Real Estate: Escrow and Obama Care..... A MUST READ!!

Tuesday morning, Feb. 18, at the Southwest Riverside County Association of REALTORS® (SRCAR) weekly marketing meeting, Gene Wunderlich, SRCAR Government Affairs Director (GAD), alerted REALTORS® to an alarming trend that is developing and spreading heartache across the State of California, soon to be here in the Temecula-Murrieta Valley.

Without advocating for or against our president and his legendary Affordable Health Care Reform Act, commonly known as Obamacare, there are two issues that will affect real estate sales from this point forward.

New capital gains tax on the rich

The first issue is not going to have a direct effect on very many transactions – but those that it does will feel the consequences. There is now a 3.8 percent tax on high income home sellers, earning in excess of $200,000 or $250,000 for married couples filed jointly. The income is for adjusted gross income (AGI). The new tax is on their capital gains in excess of $250,000 for the single seller or $500,000 for the married taxpayers.

This is obviously a very quick snapshot of the new tax and if you want to know more, you really need to discuss the matter with your tax professional for advice that is pertinent to you.

Your health insurance and your new mortgage

When qualifying for a mortgage, the lender has always looked at your debt to income ratio, or DTI. Under the new rules of the Dodd-Frank Act, mortgages have to meet the new "qualified mortgage" (QM). The new QM has a ceiling of 43 percent DTI for most government-sponsored agencies (GSA) like VA, FHA, Fannie Mae, Freddy Mac, USDA, etc. It was 45 percent DTI last year for those of you keeping score.

Again, there is much to this discussion and certainly not enough room here to discuss in any detail. I just wanted to lay the foundation for the scenario Mr. Wunderlich shared at the SRCAR weekly marketing meeting.

Lenders have always looked at the borrower’s monthly bills and obligations in determining debt. This includes rent/mortgage payments, utilities, un-used gym memberships, 
child care and everything else the borrower spends their money on. This is revealed on the loan application and verified by reviewing three months (or more) of bank statements.

Simply put, the law now requires everyone to be covered or pay a fine. It’s no longer an option as some lenders up north see it. Therefore, if you never had insurance in the past, you must have it today. If it’s something you must have, then it is one more debt that needs to be factored into your DTI. Even if you have had health insurance for years, chances are very good that you’ll be paying more for it, resulting in more debt each and every month. Check with a trust insurance agent to confirm.

What should you do?

I suppose that depends if you are in favor of the law or not. Either way, contact your local politicians and let them know how you feel.

If you are planning on buying a home anytime soon, I’d look hard at doing it sooner rather than later. Apparently, this trend has started in Northern California where one title company has had nine escrows fall out so far this year because of the DTI factoring in health insurance that the borrower did not have prior to this year. While there are no known cases here in the Temecula-Murrieta Valley, or elsewhere in Southern California, it’s believed to only be a matter of time before it reaches us.

Check with your trusted local REALTOR® and lender to make sure you are covered. They will make sure you find that right home within your budget meeting all your needs. Call us today and get the information you need to make the right decision. The info is free, call now! (951) 296-8887.

John Occhi, Mike Mason

Friday, February 28^th, 2014

Issue 09, Volume 18.

Balloon and Wine Festival – 3 Doors Down – May 31, 2014 at Lake Skinner

TEMECULA – 3 Doors Down, the alternative rock band that rose to international fame with their debut album and hit single "Kryptonite," will headline the Temecula Valley Balloon & Wine Festival on Saturday, May 31 at Lake Skinner.

"Kryptonite" was just one of many hits that evolved from their debut album "The Better Life." The album sold six million copies and went platinum six times. 3 Doors Down furthered their success with the 2002 album "Away from the Sun," which spawned the singles "When I’m Gone", "The Road I’m On", "Here Without You," "Away from the Sun," "Dangerous Game," "Dead Love" and "Wasted Me." 

"Here Without You" and "Away from the Sun" crossed over to Adult Contemporary charts as well as rock and alternative rock charts. "Here Without You" peaked at No. 1 on Billboard’s AC, Mainstream and Hot 100. "When I’m Gone," from the same album hit No. 1 on the mainstream rock chart.

