Archive for January, 2010
The BIG Number
categories: Alpharetta Real Estate, Forsyth, The Big Number
$17,000,000
The price reduction on the47,000 sq. ft. Le Reve Estate in Cumming, GA. Reduced from $45,000,000 to $28,000,000.
Posted by Bob Strader | Currently No Comments »
North Fulton Home Sales: Market Update
categories: Alpharetta Real Estate, Crabapple, Local Market Conditions, Milton Real Estate, Roswell Real Estate
Here Comes The Sun
It’s been a long cold lonely winter… And there have been a few news reports recently stating that home sales declined from November to December last year and this means the recovery won’t happen or the light at the end of the tunnel is much further away. The reason is kind of obvious, with the first-time home buyer tax credit originally expiring at the end of November there was a rush by home buyers to get in under the wire. So news reporters keeps driving this negative point in some effort to perpetuate some scary outlook for the economy.
To be sure, jobs are still an issue and looks like they will be for some time, but the real estate market here in Atlanta is still trending in a positive direction, just like it was in November. For instance, the number of single family homes sold in Metro Atlanta for Dec 09′ has increased over Dec 08′ and for condos/townhomes that increase is more than 20%. So, I’ve put together some numbers for North Fulton specifically…
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Single Family Homes Sold |
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Sold |
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Sold |
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Dec-08 |
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Dec-09 |
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Increase |
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Alpharetta / Milton / Johns Creek |
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121 |
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150 |
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23.97% |
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Roswell |
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52 |
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71 |
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36.54% |
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Duluth* |
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54 |
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57 |
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5.56% |
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All of N. Fulton |
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164 |
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200 |
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21.95% |
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*includes some sales in Gwinnett |
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We are outpacing the rest of metro Atlanta and inventory levels are down to levels not seen since 2005. Foreclosures are still an issue despite a high level of competition among buyers for bank owned property. But take note of those stale subdivisions because builders like Ashton Woods and John Wieland are on a buying spree, and why wouldn’t they be with half priced lots out there in subdivisions like Breamridge and Crabapple Crossroads. There is pent-up demand for reasonably priced new construction, which buyers tend to gravitate to. Barring any significant economic hiccups we’ll hear the sounds of hammers and saws again in Crabapple and the surrounding area. It’s already happening in Forsyth County… and those homes are selling briskly.
Posted by Bob Strader | Currently No Comments »
Rural Charm, Brain Tumors and Private Property Rights
categories: Local Affairs, Milton Real Estate, Stuff I like to talk about
A Tree Grows in Milton
Actually three trees….and they are made of steel. Many of you may be aware of T-Mobile’s plans to locate three new cell towers in the city of Milton.
The locations and towers proposed are:
149′ Tower on 10 acres at 2880 Mountain Rd
154′ Tower on 26 acres at 14495 Hopewell Rd (Seven Gables Farm)
154′ Tower on 52 acres at 13340 New Providence Rd.
On January 13th there was an informational question and answer meeting held at Milton City Hall. There T-Mobile provided photos of the three locations with renderings of the towers in each photo. These renderings were made from balloon tests, to determine how visible each tower would be from various vantage points. Since that meeting there has been some uproar about how citizens of Milton can stop this from happening. Groups want city officials to deny T-Mobile and the property owners a permit to install the towers, pressuring them with future votes. They dispute T-Mobile’s business case that coverage is lacking or simply suggest that T-Mobile customers can just switch to a different carrier.
The Issues
There are 2 main concerns that residents have with the cell towers, the first of which is that the towers will ruin the rural charm and pastoral views of our fledgling city. On a search of cell towers within a 4 mile radius of my community, a cell tower search site revealed that their are 26 tower locations. It surprised me that there are that many, I can think of 2 that I have seen. I guess they blend in or I just don’t pay attention to them. I know of one behind the Union restaurant on Providence Rd. that is made to look like a pine tree. It doesn’t look like a real tree, of course, but looks better than a silver metal pole.
The other concern some have are the unknown dangers of radiation from the antennas. A quick Google search will reveal websites that say there has not been enough research to be conclusive but we risk health effects ranging from reduced immune system competence and mood swings to brain tumors and leukemia. With over 4 billion cell phone users in the world and over 270 million cell phones in the US; dangers from an antenna a quarter of a mile away seem infinitesimal at best, especially when seemingly everyone in the world is running around with their phone pressed to the side of their heads. I don’t know of anyone planning to get rid of their cell phone, do you?
Don’t Tread on Me
The one issue that hasn’t seem to come up though is private property rights. The owners of the three sites have the right, as property owners, to: rent, sell, mortgage or develop their property - as long as it is within the constraints of zoning restrictions. Just like, thankfully, all Milton residents have the right to voice their concerns at the council meetings. We have a process and by-and-large it seems to work. My concern is that if the City Council votes to deny the permit simply because some people don’t like the towers, then the Milton City Council Members would be voting against private property rights . In my mind, that is theft. The property owner who had the rights to develop or profit from their land is now prevented from doing so, in spite of meeting the zoning laws that are in effect.
What comes next? Then any group of homeowners can get together to have that horse-farm get rid of their horses because the manure stinks. That small business owner that grows orchids on his agricultural land might have to cease and desist because his greenhouses aren’t ascetically pleasing to some. I’m sorry private property owner, but I don’t want you to sell your land to a developer to build more homes - I like the rural charm of your pastures. Oh, but don’t let your horse manure pile up or it will offend me. Never mind the fact that you were here years before my home was built and changed the rural view from your house.
Even though I think that we’ll all get used to the towers being there - just like we have with the hundreds of other towers that surround us, I agree that a cell tower is not an attractive addition to the landscape. We should be working to make the towers that do go in as unobtrusive as possible. If that means making it look like a tree, then we should be pushing T-Mobile to do that. But I hope we didn’t become the City of Milton so we can take away private property rights.
