Monday Coffee With Al & Dee

A windsock tells you the direction and intensity of the current wind in an area.  Well, in real estate we also have a windsock that tells us what the market is in a specific neighborhood is and what it may be.  We call it the Absorption Rate. 

Tracking it in Biloxi, Ocean Springs, Gulfport over time, and you have a trend for a specific city or neighborhood.  This is a very useful tool that helps us keep our clients abreast on the current market conditions.

To determine the Absorption Rate in your neighborhood or even the overall market environment of a city, simply divide the total number of active listing by the average number of sales per month.  The result gives an estimate measured in months of how long it would take to sell off the current inventory of listing. It's important to remember that Absorption Rate change weekly depending on closed sales, new listings, and other factors. 

This figure is very easy to determine on your own.  You only need to know two things - the total number of active listings (homes currently t to mention that this estimate does not take into consideration any additional homes that will come on the market in the future.   

For example, if 100 homes sold per month and there are 800 homes currently for sale, then there is an 8 month supply of inventory for this particular market. Anyone considering selling a home must place the emphasis on having their home priced properly for its location and condition.

Absorption Rate:  800 listings / 100 average sales per month = 8 months of inventory

This is a very useful tool which can help you to determine the direction that things are trending. Think of the absorption rate as a "windsock" for the real estate market.

   Monday Coffee With Al & Dee

The Gulf Opportunity Zone (Go Zone) Act of 2005 was created after Hurricane Katrina devastaded many Gulf Coast areas. There is still time to take advantage of these opportunities and it is still is a fantastic opprtunity that can be taken of either with or without IRA funds.

  

MISSISSIPPI GULF COAST — A key tax incentive designed to spur rebuilding efforts in the areas hardest hit by Hurricane Katrina is extended for two years by legislation introduced by Sen. Roger Wicker (R-Miss.) and Thad Cochran (R-Miss.).

The GO Zone’s bonus depreciation deduction has been utilized by investors and developers in projects across the Gulf Coast. The incentive is available to projects of all sizes, from manufacturing plants, hotels, and office buildings to retail stores and apartment complexes. Some if the deductions include:

50% Bonus Depreciation

The GO Zone Act allows for a significant acceleration of the normal depreciation deduction by allowing a bonus depreciation deduction in the first year Qualified GO Zone Property is placed in service equal to 50% of its cost, in addition to the normal depreciation deduction for the balance of such costs.

The bonus depreciation can be used for investments in Qualified GO Zone property, which must meet the following four elements: (1) Eligible property (generally, equipment, non-residential real property or residential rental property); (2) “substantially all” of the use of which is in an “active trade or business” in the Go Zone; (3) the original use of which began in the GO Zone on or after August 28, 2005; and (4) which was acquired by “purchase” for which there was no “written binding contract” for its acquisition in effect before August 28, 2005.

5-Year Net Operating Loss (NOL) Carryback

Recognizing deductions generated by the 50% bonus depreciation may exceed current year income, Congress expanded the opportunity for businesses in the GO Zone to carry back their net operating losses. The time period for the NOL carryback was extended from 2 years to 5 years, and businesses may carry forward NOLs for up to 15 years. This may enable a business to convert operating losses into refunds for taxes previously paid.

Tax-Exempt, Private-Activity “Go Bonds”

Tax-exempt, private-activity bonds have now been authorized to finance development of a wide array of commercial projects in the Zone on or after August 28, 2005. Mississippi may issue in excess of $4.9 billion in tax-exempt “GO Bonds,” while Louisiana may issue nearly $7.9 billion, and Alabama may issue in excess of $2.1 billion.

Tax-Exempt, Private Activity Go Bonds Permit Use Of Additional State-Law Incentives In Mississippi

If properly structured, projects financed with tax-exempt GO Bonds can be exempt from the sales and use tax (generally 7%) and, with proper planning, can avoid a portion of the contractor’s tax (the 3½% tax on component materials and on design services).

100% Deduction for Qualifying Tangible Personal Property for Small Businesses

The amount small businesses are permitted under Section 179 to expense, rather than depreciate, for investments in qualifying tangible personal property and computer software placed in service in the Zone has been increased by $100,000 to $208,000. The placement in service dates are the same as those that apply to bonus depreciation. The investment ceiling limit for eligible property has been increased by $600,000 to $1,030,000.

Demolition and Cleanup Expenses May Be Expensed
Under existing law, the cost of demolition generally is added to the business owner’s basis in the underlying land and cannot be recovered until the property is sold. The GO Zone Act allows businesses to expense 50% of their demolition and cleanup expenses incurred through 2007. 

Please contact your CPA or financial advisor to see if you qualify for a Go Zone Exemption. Some of these deductions may have been expanded and/or deleted – We are not financial advisors.

   Monday Morning Coffee With Al & Dee

   Monday Morning Coffee With Al & Dee

 

Your refrigerator is the biggest user of electricity in your home. Cleaning its coils is very easy and it should take about five to ten minutes of your time.  You really don't need any expertise and doing this once a year will keep your refrigerator running smooth, longer and save a few dollars on your electric bill.

    The coils on the back or the bottom of your refrigerator give off heat. Dust or debris keeps them from cooling, making your refrigerator work harder.

