Public Service Announcement

For all my fellow Georgians: please consider following Georgia law and TURN ON YOUR HEADLIGHTS when it is raining. It blows my mind how people (quite often in silver or white cars that 'disappear' in the rain) don't a) realize that it is a good/safe idea and b) it's the law here in GA (and many other states). I saw one clueless girl with her hazards on (white car, on her cell, BTW) but no headlights. Gee, if she had just turned on her lights, her car would be visible to other drivers! What a concept! Just a rant on a rainy day... Be safe/keep dry! Cheers, Bo

Clark Howard is WRONG!

See my comments on his show notes... Funny, another GA attorney must have received the AM 750 email blast and put in his 2 cents as well! LOCK TODAY!

Good News/Bad News again...

Good news: February home sales are UP! Bad news: sales levels were still as low as in 1963 (for January). Bottom line? Things are starting to pick up--sales are up, prices have creeped up, rates are still low... for now! With all the money printing going on in DC, the dreaded "I" word will HAVE to rear its' ugly head someday soon. Yep, INFLATION. So, if you are on the fence, BUY NOW. If you are waiting to refi because you're waiting on another 1/8 point drop, STOP IT--go ahead and LOCK and save the drama!

Take a 100,000 loan (for this exercise, I am computing interest ONLY). At 4.875, the monthly interest portion would be $406.25. At 4.75% it falls to $395.83 and 4.5% it drops further to $375. So riddle me this-is it worth waiting and waiting in hopes that it drops to 4.5% (which it may, to be honest) or get nailed when it goes back over 5% (that would = 416.66). Why not just lock today as you a) will have a guaranteed LOW rate (i.e. don't get too greedy) and b) you can still get a loan based on current lending standards (underwriting standards change so often it can make your head spin!). I guess that would be the 'bird in hand' theory for mortgage rates. Who knows, if rates truly do drop, maybe you can refi again! But if you're sitting there at 5.75% or higher, what the heck?

While we're at it, click HERE for an AWESOME house!

Positive News Alert!!!

Who says things aren't looking up? Yesterday it was Wall Street (stocks closing over 390 points higher), today it's one of Coca-Cola's economic forecasters. I love the quote per the AJC, attributed to Carlos Herrera: "2009 is survival... If you show up at the end of 2009, you're doing well." I know that he represents a different industry than mine, but it is a positive report and you know I'm all about the positive! Another reason for the rally was positive news about Citigroup (they evidently tossed out the P word--PROFIT). Likewise, Fed Chair Bernanke's comments at the Council on Foreign Relations outlined potential new regulations for the financial markets which seemed to be confidence-inspiring. And finally, it may be time to buy some Ford stock as they hammered out some necessary concessions with the UAW. Hourly wages will drop to roughly $55/hour which comes closer to foreign builders' wages, which are in the $48-50 range. Will GM be next or will they have to file Chapter 11 (reorganization) Bankruptcy? One odd thing--it's funny to start beating on your chest and say "Buy American". Do you know that the auto with the highest percentage of US-made parts is actually build in CANADA? (that would be the Ford Crown Victoria). Hondas built in Ohio have over 50% US-made parts/assembly (but it's still considered "foreign" to the masses). Ditto for Toyota's Camry and Avalon built in Georgetown Kentucky. Crazy stuff, eh?

Fun times with Newsletters

I just tried iContact to send my newsletters. So far I am pretty pleased! I hope that you are signed up to receive it (if not, click on the link at the bottom of the page) and I will get you added! It's better looking than my old newsletter and it allows me to track results. So far so good. If you end up joining them, make sure to use me as a referral : ) I will be putting more content on my blogs (info from my newsletters, at a minimum). I often blog 'between newsletters' if something gets me excited (positive or negative). Heading out for the evening; looking forward to that crisp, clean air (esp. since we're back in the 50's here in ATL : ) Cheers, Bo

Some Happy stuff for today...

See my Economics Blog for some HAPPY NEWS :) Have a lovely day, y'all! Bo

What is a “Homestead Exemption” and how do I get one?

In Georgia, a homeowner is entitled to a homestead exemption on their home and property as long as 1) the home was owned by the homeowner and 2) it was their legal residence as of January 1 of the current tax year. That’s great, but what does that really mean? Let’s break it down, step by step.

“Homestead” historically meant the dwelling house and the adjoining land (as well as the land underneath the home) where the head of the family dwells—this came from the concept of a traditional “family farm”. “Exemption” more or less means that the person making the claim of homestead will be exempted or immune from a portion of the ad valorem property tax on their real property (ad valorem means “according to value” if you’re curious). To sum it up, a homestead exemption gives you a tax break on your principal legal residence—you must actually occupy the home and use it as your legal residence. A second home or rental property would obviously not apply.

To obtain this exemption you will need to apply at your local county’s Tax Commissioner OR Tax Assessor’s office. To further confuse the issue, some counties will allow you to do this online, whereas many will make you file the paperwork in person. The process is quite simple—you need to obtain the proper form (usually available online or at their offices) and you will need to provide proof of ownership. That can also differ per county so you definitely need to contact your county to confirm a) what they need and b) where to go. The key is that you own and occupy the property as of January 1 of the current year. Let’s look at a few examples:

You bought your new home December 31, 2008 (Congratulations!) and it will be your primary legal residence. You may file your homestead exemption in 2009 for property taxes for 2009. Note-you have until March 1st to file this exemption for 2009.

You buy your home February 13, 2009. You can actually file your Homestead Exemption at any time in 2009, but it will not take affect until 2010 (translation: you can file in 2009 to get it over with, but there will be no affect on your tax bill until 2010). Note: some counties require a copy of the recorded Warranty Deed to your home in order to process the Homestead exemption, so be aware that you may have time constraints when filing as it can be weeks before the deed is on the County Clerk’s records.

Again, contact your county directly as some will only require your declaration, a copy of your closing HUD-1 Settlement Statement and/or a current utility bill. Other traditional requirements are further proof of Georgia/County residency such as your driver’s license, car tag information and proof of automobile registration.

For more information, go to the Georgia Department of Revenue’s website and also use this link to find out more info about your particular county.

Remember--it's a GREAT time to buy a home; hopefully the GOP will get some of their tax cuts for homebuyers in this new economic "Gimme" bill (God help us) to actually do something to stimulate home sales further (like in December--check out my Economics Blog for more info!).