Satisfied Clients

We love to hear from our clients and recently received this letter from a couple whose house we built. They speak better for us than we can for ourselves -

Saturday, June 27, 2009

Fred and Jesse,

We wanted to take a minute to share with you how we feel about our new Bridle Bit home: WE LOVE IT! It is everything that we had hoped for and more; we look forward to many years in our beautiful new residence.

We also wanted to express our delight at the entire experience. When we set out to build a home, we heard from more than one source that the endeavor was sure to be a “nightmare”; acquaintances who had built homes did not hesitate to regale us with stories about builders and supervisors who would not return calls, shoddy workmanship on the part of work crews, and unbearably long delays in completion. We are pleased to say that we experienced none of these things—or anything else that was even slightly unpleasant—in our dealings with the two of you.

We so appreciate that you answered or returned all calls promptly; listened carefully to and followed through on our desires and ideas (and shared excellent ideas of your own); hired competent and reliable crews; finished our home in a remarkably short time; and, most of all, built our dream house at a price that we could afford! When we decided to build a home, we had expectations that we would have to make considerable compromises in order to come in at budget; even your assurances as we entered into the contract did not prepare us for the complete satisfaction that was to come; to our great surprise, you were able to find a way to put most everything that we hoped for into our home.

Since we have moved in, we have had a few of the minor problems encountered by any new homeowner. Again, you responded as soon as we called; most often, it was Jesse himself who took the time to run out and fix the ceiling fan or adjust the door—what service!

You are the kind of builder about whom every family setting out to build a new home dreams; you are straightforward, clear, and honest in your business dealings, and both of you are delightful to work with on a personal level. We cannot begin to express our sincere gratitude to you for a very pleasant building experience and a fabulous new home.

With much appreciation,

Mark and Sheila Richards

P.S. We just received our first electric bill—another pleasant surprise! :-)

The Tax Advantages of Home Ownership

Owning your own home can be a very rewarding experience — especially when tax time rolls around. Three tax items in particular — the mortgage interest deduction, the property tax deduction and the capital gains exclusion — can provide significant financial benefits to home owners when the time comes to settle up with Uncle Sam.  

Mortgage Interest Deduction

The interest you pay as part of your mortgage payment is deductible on your federal tax return and may also be on your state income tax return depending on where you live. This deduction applies to first and second mortgages, up $1 million of mortgage debt. Your lender should provide you with one or more IRS Form 1098s, which will provide the amount you may claim on your tax return. To benefit from this deduction you must itemize your deductions using a Schedule A Form. 

You may also deduct the interest on money you borrow against your home to finance housing or non housing-related expenses. An example is a home equity loan, which many home owners use to remodel their home, pay off credit card bills, buy a car, finance a vacation or pay for educational expenses. 

Property Tax Deduction

State and local taxes paid on the assessed value of the home are also deductible on your federal return.  Like the mortgage interest deduction, itemizing is necessary if you wish to deduct property tax payments.

Notably, for many home owners the combined deductions for mortgage interest and property taxes exceed the standard deduction — currently between $5,700 and $11,400, depending on filing status. When this is the case, home owners are able to deduct or “write-off” many other items including charitable contributions, state income or sales taxes, medical and dental expenses, tax preparation fees and other miscellaneous allowable deductions, which collectively can reduce your federal and state income tax liabilities dramatically.   Research by economists at the National Association of Home Builders indicates that for the typical home owner, these savings can exceed $5,000 in the first year of homeownership. 

Capital Gains Exclusion

Perhaps the biggest advantage to owning a home is the ability to avoid paying capital gains when it is sold. Under current law, married home owners filing jointly may exclude up to $500,000 of capital gains and single tax filers may exclude $250,000 from taxation. This exclusion applies only if you have lived in your primary residence for two years or more. But the exemption may be used repeatedly as long as the residency rules are met.  

The tax benefits conferred on home owners by the federal government are substantial. Annual benefits, such as the mortgage interest deduction and the property tax deduction, along with the less frequently used benefit of the capital gains exclusion, make homeownership more tax advantageous than almost any other investment. Take advantage of it!  

Be sure to consult your tax advisor about the deductions you may be eligible to claim.

To see the many more reasons homeownership benefits you, call us or visit www.nahb.org/forconsumers.

 

                                                

That Little Uptick

On March 25, the Commerce Department released a report that showed  sales of newly built, single-family homes rose for the first time in seven months in February. The little uptick you see in the graph on the left stands for a 4.7 percent gain in new-home sales to a seasonally adjusted annual rate of 337,000 units in February.

