A bailout for the real estate market and maybe the economy

…a simple two part solution that will not cost taxpayers a dollar out of pocket 

With billions of dollars flowing into various industries and no apparent results or an end in sight, what is the answer?  By now, everyone is aware the root cause of the economic downturn is real estate and real estate mortgages.  

The solution is simple.  The first part everyone will like.  The second part will not be so popular, but is an evil we will have to live with.

First, we are all aware that outside of diminishing consumer confidence largely perpetuated by the media; the biggest trouble in the housing industry is SUPPLY.  There are simply too many homes for sale!  How do we cure this problem?  We need demand and urgency… 

If Congress would enact a law making every real estate purchase completed prior to December 31, 2009, exempt from Capital Gains, investors would flee the instability of the stock market and flood into the real estate market.

The demand comes from the investors leaving the stock market and others looking to capitalize on the exemption…they have to have somewhere to put their money. 

The urgency comes from this being a ONE YEAR exemption.  Any home bought in the 2009 tax year will not be subject to Capital Gains Taxes when sold – EVER.  With people flooding back into the market not only will inventory/supply dwindle, prices will stabilize, homeowners will regain equity lost, and much more.  With regained equity and stability, consumer confidence will be improved and people will start spending money again…and in turn jobs will be created.

The Second part needs a little preamble – A lot of you are going to say this is not “FAIR.”  I will retort with my standard answer to this childish word – “NOTHING IN LIFE IS FAIR.”  Fair is a word that should only be used by children because the concept or at least the execution of fairness does not exist in the real world.

On to the second part of the solution – Mortgage resets, troubled mortgages, and mortgages in some stage of foreclosure.  

These properties are FLOODING the Real Estate market with “For Sale” homes that should not or do not need to be “on the market.”

Congress needs to pass a law resetting every home mortgage for owners that are more than 30 days behind.  This means that the deficiency (delinquent payments) would be added to the back end of the mortgage allowing homeowners to get caught up.

Congress also needs to pass a law resetting every Adjustable Rate Mortgage (ARM) to a flat fixed rate in the range of 5.5% to 6.0% and extend out the mortgage term of the loan. This will help the homeowners who qualified at teaser rates, but now cannot afford payments that have increased more than 50%.  To stabilize the market, we need these people to stay in their homes and keep them off the market.  Is this going to save everyone?  Of course not!  Some people can’t be saved and this is just another fact that proves nothing in life is fair.

I know your thoughts - What about me? I have been working my tail off to pay my mortgage on time. Why should they get a break and not me?  Well, you are getting a break…just not one that is immediately visible.  What good is it if you are paying your mortgage and four of the homes in your neighborhood go into foreclosure and sell at auction for FRACTIONS of their value?  If you bought your home for $300,000 and 4 similar homes in your neighborhood sell for $200,000 – your home is not worth the $300,000 that you paid.  It is now likely worth $200,000.  So, with the loss of property value, your bank may freeze or cancel any equity lines that you have tied to your property.  Are you seeing any benefit yet?

Are these two suggestions some magical cure for the economy?  No they are not.  However, these changes could be a strong foundation to stimulate economic recovery.

Just the ramblings of a Myrtle Beach, SC Realtor®

Breaking NEWS!! MYR International Airport to get expansion!

A much needed boost for all of Coastal Carolina!

A bigger passenger terminal at Myrtle Beach International Airport was cleared for takeoff Tuesday after Horry County Council voted in favor of a $130 million project that would expand the terminal from seven to 12 gates.

“If I had some fireworks, I’d be lighting them right now,” said County Council Chairwoman Liz Gilland after the council voted 10-1 in favor of the third and final reading of the airport project.

One of 3 possible expansions

Myrtle Beach International Airport
The Myrtle Beach International Airport is a full-service facility that serves as the gateway to the Grand Strand. The Myrtle Beach International Airport is owned by the County of Horry and operated by the Department of Airports.  The airport, as directed by County Council, is developing a program to increase passenger terminal capacity on the east side of the airport.

Terminal Capacity Enhancement Program (TCEP) Goals
• to produce an enhanced commercial aviation facility, based on stakeholder input, in a timely and fiscally responsible manner.
• To adequately provide for both Myrtle Beach residents’ air travel needs and the “product” sales role for tourism that supports and strengthens the local economy.

