McCall Idaho Real Estate

With the recent news of the European Debt Crisis and the Chinese Labor Crisis the mortgage bond market has seen quite possibly the biggest rally in 40 years.  Valley County has seen some stabilization in real estate this past year but we are still in a buyer’s market and interest rates are now at an all time low.

 There hasn’t been a better or cheaper time to look at buying a second home, investment property or primary residence.  The average loan for a second home purchase or primary residence at 80% loan to value has been hovering around 4.5%!  

The mortgage bond market seems to be stabilizing in the upper 4% realm and we’ve enjoyed almost three weeks of these record low rates.  If you’re considering buying an investment property, this rate cycle has the best time in almost three years to buy or refinance.  Prior to this dip it was impossible to get an investment property rate under 6% and we have been doing refinances and purchases around 5.25% with 25% equity in the property. 

 It’s hard to tell how long this cycle will last.  Things can change by the hour and this is by far the longest cycle of sub 5% rates.  As the economy picks up, rates will go up with it.  If you have any questions about financing a second home or investment property I’ll be glad help out any way I can.  mailto:ghubner@frontiernet.net

Brundage Mountain Resort is offering free chair lift rides for bikers, and others, on July 1st to kick of the biking season. 

Whether  you’re looking for a relaxing ride in a gorgeous setting, or the adrenaline rush that only a high-altitude adventure can provide, Brundage Mountain’s lift-served mountain biking has it all.

The high-speed chairlift whisks you to the 7,640 foot summit, and the rest is up to you and gravity. With more than 20 miles of hand-built single-track downhill trails, there’s a route to fit nearly every experience level.

Novices can work out the kinks on the scenic Elk Trail, which gently winds its way down through scenic forests and meadows.

Extreme thrill-seekers can test their mettle on Zorro, a technical route that takes full advantage of gravity’s pull.

With access to hundreds of acres of Payette National Forest and a vertical drop of 1640 feet, mountain biking at Brundage is sure to satisfy your sense of adventure.  Visit the Brundage Mountain website for all the rates, rentals and all the rest at http://www.brundage.com/

National home prices posted annual gains for the second month in a row during April, although prices were lower in 24 of 50 states, according to the home-price index maintained by CoreLogic.  

CoreLogic is  a leading provider of information, analytics and business services.

The home-price index showed home prices nationwide were up 2.6 percent from a year ago in April — a reflection of “the lingering effects of the homebuyer tax credit,” said CoreLogic Chief Economist Mark Fleming in a statement.

“We expect that we will see home prices remain strong through early summer, but in the second half of the year we expect price growth to soften and possibly decline moderately.”

Even with recent gains, the index showed national home prices down 29.5 percent from their April 2006 peak.

The 10 states with the greatest annual price appreciation during April were:

1. Hawaii (13.4 percent)
2. Massachusetts (7.4 percent)
3. California (7.3 percent)
4. Virginia (6.5 percent)
5. New Hampshire (5.2 percent)
6. Maine (4.8 percent)
7. Ohio (3.9 percent)
8. Missouri (3.8 percent)
9. Rhode Island (3.6 percent)
10. Nebraska (3.6 percent)

The 10 states with the greatest annual price declines during April in CoreLogic’s home-price index were:

1. Idaho (-7.2 percent)
2. Illinois (-5.8 percent)
3. Nevada (-4.6 percent)
4. Maryland (-4.3 percent)
5. Washington (-3.7 percent)
6. Pennsylvania (-3.7 percent)
7. Mississippi (-3.7 percent)
8. Florida (-3.5 percent)
9. Alabama (-3.5 percent)
10. Oregon (-2.6 percent)

How you’ll maintain your vacation home might not be at the top of the list as you shop for a beach cottage or mountain cabin, but it should be. You’ll need to devote time and money to handling routine home maintenance and responding to emergencies.

Hiring a professional property manager can ease the maintenance burden, but not the price tag. An informal arrangement with a local caretaker can be cheaper. Doing the work yourself can be cheapest of all, but the logistics get complicated if your vacation home is far away.

Property managers: Convenience at a price

Hiring a property management company for your vacation home can be costly, but it can save a lot of effort (and headaches) on your part. A property manager can open and close your vacation home, and screen and hire a staff to make sure your house is well-maintained inside and out. If you plan to rent out your vacation home, a property manager can advertise the rental, check in guests, and handle payments.

A property manager acts as your eyes and ears, doing regular drive-bys and responding in emergencies. This is especially important if you live far from your vacation home. Ask owners of nearby vacation homes for referrals. Membership in a trade group like the Vacation Rental Managers Association adds to credibility.

Property managers don’t come cheap. According to Christine Karpinski of HomeAway, a vacation rental website, property managers typically get 20% to 60% of the rental income from your vacation home. So if your ski chalet rents for $1,000 per week, expect to hand over anywhere from $200 to $600 of that income to the property manager.