Also appearing Saturday is the Gin Blossoms, the alternative rock band from Tempe, Arizona. Always one of the top requested bands by festival fans, the Gin Blossoms will make their third appearance to the Festival fueled with their hits "Hey Jealousy," "Follow You Down," "Found Out About You," and "Till I Hear It From You."  The 

band released three albums by the mid 1990s, took a break then released a fourth album "Major Lodge Victory" in 2006. 

The Gin Blossoms released a live album, "Live In Concert" in 2009. This album contains live recordings of the band’s hits as well as newer singles such as "Learning the Hard Way" and "Long Time Gone," and a live cover version of Elton John’s "Rocket Man." The band’s fifth studio album, "No Chocolate Cake," was released in 2010. In 2012 they toured with Everclear, Sugar Ray, Lit and Marcy Playground on the nationwide Summerland Tour.    

The Temecula Valley Balloon & Wine Festival features dawn hot air balloon launches, free morning tethered rides (weather permitting), premium wine tasting, microbrew tasting, food and wine pairing, chef demonstrations and beer and food pairing, as well as a full international food court,  arts and crafts, exhibits, and a kids faire. Friday and Saturday evenings also feature the popular evening balloon glow (weather permitting.)

Many guests prefer staying at Lake Skinner for the entire weekend. Surrounded by the Shipley Preserve, the festival has one of the most picturesque vistas for camping and photography. Campsites go on sale March 4 at 8 a.m.  

Check www.tvbwf.com for scheduled times and activities or call (951) 676-6713. Hot air balloon flights, tethers and evening glows are weather permitting only.

Friday, February 28^th, 2014
Issue 09, Volume 18.

"Temecula Rod Run" information March 7th and 8th. Get your Motors Runnin'

Temecula has rolled out a pair of big changes – a youth fun zone and a key parking restriction – for the first Rod Run to be operated by the city.

Planning for the annual Rod Run, which will turn Old Town into a sea of chrome and color on March 7-8, is heading down the home stretch. City officials have jumped into the driver’s seat for the first time, but it remains uncertain whether the trial run will be extended beyond this year.

"Honestly, I have no idea as to what that (future structure) is going to be," said Dawn Adamiak, the city’s recreation supervisor. That recommendation, she said, will be in the hands of the same committee that last year pressed for the vintage car show to shift to city control for at least one time.

The changes – as well as the uncertainty over the future – are unfolding as the popularity of the signature city event continues to mushroom.

"I think it’s getting more popular," Alice Sullivan, Temecula Valley Chamber of Commerce president and chief executive, said in a recent telephone interview. "It’s just a great family event."

Sullivan said the appeal of antique and vintage autos remains high, and that enthusiasm is on display at Temecula’s annual show as well as a similar annual event that is held in Murrieta on Father’s Day.

The family-oriented appeal is expected to increase this year as the city, for the first time, has set aside a large area for air-filled jump houses, face painting, slot-car and pinewood derby races and other youth activities.

Sullivan said the Rod Run measures up as one of the city’s most popular community events. It is hard to say, she said, whether it attracts more visitors than the city’s July 4th festivities or some other large-scale events. In some years, especially during sunny weekends, the Rod Run has attracted more than 70,000 visitors to Old Town streets.

Sullivan said the city has extensive experience planning small and large community events, and this process has rendered a solid working group of Old Town merchants and vintage vehicle buffs.

"I think it’s been positive," Sullivan said. "I haven’t heard anything negative."

Since its loose-knit beginning more than 25 years ago, the annual car show has been sponsored by a coalition of business and community leaders as well as a nonprofit group formed mostly of vintage car and truck owners and enthusiasts.

That nonprofit group fragmented after one of its leaders moved out of state. The city initially fielded proposals from four organizations, including a founder of the group that operated the Rod Run beginning in 1999.

But a city committee shifted gears and recommended that Temecula, rather than any of the four applicants, run the event for one year or more.

Some council members and staff cited other key city events – including popular parades and Old Town gatherings – as examples of Temecula’s ability to organize and produce major functions. They also noted that the city has played a key role in past Rod Runs by reviewing permit applications and ensuring that operating conditions were met.

