Real Estate In Myrtle Beach

WHO PAYS TAXES IN THE US:

• Top 1% pay 37% of all taxes
• Top 5% pay 57% of all taxes
• Top 10% pay 68% of all taxes
• Top 25% pay 85% of all taxes
• Bottom 50% pay 3% of taxes 
  
• Bottom 25% pay no taxes

[Source] and [Source]

The top 5% percent pay 57% of all taxes and spend 30%. 80% of smallbusiness owners make 250,000+ a year. If expanding the numbers to include the top 20%, 22 million families or those earning over 120,000, pay for 65% of all taxes in the U.S. The 1st source above shows numbers from 1995 when Clinton was in office and at 39.6% matches obama's proposed budget announcement for 2011.

More on the affluent Tax Bill

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ANALYSIS

I believe it may be time, if talking about taxes, to debate the FAIR TAX plan in forums around the country. The fair tax essentially eliminates any kind of tax including inheritance and death taxes and brings back transparency to the whole process as income earners will see a gross paycheck return for the first time in their lives. The tax would only be applied to consumption which automatically lets the buyer know what they are being taxed for and for how much. This will also control spending by some to more reasonable levels and get people to live within their means. Common sense tells you that when you are in debt, you must save. Currently we're being told to spend and that we would then be taxed for it in 18 months. Essentially business would currently be hiring new workers, expanding their programs and then be inable to writeoff any expenses + pay higher taxes. So any gains made, will quickly be washed away. Where's the common sense here? Who is going to attempt to grow their business with that kind of a plan? Whos' going to open up more offices, stores when the money spent on doing so will be washed away? This latest move by our president is truly revolting and flies in the face of prosperity. 10 pros and cons of the fair tax.

18 months from now, Obama will repeal deductions. This is a serious contradiction to his stimulus bill. Anyone, regardless of party affiliation should be worried about this latest move. This is common sense gone awry.

It is ludicrous to punish success and reward failure. This also stifles ingenuity and innovation. Why would anyone attempt to better themselves, as in doing so once that status is attained,only to get taxed to death for those accomplishments. I don't care what party affiliation you have, it just makes absolutely no sense. But we all know why this is happening, at least those who follow politics do. This is to award the lobbyists and constituants who helped vote democrats into congress and the senate. But republicans are just equally as guilty as they did nothing in stopping the 9000 earmarks in the latest proposed bill. It's politics as usual in congress and that is one constant that is apparently not changing. This is no time to play politics, and these old games should be done away with for the good of the country.  Term limits need to be brought back into place to keep career minded politicians on track with their fiduciary duties, to work for their country's citizens, not their future in politics. With terms limits more things get done as every senator would feel urgency to deliver on promises.

For those who weren't aware, one of the biggest affiilates to Citigroup, Smith and Barney left weeks ago and joined another entity. With Singapore's prime minister approving the nationalizing measure of one of the biggest banks in the world, bank of america may follow. How does this affect you? It won't , your dollars are still insured with the FDIC(Up to $250,000 Now) but if you held stock with either banks, you are hurting right now.

They are now apparently also going after those who hold assets in banks in switzerland. Guess every dollar counts at this point.

Here's the problem with the current budget; 80% of tax payers or those earning 250k or more are small business owners. The taxes incurred on them will be passed down to the employees working for those business owners. So this ideal that lower income earners will not get taxed is a lie. Wages for associate managers and those in secondary leading roles will decrease, especially if the minimum wage gets increased as obama suggested he was going to try to do once in office. A small tax credit has been given to those who earn less than 75,000 but should not offset the total amount lost across the board.

The biggest possible future problems consist of impending inflation, which may occur when everyone spends their money at the same time once the economy shows sparks of life in a year (+/-).

Right now a possible depression can be contributed by the following; taxes on businesses, over-regulation of business, and import taxes. Unfortunately with that said, we're going down that road once again. On a positive note, if there is one, and there is: The U.S is looking better than most countries around the world. Japan is in terrible shape, and the european union is having problems with eastern countries asking for bailouts as Hungary recently did. Germany however, said no, and this may be repeated again in the near future. Protectionism in Europe is certainly growing and a Global Deal may be on the books as UK"s Gordon Brown proposed but highly unlikely to be taken into consideration.

