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April 1, 2009 - Newsletter for the Maui Market
Aloha! Here is your eNewsletter for the Maui Market from Jim Foster
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Make sure you check out the Useful Internet Sites and Real Estate Tips at the end of this newsletter which includes some valuable information on Tax Deferred Exchanges, Replacement Property and Net Proceeds Statements.
Don't forget! We provide a free Automatic E-mail Notification Service that goes out to recipients whenever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the details of the brand new listing in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send Won an email at Won@JamesBFoster.com with your first and last name, your email address, and the condominium property you wish to be notified of.
Maui Real Estate – Currently the availability of financing for qualified buyers, even with good FICO is impeding real estate sales to a certain degree. Lenders have tightened their restrictions and some condominium complexes that were previously on the lenders list are now off the list. The approval times have lengthened because of the drop in rates and recent surge of property owners wanting to refinance existing loans at lower rates.
In areas where Short Sales and sales of REOs (bank owned properties) take place, the sale often impacts the value of other properties in the neighborhood or condominium complex. This will continue until the REO inventory is sold off and the real estate market improves.
Chase ‘N Rainbows Letter To Vacation Rental Client Owners - We are enjoying the last of the busy season and are cautiously optimistic for the tourism industry here in Hawaii as we move into spring and summer. As many of you know the turbulent economy has had an adverse effect on revenues and occupancy over the past year. Hawaii hotel room occupancy dropped to 68.4% for the week ending March 21. Room rates fell to an average $184 a night according to Pacific Business News. Airline seats to Hawaii are expected to decline 6% through May with fewer seats from California. Seats on flights from Seattle and Anchorage are expected to increase and prices have dropped already for the summer travel period. We are seeing a very short booking window with many people frequently asking for discounts and bidding for lower rates. We have decided that it is necessary to hold our value season rates through the summer months and stay open to discounting as needed to remain competitive in the market. As we move from spring to summer we plan to conduct our semi-annual unit inventory/ condition inspections and schedule the deep cleans. Though times are tough economically we feel that it is ever more important to improve the quality and condition of your properties to remain competitive in the market. For the past year we have been working on updating our management software and website booking interfaces and after almost five months of running on two reservation systems we are excited and ready to move over to the new program. Many rental companies throughout the country utilize this software but Chase 'N Rainbows Real Estate, Inc. will be the first company in Hawaii to begin using this version which is internet based with the latest technologies for on-line booking and channeling our inventory to travel partners in the industry. We will appreciate your patience and understanding with all of us as we get used to the changes but we strongly feel that this will give us a great competitive edge over our competitors and streamline our systems as a management company. Though times remain uncertain we are all hanging tough over here and continue to find new innovative ways to market your properties. Your support and understanding is greatly appreciated and we look toward a bright new future for all of us.
To view the 2007 & 2008 Year End Statistics go to http://www.jamesbfoster.com/condosales.php and click on Maui MLS Statistics 2007 & 2008.
The West Maui real estate market continues to favor Buyers with Sellers willing to negotiate their prices. The current inventory of West Maui condominiums for sale is now at 805 (at 4/1/09) and on the same month in 2007 it was 477. Properties are requiring more time to sell such as five to six months and Buyers have a much larger inventory of properties for sale to choose from. If you’re curious about current trends in Maui real estate and where the market is headed, the answer is - it depends on Location - it depends on if it is condominium or single-family residential - it depends on whether you look at volume, average or median prices. In the current Maui real estate market, the for sale inventory continues to increase and prices are typically flat or have decreased.
Condominiums for Sale
2007 - In the West Maui real estate market, at the beginning of January, 2007 there were 410 condominiums listed for sale with the total value of $372,238,031.00; February, 2007 - 431 condominiums with the total value of $393,681,669.00; March, 2007 - 458 condos with the total value of $420,941,268.00; April, 2007 - 479 condos with the total value of $429,708,159.00; May, 2007 - 472 condos with the total value of $424,095,260.00; June, 2007 - 455 condos with the total value of $415,187,129.00; July, 2007 - 475 condos with the total value of $432,797,008.00; August, 2007 - 469 condos with the total value of $420,479,301.00; September, 2007 - 474 condos with the total value of $430,914,408.00; October, 2007 - 471 condos with the total value of $423,631,002.00; November, 2007 - 466 condos with the total value of $416,008,907.00; and December, 2007 - 485 condos with the total value of $421,080,117.00. The average number of condominiums for sale on West Maui for 2007 was 462 and the average total value was $416,730,118.25.