Local caretakers can be cheaper

A cheaper alternative to a property manager, especially if you don’t plan to rent out the house or will handle rentals yourself, is hiring a local housecleaner or handyman to maintain your vacation home. Again, other homeowners are the best source for referrals. Even during the offseason, it’s a good idea to have someone local who can go to the house once a month to turn on faucets, flush toilets, and inspect for damage.

How much you pay will vary by location and the nature of the caretaking tasks. A recent survey of cleaning fees put the cost between $69 for a 1-bedroom home and $199 for a 6-bedroom. A rule of thumb for calculating cleaning fees is to multiply the number of bedrooms and bathrooms combined by $20.

Since you’re entrusting cleaners and handymen to go in and out of your home unsupervised, check references and ask for proof that they’re bonded and insured. A fee-free option is to rely on a neighbor. Work out an arrangement to check on each other’s properties regularly, rather than hiring someone.

Prepare for maintenance emergencies

Preventive home maintenance reduces the likelihood of emergencies, but a pipe is bound to burst eventually. As the owner of a vacation home, especially one that’s hundreds of miles away, the most important thing you can do is be prepared for the inevitable.

If you don’t have a property manager, caretaker, or year-round neighbor you can call, at least have a list of local repair companies at your fingertips. Invest three or four hours into assembling a list of plumbers, electricians, exterminators, and the like. Ask other homeowners for recommendations, or, if too few are forthcoming, turn to a service like Angie’s List or even the phone book.

Having a keyless entry system for your vacation home is critical in the event of an emergency. A basic touchpad model costs less than $100. You can give the code to a repairman over the phone. A wireless system, which allows you to use a computer or cellphone to change the entry code, can cost three times that amount plus a monthly service fee of perhaps $10 to $15.

the all-new 3rd edition of Mountain Biking in McCall is hot off the press.  Written by Steve Stubner the following was from his blog. 

Cabin for Sale in McCall

A big reason for owning a vacation home is rest and relaxation, but it’s not all fun and games. Opening and closing a vacation home takes time and money.

Plan to spend a day before the season starts to open your vacation home, and another day at season’s end to close it down. Specific tasks, such as draining off pipes or turning on utilities, will depend on climate, as well as when and how the vacation home is used. A beach cottage has different requirements than a mountain cabin.

 If you don’t live nearby or don’t want to do the work yourself, be sure to budget for a property manager or local caretaker. Opening a vacation home When it’s time to visit your vacation home for the first time, or start renting it out for the season, you’ll need to get it ready.

 A ski chalet might require you to shovel snow and chop firewood, while a summer retreat by the shore might call for cleaning patio furniture and staining the deck. Much depends on how well the house is maintained throughout the year.

 Opening your vacation home could be as easy as stocking the pantry, or if the house was neglected in the offseason, you could have multiple repairs on your hands. A well-maintained vacation home shouldn’t take more than a day to get in shape for the season, assuming no major repairs are needed.

Here are some typical opening chores: •Turn on utilities •Clean and stock kitchen and bathrooms •Look for evidence of plumbing and roof leaks •Cut lawn and trim shrubs/trees •Clear walkways and driveway •Set up outdoor furniture •Change lightbulbs and smoke detector batteries •Replace furnace filters •Check for signs of pest infestation

 Closing a vacation home

 Closing a vacation home also takes about a day to complete. The emphasis should be on safeguarding your home against the elements as well as fire risks. Here are some common closing tasks: •Turn off nonessential utilities •Secure all windows and doors •Turn on alarm system •Close storm shutters •Dispose of trash and perishable foods •Adjust furnace settings for climate •Bring in outdoor furniture •Unplug appliances and electronics •Drain water lines to prevent freezing (in cold climates) •Request mail-forwarding service.

 To deter vandalism and theft, consider installing a home security system. You can also put in automatic indoor lights that turn on at dusk or outside flood lights that are motion-activated. If the house is only going to be vacant for a couple of months, call your utility providers to see if discounted “vacation rates” are available. It might be cheaper than turning off services and paying a reconnection fee a few weeks later.

 Property manager vs. caretaker

It’s costly to hire a property management company to maintain your vacation home, including opening it and closing it. If you plan to rent out your vacation home, a property manager typically gets 20% to 60% of the rental income, according to Christine Karpinski of HomeAway, a vacation rental website.

 A less expensive alternative is hiring a local housecleaner or handyman to open and close your vacation home, and keep an eye on the property during the offseason. A good rule of thumb for calculating cleaning fees is to budget $20 for each bedroom and bathroom, so a 3-bed/2-bath home would cost $100 to clean.

If you live far from your vacation home, you may have little choice but to hire local help. Ask owners of nearby vacation homes for referrals. Look for a property manager or caretaker with good references who has been in business locally for an extended period of time. And no matter who you end up hiring, be sure that anyone coming onto your property to do work is bonded and insured.