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CURRENT BILLS DO THE FOLLOWING:

• A family (2 or more) making $250,000+ would see an $11,600 tax increase
• A family (2 or more) making $120,000 would see a $6000 tax increase
• A family(2 or more) making $76,000 would see an $800 tax reduction
  
• A Family(2 or more) making $36,000 would see a $1200 tax reduction
• A single Individual making $36,000 would gain a $400 tax credit
  
• A couple making $36,000 would gain a $800 tax credit ***
• Add $714 Billion dollars to the baseline budget.
• add $13 a week for those earning 250k o less, after which it wil be $8/wk

Tax credits would go to offset costs past down from small busineses owners.

*** - increased to 1000 and made permanent

Analysis: War on the top 30% of the economy. End of prosperity.

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PROPOSED ENERGY BILL: (more)

$300 Billion dollar tax on anyone who uses the following services:

• Heating Oil
• Natural Gas
• Gasoline
• Electricity

Obviously this proposed bill makes the notion Obama made last year, that noone making less than 250k not being taxed, as false.

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OBAMA'S NEW BUDGET PLAN:  (Complete Plan)

• 3.5 TRILLION Dollar Total Budget
• $989 Billion in new taxes (over 10 yrs, starting in 2011)
  
• 2.6 Trillion borrowed in 2009
• 1.1 Trillion will be borrowed in 2010
• 3.6 Trillion will be spent in 2010
• Saves 300 Billion in interest on the national debt
• 1.5 Trillion in savings for winding down the Iraq War
• Would bring deficit down to 537 Billion by 2013

Those making 250k or more: (Total - $636 Billion over 10 years)

• $118 Billion towards a Capitol Gains Hike (starts in 2011)
• $338 Billion towards the expiration of the Bush Tax Cuts
• $179 Billion towards eliminating itemized deduction

Businesses:(Total - $353 Billion over 10 years)

• $5.3 Billion excise tax on Gulf of Mexico oil and gas
• $210 Billion towards internation enforcement and other tax reforms
• $62 Billion to repeal deduction for tertiary inejectants
• $24 Billion towards tax carried-interest as income
• $5 Billion to codify "economic substance doctrine"
• $3.4 Billion to repeal expensing of tangible drilling costs
• $49 milion to repeal massive loss exception for interests in oil & natural gas
• $889 million to eliminate advanced earned income tax credit
• $17 Billion to reinstate Superfund taxes
• $1 Billion increase to 7 years geological and geophysical amortization periods
• $13 Billion to repeal manufacturing tax deduction for oil and natural gas co's
• $61 Billion to repeal LIFO
• $3.4 Billion to repeal expensing of tangible drilling costs
• $634 Billion(over 10 years) to be set aside in a reserve fund for changes in health care system

Taxes:

• 250k+ - 39.6%

Pages: (134)

Surprises:

• NASA'S Budget to increase to 18.7 Billion from 16.3 Billion
  
• Those donating all their income to charity would still be taxed over it.

Obama's Hope: For the deficit to halve by 2013.

BUDGET SUMMARY TABLE  (Caution: this may boggle your mnd)

More information about his positions here

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STATE OF THE ECONOMY

CURRENT NUMBERS:

• Unemployment: 7.6% (rose .4% from jan) Largest increase in white adult men (+2.5% since 3q 2008)
• Avg 30 yr fixed: 5.06%
• Avg Home Prices: -18.3% (lowest ever)
• Median Home Value: 170,300 (lowest since q3, 2003)
• Avg Home Sales in Jan: -5.3%
• Economy Contraction: -6.2% (over 3 months) worst ever
• Nation's Current Debt: 10.9 Trilion+
• EArnings have gone up $1.88 since 3q 2008)
• Dow Jones (6763) Lowest since 1997. Went down 299.64 points today (3.2.09)
• Dow Jones down 38% since September 2008.
• S&P down 11% to 700.82 in february (2nd worst since 1933)
• 30 Trillion Dollars in Stock Losses since Q1 2008. (7 Trillion was lost from q3 2007-q1 2008)
• 4 Trillion Dollars lost in Housing values since 2006. (23%)
• Exports fell at an annual rate of 23.6%, down from 19.7% (sharpest fall since 1970)
• Bill Bernanke has estimated the recession to continue into 2010, w/possibility of recovery
• Avg Nation Gas Price - $1.92/gallon
• Consumer spending down 4.3% in Q4 2008 (biggest fall since Q2 1980)
• Warren Buffet net worth - 49 Billion (from 89 Billion in q1 2008) - Proclaimed "Worst economy on record" 