2008 - At the beginning of January, 2008 there were 511 condominiums listed for sale with the total value of $445,656,447.00; February, 2008 there were 559 condos with the total value of $500,946,603.00; March, 2008 - 595 condos with the total value of $529,779,322.00; April, 2008 - 647 condos with the total value of $606,635,687.00; May, 2008 - 634 condos with the total value of $583,391,821.00; June, 2008 - 644 condos with the total value of $590,736,279.00; July, 2008 - 680 condos with the total value of $662,919,268.00; August, 2008 - 703 condos with the total value of $693,069,348.00; September, 2008 - 693 condos with the total value of $654,411,079.00; October, 2008 - 673 condos with the total value of $620,032,454.00; November, 2008 - 715 condos with the total value of $652,379,032.00; and December, 2008 - 729 condos with the total value of $660,335,998.00. The average number of condominiums for sale on West Maui for 2008 was 648 and the average total value was $604,191,111.50.
2009 - At the beginning of January, 2009 there were 742 condominiums listed for sale with the total value of $693,143,047.00; February, 2009 there were 757 Condos with the total value of $709,234,346; March, 2009 there were 787 Condos with the total value of $681,864,289; and in April, 2009 there are 805 Condos with the total value of $693,368,793.
The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 805 for April 1, 2009. The “for sale” inventory on West Maui continues to increase.
Condominium Sales
2006 - The total condominium sales on West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; February, 2006, there were 48 sales with total value of $32,995,078.00; March, 2006 - 40 sales with total value of $32,199,584.00; April, 2006 - 43 sales with total value of $41,898,525.00; May, 2006 - 51 sales with total value of $39,644,886.00; June, 2006 - 40 sales with total value of $32,533,500.00; July, 2006 - 30 sales with total value of $26,212,000.00; August, 2006 - 28 sales with total value of $31,885,500.00; September, 2006 - 30 sales with total value of $24,770,000.00; October, 2006 - 29 sales with total value of $23,359,299.00; November, 2006 - 22 sales with total value of $13,414,600.00; and December, 2006 there were 30 sales with total value of $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,467.83 per month.
2007 - The total condominium sales for West Maui during the month of January, 2007 there were 37 sales and the total value was $33,091,000.00; February, 2007 there were 26 sales with total value of $16,330,000.00; March, 2007 - 32 sales with total value of $24,121,000.00; April, 2007 - 27 sales with total value of $16,766,000.00; May, 2007 - 28 sales with total value of $30,774,929.00; June, 2007 - 28 sales with total value of $18,917,000.00; July, 2007 - 21 sales with total value of $13,314,200.00; August, 2007 - 32 sales with total value of $33,258,999.00; September, 2007 - 23 sales with total value of $24,701,900.00; October, 2007 - 42 sales with total value of $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; November, 2007 - 15 sales with total value of $15,930,000.00; and December, 2007 there were 13 sales with total value of $13,335,500.00. For 2007, the Month of December saw the lowest number of sales in 2007. The monthly average sales were 27 sales per month with the average sales value of $22,391,702.33 per month.
2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,184,800.00; February, 2008 there were 20 sales and the total value was $14,414,584.00; March, 2008 - 26 sales and the total value was $20,079,000.00; April 2008 - 28 sales and the total value was $20,488,500.00; May 2008 - 22 sales and the total value was $20,055,000; June 2008 - 14 sales and the total value was $11,957,000; July 2008 - 10 sales and the total value was $6,955,999; August 2008 - 13 sales and the total value was $8,055,000; September 2008 - 12 sales and the total value was $6,707,122; October 2008 - 12 sales and the total value was $8,042,500; November 2008 - 10 sales and the total value was $8,444,000; and December 2008 there were 6 sales and the total value was $6,265,000. For 2008, the average monthly sales were 16 sales per month with the average sales value of $12,304,042.08 per month.
Condominium Sales in 2009 - The total condominium sales for West Maui during the month of January, 2009 there were 17 sales and the total value was $12,880,000.00; February, 2009 there were 16 sales and the total value was $23,191,650; and March, 2009 there were 20 sales and the total value was $13,653,500.
