Alabama the Home of Low Property Tax Rates
Alabama offers the lowest annual property tax rate in the nation, according to a ranking found on Homeseekers.com/moving.com. In fact, the state claims all but one spot on the Top 10 compilation. The list is headed by Dothan, where residential property is taxed at 0.3% of the appraised value; followed by Chelsea, Fairhope, Montgomery and Tuscaloosa, all of which are taxed at 0.4%. The list is rounded off by Anniston, Decatur, Gadsen and Mobile — with annual property tax rates of 0.5%. Also taxing homes at 0.5% in the ranking's final slot, is Breckenridge, CO — the only city in the Top 10 not located in Alabama. (www.wsj.com)
Wall Street Journal (09/05/03) P. W12; Reed, Danielle
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Perez Shows Off Advances in Housing Initiative
In an effort to boost the homeownership rate in Hartford, CT, from 25% — the second-lowest nationwide — to 30%, Mayor Eddie Perez has designated "Rising Star Blocks" and "Pride Blocks." Sections of the Blue Hills, Behind the Rocks, South End and West End neighborhoods were chosen as "Rising Star Blocks," meaning that home owners in these communities will have access to thousands of dollars in grants and loans to be used for renovations. Perez will also name 12 "Pride Blocks," or streets set to receive money for improvements. The program aims to jazz up these rundown areas to attract prospective home buyers. (www.ctnow.com)
Hartford Courant (09/04/03) Carmiel, Oshrat
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Homeland Security — High-Tech Style
Already outfitted with residential theaters and wireless networks, the next big thing for high-end home owners throughout the American suburbs is extreme home security. Many of these families are adopting sophisticated technology previously reserved for business users: keyless door locks, microwave motion detectors, global positioning systems to track stolen valuables and the like. Also hot among the upscale suburban set are glass-break technologies that distinguish between window glass breaking and household glassware being dropped and high-tech cameras with multiple monitors and servers as well as other bells and whistles. Because many of these newfangled technologies are wireless, they appeal to home owners who do not have to worry about contractors tearing out walls in order to install them. While high-tech security systems come at a cost, the steep price is worth it for many home owners — especially those looking to "one-up" their neighbors. (www.wsj.com)
Wall Street Journal (08/29/03) P. W8; Mechling, Lauren
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Sun Shines Brightly on Solar Power's Future
Experts believe the recent Northeast blackout, improved technology and new state and federal incentives will spark interest in residential solar power. In addition to tax breaks and rebates offered by local governments in many areas, the Department of Energy is joining forces with lenders to offer Energy Efficient Mortgages. These financing products allow borrowers to include the cost of energy-efficiency upgrades within a conventional mortgage. Home owners can choose solar thermal products to run their water heaters and warm up their swimming pools or photovoltaic (PV) systems, which use solar panels to generate enough electricity to power the entire home. Solar technology can boost property values, especially in blackout-prone California. In fact, ICF Consulting has found that home values jump at least $20 for every $1 shaved from the monthly utility bill. The sales price, meanwhile, can rise by as much as $10,000 if the home has both solar technology and Energy Star-rated appliances. (www.washtimes.com)
Washington Times (08/29/03) P. F1; Ross, Audrey
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Fannie Mae Hopes to Stimulate Home Buying Among Latinos
Fannie Mae has teamed up with Charo Community Development Group and Nationwide Advantage Mortgage Co. to launch "Home Expo en Espanol," a pilot program that aims to boost the Latino homeownership rate in Los Angeles. Spanish-speaking buyers can attend one of six home buying expos to be held by Charo and members of the Congressional Hispanic Caucus to obtain information about the purchase process. The program also will make $20 million in low-cost mortgages available to about 100 Latino buyers. While nearly 68% of the Los Angeles population are home owners, only 38% of the city's Latino residents have achieved that goal. (www.latimes.com)
Los Angeles Times (08/31/03) P. K13
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Home Fixes Come Early
A three-year-old report by the NAHB shows that buyers of pre-1990 residences spent about $8,642 in remodeling during their first year of ownership, while those whose dwellings were built after that year shelled out approximately $6,540 in the 12 months after purchase. The study also reveals that more than half of the expenditures were made in the first three months. NAHB research director Gopal Ahluwalia attributes this pattern of spending to the desire among home owners to personalize their dwellings. According to Ahluwalia, decks and finished basements are most popular among new-home buyers; and upgraded kitchens and new paint and carpeting are the biggest priorities of existing-home buyers. Home offices, exercise rooms and media rooms rank high among all home buyers, meanwhile. Harvard University's Joint Center for Housing Studies has found that move-up buyers spend more than first-time buyers on improvements, but first-timers spend 60% more than other home owners. Home improvement spending should jump 31% from 2000 to an average $3,796 this year, according to a survey of 341 consumers by American Express. However, Baltimore-based Realtor® Irene Mabry Moses urges first-time buyers to create a list of their needs and wants and find a home that meets most of their preferences so they can more easily handle both their mortgage payments and the cost of improvement projects. (www.sunspot.net)
Baltimore Sun (08/31/03) P. 1L; Jones-Bonbrest, Nancy
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House-Buying Optimism High Despite Rising Rates
The recent rise in mortgage interest rates has not darkened public perception of the housing market, according to a new USA Today/CNN/Gallup Poll. The research shows that 78% of American adults believe that now is a good time to purchase a home; and the finding is unchanged from a similar survey conducted in June, when mortgage interest rates hovered near 45-year lows. Although the average interest rate on a 30-year fixed mortgage rose to 6.32% last week, according to Freddie Mac, and mortgage refinancing and home purchases have lost some momentum, interest rates remain low by historical standards. National Association of Realtors® Chief Economist David Lereah believes home sales will decline by 5% at most if 30-year mortgage rates do not rise above 6.7% this year. (www.usatoday.com)
USA Today (09/03/03) P. 2B; Fogarty, Thomas A.