 Donna Fuscaldo has written about personal finance for more than 10 years at the Wall Street Journal, Dow Jones Newswires, and Fox Business. She one day hopes to own a vacation home in the Catskills of New York.

Sales of home and lots shot up sharply in the first three months of 2010, but many of those sales were of properties taken in foreclosures, a report by the Mountain Central Association of Realtors said.

The report of the association’s multiple listing service for January through March saw 85 homes sold in Valley County and Meadows Valley.

That was an 85 percent increase from the 46 homes sold in the same period in 2009.

However, two-thirds of those sales, or 59 of the 85, were sales of foreclosed properties, the MLS report said.   When you look more closely to certain areas, McCall was about 50% of foreclosed or short sales while Tamarack was 90% foreclosed or short sales.

The same was true of bare lots, where 23 of the 35 lots sold were “short sales” of distressed properties. Only 18 home sites were sold in the region in the first three months of 2009.

The median price of a home sold in McCall during the first quarter of 2010 was $205,000, compared with a median price of $250,000 during all of 2009, and these price drops are what is driving the large increase in sales.

McCALL, ID – Thirteen inches of new snow awaited skiers and snowboarders who showed up at Brundage Mountain today to celebrate the ski area’s final day of the 2009/2010 season. This is only the second time in the resort’s history that it has operated in the month of May. Brundage Mountain is the only ski resort in Idaho to operate into the month of May this season. Late season snowfall in late March and through the month of April allowed Brundage to extend its regular season for the past three weekends.

Snow was falling as hundreds of snow lovers turned out to enjoy the impressive conditions. Resort operators had even more to celebrate as Brundage Mountain is reporting its most successful season to date. The ski area is reporting record revenues and a record Early Season Pass sale, both in the total number of season pass holders and revenues.

“We want to thank our longtime supporters and also our new season pass holders for contributing to the continued success of Brundage Mountain,” said resort spokesperson, April Russell.

The last time Brundage Mountain was able to operate in May was during the 2007/2008 season, when the resort had near-record season snowfall of 428 inches. In comparison, this season’s cumulative total is a modest 245 inches.

“We’re very proud to be able to report such robust business in a year with modest snowfall and challenging economic conditions,” said Russell. “We attribute our success to our ongoing efforts to improve the experience for our guests and to invest in upgrades that directly affect the quality of the time they spend here.”

In 2007/2008, Brundage Mountain invested in two new chairlifts, the Lakeview Lift and the Bear Chair. This opened up new terrain and continues to help the ski area maintain short lift lines and uncrowded slopes even as business levels rise. Over the past three seasons, the resort has upgraded its grooming fleet, with two new Prinoth BR 350 groomers and a winch cat. This equipment has allowed the mountain to provide higher quality slope conditions during periods with modest snowfall. Brundage has also invested in an ongoing brush cutting program, which allows for more skiable off-trail terrain early in the season or when snow levels are lower. In 2008/2009, Brundage also constructed a new mid-mountain food and beverage facility to help ease crowding in the base area lodge.

Brundage has also invested considerable human resources in a program it calls “Focus on the Guest”. This continued effort focuses on offering the highest levels of customer service possible.

“We’ve worked hard to get input from our guests and put their suggestions into practice,” said Russell. “That feedback has made it possible for us to invest in things that directly benefit the visitors. I think our customer base is noticing and that support shows up in the form of a healthy bottom line.”

( from Nikki Nakano Guild Mortgage nnakano@guildmortgage.net )

Tip#1 Get a complete quote in writing for lenders rates and all associated closing costs.   The total cost of your mortgage includes the rate you qualify for, plus all the closing costs.   Advertised rates can be misleading as they do not include  your personal qualifications that determine your actual pricing.   Be sure that all loan origination fees, discount points, credit report, appraisal, title, escrow fees and any other lender fees are shown.

Tip 2.  compare lenders prices on the same day.  Mortgage rates change daily just like stock and bond prices.  Sometimes even during a day they can change. 

Tip 3.  Get an assurance as to any possible variance of rates and fees quoted.   A comprehensive quote should be accurate within $100 – $200.  If a lender won’t commit in writing, move on

Tip 4. Seek sound advice on when to look.   You can lock your rate at any point after you have an accepted offer and established a closing date.   Credible lenders track market activity daily and can provide accurate historical data showing you daily and weekly trends in the market before you lock.  Choosing the right day to lock is just as important as choosing the right lender.  Does your lender call with market updates?

Tip 5.  Choosing the right lender.  Major Bank?  Credit Union? on-line lender?  It is nearly impossible for any single bank or credit union to have the best rates in the market at all times given their process to obtain their money from Wall Street.  As you begin the process of obtaining a mortgage, consider the day you will lock in your rate.  Will your lender be in the best position in the market?  Lenders with a choice of institutions for obtaining money might be your best chance of providing you the lowest cost mortgage.