That little uptick just might be the harbinger of a housing market recovery. And, if you believe that the recovery begins where the bust started, that's great news for the entire economy.

"This is an encouraging sign that the market may finally be reaching a bottom," said Joe Robson, chairman of the National Association of Home Builders. "Consumers are beginning to take advantage of the first-time home buyer tax credit, historically low morgagte rates, very affordable home prices and the great selection of homes they have to choose from in this buyer's market. For those with good credit and job security, the stars are all aligned to buy a home now."

NAHB Chief Economist David Crowe predicts that sales numbers will continue to climb as a ressult of the stimulus package, which includes the $8,000 first time buyer tax credit and higher mortgage ceilings for conforming loans, historically low interest rates, and builders' incentives. All these are working together to reverse the three year housing slide.

The key fact for people who want to buy a home but have been putting it off is that once sales begin to steadily rise, so will prices and, eventually, so will mortgage rates. So, now is the time!

Call or email us today for information about our available homes and incentives, or about custom building the home of your dreams. We're always happy to hear from you and will bend over backwards to help you acquire a beautiful new home. 

Phone: 210-244-3635; Email: bridlebit@gmail.com

Remodeling? Get the Best Bang for the Buck

Your home is your castle, but sometimes that castle may need a face lift. Remodeling is a great way to create a home environment that can meet your family's changing needs and tastes without you having to spend a lot of money.

Before you spend your hard-earned dollars, however, make sure that the changes you make now will have longer-term benefits for you when you look to sell your home in the future.

You should find out what features are standard for homes in your neighborhood. If you only have one bathroom but most of the other homes average two or more, you will want to bring your house up to that standard. On the flip side, do not make changes to your house that are too extravagant or out-of-place for your neighborhood.

Make sure you are not making changes that will turn off prospective buyers. Keep in mind what future home buyers would like to see in their next home. For example, it may be wise to add an additional bathroom or bedroom rather than a sun room or sauna, which are costly and will not necessarily be a priority for anyone else.

The size and cost of your project matter as well. The Joint Center for Housing Studies at Harvard University advises that smaller or midrange jobs overall will tend to recover a higher percentage of their cost than larger, higher-end projects.

For example, replacing old windows will generate a higher payback ratio than adding a high-end kitchen with all of the bells and whistles and costs significantly less, according to Stephen Melman, an economist with the National Association of Home Builders. (www.nahb.org)

Maintenance-related projects, such as siding and window replacement, are especially popular because they are repairs that are seen as needed, but can also help improve curb appeal at fairly low costs in relation to other projects.

The top ten midrange projects, cited in Remodeling magazine's "Cost vs. Value Report", that provide the highest percentage return are:

1. Deck addition (wood) - 81.8%

2. Siding Replacement (vinyl) - 80.7%

3. Minor Kitchen Remodel - 79.5%

4. Window Replacement (wood) - 77.7%

5. Window Replacement (vinyl) - 77.2%

6. Major Kitchen Remodel - 76%

7. Bathroom Remodel - 74.6%

8. Attic Bedroom - 73.8%

9. Deck Addition (composite) - 73.7%

10. Basement Remodel - 72.9%

These numbers represent the national average and percentages may vary in your area. To get information on projects that are the best investments for where you live, check out Remodeling magazine's "2008-2009 Cost vs. Value Report" at www.costvsvalue.com.

Whether you are looking to sell your house soon, or just want to remodel for yourself, it makes sense to keep an eye on how the changes you make now will reflect on your biggest investment down the road.

If you'd like more information, please give us a call at 210-244-3635 or email us at bridlebit@gmail.com.

What About the "What Ifs"?

Given the ongoing turmoil in the housing and financial markets, many people who want to buy homes are sitting on the fence, either waiting for the market to bottom out or fearing that it never will. So what is the chance that the market will continue to decline, prices will continue to drop and a home purchased today will be worth less a year from now?
Of course, no one can know for sure what will happen a month, six months, or a year from now. Housing is predictably cyclical, but the current housing slump has already lasted longer than previous downturns. Moreover, timing the market is a strategy that rarely works; by the time it's clear that a market has turned around, it's too late to take advantage of the conditions at the bottom.
Fortunately, San Antonio has not been affected like so many other areas that we are hearing about. And we should not be basing our decisions on markets that are suffering a great deal more than we are. According to the 2008 and 2009 Multiple Listing Service (MLS) report by the San Antonio Board of Realtors (SABOR), at the end of November 2008, there were 949 pending sales. A month later, the numbers were up -- with a total of 996 pending sales. In January 2009, the numbers were up again -- 12 percent from the December figures -- with a total of 1,112 pending sales.
For most Americans, homeownership is a primary source of net worth and an important step in accumulating personal wealth assuring financial security. Today, even though property values have declined in some markets, Americans have a total of $8.5 trillion in equity in their homes. Home equity represents the largest share of net worth for most families.
It is time to buy! Get off the fence!

