How would it affect you if you could no longer write off the interest you pay on your mortgage?
According to panelists at Friday’s housing forum hosted by Zillow and the University of Southern California’s Lusk Center for Real Estate:

The burgeoning federal debt makes it unlikely that the mortgage interest tax deduction will survive in its present form. Of course, any proposed changes to the tax break for homeowners will spark a fierce debate over the fundamentals of the U.S. housing market, the value of home ownership, and consumer behavior.

“Fierce debate” he says? I’d call it a jobs-killer! But then again, I’m in real estate. Change is never easy, but when it hits our pocketbooks and the government, it really hits home. I advise my clients to educate themselves, talk to their tax professional and view the tax benefits icing on the cake. Knowing the long-term financial upside leaves them feeling good and more secure as they move forward with their biggest single purchase.

“I think it’s entirely likely that something big is going to happen (with the MID) starting next year with either administration,” said Jason Gold, director and senior fellow at the Washington, D.C.-based Progressive Policy Institute, an independent think tank.

A Congressional contingent advocates for the elimination of the mortgage interest deduction to help address the nation’s debt and budget deficit. Obviously things must be done to right the problem, but sticking it to a Middle Class whose beginning to feel the effects of a post-crisis housing market recovery seems a bit harsh. At the end of this year, a series of tax increases and spending cuts are scheduled to go into effect automatically unless Congress acts to prevent or alter them. Revamping the mortgage interest deduction is on the table as a way to head off that “fiscal cliff” scenario. (I wonder how many of those guys have a mortgage.)

Two years ago, a bipartisan deficit reduction commission recommended scaling back the mortgage interest deduction, which is currently capped at mortgages worth up to $1 million for both principal and second homes and home equity debt up to $100,000 and the deduction is only for taxpayers who itemize.
The Simpson-Bowles commission proposed turning the deduction into a 12 percent non-refundable tax credit available to all taxpayers, capping eligibility to mortgages worth up to $500,000, and eliminating the deduction on interest from second homes and home equity debt.

Though that seems more reasonable to me than the first idea, the National Association of Realtors has consistently defended the mortgage interest deduction in its current form.

Highly critical of the recommendation and claiming any changes to the MID could depreciate home prices by up to 15 percent, they are promising to “remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest.”

So… we’re back to whose going to pay down the debt? And how.

The MID is a “tax expenditure,” meaning its cost must either be made up through higher taxes elsewhere or by adding to the debt, and it costs the government about $90 billion a year. Richard Green, the director of the USC Lusk Center for Real Estate, told forum attendees that reforming the MID is necessary for fiscal sustainability. “We need to get revenue,” Green said. “You need to make a judgment about what’s better or worse for the economy. In my opinion, it’s better to do it with tax expenditures, rather than rates, though you may have to do both to get to where we need to be.”
Because mortgage interest rates are currently so low, he added, “This may be an opportunity to do less damage by reforming the mortgage interest deduction than at other times.”

(I wonder what cuts would make this guy feel the pinch.)
The mortgage interest deduction is particularly polarizing because of the disconnect between how people use it and how it is perceived. Green gave the example of Texas where most people do not itemize their taxes (only about 30% of taxpayers do) so they cannot take advantage of the MID. This line of thought perplexes me. So… if more Texans itemized their taxes it would make things fairer? or does he mean that if they actually knew they could they would, adding to the deficit? And haven’t Texans done enough of that? 😉
No matter how the chad falls in the next three weeks, watch for ongoing and loud debates over the Mortgage Interest Deduction. *covers ears*

