Real Estate Information

Interesting To Do Projects for Ann Arbor Real Estate

Retro Bowling Alley in your recreation room?  Or how about a Sweet Kids Playhouse.  Check out these two ideas for some project inspiration.  

Have fun with you next project and let us know if you need contractor recommendations or get homes for Sale in Ann Arbor by click here.

For decades, Home ownership in the United States has been partially subsidized by the tax savings associated with owning a home. Many homeowners qualify for certain tax deductions and tax credits that make home ownership more affordable.  In order to utilize certain deductions, a homeowner must itemize their tax deductions. But almost everyone is eligible to benefit from one or more of the tax benefits of home ownership. Here are a few to consider as of the date of this article:

1. Property Taxes Deduction: In many areas, property taxes can be one of the most significant costs of homeownership. Therefore, the ability to deduct residential property taxes from taxable income is an incredible savings. A property tax deduction is essentially a tax-deductible tax, so that the homeowner does not pay income tax on money that was used to pay property taxes. This particular deduction may only be used for the period of time the homeowner actually owns the home. Back taxes paid as part of the purchase arrangement may not be deducted. But anything going to the Seller on the settlement statement for property taxes the seller paid in advance can be deducted. Homeowners can only deduct the amount of property tax actually paid to their local municipality for the tax year. However, if the property taxes are held in escrow for paying taxes at a later time, the deduction cannot be taken until such time as the money is paid out of the escrow account to the taxing authority. Many local assessments for improvements or other city/county fees that one may find on their property tax bill are not deductible. Also, if any (typically partial) refund of the property tax occurs, the amount of the deduction is generally reduced by the amount of the refund.


2. Mortgage Interest Deduction: For many homeowners, the mortgage interest tax deduction is the most valuable tax deduction, and can be used to deduct interest paid on a mortgage of up to one million ($1,000,000.00). When a homeowner receives their first Form 1098 from their lender, they should know that its potential value is vast and to consult with a tax professional as to how best to take advantage of this benefit. This deduction is especially useful for most new homeowners, as the initial mortgage payments for new homeowners are primarily comprised of interest for the first several years, making for a larger deduction (until more of the payment is comprised of principal when there is less interest paid and less interest to deduct). Prepaid mortgage interest paid at closing may also add to the amount of this deduction.


3. Mortgage Insurance Premiums Deduction: Many home buyers whose initial down payment is less than 20% of the purchase price are required to pay private mortgage insurance or "PMI." This insurance can be a significant expense. Homeowners may generally deduct the premiums paid for such mortgage insurance for the current tax year on a primary residence and a non-rental second or vacation home. However, eligibility for this deduction is phased out based on income levels (check with your tax professional).


4. Points Deduction: If an owner paid discount points or "points" (or sometimes "loan discounts") to reduce the interest rate on borrowed funds as part of the purchase or refinance of a home, the cost of these points can be deductible in the year they were paid or over the life of the mortgage, depending on the type of loan and the unique qualities of the taxpayer.


5. Energy Credits: Some homeowners can receive a tax credit (either federal, state or local) for a portion of the cost of materials used for energy efficient upgrades to their residence (including doors, windows, furnaces and air conditioners, roofing materials, insulation, solar panels, water heaters, geo thermal heat pumps, fuel cells, wind turbines, and other energy efficient upgrades).


6. Home Office Deduction: Many home owners, who use a portion of their home for office purposes, may be able to claim a tax deduction for the pro-rata portion of costs related to the office space (e.g. repairs, mortgage, insurance, utilities, and depreciation). To utilize this deduction, the home office must be used exclusively and regularly as a place of business, a place to meet clients/patients for business purposes, a place of storage (e.g. for inventory or records used in the business), or a place where a majority of business work is done.


7. Gain on Sale Exclusion: Individuals can exclude up to $250,000 of gain from a primary residence from taxable income, and married couples can exclude up to $500,000 of gain. To qualify, the seller(s) must have lived in the home as a primary residence for two of the prior five years before the sale.


8. selling Costs Deduction: If the seller’s gain from the sale of a home does not qualify for the exclusion in #7 above, or the gain exceeds the maximum amount of the exclusion in #7, the costs associated with selling the home may also be available to reduce the tax burden of the seller. For example, the following costs may be deductible: title insurance, advertising and marketing expenses, broker fees, or repairs (if made within 90 days of the sale and with the intent to facilitate a sale).


9. Home Improvement Loan Interest Deduction: Interest on loans for home improvements may be deductible, provided the loan was used for a "capital improvement," such as building a deck, installing a new water heater system, or building a garage or otherwise expanding the size of the home. Many s1maller items, such as wallpaper, paint, carpet, etc. are not considered "capital improvements."


