Giving back to the community

It's a wonderful time of the year, the holiday season. People seem more relaxed and think more of others. We seem to be more willing to donate food and gifts or volunteer to give back to the community -- more so than any other time of the year. Why not volunteer all year long?

Here at The Builders Association of Northern Nevada, we're committed to giving back all year long. We have a philanthropic arm, the Builders Association Charity, which supports local families in need. We have a new construction career focused youth mentoring program called C-CORE. And perhaps our largest recent endeavor, we've joined forces with Homes For Our Troops to build a new accessible home for a disabled Nevada Veteran, Sgt. Gray.

Call us at (775) 329-4611 or visit us online to find out how you can contribute to these wonderful projects.

Get involved with The Builders and you'll fulfill two needs at once; you'll be supporting an industry vital to our local economy and you'll be supporting your community through out the year.

Reno housing is affordable!

Reno ranks in the top one-third of the most affordable places to purchase a home in the country, according to the National Association of Home Builders(NAHB) / Wells Fargo Housing Opportunity Index which was released today. More than 83% of homes sold in the third quarter of 2010 were affordable to home earning the median income. Reno ranks as the 10th most affordable housing market in the West.

By comparison, in the same quarter last year, only 68% of median-income families could afford to purchase a home. That number was only 18% in the third quarter of 2006 and even smaller in the peak of 2005.

Now is the Best Time to Buy a Home

Many potential home buyers are finding it difficult to filter out the media headlines and determine if now is the right time to buy a home. Most industry professionals agree buyers shouldn’t wait until prices and interest rates go up to buy -- now is the best time to buy a home.

Home prices in northern Nevada have dropped dramatically in the past few years and today’s mortgage interest rates are among the lowest in history. They’ve recently dipped again and borrowers can find a 30-year fixed loan for as low as 4.25percent. Rates were as high as 6.75 percent just a few years ago and in the double-digits 20 years ago.

As the economy rebounds the demands for mortgages will rise and so will interest rates. The effect of a rise in interest rates on monthly mortgage payments can be dramatic.

Based on the current median home sales price of $175,000, a 30-year fixed rate mortgage with a 4.25% interest rate has a monthly payment of $933 per month. At six percent the monthly payments increase to $1122 -- an increase of $189 a month. The total payments over the life of the loan increase by a whopping $68,040!

Home buyers that believe home prices will drop further could be making a very costly mistake. If the interest rates increase to six percent again, the home price would have to drop below $147,000 -- more than 16 percent -- to maintain the same monthly payments. House prices have begun to stabilize and bidding has become highly competitive, especially on the lower priced homes. It is highly unlikely that prices will drop that much.

Potential buyers frequently overlook the tax advantages of homeownership when considering if they should purchase a home. Mortgage interest and property taxes are great tax deductions.

While there are many variables to tax advantages, we estimate that a $175,000 mortgage with a 4.25 percent interest rate will generate $1,624 reduction in your tax liability annually.

This is the first time in four or five years that home prices and low interest rates have made northern Nevada an affordable place to live for most families. A family with a median income can afford to buy a median price home.

Low mortgage rates and affordable home prices will not last forever. The longer you wait the more you will have to pay to achieve your dream of homeownership!

Northern Nevada has many highly qualified Realtors, loan officers and builders that can be great help during your home shopping experience. To find more resources, contact the Builders Association of Northern Nevada at (775) 329-4611 or visit www.thebuilders.com.

The perfect storm of opportunity for first time homebuyers!

A trifecta of conditions (Low interest rates, reduced prices and first time buyer programs) makes now the perfect time to buy your first home.

The Nevada Housing Division provides mortgages and down payment assistance to for low to moderate-income families. The program currently has $102 million in funding for its first-time homebuyer program and expects its interest rate to stay at 4.5 percent for a while.

The Federal Government has also extended the first time homebuyer tax credit through April, 2010. These factors combined with reduced home prices make now the perfect time for first time homebuyers to invest in a home.

Read the full Reno Gazette Journal story by Jason Hidalgo
Housing division offers low rates for low-income first-time buyers

Forecast for 2010 - partly sunny!

More than 250 people attended Forecast 2010 & Beyond Wednesday and discovered that there are some bright spots for this year!