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Solar Subdivision Is a First
GreenWood Ranch Estates, a 487-home community near Kingman, AZ, is reportedly the first and only solar- and propane-powered, grid-independent subdivision in the country. Propane will be used for heat, hot water and backup generators; while all lights, refrigerators, compact disc players and computers, among other devices, will utilize solar power. The $99,900 modular homes will come with basic solar equipment, which PerfectPower Inc. President John Balfour says is sufficient for a seasonal home. Year-round residents, however, must install additional solar devices. Balfour believes the project will change developers' views of solar technology. "It's a paradigm-shifting project," he says. (www.arizonarepublic.com)
Arizona Republic Online (08/28/03) Scott, Luci
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Plots & Ploys: Enough Space
A new survey of corporate real-estate executives by Jones Lang LaSalle shows that most firms will not need additional space until 2005, if at all. Jones Lang LaSalle's Strategic Consulting unit polled 75 such executives in all. Nearly 44% of respondents said they expect their firms to require additional space in 2005, while 36% chose the "not in my lifetime" response — or "beyond 2005." Over 60% of the poll participants said that more than 10% of their company's real-estate portfolio consisted of surplus space. By law, a firm must write off the cost of unused space either when it terminates a lease or ceases to utilize the space. Almost 50% of the survey's respondents reported having written off less than 10% of their unused space, while nearly 21% stated that they have written off more than 50% of their space. (www.wsj.com)
Wall Street Journal (09/03/03) P. B8; Muto, Sheila
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Web Watch/Builder's Choice
After purchasing the land for a dream residence, would-be home owners next need to think out what kind of house they want to build. For inspiration, they can turn to the Internet, which features a number of Web sites offering residential floor plans that cater to every taste. To get started, online searchers could log onto HomePlanInfo.com, which lists the major house-plan design firms and reviews their Web sites. Others may want to jump right into the process at Homeplans.com, where they can troll for blueprints appropriate for all styles of homes, from A-frames to Victorians. If the users find a match, the site's in-house customization teams can step in to assist. Another site, DreamHomeSource.com, provides an estimated 13,000 plans as well as a link that shows the most popular searches. (www.wsj.com)
Wall Street Journal (08/29/03) Reed, Danielle
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Blue-State Pols Are Emptying Their Own States
California, New York and Illinois are among the Democratic blue states losing thousands of residents to Republican red states like North Carolina, Arizona and Nevada due to high living costs. In fact, the Census Bureau reveals net migration rates of 755,536 and 874,248 for California and New York, respectively, between 1995 and 2000. A flood of residents left each state to escape the tax hikes necessary to repair severe budget deficits as well as surging housing costs. For instance, home buyers would spend $285,000 to purchase a three-bedroom dwelling in Los Angeles and only $155,725 in Tucson; and in New York, scores of young renters spend half their pre-tax incomes on housing. Moreover, the Tax Foundation reveals that eight of the 10 states with the largest tax burdens are Democratic blue states. (www.wsj.com)
Wall Street Journal (08/29/03) P. A8; Henninger, Daniel
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Cell Phone Users Lend Ear to Home Listings
Philadelphia-based Smarter Agent has expanded the Talking House concept, which provides audio property descriptions to real estate agents and prospective home buyers via AM radio. With Smarter Agent, Multiple Listing Service information will be accessible from cell phones and other wireless devices via Global Positioning Satellite "location aware" technology. "The tool is designed to help real estate agents do their job faster with more efficiency. It also helps consumers with their home shopping, supplementing other research information they have compiled from the Internet," remarks Smarter Agent CEO Brad Blumberg. Users will pay about $4.95 per month for the service, and regional realty firms will be charged for exclusive rights to certain locales. (www.inman.com)
Inman News Features (09/03/03) Kelly, Tom
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Making Paperless a Reality
Checkpoint 5.0 from RIA is an online tax and accounting solution that can host BNA Daily Tax Report, IBFD, West, FASB and other professional standards and audit guides. This newest version of Checkpoint also offers productivity tools to make the paperless office possible, allowing users to automatically input information into important documents. In addition, the software also features Chart Wizard to compile reference data from various states; Line Finder to easily locate compliance information; 50 calculators covering everything from mortgage tax savings to business valuation; and links to GoSystem Tax RS, Creative Solutions' UltraTax and other tax preparation applications. (www.electronicaccountant.com/accountingTechnology)
Accounting Technology (09/03) Vol. 19, No. 8, P. SR-9
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