Source

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EXPORT DATA:

• Singapore: Down 35%
• Taiwan: Down 43%
  
• Japan: Down 46%

[Source]

HAPPENINGS AROUND COUNTRY:

CALIFORNIA:

• $12.5 Billion tax increase
• Cuts $14.8 Billion in spending (8.6 Billion in education alone)
  
• $5.4 Billion in loans
• Receives $7.8 Billion in stimulus funds
• Currently has a $42 Billion deficit

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BAILOUTS

• 45 Billion to BofA (10.28.08)
• 45 Billion to CitiGroup (10.28.08)
• 40 Billion to AIG (11.25.08)
• 30 Billion to AIG II (3.2.09) (61.7 Billion in revenue loss - Largest in U.S history)
  
• 25 Billion to JP Morgan (10.28.09)
• 25 Billion to Wells Fargo (10.28.09)
• 14.284 Billion to GM (12.29.08)
• 10 Billion to Morgan Stanley (10.28.08)
• 10 Billion to Goldman Sachs (10.28.08)
• 7.579 Billion to PNC (12.31.08)
• 6.599 Billion to U.S Bancorp (11/14/08)
• 5.5 Billion to Chrysler (1.2.09)
• 5 Billion to GMAC (12.29.08)

List of all bank bailouts/(WSJ) - List of all bank bailouts(Pro Republica)

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FUTURE BAILOUTS:

• BANK BAILOUT 3: Proposed 750 Billion in added bailout money for banks
• GM II , Ford, Six Flags, Station Casinos, Univision, Rite Aid, Visteon
• more...

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TEA PARTY REVOLTS: (40 cities took part on 9/27/09)

• San Diego, California (9/28/09)
  
• Sarasota (9/28/09)
• New  York, NY (9/28/09)
• Wichita (9/27/09)
• Atlanta, Georgia (9/27/08)
• Los Angeles, CA (9/27/07)
• Chicago, Illinois
• more...

Web 2.0 Tea parties on Twitter/Youtube/flickr,etc

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PROJECTIONS:

• $1.75 Trillion deficit (12.3% GDP) - (was 21.5% of GDP in 1945)
• If unchanged, will add 3.7 Trillion to debt in 20 months.
• If unchanged, would add 4.7 Trillion to national debt by 2013
• If unchanged, would add 7 Trillion to national debt by 2019 (3x as much as bush added in 8 yrs)

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TAKEOVERS

• 36% vested interest into citigroup
  
• "stress tests" will be applied on the nation's largest 20 banks.
• Catholic Hospitals?
• Bank of America?

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CONCLUSION

Educate yourself to the numbers and the history of these recessions and you will be in better position to know how to compensate for the lack of common sense being employed in washington as Economics 101 says that taxes put on companies are trickled down to the consumer with higher prices on goods and services.

 Blog by Castellum Realty

Foreclosures 101 - Analyze Foreclosures by State, County and Zip Code

Once reserved for those unfortunate few, the term "Foreclosure" has entered our national consciousness.   Do you know how your neck of the woods is faring in comparison with the rest of the country?

Click Here to Check Foreclosures by zip codes.

Click Here to Check Foreclosures by States.

Click Here to See if Your County is in the top 50 Most Impacted by Foreclosures.

Mirela Monte, Your Myrtle Beach Real Estate Connection

The boss wondered why one of his most valued employees was absent but had not phoned in sick one day. Needing to have an urgent problem with one of the main computers resolved, he dialed the employee's home phone number and was greeted with a child's whisper.

' Hello ? '

'Is your daddy home?' he asked. 

' Yes ,' whispered the small voice.

May I talk with him?' 

The child whispered, ' No .'

Surprised and wanting to talk with an adult, the boss asked, 'Is your Mummy there?'

' Yes ' 

'May I talk with her?' Again the small voice whispered,

' No '

Hoping there was someone with whom he could leave a message, the boss asked, 'Is anybody else there?'

' Yes , ' whispered the child, ' a policeman . ' 

Wondering what a cop would be doing at his employee's home, the boss asked, 'May I speak with the policeman?'

' No, he's busy , ' whispered the child.

'Busy doing what?'

' Talking to Daddy and Mummy and the Fireman , ' came the whispered answer.

Growing more worried as he heard a loud noise in the background through the earpiece on the phone, the boss asked, 'What is that noise?'

' A helicopter ' answered the whispering voice.