We have gone in to the Maui MLS database and pulled information for 2000 through 2008. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominium units sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; in 2005 - 682 condominiums for a total value of $408,582,315; in 2006 - 435 condominiums for a total value of $351,782,614; in 2007 - 327 condominiums for a total value of $271,290,428.00; and in 2008, - 193 condominium units sold in the West Maui area for a total sales value of $147,648,505.00.
For previous condo sale details, go to our web site, http://www.jamesbfoster.com/condosales.php then scroll down to your choice and click to open the ADOBE pdf. For the time period of 1/1/2009 to 2/28/2009 the average price for a home on Maui was $923,986 which is down 2% for the time period of 1/1/08 to 2/29/08 when the average price was $945,086. For the same time period the average price for a Fee Simple condo on Maui was $833,120 which is down 11% for the same time period when the average price was $937,431 according to the RAM (Realtor Assoc. of Maui) statistics. Condo sales in Wailea, Makena, Kapalua and Kaanapali are having an impact on the Fee Simple Condo average price by increasing it.
Mortgage Rates for week of April 6, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.375% 30yr fixed 2.125 pts (4.571 APR) 4.625% 30yr fixed 1.00 pt (4.725 APR) 5.00% 30yr fixed -0- pts (5.013 APR) Stated Income - No longer available: Interest Only: 5.625% 30yr fixed 1.25 pts (5.74 APR) To $1M: No longer available 6.00% 30 yr fixed 1.875 points for condotels.(6.192 APR) (Points include origination fee)
Mortgage Rates for week of March 1, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.875% 30yr fixed 1.75 pts (5.112 APR) 5.125% 30yr fixed 1.00 pt (5.320 APR) 5.50% 30yr fixed -0- pts (5.529 APR) Stated Income - No longer available: Interest Only: 6.125% 30yr fixed 1.25 pts (6.259 APR) To $1M: 7.375% 30yr fixed 1.75 pt (7.571 APR) 6.75% 30 yr fixed 1.25 points for condotels.(6.905 APR) (Points include origination fee)
Mortgage Rates for week of February 5, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.875% 30yr fixed 1.75 pts (5.112 APR) 5.125% 30yr fixed 1.25 pt (5.320 APR) 5.375% 30yr fixed 1.00 pts (5.550 APR) Stated Income - No longer available: Interest Only: 6.375% 30yr fixed 1.125 pts (6.554 APR) To $1M: 7.375% 30yr fixed 1.00 pt (7.487 APR) 6.50% 30 yr fixed 1.50 points for condotels.(6.737 APR) (Points include origination fee)
Mortgage Rates for week of January 5, 2009 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 4.625% 30yr fixed 1.625 pts (4.848 APR) 4.875% 30yr fixed 1.00 pt (5.045 APR) 5.250% 30yr fixed .25 pts (5.355 APR) No Stated Income Available: Interest Only: 5.875% 30yr fixed .50 pts (6.008 APR) To $1M: 5.500% 30yr fixed 1.00 pt (5.60 APR) 5.75% 30 yr fixed .50 points for condotels.(5.882 APR) (Points include origination fee)
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.JamesBFoster.com and click on Condo Sales in the upper left corner of the home page or go to www.JamesBFoster.com/condosales.php.
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, April 4, 2009, it is about 77 degrees and cloudy with overcast. Over the next ten days we are expecting some sunshine, occasional showers and clouds and sunshine, just like the last newsletter report. Maui is receiving additional moisture and the water reserves are filling up or full and this is a very good thing for Maui.
West Maui Hospital – The hospital received its final approval from the State Health Planning and Development Agency (SHPDA) for the $45 million facility and is in the process of conducting interviews to select its construction team and is expected to be under construction by November, 2009. www.westmauihospital.org
West Maui Lahaina Bypass - Ground was broken on Lahaina bypass on Friday, April 3rd after the community spent approximately 40 years jumping through hoops with the State of Hawaii and the Department of Transportation. More details in the May Newsletter.
Current Turmoil In Island Business – With the failure of Aloha Airlines in last 12 months, the record prices of petroleum in mid 2008 and the recession have all contributed to issues being confronted by business and property owners. In any other year the failure of Aloha would have been the major failure but it likely would not have failed without the dramatic increase in fuel prices.