Source: Inman News, Andrea V. Brambila, Monday October 15, 2012

What’s the alternative to a little time off? Usually it’s some other kind of time off, like a stress-related illness or maybe prison. Like most of the Middle Class, I don’t often give myself time off, and taking a vacation is the last thing on my mind. Taking my boys on a trip? Of course, but that’s not really a vacation. We spent 10 days in June whirling around New York and returned exhausted… I mean, uh, exhilarated. Outside of a daily workout, a monthly massage or a trip to the grocery store at midnight, quietude is not in my repertoire.
As a wearer of many hats, there is that perpetual something or someone needing my immediate attention, a feeling I’m sure you can relate to, and after a surprisingly good upturn in the Denver real estate market, mama’s ready for some serious downtime.
So how do you define what you need to rest and reinvigorate?
For me it starts with place, and the ocean is always a suitable salve to soothe my soul. Salt and sound bring me deep rest and my eye loves the infinite horizon. The drama of the Northern California coast works her moody, wondrous magic as a simple walk peels back layers of deadlines and expectation. Tonight I head to San Francisco to gather my best friend and a morning drive up Highway 1 to Point Reyes, maybe Bodega Bay. As the sun downs we’ll wind our way eastward, landing in Sonoma for dinner with the family and a laid back weekend.
It’s not the wine that calls, but the olives, the sourdough bread and the smells that are uniquely These are the ways I spell relief. Oh, and there is that little thing in town, the 115th Annual Valley of the Moon Vintage Festival…
Back to San Francisco for a few days in the City; museums, chocolate and cable cars. A bay cruise and a good meal are great, but what I’m craving is that intense time with friends, living life side by side in moments over decades. Then I’ll be ready to return to all those dragons that need slaying.


Sonoma State Beach photo courtesy of Trip Advisor. Semillon grapes, courtesy of Scott Palazzo and Palazzo Napa Valley Wines, and the best RHCP video ever made.

Planning a trip to New York is always exciting, but planning a ten day trip with two teenage boys is a handsome cab horse of a different color. How could they see New York’s New York, my New York and find those “I Heart NY” moments for themselves? I knew I had to keep it real. With all of the touristy things on our plate, the trick would be to spin those with the sights and sounds, the smells, bells and flavors that make the city what it is. In New York the magic’s in the moment, so the more opportunities I could create for them to dance among its denizens, the better the interface would be.
Rule number 1.) Walk as much as you can.
Rule number 2.) Take the subway for maximum effect.
Rule number 3.) Do not put any limits on the day. Including what time it starts and ends.
And the bonus tip…No matter how well you know the city, allow yourself to get lost.

Throwing down a bit of historical context to match the immediacy of the New York minute, I worked in some tales of my time in Manhattan and a few irritating, “See that (painting, building, church, store, statue…)? It’s important!” stops along the sidewalks. Dinner at Joe Allen’s over Applebee’s, and meeting friends for picnics, lunches, or museum visits gave things the personal touch and sense of belonging. The overall effect…? “Mom. Can we move here?”

To read more on our adventure, plan your own or find out what made the boys’ “TOP 5 THINGS TO DO IN NEW YORK”, click here.

http://www.mnn.com/lifestyle/arts-culture/stories/cultured-people-happier-less-stressed.

People who go to museums and concerts or create art or play an instrument are more satisfied with life, regardless of how educated or rich they are.


For years we’ve read studies about how arts in education create better students, especially with the math+music connection. Here’s proof (I’m calling it proof) that you don’t have to be Baby Mozart or write the Great American Novel to benefit from the creative spirit. Partaking in the experience is a spiritual anti-oxidant of its own.
Cultural institutions work hard raising funds and keeping doors open and the gift of your attention helps them keep giving, creating a rich communal experience and increasing the value of our cities. When funding issues hit the ballot the arts are ofttimes berated. Seems to me the beraters might be happier if they picked up that dusty guitar in the basement or that watercolour they’d judged themselves harshly for and didn’t finish.
We’re inundated with news of of the benefits of exercise and healthful eating; we would be well served to take heed of our need for arts & culture as well.

