Pinnacle Team December 2009 Newsletter
Content
Pinnacle Team Newsletter
Inside this issue:
D e c e m b e r 2 0 0 9
Happy Holidays
A Great Time to Refinance
1
Hi Friends, As we wrap up 2009, we want to thank all of your for your support, your business, and your continued interest. We are fortunate to be surrounded by great clients, colleagues and partners. Despite the state of the economy, we have continued to help our clients maximize their potential in this market. Business is great for our team, and we owe it to each and every person we work for and with. We have some exciting things in store for 2010, including a team expansion and some great new listings on the horizon. Stay tuned next month for more details! We hope you all are enjoying the holiday season with your friends and families. Thank you again for your support. We wish a very healthy and prosperous year ahead. Please reach out to us with any real estate needs you may have. Ryan, Sarah & Nadine
Recipe: Pecan 2 Balls with Powdered Sugar
Restaurant: Publican
2
Tips on Winterizing Your Home
3
A Great Time to Refinance
Mortgage rates are at all time lows, and now is a great time to consider refinancing. Refinancing allows borrowers to lock in a lower rate and/or refinance from an ARM (adjustable rate mortgage) to a fixed rate. Below are some refinance topics that may be helpful: There are programs available that allow borrowers to refinance even if the mortgage amount is higher than the value of the property. Borrowers who originally put down 20% and do not have mortgage insurance may be able to refinance without mortgage insurance even if the property value decreased. Current FHA borrowers may have the ability to refinance without an appraisal and reduced documentation. When a borrower refinances they typically have the option to pay closing costs and get the lowest rate or to refinance with no closing costs at a slightly higher rate. The key is to determine the breakeven point and how long you plan on keeping the mortgage. The Fed has already spent $1 trillion of the $1.25 trillion they committed to buy mortgage backed securities to keep rates low. I expect rates to increase fast once the Fed spends the remaining $0.25 trillion so act now before the low rates are gone for good.
Year-End Tax Planning
4
Pinnacle Team 5 Listings
Todd Johnson VP of Mortgage Lending Guaranteed Rate
S
[email protected]
Page 2
Pecan Balls with Powdered Sugar
Erin McGiffert, Lakeview
1/2 cup butter 2 tbsp. sugar 1/2 cup chopped pecans 1/2 tsp. vanilla 1 cup flour
Cream butter and sugar. Add pecans, vanilla, and flour. Form into small balls. Bake at 350 for 8 to 10 minutes. Don't brown. Let cool and then roll in powdered sugar.
Publican
This new Fulton River District restaurant is a must and the perfect place to dine during the holidays. Brought to you by the team to started Blackbird and avec, Publican brings you “simple farmhouse fare in a space evocative of a European beer hall.” The menu changes often, so you’re sure to enjoy the freshest ingredients in creatively prepared dishes. They are well-known for their wide variety of beer selections, with 100 bottles to choose from and 12 on tap. The food is served familystyle, so I suggest dining with 4 people or more in order to try a variety of different dishes. Everything here is amazing, from the seafood, to the pork to the chicken to the desserts. The wait staff is helpful at walking you through the diverse menu and ensuring that you’ve ordered the right amount of food for the table. You can expect to pay about $50+/person, including alcohol. Reservations are a must as this is a new hot spot. You will not be disappointed! The neighborhood: Fulton River District. Its boundaries are officially, Ohio to the North, Madison to the South, Kennedy Expressway to the West, and the Chicago River to the East. It is a beautiful, quaint urban community that is both family friendly and great for singles as well. You are surrounded by public transportation—the bus, El, and Metra. You are also a quick walk to many downtown hot spots. Housing is comprised of mostly condos and townhomes. There are currently about 62 condos on the market priced from $229k to $699k with a median price of $400k.
845 W. Fulton Market www.thepublicanrestaurant.com
Page 3
Tips on Winterizing Your Home
Furnace Inspection Call an HVAC professional to inspect your furnace and clean ducts. Inspect Roof, Gutters & Downspouts Check flashing to ensure water cannot enter the home.
Change furnace filters monthly. Consider switching out your thermostat for a programmable thermostat. If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
Replace worn roof shingles or tiles. Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
Service Weather-Specific Equipment Drain gas from lawnmowers.
Get the Fireplace Ready Cap or screen the top of the chimney to keep out rodents and birds.
Service or tune-up snow blowers. Replace worn rakes and snow shovels. Clean, dry and store summer gardening equipment. Sharpen ice choppers and buy bags of ice-melt / sand.
If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote. Buy firewood or chop wood. Store it in a dry place away from the exterior of your home. Inspect the fireplace damper for proper opening and closing.
Check Foundations Rake away all debris and edible vegetation from the foundation.
Check the Exterior, Doors and Windows Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
Seal up entry points to keep small animals from crawling under the house. Tuckpoint or seal foundation cracks.
Use weatherstripping around doors to prevent cold air from entering the home and caulk windows. If your home has a basement, consider protecting its window wells by covering them with plastic shields. Switch out summer screens with glass replacements from storage. If you have storm windows, install them.
