Tax Tips For New Homeowners

With tax time just around the corner, it's a great time to look back at your year and evaluate any changes in your tax situation. For anyone who purchased a home in 2010, the changes could be welcome ones!

Nothing is more valuable at tax time than a trusted accountant, and everyone's tax situation is unique, so please do not take any of the information here as direct advice - but here are a few things to consider if you purchased a home in 2010...

1. One word: Interest. This might become your favorite word during tax season! All that interest you pay on your mortgage just might pay you back in the form of a welcome tax deduction.

2. If you purchased a home in 2010, you may be able to write off your closing costs! These typically qualify as deductible expenses (even if the Seller paid them on your behalf!)

3. For Investors: Remember to track the repairs and maintenance expenses on your property, as these costs will typically qualify as deductions for investment properties. This includes HOA fees in many cases if your investment property has association dues!

4. For Non-Investors: It's still important to track your expenses... even for your primary residence. Any permanent improvement to the property could mean tax breaks down the road (when you eventually sell your property and you are determining your tax basis). Just think how happy you will be when that day comes... and use it as a reminder to keep good records NOW!

Always consult with a CPA for tax-related questions.

Rebates for Denver Homeowners!

Planning some home improvements that will make your home more efficient? Installing a low-flush toilet? How about a rain sensor on your new sprinkler system this spring? If so, you may have a rebate in your future! Denver Water is accepting applications for rebates for a number of products (both indoor and outdoor) in 2011.

Keep in mind, you must provide receipts, and you must submit no more than 90 days following your purchase. You can find more details on which consumer products qualify for the rebates, as well as the formal application at the Denver Water website Click Here.

Renting vs. Buying

Real Estate Website, Trulia.com just published a great study on the affordability of renting vs. buying in various cities across the U.S. Denver, so you know, is ranked as 'affordable to buy'. Click on the link below to link to their interactive map - showing the results of all the major cities they studied!

For your own Rent Vs. Buy Analysis, check out our Rent Vs. Buy Calculator HERE!

Wondering What To Expect With Mortgages in 2011? Read On...

Mortgage Updates for 2011 Leading financial experts suggest that borrowers should apply for a new mortgage loan, or refinance their home loan when the time is right for their individual needs, rather than attempt to time the market. While risk takers may be enthusiastic about waiting until the last minute to lock in a low mortgage interest rate, most homeowners and homebuyers prefer to observe general mortgage market trends and focus more intently on their own finances. Predicting a specific mortgage rate for a particular time is pretty nearly impossible, but real estate market observers have identified a few trends that they anticipate will impact the mortgage market in 2011:

1. Mortgage rates will slowly rise throughout the year.
The Mortgage Bankers Association (MBA) anticipates that rates will rise slightly in 2011, hovering around 5% and increasing to about 6% in 2012. While any increase in mortgage rates is unwelcome to homeowners who want to refinance or to buyers, a 5% mortgage rate is still historically in the low range of interest rates.

2. Mortgage applications for a home purchase will become a greater part of the market.
The MBA predicts that stabilizing home prices and modest increases in home sales will increase the number of applications for a mortgage for a home purchase.

3. Jumbo loan mortgages will be more attractive. In 2009 and earlier in 2010, mortgage rates for jumbo loans (loans over $417,000 in most housing markets and above $729,750 in high-cost housing markets) were far higher than mortgage rates for conforming loans. The higher rates prevented homeowners from refinancing and kept some purchasers out of the market for more expensive homes. In the Q4 of 2010, mortgage rates on jumbo loans decreased, which will likely spur refinancing applications and purchase applications for the high-end housing market.

FYI: Bank of Commerce Mortgage offers 30 year fixed rate loans with:

• 20% down (80% loan to value) for loan amounts to $1 million
• 25% down (75% loan to value) for loan amounts to $1.5 million
• 30% down (70% loan to value) for loan amounts to $2 million.

4. The down payment requirements for conventional financing will be loosening up in the near future. FHA needs some breathing room and we anticipate PMI companies will allow a 97% loan to value (3% down payment) again for well-qualified buyers.

5. Requirements on gifts for down payments are changing. On loan amounts above $417,000 buyers will now be required to contribute a minimum of 5%, the remaining down payment can come from a gift. If the loan amount is under $417,000 the old rules still apply allowing a buyer to receive a gift for 100% of the down payment and contribute nothing with a minimum 20% down payment.

The Bottom Line While these general mortgage trends may impact the real estate market overall, each homeowner or buyer considering applying for a mortgage should meet with a lender to determine the cost and availability of a loan that meets his or her needs.