10. Construction Loan Interest Deduction: Interest on a loan used to construct a new principal residence or vacation home for personal use may be deductible for the first 24 months of the loan.


11. Loan Forgiveness Exclusion: As of the date of this article, the Mortgage Debt Forgiveness Relief Act of 2007 was extended to allow debt that is forgiven by lenders in short sale situations to be excluded from taxable income, rather than being taxed as debt forgiveness income.


12.  IRA Penalty Exemption: The ten (10) percent penalty for the early withdrawal of IRA funds can be avoided if the withdrawal of such funds is used toward the purchase of a home within 120 days of the withdrawal. This benefit is limited to a withdrawal of up to $10,000 in IRA funds for each spouse, and only if each spouse did not own a home within the two years prior to the new home purchase.

These tax benefits represent some of the biggest tax benefits of homeownership. Other tax benefits also exist. And the above analysis is an informational summary only and is not to be used, and is not intended to be used, as tax advice. When it comes to tax matters, a tax professional, Certified Public Accountant, or tax attorney should be consulted for the particular circumstances of each taxpayer, to ensure that no tax benefit opportunities are missed and to ensure compliance with law. 

HOMESTEAD TAX CREDITS - The state of Michigan has a homestead tax credit for owner occupied residences.  This amounts to approximately a 33% discount on your annual local and state property taxes.  There are deadlines for filing this paperwork however in order to get your tax savings.  There is also options to get more than one homestead credit though in most cases it is limited to just one per person/household.  CALL us to discuss your situation as they there are complex rules and regulations which vary by individual case.  

Interested in new listing updates?  Just click on the link above "Get Listing Updates" to receive new listings the day they come out automatically.  You can also contact us by using one of the options found after clicking on our home button above or call our office direct line at 734-996-0000 and ask for Tom Stachler.

In a meticulous, often confusing process like Home Buying, it's vital for you to understand at least the basic terms. Sometimes real estate professionals and loan officers will use terms like pre-approved and pre-qualified interchangeably when talking about a home loan. They are not, however, the same thing.

Pre-qualification is an estimate of how much money a lender would be willing to loan you, based on a general assessment of your relevant financial information, such as employment status, overall income and estimated value of assets.

The pre-approval process requires the lender to perform a more in-depth investigation and evaluation of your creditworthiness, culminating in a tentative commitment for mortgage funding up to a specific amount.

Here are some more details on each of these to further distinguish these similar but not synonymous terms.

Pre-Qualification

This process begins with you either meeting face-to-face with a loan officer or talking with one over the phone. You'll provide basic information about your personal credit and finances, including any outstanding debts, total income and a potential down payment amount. This data is then used by the lender to provide you with a written estimate of how much you could comfortably afford per month for a mortgage.

There is neither a commitment nor cost associated for either party in a pre-qualification procedure. Its primary purpose is to give you a realistic perspective on how buying a home will impact your month-to-month household budget.

Most real estate professionals will tell you that it's best to make pre-qualification one of the very first steps in your home-buying journey, even prior to looking at houses.

Pre-approval

In order to get a pre-approval, and the tentative commitment that comes with it, you must provide your desired home loan lender with the actual documentation (usually in paper form) of your financial details (assets, debts, income, etc).

You can expect to pay a fee for this part of the process, mainly to cover the lender's expenses incurred by running a credit check, as well as verifying your employment data and financial records.

Your pre-approval is then officially acknowledged via a commitment letter containing the amount the lender is willing to extend to you for your new home purchase.

A pre-approval is neither a guarantee of future mortgage loan approval, nor is it a legally binding contract, meaning you still have the option of choosing another lender.

NVIDIA, a Santa Clara, California-based global technology company, announced in August that it was opening of a sparkling new technology center in Avis Farms, Michigan, just south of Ann Arbor.

Although it doesn't have the name recognition of other giant tech companies, like Microsoft or Google, NVIDIA's software assists in the designing of myriad components and products that are integral parts of many of the electronic devices most of us use in our everyday lives.

The company its software products provide applications and functions to such disparate, wide-ranging items as smartphones, motion picture special effects and vehicle electronics. It is this latter tool that provided the impetus for NVIDIA to bring its state-of-the-art tech center to the Ann Arbor area.

“I’m pleased to see more technology-focused companies look to the state of Michigan as a resourceful Home and partner, Michael Finney, president and CEO of the Michigan Economic Development Corporation, said on NVIDIA's corporate blog. "NVIDIA’s commitment to the state of Michigan is an encouraging sign for future growth and jobs in the technology and automotive industries.”

