My New Blog

If you are thinking about managing your own rental property consider the following tips:

1. Instead of using an all-purpose lease available at office supply stores consider drafting a more specific lease for your property type and location. State laws differ from state to state so try purchasing your lease contracts from your local assocation of Realtors or state bar association.

2. Make your lease as specific as possible by spelling out exactly what is expected of the tenant and owner. For example, who calls the handyman if there is a problem?... One suggestion for repairs is to have the tenant responsible for repairs up to a certain dollar amount and the owner responsible for the rest.

HOME PRICES ROSE 0.6 PERCENT IN FEBRUARY ACCORDING TO MONTHLY HOUSING INDEX U.S. home prices rose by roughly .6 percent between January and February according to the latest monthly House Price Index from the Office of Federal Housing Enterprise Oversight (OFHEO). Since its peak in April 2007, the index is down 3.1 percent.

The OFHEO monthly index, introduced in 2007, is calculated on purchase prices of homes backing mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.

U.S. LEADING INDEX UP SLIGHTLY AFTER FIVE CONSECUTIVE MONTHLY DECLINES The U.S. leading index rose 1 percent in March following five straight months of declines, due largely to the ongoing credit crisis and a slumping housing market, according to the latest data released by the Conference Board Tuesday.

Vendor performance and favorable interest rates were positive forces on the index in March, offsetting the negative impact of higher unemployment claims, sagging building permits, and stock price data.

(information curtousy of California Association of Realtors)

A new federal measure now allows Fannie Mae and Freddie Mac to buy conforming loans up to 125% of the area median home price, up to $729.750.

In an area like Ventura County this means that home owners and home buyers will able to avoid borrowing at nonconforming jumbo loan rates and/or the premium for "piggyback" loans. And because now a home buyer of a median priced home can borrow under conforming loan guidelines they can have more advantageous terms like less money down than what might be required under nonconforming guidelines.

Here's a few changes for 2008:

1. You can contribute $5,000 ($6,000 if you're over 50) to your IRA in 2008 vs $4,000 ($5,000 if over 50) for 2007. For 2007 you have until April 15th to add money to your traditional or Roth IRA.

2. Married taxpayers with joint income up to $85,000 will be able to deduct IRA contributions if they file jointly - individuals up to $53,000 in income.

3. If you don't itemize, you're standard deducttion will be $10,900 as married filing jointly and $5,450 if single.

4. Joint filers whose taxible income doesn't exceed $65,100 don't have to pay capital gains they realilze in 2008 - for single filers with income not exceeding $32,550 the same applies.

5. Some hybrid cars can still save you taxes but many popular models have been phased out.

6. The maximum amount of earnings subject to Social Security tax increases to $102,000 in 2008.