Elliot Eisenberg reminded us that us that we are not the worst market in the country and that national economic indicators show that things should start to improve for 2010. Attendees got a good chuckle at his suggestion that we need to market ourselves better and suggested we change Reno to East Tahoe!

Tim Ruffin wins the quote of the day with “flat is the new up”. Commercial deals are flat, which is better than down!

Mark Krueger reported that more land deals happened at the end of 2009 than in the past 4 years and that the majority of those sales were to local builders.

Ken Amundson busted some myths and let us know that prices are not still falling, and in fact demand for homes under $200,000 may actually be driving prices back up.

The speakers presentations are now available on our website.

Sometimes the holiday spirit shines through when you least expect it!

Yesterday, was our 2010 board planning retreat. In a boardroom filled with somber discussions about budgets and events and other issues distressing our industry, one generous board member volunteered to donate $500 to adopt a family for the holidays.

The Builders Association Charity has an ‘Adopt-A-Family’ program every year. The Executive Director of the charity was simply giving an overview of the program and mentioned that she had received a phone call the day before asking to add another family to the program. Without even being asked, a BANN board member eagerly volunteered to donate $500 to purchase Christmas gifts for that family. Two other members of the group volunteered donations as well.

At a time when our industry is struggling just to survive, the generous nature of BANN members helps to make the season brighter for members of our community in need.

Builders Call For Housing Reform and Economic Recovery

Please watch this video of our members and share it with everyone you know!

Regardless of where you live or what industry you work in, the health if the housing industry affects you. Housing is accounts for 20% of the GDP and is huge source of employment.

President Obama and congress are looking at extending the first time homebuyer tax credit which will help. The National Association of Home builders estimates that extending the tax credit as-is for just one year will create 187,00 jobs. Expanding that credit to all buyers of a primary residence will create nearly 350,000 jobs - in just one year. Please, urge congress to extend and expand the tax credit now.

On the local level, we must tell local governments to stop making it harder for us to do business by increasing fees and the cost of construction. These costs are passed on to the consumer and new homes cannot compete with the foreclosures and short sales. We know they need to generate revenue but we have to find another way.

HOUSING = JOBS!

Your Opportunity To Network Like The Pros!

Networking is vital to business in our ‘new economy’. Many experts have blogged and written white papers - there's all kinds of chatter out there about networking. I believe it all comes down to one thing - people like to do business with people they know. Maybe they don’t need your product or service right now but when they do, they will remember you.

The Builders provides a lot of networking opportunities throughout the year but one stands out in my mind as the best…Table Top Night. It’s on October 7th so it’s really on my mind. There will be several rows of businesses with table top displays to explore, a large number of fellow networkers and you can stay for dinner for just $35 (please rsvp though). You might even win an awesome prize. Last year there were so many prizes it felt like everyone won something! Or you might end up having dinner with a new prospective client.

Did I mention that it’s FREE? Yes it ‘s free! If you want to have a table top display there is a $200 charge for BANN members ($300 for non members) and you’ll want to let Patty know asap because space is filling up fast.

So take this opportunity to expand your network and your business. Stock up on your business cards and practice the techniques that Chuck Sweeney tough us at the SMC networking seminar a few months ago.

What, you missed our Chuck Sweeney seminar? I’m sorry to hear that! Hear a few tips that I learned from Chuck:

1- Listen. It’s not all about you. Don’t just tell them about you and your business, ask about theirs.

2- Go with a reasonable plan. Don’t expect to give out 200 business cards and come back with as many. Aim for 5 or 10, a number your comfortable with. It’s about quality, not quantity.

3- Do something memorable. Follow up with a card the next day letting your new that you appreciated meeting them. Make it personal, reference something that happened or that you talked about.

Table Top Flyer

Contact Patty to reserve a table top display or a spot for dinner (775) 329-4611.

Realtor and new home sales agent close a sale thanks to Facebook!

We just concluded a fabulous seminar on social media from KPS|3 Marketing (thank you Stephanie Kruse and Mike McDowell!). Just to drive the point home a little bit more, here is an article from the Nation’s Building News yesterday, published by the National Association of Home Builders.