'What is going on there?' demanded the boss, now truly apprehensive. Again, whispering, the child answered,

' The search team just landed a helicopter '

Alarmed, concerned and a little frustrated the boss asked, 'What are they searching for?'

Still whispering, the young voice replied with a muffled giggle...

' ME . '

 This is Beat the recession's web site something you may want to check out....

It is a daily e-mail that has tips and advice for beating the recession. They send you tips on things you can do to save money, learn a new profession and news in general...they have a funny little comic and give great advice in general..You just never know whats going to be in the next e-mail...Like the one I received this morning that I thought I would share with my friends on Active Rain...and you could win  A Starbuck's Gift Card just remember to take your own coffee cup Save 5,460,000 cups a year and 10%.....peace zane

If you would like to recieve e-mail from them click on the link below and sign up...

 www.BeatTheRecession.com

The following is what they sent me this morning......

 The new Making Home Affordable Plan passed by President Obama aims to help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. Some borrowers may qualify for interest rates as low as 2%. In addition, some borrowers may also qualify for incentive payments up to $5000 over 5 years to help pay down the principal they owe.

To find out if you qualify for this program and to learn how to apply, go to Refinance Eligibility on the FinancialStability.gov website or check out this chart from the Wall Street Journal: Who Would Qualify?

For a better understanding of how the program works, here are three case studies from the treasury department: Support Under the Homeowner Affordability and Stability Plan: Three Cases

Some of the qualifying factors are that the home must be owner-occupied, homeowners must be in good standing with their loans, only loans held by Fannie Mae or Freddie Mac qualify, borrowers can't owe more than their home is worth, mortgage payment must exceed 31% of the borrower's gross monthly income. Homes worth more than $759,750 do not qualify. Applications for this loan modification program must be submitted by June 2010 and can only be applied to mortgages signed before January 1, 2009.

What Any Smart Realtor Will Tell You... On Pricing The Listings:

Smart Realtor Series:  Pricing The Listings:

Tim Moncrief, Co-Owner-Bartlett RE Group (Keller Williams Realty )

We are doing a disservice to clients if we are not firm with them on the reality of the situation.  I tell my prospects that this is gut check time and you may want to throw me out the window, but my job is to tell you the reality of the market, not to gain a listing.  My last three listings this month were $80,000, $60,000 and $40,000 under my competitors; yet I won the listings.  Your sellers will appreciate the honesty.  Either hurt them now, or let them be hurt by foreclosure should you not tell them. How can any agent not have the heart to tell people the reality and allow them to go to foreclosure?

Bruce & Sandy Soli (Intero Real Estate Services)

This conversation seems to be easier and easier these days.  We are finding that our sellers are truly getting it and starting to price right if they really want to sell.  If they don't they are wasting everyone's time even considering being on the market.  More professionals need to stand up and cut to the chase!

Sandy Childs

It is not easy to tell a seller that they have lost money on their house, but we are going to have to do it. None of us, who are dedicated to professionalism and to being the best of the best, should ever allow a seller to drastically overprice their home. The results are devastating for the seller and frustrating for the agent. The house will stay on the market longer and most probably end up selling for less or worst not selling and going into foreclosure.

Brian Block -- Northern Virginia & D.C. Real Estate (RE/MAX Allegiance)

The CRS listing class highly emphasizes absorption rate pricing and presenting it in your listing presentations.  I've been using it now for about 6 months since taking that class.  Very few other agents use this so sellers aren't familiar with it, but once you explain it to them in simple terms, it makes a lot of sense and makes you stand out from the crowd.

Christina Asad Edwards @ www.DaytonOhioHouse.com (Real Living Realty Services - #1 in Ohio!)

I do a Highest Price Analysis; it is a combination of a Comparative Market Analysis and a Trends Analysis Report, showing the months of inventory versus sold, etc. It works very well with clients since it encompasses MORE than most would show.

Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Keller Williams Elite Realty, Bonita Springs, FL)

There isn't a listing presentation or an even a contract presentation to sellers that I don't have an absorption rate prepared and ready. 

Most the time the listing agent has no skills to show their seller that there is nine years of inventory in their neighborhood and they'd be wise to consider any offer they get.  You can bet I let them know when I hand them a contract.

What are some of your thoughts on the subject?  Impart the right advice and run the risk of becoming part of this blog!