Calvin Cox

303-544-0600

calvin@bankofcommercemortgage.com Published with permission from Bank Of Commerce

Denver Home Sales in 2010... Volume Down While Prices Increased

Denver Post Reports Uplifting Facts on Denver Real Estate Values

Contrary to what the media may have you thinking... here is an uplifting report about values in Denver. Not only have home values increased (despite volume dropping), but CONDO prices seem to have stayed more stable than would have been apparent this year.

Read the Full Article on the Denver Post Site Here:

READ DENVER POST ARTICLE HERE

Christmas Tree Disposal in Denver - Starts TODAY!

Don't trash that Christmas tree after the holidays

Recycle your tree with Denver Recycles!

Your Christmas tree gave you so much joy during the holidays, now give it a second life and recycle it with Denver Recycles’ Treecycle program. Denver Public Works Solid Waste Management will be collecting Christmas trees for recycling starting Monday, January 3rd. All Denver residents whose trash is collected by Denver Public Works Solid Waste Management may participate.

Favorite Homes of 2010

Reflecting back on 2010, there are so many Clients to thank for a wonderfully successful and rewarding year... to each and every one of you - thank you for your business! Here is a look back on the year, along with highlights from some of the many Buyers & Sellers I had the pleasure of working with...

Favorite Buyer Sale

Buyer, Kristi - Sloans Lake
This purchase was a long time in the making. Kristi had seen this duplex several times, and though it had everything she wanted (and more!), there were some challenges holding her back... a funky lot line, shared garage and party wall problems. Working together with the Seller, we were able to overcome all of these issues and she ended up with a WONDERFUL new home in a promising investment area. Congratulations, and thanks for your business and your creative, problem-solving approach!

Favorite Seller Sale

Seller, Chris - Littleton
Not only was Chris an absolute pleasure to work with - but he was also amazing to work with during a very difficult market! Despite doing EVERYTHING right, Chris had a long road to the closing table. This home was in perfect condition, staged, and just happened to be in an area that was hit pretty hard with distressed properties. Chris hung in there with me, and we were able to get him closed just in time for him to close on the home of his dreams - a new Loft in the heart of Downtown. Thanks for sticking with me, and for having such a positive attitude. Congratulations on your Sale!

Best 'Fit-For-The-Client' Deal

Buyer, Brent - Highlands

Talk about being patient! Brent must have looked at 100 homes in this area, and had several opportunities that just didn't go his way. Rather than giving up, he continued to believe that the right home was out there - and all his waiting led him to this beautiful single family home in a newer part of Highlands! He found a wonderful new home that fit his needs, he made no sacrifice on location, and we wish him many happy years in his new home. Congratulations, and thanks for sticking with your home search through thick and thin!

Favorite Investor Purchase

Buyer, Russell - Wheat Ridge
Now here is a Buyer with some vision! Russell had big renovation plans, and searched on and off for many months (and in many different areas). He finally decided on a charming mid-century brick home just outside of the popular Highlands neighborhood - and one that had some fantastic potential! I know it is still a work in progress, but first on his list were landscaping/curb appeal as well as a major kitchen remodel. Can't wait to see the 'after'!! Congratulations, Russell - and best wishes!

Most Charming Home

Buyers, Tara & Levi - Highlands
This purchase was a true Highlands Gem! Located in the 'Harkness Heights' neighborhood, this bungalow oozes charm from the moment you walk in the door. The perfect mix of original details and modern amenities, this home is a poster child for why Buyers fall in love with NW Denver. From the private yard to the sunken kitchen... the media room to the master suite... the hardwood floor detailing to the exposed brick - this home would leave any visitor envious. It was truly a pleasure working with each of you - and congratulations on your new place!

Favorite First Time Home Buyer Purchase

Buyers Devin & Rachel - NW Denver
Now what first time home buyer wouldn't be thrilled with this as their first kitchen?!? Devin & Rachel landed this adorable 1/2 duplex in Highlands, and it is completely remodeled (literally from top-to-bottom, or new-roof to finished basement). Working with First Time Home Buyers is so fun and rewarding - and this was the perfect example. These Buyers looked at this home and had the keys in their hands just about a month after beginning their search. Congratulations on your first home, and may 2011 bring you many blessings!!

Favorite Suburban Home Purchase

Buyers, Joe & Peggy - Old Littleton

This for-sale-by-owner home came with some wonderful features... including a huge park-like backyard, a totally remodeled kitchen, and a location near the heart of Old Littleton! Joe & Peggy were also on the receiving end of some nice repairs as a part of their inspection negotiation... which was a wonderful bonus! We thank you so much for your business, and hope you are enjoying all the space you have in your new suburban home!