The Denver rental market is more than just healthy; it’s got a rosy glow. With vacancy rates low, prices for rental properties have risen and according to Poppy Harlow of CNN’s Early Start, Denver is one of the top five cities for rent increases, 10.9% over the past twelve months. That’s great news if you’re a landlord!
As the market fell and foreclosures soared, I have been focused on helping clients build wealth through investing in rental properties. Where are you going to move when you lose your home? A clean, safe, single-family home to rent where their lives and families can live and recover from the ordeal they’ve been through would be ideal. Many of these tenants would have had no problem paying their mortgages had they stayed at the pre-adjusted interest rates, or the troubles that befell them has passed. They are willing and able to pay good rent for a well-kept property that makes them feel back in balance. A recent survey on the rental market bears this out.
After surveying property managers, TransUnion found that increasing prices aren’t keeping tenants away. Overall, managers reported they are doing better than the year before and are having an easier time attracting in residents despite the increase in prices.
The credit bureau’s June survey included 1,248 property managers across the U.S. who represented a range of property sizes.
Read the Survey: Rental Market Attracting Residents Despite Price Increases. and let me know what you think.
There are some very attractive deals out there for those who want a good annual cash-on-cash return on their investment that owning real estate investment property provides, but the market is moving swiftly. I would recommend you do as well. “I don’t want to be a landlord” you say? I can help you with that through a few concise classes or introduce you to some affordable pros.

Well, look who’s coming back around. With all due respect for the “Respected Media”, it looks as if they finally got the memo. Though real estate, like the weather, is hyper-local the mainstream types reporting on the national outlook finally figured out that the housing market is growing again.
Both The Wall Street Journal and the New York Times said this week that “it would appear that housing is making a comeback”. Of course, REAL Trends has reported eight consecutive months of increased housing sales and three months of increasing housing prices, while NAR reports increased unit sales during the same time frame and that prices are firming.
Until Case Shiller said that prices were turning around, neither of these news organizations would report such a thing; perhaps that’s just as well. It took them 12 months to report that housing was headed downward. In fact, they still report the downturn as occurring in the spring/summer of 2006 when in reality the beginning of the slide was in fall 2005. That is when unit sales began to slump on an annual basis. Yes, I’m being picky…
The media may not always be fair or accurate in their reporting on the housing market. Recent years of staff cutbacks across the nation’s newspapers have left researchers and reporters without the time or (perhaps the inclination) to really research any sources that don’t fit their preconceptions.
Overreliance on Case Shiller tend to mask a real turnaround in most housing markets. Thanks to consumers and investors alike, housing is starting the long road back to health. Those of us “on the ground” have witnessed six months of solid grown in the Denver housing market, with homes selling quickly at or above asking price.
Though I’m not ready to start the parade (my calves are still sore from today’s Independence festivities) or predict a huge breakout of double digit appreciation, the evidence is overwhelming that housing is on the way back. Could it be time to strike up the band?

Are you a first-time homebuyer but missed that big tax credit? Are you tired of paying rent or is your rent being raised to astronomical limits? So let me ask you this… If you thought you could get a good deal and a $2000 tax credit, would you like to own a house in Denver? Good news.
The City and County of Denver announced a new Mortgage Credit Certificate program that enables qualified borrowers to receive an annual federal income tax credit equal to 30 percent of the yearly interest paid on their mortgage loan, up to $2,000 annually, the city announced Tuesday.
“For many families, home ownership is a primary method of asset building and saving for the future,” says Denver Mayor Michael Hancock. “We’re providing a financial boost to individuals and families while increasing home ownership opportunities and the overall strength and vitality of Denver neighborhoods.” Lenders can use the estimated amount of the credit on a monthly basis as additional income to help a potential borrower qualify for a loan, the city said.
There are stipulations to the program. To qualify, borrowers must purchase a residence in the City and County of Denver and income restrictions apply ($79,300 for one or two persons and $91,195 for three or more). The maximum allowable purchase price for a home is $370,252, although higher income and purchase price limits are available in targeted areas. Participants cannot have owned a home in the past three years, except in targeted areas and for qualifying veterans.
Only certain lenders are approved to participate in Denver’s Mortgage Credit Certificate program and Paul Orrell at Megastar Financial, one of my favorites, is among them. Click here if you’d like more information about the Denver Mortgage Credit Certificate program, then shoot me an email. I’d be glad to go over your options.