The Dunes Golf and Beach Club – Myrtle Beach, SC

 403 Pincrest Drive, Myrtle Beach, SC 29572

3 bedroom – 3 bath –  2 car garage – Screen porch

403 Pinecrest Drive - Myrtle Beach, SC 29572 The Dunes Club

This is home has been completly renovated – New carpet, tile, cabniets, counter tops, paint and much more. Sitting on a large private homesite this home has mature landscaping and beautiful curb appeal.  The Dunes Club is a highly sought after community in Myrtle Beach.  This is a great entry level home in a presitgous neighborhood.  It would also be an ideal second home as it is a short walk to the beach and an even quicker golf cart ride to the World Class Dunes Golf Club.

The Dunes Golf and Beach Club is very historic and has tons of amenities – Inclucing Ocean side pool w/ snack bar, World Class Golf, and an awesome tennis center. 

http://video.google.com/videoplay?docid=8103420791341102070

In 1992, Robert Trent Jones oversaw an extensive renovation of the golf course. The course greens were replaced with Penn Links bentgrass greens for smoother playablility. The contours of six holes were modified to make the course more player friendly. The most extensive renovations were the relocation of the 11th green and building a new tee box for hole #8.

In April 2000, the Dunes Golf and Beach Club began a $6 million project to renovate the clubhouse, the driving range and the golf course to accommodate its growing membership. The project was completed in Spring 2001. The renovations to the clubhouse included the addition of the turn restaurant (Waterloo), new guest men’s and ladies locker rooms, larger private locker rooms and private lounges and larger banquet facilities. The décor of the clubhouse changed from a casual beach club style to a more traditional country club atmosphere with elegant mahogany furnishings and richer color schemes. 

Please call or e-mail fro more information on this distinctive real estate opportunity.

843.222.2672 – jason@jasontellis.com

Life’s a little Greener at Sago Plantation at Legends

Sago Plantation at Legends is the newest natural gas community in Myrtle Beach… Beautiful Palm Tree themed street-scapes w/ rolled curb and gutters, underground utilities including clean natural gas, awesome Owners amenities center w/ large workout room – huge pool – spa – BBQ area – and all the other amenities that are demanded of a Coastal Lifestyle.

With your lot purchase at Sago Plantation the developer pays your initiation fee to the award winning Legends Golf Course.  This comprehensive membership covers the family’s green fees, access to the 30 acre lighted drive range, merchandise discount in Pro Shop, and guest privileges. 

Our preferred builders at Sago Plantation are moving Green w/ energy Efficient Heating and Air conditioning with sealed ducts, Low E windows, Sensor lighting (aka ghost lighting), reflective roofing, blown cellulose insulation, and many more energy and Eco friendly materials.

You may ask yourself “How will going Green benefit me?”  This is a great question and it is about much more than “saving the spotted owl syndrome”.  When you “Go Green” you will realize the DIRECT benefits of a Green Home or lifestyle.  

1. Increased comfort and Environmental Quality – With energy efficient heating and cooling not only is the air quality better but it is more evenly distributed combined with the reflective roofing and Low E widows it maintains whatever temperature you are looking for.

2. Lower Operating cost and More durable – With these systems in place your utility bills will be lower and do to the effeminacy the systems last longer and are low maintenance

Please see my older post about Thinking Green is you are in a home or looking at a buying per-existing home that is not Green.

A new “Real Estate” Blog in Myrtle Beach

First things first – For those of you that are new to blog’s and blogging here is a brief description of what a “blog” is; Blog (a contraction of the term “Web log”) is a Web site, usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse-chronological order. “Blog” can also be used as a verb, meaning to maintain or add content to a blog.

Many blogs provide commentary or news on a particular subject; others function as more personal online diaries. A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic. The ability for readers to leave comments in an interactive format is an important part of many blogs. Most blogs are primarily textual, although some focus on art (artlog), photographs (photoblog), sketches (sketchblog), videos (vlog), music (MP3 blog), audio (podcasting), which are part of a wider network of social media. Micro-blogging is another type of blogging, one which consists of blogs with very short posts. As of December 2007, blog search engine Technorati was tracking more than 112 million blogs.[1]With the advent of video blogging, the word blog has taken on an even looser meaning — that of any bit of media wherein the subject expresses his opinion or simply talks about something.