Favorite Closing

Buyers, Zack & Monica - Edgewater
This home in Edgewater provided quite the education on Flood Insurance, and there were times when we weren't sure this deal would close! After learning more than they ever wanted to know the subject (and after we successfully removed the home from FEMA's flood map!) Zack & Monica and their adorable family are the proud new owners of this totally renovated home. They secured an amazing price, too - by sticking to their guns during a grueling negotiation. They are now the lucky owners of a beautiful home in a family friendly neighborhood - walking distance to many shops & restaurants. Congratulations on a successful closing, and thanks for your business!

With so many wonderful clients, it was hard to stop here, but to those of you who I didn't mention, know that I am truly thankful for the opportunity to help you in 2010 - and I hope to work with you all again in the future! Congratulations on your 'piece' of Denver Real Estate, and Happy New Year!

Calling All Denver Real Estate Investors...

Real estate investing has become a popular interest - and for some, it's a full time job! If you are considering adding some real estate to your investment portfolio, you may have an endless list of questions to consider. What is a cap-rate? What is a good cap-rate in MY area? What kind of cash-on-cash return is possible? What should I be looking for as I consider whether a property will 'cash flow' or not? Even once you identify an opportunity (and that is half the battle!), there are questions like 'how do I decide whether to use a property management company or do-it-myself?' Where can I get advice on leases, and should I consider incorporating my business? It can quickly become overwhelming...

Getting into the game of real estate investing can be extremely rewarding, but this is a time when your research will reward you - BIG time. We have a number of books, websites and resources for investors (helpful for everyone from those just starting out - to those who are looking for some advanced help with their investment decisions).

CONTACT US, and request a copy of our Investor E-Pack for additional information & we will be happy to help you get started (or continue down the investment path)!

In the meantime, if you'd like to browse some income properties in the Denver area, consider using Loopnet.com. This internet resource is an amazing source for leads, and your Realtor can follow up on properties that you'd like more information about.

Flood Insurance in Denver?!?

Buyers in Colorado may be surprised to discover that lenders will require Flood Insurance for some parts of our land-locked state, based on FEMA flood maps.

If Buyers are not aware of this requirement upfront, it can cause major closing delays, and even cost them the deal. Flood insurance rates are regulated through a government program, but can be quite expensive depending on the flood zone of the property.

We know some insurance companies who offer private policies that can help make this insurance more affordable. In addition,we just assisted a Buyer with the process of having a property removed from FEMA's flood plain! That's right - by having a specific type of survey done and using a surveyor who had some knowledge of FEMA's process, we were able to remove the lender's requirement for flood insurance altogether.

Don't drown in your Flood Insurance woes! We can help! Contact us for more information.

Buying A Foreclosure In Denver

If you are on the hunt for an REO or Foreclosure in Denver, you have probably seen the terms 'Homepath' or 'Homepath Financing' as you browse property descriptions. Like many others, you may find yourself confused by all the foreclosure jargon... wondering what all these terms mean. Homepath.com is Fannie Mae's public website - which gives Buyers the ability to search for homes using their own unique criteria... similar to how Buyers use other real estate websites like Zillow and Trulia. Visit Fannie Mae's Homepath website by clicking on 'FannieMae' below.


The Homepath website will only list those REO homes which are Fannie Mae affiliated, so it is not (by any means) an exhaustive list of foreclosures, but it can be a great source for finding opportunities, and an easy place to start. If you are searching for foreclosures - we can help! Contact us to receive customized email searches including the newest foreclosure listings.

Top 5 Things To Consider When Buying A Condo

Lots of Buyers in Denver are uncovering 'deals' that resulted from the housing down-turn. For many, they are considering new types of investment opportunities - particularly condos. If you find yourself considering a condo as an investment - read this first!

Condos can make a wonderful investment, but there is research that must be done to ensure that you avoid some common pit-falls. Every condo community has a unique story to tell, and each Homeowners Association (or HOA) should be thoroughly investigated. Take a look through our 'Top 5 Things to Research When Buying a Condo' list below.

1. Is The Complex FHA Approved?

Even if you are not an FHA buyer - this is something to consider. FHA loans allow a very small percentage down-payment, and for many lower price point buyers, FHA loans are their only option. If your complex is not FHA approved, you may limit the pool of Buyers who could consider your property when you go to sell it.

2. What Is The Ratio of Owner-Occupied Units vs. Rentals?

This statistic is something a simple phone call to the HOA office can reveal. Not only will it have an impact on the FHA approval of the complex, it will also give you an idea of how many rental units exist in the building. Banks consider non-owner occupied units to be 'higher risk'.