Buyers Waiting On The Sidelines – Buyers who wait too long on the sidelines may be faced with higher interest rates. As Maui has gone through each real estate cycle, properties here have maintained a greater share of their value, rebounded faster during downward cycles and continued to increase in price over time more than Mainland properties. Maui remains an international destination, a great value and a stunning location.
Tourism Declines And Car agencies cut fleets - With fewer tourists vacationing on Maui, car rental companies have decreased their fleets, some by double-digit percentages which leaves potential tourists scrambling to find available vehicles. The lack of rental cars could be another hit for Maui's visitor industry, which is already suffering. People will not come over if they can't get a car.
Superferry Alakai Sent to Alabama - Hawaii Superferry is sending its only ship back to Alabama, where the vessel was built. The company suspended service and laid off more than 200 employees earlier this month after a state Supreme Court ruling effectively shut down its operations. The move is designed to position the ferry for future use elsewhere. As a result of the Hawaii Supreme Court decision, the company doesn't have a business opportunity in Hawaii for the foreseeable future.
Maui Hotel occupancy at 66% - Maui hotel occupancy plunged to 66 percent in January, according to the Hawaii Hotel Flash Report from Hospitality Advisors released today. The average price of a room on Maui was $266 or $15 less than in January 2008. Maui luxury rooms, which had averaged $408 in the 2008 high season, were asking $379 this year. Combined with an occupancy down to 64.9%. Some of the most expensive rooms in the state are at Wailea. The rack rate at Wailea was cut by $38 to $400 a night, but occupancy fell by 6 percentage points to 70.4% all the same. The hit was worse in West Maui. In January 2008, both West Maui and Wailea enjoyed about the same occupancy rate, around 75 percent, although West Maui rooms averaged about $150 a night less. This January, west side occupancies dropped to only 62.3%, not much better than on the Big Island. The good news is that January occupancy numbers were an improvement over December, when Maui dropped to 56.8% which was the lowest since the December after the September 2001 attacks. The decline in hotel occupancy was in line with the 12.4 percent drop in visitor arrivals and the 13.6 percent drop in visitor spending.
Kapalua Plantation Golf Course Sold For Fifty Million - The sale of the eighteen year-old Kapalua course should not have any immediate impact on next year's Mercedes-Benz Championship. The transition is expected to be seamless. The Mercedes-Benz Championship is still scheduled for January, 2009 and they are still working on information beyond 2010. Kapalua has retained management in the golf course via a leaseback arrangement with the investors who bought it. Although the leaseback is for two years, it includes a provision that automatically extends the arrangement if Kapalua, Mercedes and the PGA come to an agreement.
Remodeling or Upgrading condominium or house - It is critical to have a licensed contractor and subcontractors with excellent references and experience working with Maui properties if you will be Remodeling or Upgrading a condominium or house Should you need assistance or referrals for a property you own or need an estimate for property you are contemplating purchasing, all Jim Foster on his toll free number 1-888-661-7994 or send him an email to Jim@JamesBFoster.com and we can provide names and contact information.
Medical Facilities on Maui - The Association for Improved Healthcare on Maui (AIHM) http://www.aihm-maui.org whose mission is to serve as an advocate for the creation of a system that will provide improved healthcare services to all of the citizens and visitors of Maui County has been making some excellent progress. For more information on making a contribution to this great cause, please visit the web site for AIHM at www.aihm-maui.org To stay informed of what is transpiring with future approvals of either the Kihei or West Maui hospital, you can send me an email and request a subscription to the “Coconut Wireless” to either my email at Jim@JameBFoster.com or Jan@SunshineRainbows.com
Real Estate & Financial Planning Tips:
Seven Tax Tips For Real Estate Owners -
- Cancellation of debt income - One of the first housing-related tax relief measures was the Mortgage Forgiveness Debt Relief Act of 2007. Enacted on Dec. 20, 2007, the law's main provision allows taxpayers to exclude debt forgiven on their principal residence when the mortgage is restructured or the property goes into foreclosure. Now, mortgage loan debt canceled in 2007 through 2012 is not taxed.
- First-home buyer credit - For purchasers of a first home between Jan. 1 and Nov. 30 of this year can get an actual tax credit that reduces their tax bills dollar for dollar. In addition, the credit amount for qualifying 2009 home purchases is increased to $8,000.