--Fred Elsner, President/CEO Bridle Bit Corporation and president, Greater San Antonio Builders Association.

FAQs on the $8,000 Tax Credit for Homebuyers

For more information on this really wonderful incentive for first time homebuyers, or buyers who haven't owned a residence for three years, follow this link:
http://www.federalhousingtaxcredit.com/2009/faq.php
for comprehensive information, then come see us!

Economic Stimulus Benefits Housing and Mortgage Industries

Just signed and sealed…a $787 Billion Stimulus Plan made up of tax cuts and spending programs aims at reviving the US economy and helping people acquire, and retain, the homes. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II.
Home owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here is what we know as of today...
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Tax Credit for Homebuyers
Go to this website for answers to most of your questions about the tax credit:
http://www.federalhousingtaxcredit.com/
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Homeowner Affordability and Stability Plan
President Obama today unveiled details of a foreclosure prevention plan designed to help 7 to 9 million responsible homeowners afford their mortgage payments. March 4 has been designated as the official roll out date for the program. The plan has three main components:
1. A refinancing program for borrowers who are current on their mortgage payments but who have been unable to refinance because the value of their home has declined.
2. A mortgage modification program for borrowers in default, or at imminent risk of default, that builds on the model established by the FDIC by expanding eligibility and establishing incentives for borrowers, mortgage holders and servicers.
3. Actions to bolster the financial stability and mortgage support capacity of Fannie Mae and Freddie Mac.
Refinancing Program
· Applies to loans owned or guaranteed by Fannie Mae and Freddie Mac.
· Allows borrowers, who because of a decline in their house value, have a mortgage loan-to-value ratio (LTV) of greater than 80 percent, to refinance to a lower interest rate mortgage, even if the new loan would have previously failed to meet Fannie/Freddie requirements.
· Maximum LTV on new mortgage is 105%. Will not help homeowners who are completely underwater on their mortgage (those households will be addressed in the mortgage modification portion of the program).
· Program is expected to create mortgage refinancing opportunities for up to 4-5 million homeowners.
Mortgage Modification Program
· Builds on the loan modification protocol developed by the FDIC, where a loan is modified by reducing the interest rate, increasing the term and/or deferring/reducing principal payments, if such adjustments result in a better net present value for the mortgage investor than disposition through foreclosure.
· Establishes clear and consistent standards and guidelines for identifying borrowers at risk of default and for loan modifications.
· Eligibility is based on high mortgage debt payments compared to income, or borrowers that are underwater. Delinquency is not a requirement for eligibility. Will also serve homeowners who have not missed payments, but who are in danger of doing so. Requires HUD-approved counseling for families with high (55 percent) total debt-to-income ratios.
· Keeps modified payments in place for at least 5 years, after which payments may be gradually increased to the conforming loan rate at time of modification.
· Servicers receive FSP/TARP funds for undertaking modifications, for subsequent modification successes, and are offered, along with mortgage holders, additional financial incentives to modify loans prior to default.
· Provides financial incentives to borrowers who remain current on mortgage payments following loan modification.
· Provides a partial guarantee to mortgage holders (through a $10 billion insurance fund established by Treasury and FDIC) to offset future declines in the value of the home collateral.
· Program is expected to reach up to 3-4 million at-risk homeowners.
· To establish additional motivation for loan modifications, seeks legislation to make changes in personal bankruptcy statue that will allow judges to modify mortgage terms, including reductions (cramdowns) of principal obligations.
Initiatives to Bolster Fannie Mae and Freddie Mac
· Increases Treasury’s Preferred Stock Purchase Agreements to $200 billion for each company, up from the current $100 billion commitment.
· Continued Treasury purchases of Fannie and Freddie MBS and debt.
· Increases Fannie’s and Freddie’s portfolio limits by $50 billion to $900 billion for each company.
· Commits Fannie and Freddie to providing support to state housing finance agencies.
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Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing — This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.
Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance — This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

This information was provided by Hillary Singer of Excellence Mortgage in San Antonio, 210-930-5714.