In July, the City Council voted to place the signature event in Temecula’s hands. Some council members said Temecula’s oversight would just be for this Rod Run, but they left the door open for possibly keeping it under the city’s control indefinitely.

The event annually attracts baby boomers, families and vintage car enthusiasts from a swath of inland and coastal communities. Food booths and vendors add to the appeal as visitors and vehicles jam the closed roadways and sidewalks.

The event, which for many years was also held every fall, is seen as an economic development jewel for the city and its historic business district.

Temecula has typically paid the law enforcement costs of the event as well as the public works, fire protection and other municipal

expenses. That cost is expected to total about $63,000 this year, according to a city staff report prepared in July. Adamiak said the city is on track to spend about that much this year.

Past events have often generated surplus funds that are typically distributed to nonprofit groups as well as service clubs that assist with parking and other Rod Run tasks.

City staff has estimated that a potential financial windfall of about $35,000 might be generated this year. Such a surplus would be diverted into an existing pool of city funds that are annually distributed to local nonprofit groups that undergo a detailed application and review process.

In preparation for city operations, Temecula staff created an outline detailing the roles of the city, an Old Town merchants group and car club liaisons before and during the Rod Run. Most of the key tasks are being done by city staff, Adamiak said, but volunteers are issuing parking passes and performing other duties.

Issuing parking passes for the city’s parking structure has been delegated to the Old Town merchants group, she said. That structure, which is connected to Temecula’s landmark Civic Center complex, has been used for past Rod Runs and numerous other Old Town events since it opened in December 2010.

Temecula’s 95,500-square-foot Civic Center complex cost about $73 million in land, infrastructure and construction costs. The facility at Mercedes and Main streets includes a parking garage, conference center, city offices, outdoor amphitheater and satellite police and tourism promotion offices.

Adamiak said a consensus was reached this year to limit parking in the garage to Old Town residents and business owners and employees. She said that decision was reached, in part, because of the parking crunch that can grip Old Town when it is jammed by visitors from Southern California and beyond.

"There weren’t a lot of (parking) options for them," she said.

As in the past, shuttles on Saturday will ferry Rod Run visitors to and from the three large parking areas that have been designated as free locations. Those lots are at the former city hall along Business Park Drive, the south end of Old Town Front Street and the corner of Ynez and Santiago roads.

Adamiak said the planning process is "running very smoothly," and many visitors may not realize that the city has taken the lead role in this year’s Rod Run.

"For us, it’s been fantastic," she said.

Get your motor runnin’

Temecula’s Rod Run, which for the first year will be operated by the city, will be held Friday (March 7) and Saturday (March 8). Past events have attracted as many as 70,000 people who look on as 700 or more antique or vintage cars and trucks are displayed or driven in Old Town Temecula. Vendors, food booths, a youth fun zone and other attractions will also be featured. Below is a synopsis of the free event and some suggestions.

FRIDAY: An antique and vintage vehicle cruise will take place from 5 p.m. until 8 p.m. Vehicle access will be closed between the pair of metal Old Town arches. The city’s multi-story parking garage will be open along Mercedes Street.

SATURDAY: An antique and vintage vehicle "Show and Shine" will jam Old Town streets and sidewalks from 8 a.m. until 4 p.m. Vehicle access will be closed between the pair of metal Old Town arches. Due to the amount of pedestrian congestion, organizers discourage visitors from bringing dogs, scooters or skateboards. The city’s multi-story parking garage will be closed to the public and available only to Old Town residents, merchants and workers. Shuttles will run between three free parking areas designated by the city.

PARKING AREAS:

• City park and ride area at Interstate 15 exit at Temecula Parkway.

• Dirt lot at the intersection of Santiago and Ynez roads east of I-15.

• The former city hall building at Business Park Drive and Rancho Way.

Valley News

Friday, February 28^th, 2014
Issue 09, Volume 18.

Tim O'Leary

Kimber Kinard. Tarbell, Realtors "Preferred Properties Program"

My Specialized Luxury Home Marketing Plan

"Working together we're a winning team!"