At the Ann Arbor Tech Center, its approximately 20 onsite employees will work with many of the nearby automotive manufacturers, such as Chrysler, Ford, GM and Volkswagen, to develop “infotainment” systems, in-vehicle applications and other such software aimed specifically at the industry. In fact, in-dash digital instrument clusters powered by NVIDIA products and components are already being used in several car makes and models, including, but not limited to, Bentley, Lamborghini, Rolls-Royce and Tesla.

According to NVIDIA marketing director Danny Shapiro, additional supercomputing and graphics development work will probably take place at the center.

The three brain wizards who together founded NVIDIA in 1993 are

• Jen-Hsun Huang (company's CEO as of 2013) - Former Director of CoreWare with LSI Logic and microprocessor designer with Advanced Micro Devices (AMD)
• Chris Malachowsky - Former electrical engineer with Sun Microsystems
• Curtis Priem - Former Sun Microsystems' senior engineer and graphics chip designer

According to a 2002 article in Forbes, Huang, Malachowsky and Priem secured the necessary capital funding for this venture from Sequoia Capital.

Home styles vary around the world and Ann Arbor, Michigan.  Interesting article on ancient architecture covering different parts of the world below.  Here in Ann Arbor you can find different homes for sale in Ann Arbor and the surrounding communities by clicking this link.  Homes for Sale in Ann Arbor.

Please call or click the link below if you would like help with any Real Estate Matter.  Note the All MLS Listings link above for direct access to the Ann Arbor Board of Realtors data base containing every listing for sale in Washtenaw County Michigan.  

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Waterskiing, fishing, cruising, pontooning, swimming, relaxing and cabin rental are just the tip of the iceberg of things to do on and around the Huron River Chain of Lakes. A series of no-wake canals act as Links in the chain, connecting its nine bodies of water:

• Big Portage Lake
• Little Portage Lake
• Baseline Lake
• Zukey Lake
• Strawberry Lake
• Whitewood Lake
• Gallagher Lake
• Ore Lake
• Tamarack Lake

According to the Huron River Watershed Council's website, the watershed itself blankets more than 250 square miles, including sections of Washtenaw and Livingston counties, in the southeast corner of Michigan. It contains numerous wetland areas and plays host to 20 communities. This chain-of-lakes section of the Huron River also offers nearly 600 miles of small streams and larger tributaries.

You are able to navigate most of the lakes with the usual watercraft; however, only small watercraft can navigate the serene waters of Little Portage, Ore and Tamarack.

Boaters have to get a boating license and register their watercraft with the Michigan Secretary of State. As well, if you plan on angling for some of the chain's myriad fish species, which include Northern Pike, Walleye and Bluegill, you must first secure a Michigan Department of Natural Resources issued fishing license.

Klaves Marina, near the city of Pinckney, sits on the shores of Big Portage Lake and offers the chain's only public stop for gas refills. Dockside eating establishments of note include Riverside Pizza on Portage Lake and Zukey Lake Tavern - the chain's exclusive full-service restaurant - on Zukey Lake.

Residents of and visitors to Ann Arbor and Ypsilanti can reach the Huron River Chain of Lakes in about 30 minutes, and downtown Detroit is less than 65 miles to the east.

Commuters attempting to transverse the confluence of Ellsworth Road and State Street in Pittsfield Township, just south of Ann Arbor, can expect to face more roundabout detours to avoid the roundabout construction zone that has shut down that intersection since early June.

The most recent update reported on Ann Arbor.com back in August stated that the project was at least showing progress, as the section of Ellsworth Road west of State Street that has been under construction would open to accept traffic flow, while the section of Ellsworth east of State would be closed. It was estimated that this latest closure impacting those who have to navigate through this beehive work zone, where traffic running in both directions on State Street would be maintained while one of its usual two lanes will continue be closed, would stretch into at least mid-September.

Although it is no doubt disrupting a number of area residents' lives, businesses roundabout the intersection are staying open for the project's duration. Additionally, the $2.4 million improvement project coordinated by the Washtenaw County Road Commission is transitioning into its third phase, and thereby inching (like commuter traffic at the intersection) closer to its completion target of late September.

Initiated in 2012 by Pittsfield Township as a proactive solution to many of the anticipated traffic hassles, problems and issues have likely coincided with the opening of a new Costco store at 771 Airport Blvd. The large national retailer is reportedly footing about $500,000 of the construction bill, with payment for the remaining costs taken care of via two federal grants.

Pittsfield Township formed a partnership agreement with the City of Ann Arbor to split $42,000 spun off from the project, which will ostensibly go toward prettying up the roundabout intersection once construction's completed with some concrete stamping work.