Vacation condos in McCall

Tax deductions for vacation homes vary greatly depending on how much you use the home and whether you rent it out.

You can rent out a vacation home for as many as 14 days per year without paying taxes on your rental income. Image:

A vacation home offers a break from the daily grind, but it can also offer a break from taxes. The IRS allows most owners to lower taxable income by taking tax deductions for vacation homes. What’s deductible depends on a number of factors, especially how often you visit and whether you allow renters.

Don’t limit your notion of a vacation home to a beach cottage or a mountain cabin. Even RVs and boats can count, as long as there are sleeping, cooking, and bathroom facilities. Tax deductions for vacation homes are complex, so consult a tax adviser.

Is your vacation home a vacation home?

Lake View Home in McCall

If you bought your vacation home exclusively for personal enjoyment, you can generally deduct your mortgage interest and real estate taxes, as you would on a primary residence. Use Schedule A to take the deductions.

The IRS even allows you to rent out your vacation home for up to 14 days a year without paying taxes on the rental income. You might be able to deduct any uninsured casualty losses too, though you can’t write off rental-related expenses. (More on those below.) If the home is rented for more than 14 days, you must claim the income.

Now, if you own what you consider a vacation home but never visit it, or only rent it out, other tax rules apply. Without personal use the home is considered an investment or rental property by the IRS. Time spent checking in on a house or making repairs doesn’t count as personal use.

Tax deductions for rental owners

As an exclusive rental property, you can deduct numerous expenses including taxes, insurance, mortgage interest, utilities, housekeeping, and repairs. Even towels and sheets are deductible. Use Schedule E. You can also write off depreciation, the value lost due to the wear and tear a home experiences over time.

Treat the rental property like a business, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services. Keep detailed records and maintain a separate checking account. Figure you’ll spend a couple of hours a week, on average, over the course of the year managing the property.

To maximize deductions you need to be actively involved in the rental property. That means performing such duties as approving new tenants and coming up with rental terms. You also need to own at least 10% of the property. See IRS Publication 527 for details.

If your adjusted gross income is $100,000 or less you can deduct from your taxable income up to $25,000 in rental losses—that is, the difference between your rental income and your rental expenses. The deduction gradually phases out between an AGI of $100,000 and $150,000. You may be able to carry forward excess losses to future years, or use losses to offset taxable gains when you sell.

Expenses can add up. HOA fees (average: $420), routine maintenance costs ($360), and six months’ worth of utilities ($1,100) alone total nearly $2,000. By deducting $2,000 from taxable income of $100,000, a married couple filing jointly would cut their tax bill by $488.

Mixed use of a vacation home

The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. Remember, rental income is tax-free only if you rent for 14 days or fewer.

The key to maximizing deductions is keeping annual personal use of your vacation home to fewer than 15 days or 10% of the total rental days, whichever is greater. In that case the vacation home can be treated as a rental, meaning you get the same generous deductions. To avoid going over the 10% limit, essentially you shouldn’t use your vacation home more than one day for every 10 days you rent it.

Make personal use of your vacation home for more than 14 days (or more than 10% of the total rental days), however, and your deductions may be limited. If your rental income is less than your rental expenses, for example, you can’t use the loss to offset other sources of income. There’s a worksheet that determines which expenses you can carry over to the following year.

Another big blow: The IRS requires you to divide expenses between personal use and rental use. Let’s say you have a vacation home you personally use for 25 days and rent for 75 days. That’s 100 total days of use. You can only write off 75% of the expenses as rental expenses—75 rental days divided by 100 total days of use works out to 75%. Some of the personal expenses, such as mortgage interest and real estate taxes, may be deductible on Schedule A.

IRS closes tax loophole

A popular strategy used by owners of vacation homes to avoid paying capital gains on a sale was to convert a vacation home into a primary residence. This was accomplished by living in the home for two years out of the previous five before selling. By doing so a gain on the sale of up to $250,000 for single filers ($500,000 for married filing jointly) was tax-free.

The IRS hasn’t done away with the cap-gains exclusion, but it is closing the loophole for vacation homes. Starting in 2009, you have to pay regular cap-gains taxes on the portion of the gain that’s equivalent to the time you used the home as a vacation home after 2008.

Let’s say on Jan. 1, 2010, you move into a vacation home you bought on Jan. 1, 2002. Two years later you qualify for the cap-gains exclusion and decide to sell. You’d pay regular capital gains on 10% of the gain because in 2009 the home was a vacation home subject to the new IRS rules. The other nine years—2002 to 2008, when the old rules applied, and 2010 to Jan. 1, 2012, when the home was used as a primary residence—qualify for the exclusion.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.