…with all due respect to the Staples Singers
You’ve found the perfect house! Redone tip-to-toe! That kitchen with the gleaming stainless and the leathered granite is perfect, the master suite, divine, and the water feature will provide a soothing soundtrack for starlit summer nights on the back patio. It’s your dream house… until you see the Inspection Report.
Part “honey-do” list, part diagnosis, a home inspection is the best way to make sure your dream house isn’t a nightmare with a fresh coat of paint. No one wants to shell out $300-$600 to have someone crawl up in the attic and scope your sewer line, but believe me it may be the best money you spend in your home-buying (or selling) process. Last week, I thought for sure we’d fall out of contract once I delivered the Inspection Objection—it was the BIG LIST, and it had to be done by the seller if my buyer was going to go through with the purchase.

1. New roof
2. Sewer line offset repaired
3. Radon mitigation system installed
4. Electrical work on aluminum wiring
5. We overlooked the aging water heater.
So… now you know. What’s next? She had beaten the competing offers so she was paying a fair price, market value, certainly no bargain. With little room for $15-20k worth of repairs, especially on items which are considered “health and safety” issues, which can hold up the loan if left unattended, the buyer has some decisions to make. And I have some questions to ask, the one that tops the list…
Whose problem is it?
Thinking we might be at risk of losing the house, I sat with my client over coffee and asked her how she felt about all of this.
1. Do you love this house enough to stay in the deal?
2. Are you willing to do the work yourself?
3. What on this list is most important to you?
We worked our way through her options, she made her decisions, and I sent over the “final four” on our list of objections to the listing agent. “Do you think they’ll go for it?” my buyer asked, uncertain. “We know what you want, all we can do is ask“ (And I love the ask).
If a seller is motivated, your requests are not unreasonable, and the agents are good at what they do, chances are you can find a solution that suits all. In our case, that’s just what happened, but it ain’t always the case. So… how do you avoid the less harmonious outcome to this situation?
Sellers usually have a pretty good idea about what is wrong with their homes. The problem is they are used to living with that squeak in the floor, the drip in the downstairs bathroom and that little flicker in the dining room light fixture when the kids are on the computer. Many times, they’ll spend time and money preparing to put their house on the market, only to find a slew of hidden problems upon the Buyer’s inspection and a bucket of resentment along with them. It might be a good idea to have a home inspection BEFORE you list your property; that way, you’re able to make pre-market repairs or price accordingly if you choose not to. Buyers write offers based upon their emotional response to a home, but they walk away from contracts based upon practical matters. Chances are, they’ll feel better about a coat of paint or buying a new refrigerator than installing a radon system or a sewer repair. For Sellers, it’s “Be Prepared” and for Buyers “Beware”. In either case you will forget about the $300 check soon enough, but there will be that night at 2 a.m. when you’ll remember the mold report and wonder if it’s growing in your drywall… and if your buyer’s going to find it.

Wondering what you can do to “be the change”? Here’s a video with an easy (and fun) way you can make your voice heard without camping out in the snow to the beating of drums. There are so many stories in America, each a unique experience within a collective experience. Whether you feel the Occupy Wall Street movement is an important expression of our frustration or a bunch of dirty-little-trust-fund-hippies, it has opened up a conversation about how we’d like to craft our future and that of our children. We’re in a moment of major change and there are many, many changes that need to happen; left, right and center. The first step is to create a dialogue, in this case with the banks who control our economy, our politics, and our destinies.
Let’s face it, we do want our lifestyle: we want our Starbucks and our comforts, and me, I like to see the ocean on occasion. We also want to stay in our homes and pay our mortgages, we want to feel our jobs are not going to be outsourced, we want our neighbors to have their jobs and their homes and we all want our freedoms. Here is a brilliant way to ensure those freedoms, including our First Amendment right to speak.
So we take responsibility. For our credit card debt, for our ability to create, and for being the change. Click here to see what you can do. Keep Wall Street Occupied. Oh… and there is sweet revenge for all that junk mail ; )

Creativity is the strongest force on earth; artists, visionaries and innovators lead us into the future. We’ve got some mad skills that actualize potential where others may only see what is possible.  Be sure to click on the Thriving Artist Alliance page above and I’ve created a lovely video to inspire you. CLICK HERE TO WATCH