Tax Time Tips

Tax time is fast approaching. And while you are busy filing those tax returns, it is important to know whether or not you are getting the best refund possible. And unless you are trained in the matters, it is often hard if not impossible to know if you got the most out of your refund.

Do not fret! We have compiled a quick checklist you can use to help you make sure you have checked as many nooks and crannies of tax law as possible, to get the biggest refund possible!

1.     Some Basics: Organization is key to a smooth tax filing process. No matter what breaks you are eligible for, if you cannot find the information to prove you deserve the break, it will not matter. Take a day before you start your return just to put everything in order so you will know where to go for certain documents.

2.     Check your deductibles: Some of the biggest deductibles are being left on the table by most families, which result in giving up as much as $6200 in tax refunds. (For example, the most commonly unused tax credit is the Earned Income Tax Credit. This credit is designed for lower income households and can offer up to $6200 back in refunds based upon your eligibility. Another commonly unused credit is the Saver’s Credit. This deductible is for those who opened up a 401K or and IRA. This credit allows for up to $1000 in deductibles that would end up right back in your pocket—but you have to know to file for it.

3.     Consult a professional: While online companies are expanding with online tax returns, this is often the least effective way to get a good refund. While fast and easy, computers operate online tax programs. These programs take everyone through the exact same process, asking the exact same questions, and giving the exact same deductibles. Speaking with a person, however, you can fully share your year-in-review. You can go over specific events that could lead to deductions and it is possible through conversation, your accountant will find deductibles you qualify for. Let’s face it, the taxing process is one huge gray area of what applies/what does not apply, and computers were not made to operate in gray areas.

4.     Do your taxes early: Not only will finishing early get you a refund quicker, but it relieves the stress of doing taxes most people carry all the way until April. Stress is a silent hindrance that could negatively affect you in subconscious ways, so nip it in the bud and file early.

Filing taxes does not have to be an uphill battle. The best way to handle it is with a diligent hand and eye, along with someone to go back behind you to fill in the cracks you missed. You worked hard for your employer all year to earn that money, do not let the government take it without a fight!

2015 Predictions

It’s the new year again, and with that new year, it is time to look forward to 2015 to speculate how the year will turn out. Realtor.com has just released their top predictions for the housing market in 2015, and building upon what we saw in 2014, housing is expected to continue to grow slowly but steadily as it has.

2014 was the first year we saw true recovery form the housing market crash we saw nearly a decade ago. With steady job growth and increases to the national GDP, the housing market saw its first steady pickup in years. Realtor.com expects that trend to grow throughout the next year.

The top predications for the housing market are centered around pre-existing home sales and the millennial generation. Households have shown improved growth and at higher pace than it has been the past few years. Researchers expect a massive move of the younger generations out of parents’ homes, college dorms, etc. into houses since they can no finally afford to (the majority of which they expect to go into the pre-existing homes.) Millennials might have money to now move out, but not build a home.

Home prices are expected to increase this year as well. Not as many homes are expected to be built. Rather, they will be bought. Lower inventories will push prices higher. Mortgage rates are expected to start going up mid-year and end the year at 5%. This, however, is expected to push overall home affordability down. Experts are hopeful a continued increase in worker wage will help offset that downside.

Overall, the housing market looks like it will still be in recovery mode for the majority of 2015. Still, the markets show vast improvement from where they were years ago. We will continue to monitor the markets and hopefully we can all make 2015 the year housing came back!

New Year's Resolutions

2015 means a new year and a new you! Most take this time to list out everything they want to change or do for the upcoming 365 days. So we thought, why not help you out when it comes to making that list by sharing our resolutions for the upcoming 2015 year. We are hoping to breathe new life in 2015, and are hoping you will join us for the ride!

1.     Get Organized

Organization is a key component to most people’s sanity, whether they know it or not. It had been scientifically proven that increases in clutter also coincide with increases in stress levels for most people. So make 2015 a year of organization! You might not notice it instantly, but a slow change in the way keep everything will ultimately lower stress levels. Just imagine being able to find your keys in the exact, same spot every time you needed them!  Organization will eliminate small nuisances such as these, which would normally add up to a lot of stress over time.

2.     Reduce Debt

This is a resolution for almost everyone, us included. Debt is never a good thing, no matter how you spin it, so make 2015 about getting rid of the collection calls, past due bills, and (hopefully this does not apply to you) red letters from certain government agencies. Reducing debt though is more complicated than just paying back bills. Reducing debt is a lifestyle change that is no easy feat. However, the reward for your sacrifice will be greatly worth the wait.