Homes enrolled in the Preferred Properties Program receive the benefit of:

 300 professionally photographed and printed color brochures with two photographs.  Homes over $1 million dollars – multiple photographs on bi-fold flyers

 Deluxe Virtual Home Tour – an online open house, posted to major national and regional real estate websites, in addition to my personal website.

 Newspaper front cover press release in color

 Newspaper inside section press release in black and white

 Special larger photo ads throughout each month

 Newspaper ad calls directed to listing agent for personalized handling

 Specialized Preferred Property signage

 Special Preferred Properties promotional materials

 Area Broker caravan

 Local Tarbell office caravan

 Unlimited open houses with specialized presentation tools

 Relocation Network to attract and place relocating buyers

 Full-time Preferred Properties Expert Support Staff

 Professional video for setting the stage and preparing your house for sale

  My availability, 24 hours a day, seven days a week, to service your needs until the SALE is completed.

Special Homes Deserve Special Attention

Specialist in Distinctive Homes and Estates

 

                                                                                                                   

"Service with integrity focused on your satisfaction."

Homeowner Property Tax Exemption Information

According to Property Tax Assessors Report, many have not taken advantage of the Riverside County Homeowners Property Tax Exemption. Time MAY have ran out for 2014 , but it’s never too late for 2015.

HOMEOWNERS' EXEMPTION

The California Constitution provides a $7,000 reduction in the taxable value for a qualifying owner-occupied home. The home must have been the principal place of residence of the owner on the lien date, January 1st. To claim the exemption, the homeowner must make a one-time filing of a simple form with the county assessor where the property is located. The claim form, BOE-266, Claim for Homeowners' Property Tax Exemption, is available from the county assessor.

A person filing for the first time on a property may file anytime after the property or claimant becomes eligible, but no later than February 15 to receive the full exemption for that year.

Homeowners' Exemption claimants are responsible for notifying the assessor when they are no longer eligible for the exemption. December 10th is the last day to terminate the Homeowners' Exemption without penalty; the assessor should receive notice of ineligibility by that date.

The following link provides additional information on the Homeowners' Exemption.

http://www.asrclkrec.com/FormsFees/Forms.aspx

Information provided courtesy of Kimber Kinard, BRELIC# 01945592, Tarbell, Realtors.

When/If you are considering Selling or Buying, Consider me first…People Over Profit.

Top 9 Reasons Why Buying is Better than Renting

Especially Right Now!

1.     Affordability is at an All-Time High. Across the nation, and especially Southern California, prices have declined by 40 to 60%, leading to a historic period of housing affordability.

2.     Buying Usually Costs Much Less than Renting,,,Especially Right Now! According to many recent studies, the gap between monthly mortgage payments on a median-priced home and the median rent has changed to favor buying over renting in the last three years.

3.     Buyers Can Take Advantage of Tax Benefits of Home Ownership. Perhaps the biggest tax breaks is in the house payment you make each month. For most, the bulk of that payment is interest. Mortgage interest is tax deductible, unless the amount is more than $1Million. Property taxes are also tax deductible.

4.     Buyers Can Purchase Homes with Little or NO DOWN PAYMENT. Qualified buyers may be eligible for loans insured by the Veterans Administration (VA), with no down payment. Another loan gaining popularity are those insured by the Federal Housing Administration (FHA), which require a down payment of only 3.5%.

5.     Mortgage Rates are at All-Time Lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.

6.     You Can Build Equity. Already prices are beginning to go up, giving new homeowners an unprecedented opportunity to build equity in the coming years. Over time, owning real estate is Southern California has consistently proven to be the biggest source of wealth building…especially right now!

7.     You Become a Part of the Neighborhood. Buying a home allows you to sink in your roots more fully into the community and become a more permanent part of the neighborhood as a homeowner.

8.     It’s Yours! It feels good to own your own home…town a piece of the American Dream. After all, you can paint it any color you want, make improvements, and plant a little garden.

9.     You Become Your Own Landlord! You have no one to answer to. Every improvement is yours. Every dollar you put in can come back to you. Instead of building wealth for someone else, you build it for yourself.

People Who Buy Now Will Benefit in the Years to Come!

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