Steps

1. Unplug the refrigerator.
2. Determine whether the coils are behind or under your refrigerator by pulling the refrigerator out or removing the kick plate under the door and peeking under the refrigerator.
3. Vacuum the coils to remove dust balls, pet hair or anything else that inhibits air movement. If you prefer, use a coil brush that you can purchase at a hardware store.
4. While you’re at it:
   • Check the door seals for air leaks.
   • Clean door seals with soapy warm water.
   • Empty and clean the defrost drain pan.
   • Remove mildew from the ice and water dispenser openings.
   • Check the water dispenser for proper flow rate – normally 8-10 ounces of water in 10 seconds.
   • Remove and shelves and crispers, and wash them and all interior surfaces with a warm, damp rag. Don't use any chemical cleaning solutions.

 

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

     Monday Morning Coffee With Al & Dee

 

We are very proud to offer our newest listing on the grounds of secluded and private La Bonne Terre in Biloxi, Mississippi.  Strategically located near shopping, hospitals, entertainment and Interstates, this custom-built treasure enjoys a superb setting with plenty of privacy. Follow this link to see a Virtual Tour of this home

    Designed as either a four or three bedrooms with a Mother-In-Law Suite, this jewel has wonderful spaces for entertainment and family living with an impeccable level of luxury comfort.  Such quality accents as 3,189 square feet with imported ceramic tile, hardwood floors, triple crown molding, high ceilings, elegant columns with archways, formal dining room, and a spacious additional room with built-ins adapted as an office.

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search 

     Monday Morning Coffee With Al & Dee

In the last year, have you experienced a credit card interest rate increase, a fee you felt was unfair or a credit line reduction for no specific reason? If so, did you receive any notice or explanation as to why? To pour salt on the wound and highlight the magnitude of the challenge, it was reported that credit card providers collected around $15 billion in penalties fees each year.

HERE IS THE GOOD NEWS!                                                   
The good news is that Washington is trying to rectify some of these challenges with The Credit Card Accountability, Responsibility and Disclosure Act of 2009 - commonly referred as the Credit Card Act - which went into law on May 22, 2009. And just in time we just received a noticed from the JC Penny Credit Card company advising us that our rate will increase to 23.99% and anytime there is a penalty the rate will increase to 29.99%!... and this is on our zero balance card.  Well, there is a way out of this increase you may not have noticed.

In small print you it says that you have the right to reject certain of these changes if you call the toll free number. We did, and they kept our current interest rate at the 19% rate which we think is still too high! Regardless, if you get a notice of increase, you can challenge it.

The Credit Card Act also states that if for any reason you miss a payment with one creditor, another cannot automatically increase your interest rates or drop your credit limit. It also requires that anyone under the age of 21 will need to have a co-signer or a job in order to get a credit card. In addition you now have 21 days instead of 14 to make a payment on your card.

So if you get a notice of an increase in your credit card interest rate, make a call... it'll surely save you money! 

Of the people that you know, who do you think will be selling or purchasing
a home now or in the near future? It would be our pleasure to help them with service beyond what they would expect. Please call us at 228.374.0002 or contact us through our email.

   

NEED A CMA? Or do you know of someone who may need to know to their home is worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search 

     Monday Morning Coffee With Al & Dee

Countless Americans diligently check the stock market everyday - on TV, online, and in print - but fail to take stock on an even weightier investment: their own home. Are you among the ninety-five percent of American homeowners who are unaware of the market value of your home?

WHA'T A COMPARATIVE MARKET ANALYSIS?                   

NEED A CMA? Or do you know of someone who may need to knwo to their home is worth? Perhaphs you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

A Comparative Market Analysis, or CMA, provided by a real estate professional
can bring you up to speed. As the name suggets, a CMA compares your house with
similar ones on the market in your neighborhood during a specified time period.
This data, combined with the value of upgrades, will give you an accurate picture
of your home's worth. Remember, however, that your personalized CMA is a "snap-
shot" captured in past time, while the real estate market constantly fluctuates;
therefore, it's a good idea to obtain a new one each year.

The CMA is the only market based means of measuring value. When buying, selling
or refinancing, a CMA is essential in setting price and in choosing advantageous
timing. Still, there are numerous other reasons to run a CMA - to obtain a realistic
picture of your networth, to provide adequate replacement insurance, or to leverage
your equity. 

Of the people that you know, who do you think will be selling or purchasing
a home now or in the near future? It would be our pleasure to help them with service beyond what they would expect. Please call us at 228.374.0002 or contact us through our email.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search 

     Monday Morning Coffee With Al & Dee

Our newest listing is a great home situated on two large fenced lots and near schools, shopping, hospitals, and entertainment.  Magnificent Victorian-style home with front porch and semi-turret.  Privately situated on two lots and towards the end of a cul-de-sac for maximum privacy and serenity.  Located in Floral Estates this three bedroom, two and one half bath home displays a spacious family room and formal room that can be used as a den for family times and entertainment.  Spacious dining room and kitchen with side door to the splendid fenced back yard.

Move your computer's mouse over the picture, click once and watch a great Virtual Tour!

Remember that when you know someone thinking or buying or selling real estate, please let us know and it'll be our pleasure to provide them with personalized serviced beyond what they would expect.

Would you like to see the inside of this home? Give as a call at 228.374.0002 or email us and we'll schedule the appointment right away!

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search