“The right of property is the guardian of every other right, and to deprive a people of this, is in fact to deprive them of their liberty.” Arthur Lee, “An Appeal to the Justice and Interests of the People of Great Britain, in the Present Dispute with America” (1775)
Posted by Bob Strader | Currently 3 Comments »
North Fulton Homebuyers Take Advantage of Tax Credit
categories: Alpharetta Real Estate
Homebuyer Tax Credit Update
Last year there were many First-Time Homebuyers in Alpharetta and Milton that purchased homes . And quite a few that didn’t make the deadline or just weren’t in a position to do so. In addition to those, there were many other homebuyers that wished they could have taken advantage of a tax credit.
On November 6, 2009, President Obama signed a bill to extend the tax credit for First-Time Homebuyers . In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. The bill also opens up opportunities for some Current Homeowners who are not buying a home for the first time. There are some restrictions, such as income limits and purchase price.
I have tried to provide as much detail as possible but I always recommend that clients speak with their tax accountant in regards to specific questions.
What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service. In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
Who is Eligible?
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible. In either case the tax credit is not available if the purchase price exceeds $800,000.
First-Time Homebuyers :
First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
Current Owners:
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Again, single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Other Situations:
Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession, 2. Right to obtain legal title upon full payment of the purchase price, 3. Right to construct improvements, 4. Obligation to pay property taxes, 5. Risk of loss, 6. Responsibility to insure the property, and 7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
- They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
- They do not use the home as your principal residence.
- They sell their home before the end of the year.
- They are a nonresident alien.
- They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
- Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
- They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.
If you are beginning the process of searching for a new home in Forsyth County or the Cumming area, please give us a call. We’ll make sure you meet the deadline and end up in a great new home.
Posted by Bob Strader | Currently No Comments »
Updates on Some Alpharetta Projects
categories: Alpharetta Real Estate, Community Highlights, Local Information
Yesterday I had the opportunity to speak with David Belle Isle, along with a small group of Realtors who attended a gathering put on by Jack Berube of Berube & Company Realtors.
For those who may not know, Belle Isle is a sitting Alpharetta City Councilman and is currently running for State Senate in District 56 . During his short discussion he shared updates on a few Alpharetta City Projects.
Prospect Park
Yes, you know it well. The mud pit and concrete forest we see every time we drive down Old Milton Parkway. I don’t know how it got approved, although there are ideas being thrown around , but there it is. The question is, what’s the status? The developer, Stan Thomas, has filed for bankruptcy - to reorganize. Apparently his intent is to hold on to the property in hopes of developing it down the road. An idea that was thrown out in the discussion was to have something like The Inforum there. The Inforum is something along the lines of a multi-purpose facility with office space, convention center, theater, etc.
I’m a strong believer in property rights but a little eminent domain here might be the answer. How about a park or ball fields? Maybe someone should sneak down there and plant some kudzu, it will be covered in weeks!
Westside Parkway - When will it be finished?
See Prospect Park….The last section of Westside Parkway is tied up in the parcel that is the Prospect Park project. So, while it is in bankruptcy litigation there is nothing that can be done with the last few hundred feet of what will one day be a great way to avoid Hwy 400.
Windward Parkway / 400 Offramp
Apparently it was determined that a tremendous number of cars getting off of 400 onto Windward Pkwy and going east end up turning onto Northpoint Pkwy, so there is a plan to put a dedicated turn lane at the off ramp that will take those drivers directly to NP Parkway, alleviating a ton of congestion.
Oversupply of Strip Centers
Another thing we all notice as we drive around Alpharetta and Milton. The abundance of empty retail space is amazing but there are signs of improvement. Some properties have been purchased out of foreclosure, giving those new owners a much lower cost basis and allowing them to potentially fill retail space. Now, who’s betting on a couple more mattress stores.
The Alpharetta City Center Project
What was planned originally was a mixed use, pedestrian friendly project developed around a new City Hall. There were going to be office and restaurant space, civic facilities, retail and parking decks. The desire by the City Council to do this project is still there but we’ll have to wait for stronger financial times. The businesses that are downtown now have wanted a project like this and the community would strongly support it but until it happens we’ll continue to see business struggle. While two spaces downtown were filled by Digital Scientists and The Coffee Pot , we lost a fitness center and a lacrosse store.
Do you have anything to add about these projects or others? Let us know.
Posted by Bob Strader | Currently 4 Comments »
It’s Homestead Exemption Time for New Homeowners
categories: Alpharetta Real Estate, Crabapple, Johns Creek Real Estate, Milton Real Estate, Roswell Real Estate
You’re an excited homeowner who purchased a home in 2009. You just spent your first Christmas in your home and the new year is kicking off. Now is the time for all those new homeowners in Alpharetta, Milton or the rest of Atlanta to file their one-time Homestead Exemption. And what exactly is the homestead Exemption? Simply put it is an exemption for some of the property taxes you would owe on your primary residence and it remains in effect for the entire time you live there. So, if you own the property, reside on that property, and are a legal resident of the County, all as of January 1st of the tax year, you may qualify for homestead exemption.
The exemption amounts differ by county. For instance, in Fulton County the exemption for 2010 is $25,000. That will go up to $30,000 in 2011. In Forsyth County the Homestead Exemption is $8000.
The appropriate forms to file can typically be found on the county website page for the Tax Assessors Office, here are phone numbers and links to a few of those:
- Cherokee County – 678-493-6120
- Cobb County – 770-528-8600
- Forsyth County – 770-781-2106
- Fulton County – 404-612-6440
- Gwinnett County - 770-822-8800
Posted by Bob Strader | Currently No Comments »
