Lilo Clacher's Blog

It’s a fact that many folks in Cape Coral decide not to buy a home. Aiming to save some cash, they rent instead. They may feel that it makes more sense to work on rebuilding their portfolios, put some extra cash into a rainy day fund, save for retirement, or for college -- for any number of worthy goals.

These would all be prudent financial maneuvers, but only if the original assumption is correct. But today’s environment is creating a new reality. It’s one where renting may not be as much of a cost saver as most people think. 

Since it is my profession to deal in real estate, you might think my answer to the question of whether to rent or to buy a home would be an automatic ‘buy!’ Not so. While I certainly do want to help arrange a sale whenever a Cape Coral buyer and seller can agree on terms, I also want all my clients to make the financial decision that is right for them and their family.  And as we enter the April selling season in Cape Coral, I’m pleased to be able to report on a piece of information that may be surprising. It’s one that comes from the latest Trulia Spring 2012 Rent versus Buy index.

This index is a widely watched calculation derived from data in the 100 major metro markets. A Price-to-Rent ratio of 15 or less means that any buyer who plans on living in his home for at least five years would be better off to buy a home than to rent it.

Bottom line: 98% of those 100 areas currently offer a cheaper environment in which to buy a home than to rent it! To make sense of the numbers, Trulia.com looked at the asking price of national rentals and homes for sale. It also included insurance, taxes and maintenance costs in the calculation. With low interest rates making the monthly mortgage cost lower, and high rental rates bringing the rental rate higher, many would-be renters might now find themselves looking at a surprising new reality -- affordable homeownership.

If you are currently considering renting or buying a home in Cape Coral, why not sit down with me in our office to run a few numbers first?  I am happy to schedule time to discuss your needs before you sign a lease.  Today it is entirely possible that for you, owning a home will just be cheaper than you think!

WASHINGTON – Feb. 3, 2012 – If a bank writes off debt in a short sale, it’s a “taxable event,” and the lender tells the Internal Revenue Service about the deal by submitting a “Form 1099-C, Cancellation of Debt” at the end of the year. Home sellers must acknowledge the amount when they fill out their federal taxes. Through Dec. 31, 2012, however, the federal government forgives any tax liability associated with forgiveness of a mortgage loan.

“In general, homeowners believe the government will extend this tax provision,” says San Diego Realtor Joy Bender. “However, as evidenced by the First Time Homebuyer Credit expiration in 2010, you can’t always count on the government to bail you out.”

The government generally considers forgiven debt to be income. If a seller has signed legal loan papers to take out a $200,000 mortgage and the lender accepts $100,000 in a short sale, for example, the seller received the equivalent of $100,000 in free money by government estimates. As a result, the IRS taxes it. For tax year 2012, however, the government still forgives the debt; in 2013, it might not.

The tax amount can be significant. On a debt of $100,000, a short-sale seller in the 25 percent tax bracket could end up owing $25,000 in income taxes.

Since short sales can take months and even fall through, homeowners considering a short sale may want to start the process sooner rather than later.

© 2012 Florida Realtors®
For more information please call me at 239-699-0142
http://www.LiloRealtor.com

CAPE CORAL, FL - The Kiplinger Newsletter and the internet search engine, Yahoo have listed Cape Coral as the number one city in the country for economic recovery. The numbers are based on a recent surge in housing sales. Local real estate agents agree saying they have seen an uptick in housing sales as well. One realtor says foreclosures are down as well. In October 2008 there were more than 2,500 foreclosure filings. By December 2011, there were little more than 500. Realtors say with inventory quickly being bought up, you can expect to see prices go up soon as well.
Don't wait!!!!!! Buy your Cape Coral Home today.

Happy New Year! Now that the champagne corks have been popped and Auld Lang Syne sung, the clean slate of a fresh year may have you busily writing up resolution lists of 2012 goals.

Top of the list for my goals is to continue providing exceptional customer service to my clients!

Whether you’re a long-standing client I've seen through several purchases or a first-time home buyer considering taking the plunge, I want to make sure you're as happy as you can be with your Cape Coral.  I always welcome suggestions on how I may be of more help, so please connect with me and share your thoughts.

If you're like many Americans, your resolutions probably involve ways to become healthier and happier. Buying your first Cape Coral home or moving to a home that better fits your needs could certainly add to a happier 2012.

Maybe your family is growing and you need more room. Or maybe the kids have grown and gone, and you'd like to downsize to a more manageable space. Perhaps you’re considering investing in a second home; now that prices are low, buying a second home makes sense as a long-term investment.

I believe in envisioning the future you want. So make a plan today that includes the Cape Coral - Fort Myers home of your dreams; a place where family and friends gather in friendship and good will.

May 2012 bring you fresh opportunities to realize your dreams. And again, Happy New Year!
If I can help with your Cape Coral  Real Estate Questions please call me at
239-699-0142 and please visit the best Cape Coral Real Estate Site at: http://www.LiloRealtor.com

Downtown Countdown The downtown Fort Myers celebration includes live bands on six stages, a ball drop and drink and food specials and downtown businesses. Free. 8 p.m. to 2 a.m. Downtown Fort Myers. 732-3836 or riverdistrictevents.com

New Year’s Eve Fireworks Celebrate the new year with a fireworks show. Free. 7:30-8 p.m. Naples Pier, 25 12th Ave. S., Naples. 213-7120

Fort Myers Beach Birthday Party and New Year’s Eve Celebration The New Year’s bash goes hand-in-hand with the town’s annual birthday celebration. The 16th-anniversary birthday party takes place from 1-3 p.m. and includes live music and free refreshments. For the New Year’s event, there will be live local bands playing from 7 p.m. to midnight, when there will be a ball drop and fireworks launched off the pier. Trolley service will be provided until 2 a.m. Trolleys run to and from Estero Island, transporting partygoers to off-island parking lots. Parking is free, but the trolleys are 50 cents. Times Square, 1021 Estero Blvd., Fort Myers Beach. 765-0202

Cape Harbour New Year’s Fireworks Celebration The annual party features a ball drop and fireworks at midnight, plus live music by the rock band PUSH at The Joint. 6 p.m. until past midnight. Free. Takes place surrounding Rumrunners and The Joint in Cape Harbour, 5703 Cape Harbour Drive, Cape Coral. 542-0123

A Family Affair performs New Year’s Eve concert The local variety group sings ’50s and ’60s classic rock, top 40 and country music. 8:30 p.m.-12:30 a.m. $25 (bring your own beverages). Raintree RV Resort, 19250 N. Tamiami Trail, North Fort Myers. 633-8765 or fazzz.com.

New Year’s Eve Party At Anthony’s On The BLVD The celebration includes a special dinner menu, live entertainment, dancing, a champagne toast at midnight and continental breakfast served at 1 a.m. $36.99 (or $70 per couple), including dinner. Reservations required. 7 p.m.-2 a.m. Anthony’s on the BLVD., 1303 Del Prado Blvd., Cape Coral 772-5900