- PMI deduction - The amount of PMI you may deduct is limited if your adjusted gross income is more than $100,000 ($50,000 if married filing separately). You'll get no deduction if your adjusted gross income is more than $109,000 ($54,500 if married filing separately).
- Property tax addition – For the standard deduction that homeowners do not itemize will get to claim at least a portion of their real estate tax payments as part of their standard deduction. Up to $500 for single homeowners, double that for joint filers, can be added to the taxpayer's standard deduction amount.
- Surviving spouse home sale tax exclusion - For the sale of the family home. In most cases, a seller can exclude up to $250,000 in profit from the sale of a primary residence. Now, a surviving spouse can exclude up to the full $500,000 as long as the sale occurs within two years of spouse's date of death. The surviving spouse still must meet the regular ownership and use requirements; that is, the widow or widower must have lived in the property as his or her primary residence for two of the five years before the sale.
- Energy-saving home improvements In 2009 –These tax benefits are back. And the American Recovery and Reinvestment Act stimulus measure that became law in February expanded the dollar amount of these credits and made them available through 2010. For each of these qualifying improvements made to your home between Feb. 17, 2009, the date the latest stimulus act became law, and Dec. 31, 2010, you can claim a tax credit of up to 30 percent of the product's cost. There is a maximum credit cap of $1,500 per homeowner for all improvements combined.
- Second-home sale limits The tax law affecting second-home sales was changed beginning in 2009. Previously, owners of multiple properties could move into one of their other homes, live there as their primary residence for two years and then sell the Second-Home and pocket any gains tax-free up to $250,000 if single, $500,000 for a home owned by a married couple filing a joint return. Now, however, the time that the property was a second home or investment property must be taken into account. The owners now will owe tax on part of the sale money based on how long the house was used as a second, rather than their main, home.
Short Sales - Loan Modifications – Foreclosure
What is a Short Sale - A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed.
How does a property owner benefit from a short sale - A short sale helps to relieve the stress of being in foreclosure. You can get rid of your big mortgage payment and move on with your life while ending the harassment from your lender. A short sale also prevents additional damage to your credit. Some late payments have already done some damage to your credit, however a foreclosure will do much more damage and lower your credit score.
Are short sales guaranteed to work - There are no guarantees with short sales and the banks have to approve the sale.
Time required for a Short Sale - A short sale takes approximately 60-90 days to complete and sometimes longer. This complicated process takes time so to have the option of a short sale the seller cannot wait until 1 week before the foreclosure auction as it would be very difficult to do a short sale in that time frame.
What is a Loan Modification – This procedure is implemented for a property owner that wants to remain the owner, whether an investment property or their residence. There has to be a legitimate hardship and the ability to provide documentation to show the hardship. Lenders only modify loans for borrowers that truly need it. They want to save the property from becoming another foreclosure. Of the borrower is significantly upside down in the loan, the lender would rather put someone else in the home. Loan modification does not stop the foreclosure process and it typically takes 60-90 days. During that process the lender can foreclose if the borrower has not paid anything. If the borrower has an adjustable rate loan that is getting ready to adjust up and make it difficult for the borrower to make the payments, the lender will typically modify the loan as the do NOT want the property back. All of the proper documentation has to be provided just as the borrower submitted for the original loan and it has to be accurate.
Hawaii Foreclosure Law Summary - Judicial Foreclosure Available: Yes; Non-Judicial Foreclosure Available: Yes; Primary Security Instruments: Deed of Trust, Mortgage; Timeline: Typically 60 days; Right of Redemption: None; Deficiency Judgments Allowed: Yes
In Hawaii, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure – The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure - The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines - If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
The notice of intent to foreclose must be published once a week for three (3) successive weeks, the last publication to be not less than fourteen (14) days before the day of sale, in a newspaper having a general circulation in the county in which the mortgaged property is located.
Copies of the notice must be mailed or delivered to the mortgagor, the borrower, any prior or junior creditors, the state director of taxation and any other person entitled to receive notice. Additionally, the notice must be posted on the premises not less than twenty-one (21) days before the day of sale.