Like most people that are addicted to the internet if you spend enough time online you see most anything the good, the bad, and sometimes the really bad.  However, I love to read about real estate – The trends, what’s new, new marketing ideas, and new laws; just anything to do with real estate.  In my “web surfing” I have come across many, many blogs on real estate and I was astonished on the content of some of these Blog’s. I would go through them and 75% of the “posts” in the blog had NOTHING to do with Real Estate.  Now some people may read this content, but I started thinking “If I was looking for an agent to sell my property or some advice on buying a piece of property would I filter thorough a blog filled with food recipes, pictures of animals, and other nonsensical posts?”  Well knowing how short my patience and attention span can be I knew the answer was NO! 

That is when I decided it was time to start my own blog… And I said to myself whatever I do I am going to keep my post about Real Estate.  So I called my website designer, Michael Hasty with Inkhaus Creative, and said “I want a Blog” Michael then replied “I told you two years ago that you needed a Blog”.  So hat in hand I went to his office and proceeded to explain what my idea of a blog would be.  As always he took my idea and made it 50 times better with the creation of www.MyrtleBeachHomeBlog.com – Michael used his web design skills and created my blog in Word Press…  And the rest is history – Now it has not been easy I have struggled through a lot of my post and found it difficult to sometimes find stuff to write about but every post on my site has something to do with Real Estate.  Sometimes I may cheat a little and post a new listing that I have, post an interesting article on real estate that I read, or even take a portion of an older post and re-blog it – But it is about Real Estate.  

In my blog www.MyrtleBeachHomeBlog.com you will find information on all facets of Myrtle Beach Real Estate; Green Building, Why now is a good time to Buy in Myrtle Beach, Tax Laws, 1031 Tax Deferred Exchanges, Golf Course Living, and the list goes on.  Please don’t forget to subscribe to my newsletter on the right had side of the page – I send a twice monthly news letter with great information on new properties for sale, discounted room rates in Myrtle Beach, Realtor promotions, and other valuable information.

Feel Free to call or e-mail with any of your real estate needs – 843-222-2672 – Jason@jasontellis.com

Thinking Green

With the every expanding internet Homeowners and potential Homeowners are better educated about green products than ever before.  If your home is already built or you are looking at a pre-owned home there are plenty of ways to practice a Green Lifestyle!

Appliances – Conserve energy by buying appliances with an Energy Star rating and by adding timers and automated thermostats to control usage.

Lighting – Switch to fluorescent light bulbs and try to add natural light if possible with additional windows or sky lights.  Compact fluorescent light bulbs use up to 75% less energy and last up to 10 times longer.  Installing sensors that turning lighting on and off in frequently used rooms can dramatically reduce energy costs. 

Flooring, Paints, Wallpaper – Ask for products that are made from rapidly renewable resources, products that are from natural fibers, and water based paints.  Make sure you choose pains that contain low or no volatile organic compounds (VOC).  VOC’s are released from wet paint and form ground-level ozone pollution.

Water – Don’t let water run while brushing teeth or washing your face.  Water efficiency is increasingly important, especially in drought stricken areas.  The daily per capita indoor use of water in most home tops 64 gallons.  Water conservation methods can reduce usage to less than 45 gallons.

Recycle, Waste, Reclaim – Reuse materials, like brick, stone, glass, tile, or metal in innovative ways.  Old wood can be treated and used for many things.  Eliminate or reduce waste by choosing biodegradable products or products that you can recycle. 

Bath tissue – If every US home replaced one roll of 1000 sheet bath tissue with 100% recycled rolls, it would save 373,000 trees, 1.4 million cubic feet of landfill space, and 155 gallons of water.

Buy Locally – Buy locally grown produce and other products and materials whenever possible to reduce additional energy required in transportation. 

Longevity – Consider the lifecycle of everything before you purchase it, choosing materials that have long life, can be reused, or recycled when the item wears out will greatly reduce waste.