The University of Michigan football team enters the 2013 season ranked No. 17 in both the AP Top 25 and USA Today Coaches polls. The Wolverines who take the field for Saturday's season and Home opener against Central Michigan are a relatively young squad; however, they are a favorite - along with Nebraska - to take the Big Ten Legends Division title.

NCAA College Football pundits are saying that the Wolverines' 2013 schedule is the toughest in the division, with back-to-back blockbusters against Michigan State and Nebraska in early November, and perennial nemesis Ohio State looming large as the team's last regular season opponent.

Youngsters Expected to Grow Up Fast

Michigan coach Brady Hoke's 2013 Wolverines' fate rests heavily on the shoulders of untested freshmen and sophomores. Some of its anticipated playmakers saw slim to no time on the field during game day last season, according to the Detroit Free Press. Although coaches often begrudge the need for youngsters to make an immediate and impactful contribution, it's a fact of life in today's big-time college football world.

Will Kyle Kalis, a highly touted redshirt freshman offensive guard, solidify new starting quarterback Devin Gardner's right side? On the other side of the ball, defensive coordinator Greg Mattison has unquestionable talent in Ondre Pipkins, Joe Bolden, James Ross and Jarrod - all true sophomores - but can they live up to their potential?

As you ponder those debate-starter questions in the back of your mind, allow the front of your mind to enjoy these tasty tidbits about the forthcoming Wolverines season:

• Home field advantage: UM plays the Cornhuskers and Buckeyes at home, where it's 14-0 the past two years
• Freshness Dated: Devin Gardner replaces Denard Robinson as full-time signal caller
• Yin-Yang Offensive: potent running game balanced with big-arm QB
• No Easy Outs: Wolverines saw 18 turnovers in five of its 2012 losses

2012 football Season Recap

Michigan ended its 2012 season on the first day of 2013 (Jan. 1) with a heartbreaking 33-28 loss to South Carolina in the Outback Bowl at Raymond James Stadium in Tampa, Fla. Going into the game, the Wolverines were ranked No. 18 in the BCS and No. 19 in the AP polls.

There weren't many highlights to the season; however, there was one REALLY HUGE one. On Oct. 20 at Michigan Stadium in Ann Arbor, Michigan slipped past in-state rival Michigan State 12-10, snapping the Wolverines' four-game losing streak to the Spartans, and giving the football program its 900th win - the first college football program to reach this achievement.

Ann Arbor, Home to more than 116,000 residents, has a wonderful selection of both condos and single-family homes. The city (ranked among the top 100 places to live in America in 2012 by CNN Money magazine) is noted for both its many job opportunities, and as the home of the University of Michigan, with all the sports, health care and education associated at this institution.

Should you buy an Ann Arbor house or a condo? Deciding whether to buy a house or a condo in Ann Arbor can be a tricky decision. There are advantages - and disadvantages - to both.

Advantages to Buying a condo
There are several advantages to buying a condo over a single-family home, and just a few of these are:

• Little Exterior Maintenance:  With a condo most of the exterior and lawn maintenance, as well as the landscaping, is taken care by the homeowner's association. You don't have to worry about the grass getting mowed if you're out of town for a week or two, and in the winter the snow will get shoveled without having to break your back or risk frost bite.
• Extra Amenities:  Condos frequently have amenities in their complexes that single family homes often don't have, such as fitness facilities, swimming pools and party rooms.
• Security:  Depending on the type of condo you purchase, some will offer round the clock security against break-ins and vandalism. For instance, many high-rise buildings have door attendants and/or guards in the parking garage.

Advantages to buying a home
While owning a condo has some distinct advantages, there are also several advantages to buying a single-family home, such as:

• No Common Walls:  With a single-family home, you don't have to worry about disturbing the people in the unit next to yours or below yours. Equally, you won't be awakened in the middle of the night if you neighbor decides to vacuum or practice their dance steps.
• No Association Fee:  With a condo, the homeowner's association fee can be almost as much as your mortgage payment. Granted, this covers amenities like the swimming pool, maintenance on the exterior of the condo and sometimes even utilities. However, with a house, you only have to make one payment each month.
• You Can Make Your Own Remodeling Decisions:  With a home, you can paint the exterior of your any color that suits your fancy, You can add shutters, plant a cactus and generally modify whatever you like. With a condo, you usually need to get permission to make any changes that affect the outside look of the building.

How to decide which type of property is best for you
Should you buy an Ann Arbor house or a condo? In addition to the advantages and disadvantages inherent in the type of property, there are other factors to consider when deciding between an Ann Arbor home or condo. One of these is location - some areas of Ann Arbor, such as the revitalized downtown area have more condos than other parts of the city. Conversely, some of the newer developments, such as Fleming Lake Estates and Woodland Ridge, consist mostly of single family homes.