Notice must state: 1) The date, time, and place of the public sale; 2) The dates and times of the two (2) open houses of the mortgaged property, or if there will not to be any open houses, the public notice shall so state; 3) The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement; 4) A description of the mortgaged property, including the address or description of the location of the mortgaged property, and the tax map key number of the mortgaged property; 5) The name of the mortgagor and the borrower; 6) the name of the lender; 7) The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default; 8) The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and 9) The terms and conditions of the public sale.
Up until three (3) days before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney's fees, unless otherwise agreed to between the lender and the borrower.
The sale, which may be held no earlier than fourteen (14) days after the last ad is published, is to be made at auction to the highest bidder.
Any sale, in which notice has been given, may be postponed from time to time by public announcement made by the lender or their representative.
There are no rights of redemption in Hawaii.
In past newsletters, I have mentioned that the easiest way to minimize the tax impact when selling is a tax deferred exchange. If you are considering selling your property in Hawaii, a tax deferred exchange will exempt you from the 5% HARPTA withholding and also the Federal Capital Gains Tax. Planning in advance for the disposition or acquisition of assets is always a wise decision. Another invaluable tool for sellers in doing a tax deferred exchange is having the option of using tenant-in-common (TICs) that qualify for replacement properties.
If you want to learn more about Tenant In Common (TIC) interests and how they can solve the problem of sellers trying to complete a tax deferred exchange here is a web site that you can visit for a short and informative explanation of the process and how it can benefit you. www.ticstrategy.com
Many property owners who currently own underperforming assets can sell those assets and take advantage of tax deferred exchanges, turning an underperforming asset such as land into an income producing asset. Call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
If you are contemplating selling highly appreciated real estate during 2009 and would like for us to provide an analysis of how to best structure your transaction, please call us at 1-888-661-7994 or send us and email at Jim@JamesBFoster.com
Useful Internet Sites & Interesting DVDs:
NOVA Special - Fractals - Hunting the Hidden Dimension – This DVD is available on the www.BarnesandNobel.com web site explains irregular geometric patterns that are found virtually everywhere, from stalks of broccoli and cauliflower, to jagged mountain peaks. This phenomenon has long been considered beyond traditional mathematical understanding; however, a group of "maverick" mathematicians are determined to discover the mathematical laws that result in these strange patterns. Their findings have the potential for great scientific progress in a variety of areas, particularly in the field of medicine, where an understanding of fractal geometry could lead to improved treatment of cardiovascular illnesses.
http://break.com/index/really-cool-new-sixth-sense-technology.html - Video clip about technology to develop the sixth sense at a TED Conference. www.ted.com This is the site for other remarkable things taking place in the fascinating world of new technology.
http://earth.google.com Now you can have the world built right into your computer! Those folks from Google have done it again with an exciting “fly over” program that allows you to point and zoom to anyplace on earth that you want to travel to. Your rocket ship takes off and at a dizzying speed flies you there while you watch the terrain whiz by below. Once you arrive at your destination, satellite images and local facts zoom into view. You can use Google search from your destination image to show a myriad of points of interest including hotels, restaurants, hospitals, shopping and airports. There is no registration or cost involved. Just get your engines revved and take off!
www.visualthesaurus.com Looking for the right word but it won’t come quickly to mind? Written communication can be very influential in both your business and personal life. This great place provides a new, unique and intuitive alternative to the old fashioned thesaurus. You can visualize the relationship between words and initiate an Internet search from any word leading to either web pages or images. The interesting presentation at this site will help you to understand the relationships between words and meanings. In addition to synonyms, you can view 16 kinds of semantic relationships. For example, you can see that a nose is part of a face-- and many even more exotic word relationships. On top of being useful this place is fun!
www.economy.com/freelunch How would you free access to over 100,000 economic, financial, and demographic data sources -- all arranged so you can use this data for business intelligence -- or even to help your child get a big A+ on a school paper? Rather than wander aimlessly in the desert of economic information looking for just the right facts, just pop over to this great place where you will find 14 categories of statistics including Real Estate, Demographics, and Consumer Spending to name a few. Need information on housing starts, sales, or the housing price index -- you got it! You can get to the data you need with a direct internal search tool and you won’t go broke getting all this great information -- it’s yours without any cost!
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.JamesBFoster.com
Vacation Rental www.ChaseNRainbows.com
Email Jim@JamesBFoster.com
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