3.     Join the Community

You are surrounded by your neighbors everyday for a good majority of your life, so why not get to know them? To seclude yourself in your house not only creates a wall (literally and figuratively!!!) between you and your neighbors. But stepping out and getting to know the people around you forges powerful bonds between you and those who live around you. Making friends can never be seen as bad, so why not give them a chance?

4.     Renovate

2015 is a time for changing, so that should apply to your house too! It does not have to be a major change, but something as simple as a screening in the back porch, or installing new windows can have a big change on how you view your home. Although renovations are costly, there is always a way to figure out tips and tricks that can cheapen the process. Treating yourself in the new year is important as well. Being happy at home ultimately leads to being happy in other places.

5.     Stay Energy Efficient

It is hard to avoid the news of climate change these days. Devastating typhoons, earthquakes, volcano eruptions, and much more swarm the television these days to point where it is unavoidable to see the impact human kind is having on this planet. Take 2015 to make the switch to a more energy efficient lifestyle. You might be thinking that one voice does not matter, and one person changing will not be enough to change the world overnight, but it is one less unrecycled cardboard box, one less plastic water bottle chucked into the ocean, one less stack of paper sitting in a landfill waiting to decompose.

Change is hard, if it were easy, there would be no such thing as a New Year’s Resolution. But it is not out of reach. You have the power to change in your life what you do not want. You have the mind to set the goals and drive to achieve them. Do not let 2015 be another year of stagnation. Look up, move forward, and meet 2015 and all it has to offer.

Signs of the Housing Recovery

According to the Commerce Department, housing starts increased by 15.7% in July - the highest level since November. This is great news for the housing market and overall U.S. economy.

Home construction in general rose 22% this year through July and applications for building permits increased as well - signifying potential improvement in months to come. Permits are up 8.1% which is the largest gain since April of 2013.

The National Association of Home Builders and Wells Fargo Housing Market Index reports that home builder confidence rose by 2 points. This is the third consecutive month that builder confidence has increased.

If you're looking for another reason to buy now, interest rates on conventional 30 year mortgages have dropped but are expected to rise again in upcoming months.  With rental costs continuing to rise, now is the time to think about whether buying a new home is right for you and your family.

Economic Update

The numbers are in and news from the National Association of Home Builders suggests a slow but steady growth in the housing market throughout the first half of the year. Getting off to a slow first quarter, it seems the market is starting to find its footing. Pending home sales reported the largest month-to-month increase this decade, accompanied by strong existing and new home sales. Builders are still reporting shortages in labor but it does not appear to be slowing trends down. While cautious, investors seem to be investing their money in the right sectors that will produce long-term results. 

Another report from the Census Bureau estimated residential construction spending increased as well as in the single and multifamily home markets. This information is on the heels of a growth in the labor market with the average unemployment rate falling to 6.1%, down 1.4% from the same time last year.

With just a small stumble with the GDP, but overall positive numbers, analysts are predicting a steady climb for the second half of the year and into the next. Consumer confidence has grown over the past quarter with the Consumer Confidence Index hitting its highest level of 85.2, something not achieved since 2008!  

Overall, economic growth remains slow but steady. Mortgage interest rates remain historically low making this a great time to buy!

American's Prefer New Homes

According to a new survey from Trulia, Americans prefer to buy new when shopping for a new home.

41% of Americans would prefer a new home
21% prefer an existing home
38% have no preference should features and pricing be equal

The top reasons for preferring a new home include:

• Modern Features
• The ability to customize
• Requiring less maintenance and repairs

Modern features in new homes includes bigger closets, a kitchen island, open floor plan and pre-wiring for flat screen TV's

US markets that have the largest ratio of new home construction relative to market size are Texas and the Carolinas - great news for home buyers in South Carolina!

New home prices continue to rise as the market improves and demand increases. Take advantage of your buying power and shop for your new home this weekend!

Full survey results available here:
http://info.trulia.com/new-vs-existing-homes-survey-may-2014

Now Is The Time To Buy!

As the economy improves we see changes in the housing market. The housing market forecast is closely linked to employment growth which has remained steady over the last year. As employment growth continues to increase, the demand for housing increases and house prices as well as appreciation rise.

The current housing environment is moving away from a buyers market. A buyers market occurs when housing supply is greater than demand and prices remain low.    House prices have begun appreciating at a faster rate and the median house price is increasing as the demand for new homes increases. This means that consumers have more buying power now then they will a year from now. Don't delay your home purchase!

Mortgage rates are also increasing steadily. While they remain at historic lows, they will continue to rise as economic conditions improve.

The overall message is that NOW is the time to buy. Don't wait and let your buying power erode.