3. What Do The Financials of the HOA Look Like?

A homeowners association should have Financial Statements as well as 'Meeting Minutes' from recent HOA meetings available upon request. Take the time to review these in detail! The HOA should have a good amount of cash in their 'reserves' account, to manage any building wide maintenance issues or unexpected expenses that should arise in the future. A lack of 'reserves' may result in unexpected 'Special Assessments' that owners will end up having to pay (on TOP of any monthly or quarterly HOA fee). Make sure that the the reserves are in line with the size of the complex, and that the financial statements are readily available.

4. What Is The Delinquency Rate For The Complex?

The delinquency rate will tell you what percentage of units are behind in paying their HOA fees. This may give you insight into the financial health of the HOA and consequently, the financial health of the owners in the complex. Nothing is worse than having your property depreciate in value because of an overwhelming number of foreclosures or distressed properties in the complex!

5. Is There Any Pending Litigation Which Involves The Complex?

This is another question to ask your HOA contact. Lawsuits against the HOA or against the Builder of a complex can have a real impact on the ability to sell your property! In addition, you will want to be sure of any issues that exist in the complex which resulted in litigation to begin with...


Some other considerations...
Consider searching other sources for information about the condo complex you are investigating as well. Some of our ideas...

Google
Google is your friend. Google the name of the complex... you never know what you'll find!

Craigslist
Do a search for rentals in the complex to get an idea of what units are going for in the rental market

Search the Denver Bedbug Registry
As gross as this may sound, you'd be surprised to read some of the reviews of big condo buildings. Some property management companies are very responsive to this type of problem, and some do nothing... make sure there isn't a reported infestation in the building you are considering!

Denver LeafDrop Program

Autumn Alert from Denver Recycles

DON’T THROW THOSE LEAVES IN THE TRASH:

DENVER LEAFDROP TO THE RESCUE!

LeafDrop gives residents the opportunity to keep leaves off the street and out of the trash this fall

Denver Recycles’ LeafDrop program will once again provide Denver residents with the opportunity to recycle their leaves this fall. This year’s program adds a Saturday-only drop site and an additional Sunday drop site in southeast Denver.

LeafDrop is an environmentally responsible way to dispose of leaves. Leaves should never be swept into the street because they can clog storm sewers and hamper street sweeping efforts. Keeping leaves out of the trash also reduces the amount of waste in the landfill and “overflow trash” in the fall.

All the leaves collected at the drop sites will be composted over the winter and available for purchase at a deep discount in the spring at the Denver Recycles’ annual Treecycle Mulch Giveaway and LeafDrop Compost Sale. Last year 320 tons of leaves were collected and composted!

What To Do:

Leaves may be brought to the drop-off sites in plastic bags, or even better, in brown paper yard debris bags. Unlike plastic bags, brown paper bags can be composted with your leaves. Many hardware and home improvement stores sell paper yard debris bags. Leaves dropped off on weekdays must be bagged.

On Saturdays and Sundays, leaves can be brought in reusable containers or tarps that we will empty and give back to you. Bagged leaves are also accepted on weekends. It’s important to make sure leaves do not contain branches, trash or other materials.

LEAFDROP DATES AND LOCATIONS:

PLEASE NOTE: Leaves will not be accepted outside of the dates/times below and all sites will be closed on holidays

NEW! SATURDAY DROP-OFF:

• Oct. 30, Nov. 6 and Nov. 13, Noon to 4 PM at the Denver Solid Waste Transfer Station located at 7301 E. Jewell Avenue (near Quebec St. & Cherry Creek Drive South).

SUNDAY DROP-OFF: Oct. 31, Nov. 7 and Nov. 14, 10 AM to 3 PM at the following locations:

Denver Solid Waste Transfer Station (SE Denver) – 7301 E. Jewell Ave.

Sloan’s Lake Park (NW Denver) – 17^th Ave. & Sheridan Blvd.

JFK High School (SW Denver) – Newland St. & Brown Pl.

Cranmer Park (East Denver) – 3^rd Ave. & Clermont St.

Smiley Middle School (NE Denver) – 26^th Ave. & Holly St.

South High School (SE Denver) – Louisiana Ave. & Franklin St.

WEEKDAY DROP-OFF: Monday through Friday from Oct. 4 to Dec. 3, 7:00 AM to 2:30 PM, bagged leaves only may be brought to either the Havana Nursery (10450 Smith Rd.) or the Denver Solid Waste Transfer Station (7301 E. Jewell Ave.).

For more information on LeafDrop or to check for extreme weather cancellations, call 3-1-1 or visit www.DenverGov.org/DenverRecycles

Be The Denver Difference! Organize a LeafDrop clean up this fall with your neighbors and work together to gather all the leaves on your block! Working together means more efficient raking and fewer trips to the drop off locations. It’s also an opportunity to help neighbors who can’t do it themselves.

Harkness Heights Charmer -SOLD!