Homes in the Myrtle Beach Area: January and February 2009 Market Report:

We currently have 6,291 single family homes available for sale in the Myrtle Beach Area. Of these available listings, a total of 374 homes have been sold during the months of January and February 2009. That is a sales activity rate of 2.97% per month. At that rate, it will take us 2 years and 9 months to sell out of our current inventory.

Which price points have the most activity? Here is the break-down:

# Price Range: Available: Sold: % Sold per month:

1. $ 1,000-$99,999 413 45 1.22%

2. $100,000-199,999 1,846 171 4.63%

3. $200,000-299,999 1,502 93 3.09%

4. $300,000-399,999 835 26 1.56%

5. $400,000-499,999 475 14 1.47%

6. $500,000-749,999 490 9 0.92%

7. $750,000-999,999 283 7 1.23%

8. $1,000,000 & up 447 9 1.00%

The price point with the most available inventory is also the one with the best sales: the $100,000-$199,999 price point, which has a monthly sales activity of 4.63%.

The second most popular one is the $200,000-299,999 category with 3.09% monthly sales activity.

The Least popular price point in the Myrtle Beach area for January and February is the $500,000-749,999 category with monthly sales of under 1%.

Why is this pricing break down significant? For many reasons. Here is an example: if your home is priced at $305,000, your potential success rate of producing a sale is only 1.56%. Lower that price to $299,999 and your odds practically double.

Here is another example: if you are a buyer in the market for a $500,000 to a $749,999 home, you know you can be even bolder than the current market permits, for those sellers' odds are the worst right now and their motivation may be at a peak level.

If you are the seller of a home priced between $100,000 and $199,999, you are only looking at 1 year and 9.5 months of possible wait time versus the 9 years it would take a Seller of a home priced between $500,000 to $749,999, and that's a significant difference, don't you think?

Oh, so NOW, you're finally paying attention to the numbers?

When selling a home, legally you must state everything that is wrong with it.

~0~0~0~0~0~0~0~0~0~0~0

Nominated as the best short joke of the year.

  A 3-year-old boy examined his testicles while taking a bath:

"Mom," he asked, "are these my brains?" "Not yet," she replied.

It is Laugh Out Loud Friday! I hope you all find laughter in your hearts as you start your weekend. Enjoy!

written by:

Terrie Leighton, Northern Nevada Realtor Sparks, NV   More about me…

Cliffs Notes on The Banking and Housing Debacle on Video: REMARKABLE!

This eye opening video should be watched by everyone in our industry.  This documentary is an amazing analysis of our banking and housing debacle. 

You absolutely have to watch this!   Please click on the link below to watch it!

http://www.pbs.org/wgbh/pages/frontline/meltdown/view/

You will learn the following terms, which I predict will no doubt become mainstream within the next few years: 

"Toxic mortgage contagion"

"Credit default swaps" = mysterious instruments that only financial wizards could understand.

"Systemic risk"

"Moral Hazard"

"Capital Injections"

"Toxic  Assets"

Please come back afterward and let us know what you think about it.

The Five Things We Should Be Teaching Our Children:

Most kids garner their education from schools.  The typical curriculum of English, math, history, geography, chemistry, anatomy, etc. is followed, but are our kids ready for the Real World armed with such perfunctory education?

Here are some subjects I thought we could add to the list mentioned:

•1.     Ethics.  Analyze case scenarios and have open discussions about what's ethically right and wrong and why.  How else are they going to know?

•2.     Nutrition and Exercise.  With vending machines dispensing soft drinks now prevalent in schools, we are grooming the next generation of obese Americans.   We need to cultivate proper indoctrination into a healthier way of life for our children.

•3.     Safety.  Without scaring them, we need to ensure they know what to do to stay safe.

•4.     Social Responsibility.  Learning to value life in all its forms and preserving our future by helping each other.  Civilization should be judged by how we take care of our weakest members.  Preserving the Earth (the Green movement) is also part of this indoctrination.

•5.     Money skills.  This is a big issue with me.  Kids need to learn the value of money.  So many of my daughter's friends get so spoiled by their parents, who indulge them with so many material things without asking them for anything in return.  My daughter feels persecuted by me because she has well defined responsibilities and chores in order to garner her weekly allowance.  I have been branded as the "mean mom" because she has to work for her money.  I would love to know of a "Financial Education Class for Teenagers" that I can enroll her in.  Any ideas?

What have I missed and can you participate in this discussion please!  Let's share our parental secrets!  This is even more important than Real Estate!