It give a specific example of a Realtor and a new home sales agent connecting n Facebook making a sale. It’s just one more tidbit to show you how important new media, specifically social media, can be to your business.

Find out more about how KPS|3 can help your business prosper through this recession. Visit their website or call them at (775) 686-7439.

Best-selling author and nationally known real estate investment advisor says October 2009 will bring an end to the downturn.

Robert Allen announced today that in his best estimation we will hit a bottom to the real estate downturn this coming October and that now is a good time to buy. This comes on the heels of noted financial expert Jim Cramer's prediction that June 2009 would bring a bottom to the market.

"What's changed from a few months ago is that inventory has begun shrinking, bidding wars have started across the country, and prices are finally starting to rise in many markets. I'm encouraging all my clients to start looking for properties again," said Allen.

"Smart real estate investors who buy carefully during these years will not see better bargains for many, many years to come. For many, this will be the best buying opportunity of their lifetime. About every ten years, the circumstances converge to create amazing bargains. We will look back on these years with fondness, like we look back at 1974-1975, 1981-1982, 1989-1990 and 2001-2002… as times when the deals were plentiful and fortunes were made."

Read more...

Source: PRWeb September 4, 2009

Urge Congress to extend and expand homebuyer tax credit

The housing industry has recently seen a small boost in homes sales due to the $8,000 first-time homebuyer tax credit. The credit is set to expire on November 30, 2009, but in order to continue helping America recover from the recession, the housing industry still needs support.

Homebuilders across America are asking Congress to extend the $8,000 tax credit through November 30, 2010, and expand it to include all home purchasers, not just first-time buyers.

If Congress extends the tax credit program, it would spur 383,000 more home sales across the country; including 80,000 housing starts down the road as the increased sales help deplete the current inventory of unsold homes. This stimulus will create nearly 350,000 jobs over the coming year nationally…over 3,800 of those would be right here in northern Nevada.

You can make your voice heard by letting your members of Congress know that housing equals jobs, and to restore America, we must revive housing.

Call your members of Congress today toll-free at 866-924-6242 and tell them to:

- Extend the deadline for the $8,000 tax credit through November 30, 2010
- Make it available to all home buyers

Thank you for your help in letting Congress know that to restore America, we must revive housing.

Knowledge You Need to Stay UP in a DOWN Market

Knowledge is power, according to Doug Smith. But, Knowledge is not power without action. What actions can you take to help you stay up in a down market? Find out at The Builders Mid-Year Construction Analysis Wednesday at John Ascuaga’s Nugget. RSVP required.

Last Chance for Mid-Year Construction Analysis registration

Find out when we can expect the housing market and local economy to improve, how Reno compares to other markets and what's next for housing at our Mid-Year Construction Analysis Wednesday. Register today!

Over $1.8 million in weatherization projects will begin July 1st

Starting July 1st, more than $1.8 million in funds will be available for the Low Income Weatherization Program in Washoe County. This program will upgrade and retrofit qualified homes to save money and energy. According to the State of Nevada Housing Division, more than 300 homes in Washoe County will receive the improvements saving 270,326 kilowatt hours of electricity and 25,207 therms of natural gas annually.

Hopefully this program, and others like it, will not only help us become a ‘greener’ planet but will create jobs and get our economy back on the road to recovery!

More information on the weatherization is available on the State of Nevada website.

What are your thoughts? We’d love your comments or stories about other programs like these!

NEW - Builders Association of Northern Nevada Remodelers Council

We just wrapped up the second organizational meeting for our Remodelers Council. It's going to be a great group! We’ll be working on ways to promote our Remodelers - licensed, educated professionals that operate under a strict code of ethics. We’ll focus on education, consumer advocacy and promotional opportunities.

NAHB provides a tremendous amount of support both to professionals and to consumers. Check out their website.

If you’re interested in joining the council, please submit this application. Annual Dues are $30, which are forwarded on to NAHB to get you listed in their online Remodelers index and access to their information.

A vote to approve the creation of the Remodelers Council will go to the Board of Directors on Tuesday, June 30th. You're application will help support our cause. We'd like to have as many as possible submitted before then.

If you have any questions or need more information, contact Missy Hinton (775) 329-4611.

Look who has joined us...

