stained bathtub. Even a new shower curtain or toilet seat can work wonders.
16. If you have a deck, patio, porch, or other outdoor entertainment area such as a pool or hot tub, make the most of them. Keep these areas, as well as your backyard, clean and clutter-free, put debris in covered trash cans.
17. Install outdoor lighting that properly illuminates your entrances, walkways, and drive. Turn on all those outdoor lights when your home is being shown.
18. Put potted flowering plants by the front door. Give shutters a fresh coat of paint. A window box full of flowers is an inexpensive way to add an accent of color to your home’s exterior.
19. Buy a new doormat.
20. Pick up tools and toys from the yard. Put garbage cans in the garage and shut the door. Make sure the garage is swept, and try to remove any stains from the floor.
21. Paint your mailbox and lamppost.
22. Clean gutters and downspouts. Straighten and paint if necessary.
23. Depending on the season, hose down the house, walkway, and drive at least once a week.
24. Repair cracks and pull weeds from walkways and the drive.
25. Carpeting has a major impact on the look of your home. If yours is badly worn, outdated or stained, consider replacing it.
26. Hardwood floors add to the beauty and value of a home and deserve special attention. If you live in an older home, check for hardwood floors under the carpeting. You may be able to pull up the carpeting and refinish by simply cleaning and waxing the floors to create a classic fresh look.
27. Ask a friend to care for your pets or take them to the kennel when your home is being shown. Park your camper boat, or extra car at another location.
28. Buy or cut fresh flowers for a dramatic arrangement in any room.
29. Take a picture - it will last longer. If your home is surrounded by flowering or fruit-bearing trees, low-maintenance landscapes, and herbal or flower gardens, be sure to take pictures when everything is in full bloom. Photographs are proof of the breathtaking view of your lawn and garden and tell prospective buyers the full story of your home - no matter the season.
30. Edge between your lawn, drive and walkways.
31. Remove dead leaves, limbs, and other debris from lawn.
32. Trim trees and hedges. Prune evergreens and shrubs.
33. Put fresh mulch around trees, shrubs, or hedges.
34. Put away lawn equipment and gardening tools.
35. Make sure the exterior paint and siding are in good condition, and that the roof, gutters, and spouts are in good repair.
36. Weed and cultivate flower gardens.
27. Repair fences and gates, and give them a fresh coat of paint if necessary.
38. Mow your lawn. For more lushness, be sure to water, mow, and fertilize it regularly. Remove dandelions and other weeds that are visible. A good rule of thumb for mowing is to never cut off more than one-third of the blade at one time. For example, if the recommended height is 2 inches, mow when your grass is 3 inches.
39. If you are an absentee seller, make arrangements for lawn care.
40. Clean all curtains and draperies; shampoo rugs and wax floors.




Remember,
You only get one chance to make a first impression!

Wednesday, June 17, 2009

Foreclosures up 90% in Oregon

The number of Oregon properties with foreclosure filings jumped 89.8 percent since May 2008, giving Oregon the 12th-highest foreclosure rate in the country, according to new data from RealtyTrac.
The state posted 3,067 foreclosure filings — including default notices, scheduled auctions and bank repossessions — in May, down 20.7 percent from April’s total, according to RealtyTrac’s monthly Foreclosure Market Report.

One in every 525 Oregon homes received a foreclosure filing in May.

Nationwide, 321,480 foreclosure filings were reported in May, which is 6 percent lower than April 2009, but about 18 percent higher than May 2008. One in every 398 U.S. homes received a foreclosure notice last month.
Vermont again recorded the lowest number of foreclosures, with six reported in May, or one for every 51,906 households.
The RealtyTrac U.S. Foreclosure Market Report provides the total number of properties with at least one foreclosure filing reported during the month. Data is collected from more than 2,200 counties that account for more than 90 percent of the nation’s population.

Portland Business Journal 06/09