Printing Services of Nevada, Big O Tires Sparks, JR and Associates, Corona Cyan LLC. and SCK Painting & Drywall.

Welcome new members!

HUD allows $8,000 tax credit to be used for downpayment

One of the biggest hurdles for many first time buyers is coming up with a downpayment. With housing prices so low, renters could easily find themselves making mortgage payments as low as what they currently pay for rent. If only they could come up with a downpayment.

Now they can.

New measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or "bridge loans" up to the amount of the $8,000 first-time home buyer tax credit.

Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.

For more information, please visit the National Council of State Housing Agencies web site.

Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS.

Governor Gibbons signs tentative map extension into law

Good news for the building community! Tentative maps will now have a 4-year lifespan and final maps will be good for 2 years, with an additional 2-year extension allowed. We witnessed the Governor sign this bill into law today and it is effectively immediately.

Greg Peek, of ERGS Inc. and BANN past president, said this is a major accomplishment for builders and developers. ERGS has development project in Lyon County that had maps about to expire. The re-submitting process could have easily cost the developer hundreds of thousands of dollars.

If you have maps that re about to expire, please contact the planning department to make sure they are following the new timelines.

We Must Reset Property Tax at point of Sale

by Greg Peek

As our elected officials choose from a series of lesser evils to solve significant budget gaps, we have a perfect illustration of the fundamental unfairness of Nevada’s tax policy: we are too heavily reliant on business related taxes. A simple and fair way to raise millions in local revenue is to reset the assessed value of real property at the point of sale.

While sales tax, business tax, gaming tax, mineral tax, payroll tax, etc., are appropriate at some level, our reliance on business taxes has some nasty unintended consequences. Relying on single-industry taxes is akin to putting all your “eggs in one basket.” As we see today, if the industry slows, so does the tax revenue. Local governments are experiencing the whip-saw effect of our economic downturn. Continuing to raise business taxes and fees makes our state less attractive to out-of-state businesses considering relocation. We must make it easier to do business here, not more difficult. Lastly, the piling on of business tax and fees to pay for local governmental operations is fundamentally unfair.

Thirty years ago, the decision was made to depreciate homes 1.5% per year for 50 years (a maximum depreciation of 75 percent), reducing the property tax burden on the home owner and protecting long-time residents from being taxed out of their property. However, not resetting the depreciation schedule at the time the home is sold results in the new homeowner not paying his fair share by unfairly reaping the benefit given to the longtime homeowner. In essence, an individual purchasing a 50 year old home valued at $1 million is paying less property tax than a family living in a new $275,000 home.

Some have argued that resetting depreciation at point of sale violates the “uniform and equal rate of assessment and taxation” clause of the Nevada Constitution. The exact opposite is true: the current tax scheme violates the uniform and equal clause by treating homeowners differently. If the above owners are traveling the same roads, going to the same schools, being protected by the same police and fire departments, how is it fair that the owner of the $1 million mansion is paying less property tax than the family living the in the modest, starter home? Putting everyone on the same depreciation schedule from the time of purchase makes sense, is fair, and treats everyone equally.

Even California’s Proposition 13, on which Nevada’s tax cap was fashioned, includes a reset at point of sale. Resetting depreciation at point of sale would raise millions of dollars for local government. California got this one right. Why can’t we?

We urge our elected officials to seize the opportunity to institute fairness in real property taxation. Resetting real property deprecation at point of sale will protect existing homeowners from being taxed out of their home, raising much needed revenue in a fair and equitable manner. It is an easy solution to help bridge the gap in our governments’ budgets – a win-win action.

- Greg Peek is the Vice President of ERGS Properties and immediate past president of the Builders Association of Northern Nevada

$15,000 homebuyer tax credit would help local prospective buyers 'get off the fence'

A recent survey of more than 1,200 registered voters found that one-third of all respondents and 61 percent of renters would be more likely to buy a home if the $15,000 home buyer tax credit were to be enacted into law.

“A $15,000 tax credit would really help us get into a new home sooner rather than later,” explained Carolyn Perkins, a northern Nevada renter looking to purchase her first home. “It would be a huge benefit.”

Read more < http://www.thebuilders.com/updates/Releases/tax_credit_survey.pdf >