Reverse Ceiling Fans
Reverse the direction of your ceiling fan (to turn clockwise). By reversing, the fan will push warm air downward.
Page 4
Year-End Tax Planning
What is year-end tax planning? Year-end tax planning and investment decisions may result in substantial tax savings. Year-end tax planning primarily concerns the timing and the method by which you report your income and claim your deductions and credits. The basic strategy for year-end planning is to time your recognition of income so that it will be taxed at a lower rate and to time your deductible expenses so that they may be claimed in tax years when you are in a higher tax bracket. In a nutshell, focus on the following: Financial investments Pay attention to the changes in the capital gains tax rates for individuals and try to sell only assets held for more than 12 months.
Maximize the tax benefits you derive from your second home by modifying your personal use of the property in accordance with applicable tax guidelines.
Retirement contributions Make the maximum deductible contribution to your IRA. Try to avoid premature IRA payouts to avoid the 10 percent early withdrawal penalty (unless you meet an exception). Contribute the full amount to a spousal IRA, if possible. If you meet all of the requirements, you may be able to deduct annual contributions of $5,000 to your traditional IRA and $5,000 to your spouse's IRA. You may be able to contribute and deduct more if you're at least age 50. Set up a retirement plan for yourself, if you are a self-employed taxpayer. Set up an IRA for each of your children who have earned income. Minimize the income tax on Social Security benefits by lowering your income below the applicable threshold.
Consider selling stock if you have capital losses this year that you need to offset with capital gain income. If you plan to sell some of your investment this year, consider selling the investments that produce the smallest gain.
Personal residence and other real estate Make your early January mortgage payment (i.e., payment due no later than January 15 of next year) in December so that you can deduct the interest paid in the current year. If you want to sell your principal residence, make sure you qualify to exclude all or part of the capital gain from the sale from federal income tax. If you meet the requirements, you can exclude up to $250,000 ($500,000 for married couples filing jointly). Generally, you can exclude the gain only if you used the home as your principal residence for at least two out of the five years preceding the sale. In addition, you can generally use this exemption only once every two years. However, even if you don't meet these tests, you may still be able to qualify for a reduced exclusion if you meet the relevant conditions.
Charitable donations Make a charitable donation (cash or even old clothes) before the end of the year. Remember to keep all of your receipts from the recipient charity for all donations. Use appreciated stock rather than cash when contributing to charities. This may help you avoid income tax on the built-in gain in the stock, while at the same time maximizing your charitable deduction. Use a credit card to make contributions in order to ensure that they can be deducted in the current year.
Christopher Davidson, CRPC® Financial Advisor Ameriprise Financial
S
Consider structuring the sale of investment property as an installment sale in order to defer gains to later years.
[email protected]
Page 5
Pinnacle Team Listings
Price Reduction! 1048 W. Byron, G $264,900 Very high garden unit in hot Wrigleyville! Features grade level separate entrance on front and rear. This 2 bed, 1.5 bath condo is well maintained and has been nicely updated. Large rooms. Master bedroom features private half-bath. PARKING INCLUDED! Unbelievable outdoor space for entertaining. Walking distance to train, restaurants and bars, Lake Michigan, this location is primo. Priced to sell! http://tours5.vht.com/Viewer/ PhotoGallery.aspx? ListingID=1208710&Style=IDX 1528 W Jonquil, D3 - $283,000 This amazing 2 bed/2 bath condo is just under 1500 Square feet. Built in 2005, this 6 unit building is on a beautiful tree-lined street on Chicago's northern edge. Just steps from the beach, the red/purple line, Evanston, and Jarvis Square, this Rogers Park find is one of the best deals in Chicago! Featuring hardwood floors throughout, cherry cabinets, and garage parking - this condo is ready for its new owner! FHA Financing Available! http:// tours5.vht.com/Viewer/PhotoGallery.aspx? ListingID=1174724&Style=IDX Price Reduction! 6400 N Sacramento, 3 Units - $114,900 - $174,900 These wonderfully finished 1 & 2 bedroom, 1 & 2 bath condos offer luxury and affordability. The intimate 16 unit building offers parking included in the price, storage, and an elevator. Each condo is finished standard with double ovens, marble baths, Kohler fixtures, granite counters, central heat & air, oak floors, 42” cabinets, and Jacuzzi tub. Exceptional value! FHA and VA Approved! http://tours5.vht.com/Viewer/ PhotoGallery.aspx? ListingID=1184844&Style=IDX For our commercial investors, we also have a storefront for sale: 3008 W. Devon - $224,900
Price Reduction! 6157 N. Sheridan, #18K $145,000 Gorgeous 1 bed, 1 bath condo on Lake Michigan, north of downtown Chicago. Desirable floor plan w/ generous room sizes & panoramic lake views from the bedroom & living room. Freshly painted, new blinds & oak flooring thru-out. Updated kitchen with new maple oak cabs, countertops, apps. Seperate dining area. Updated bathroom with marble tiles, new sink and toilet. 24/7 doorman, parking available, sundeck. Steps away from transportation! http://tours5.vht.com/API/ T1208540 Price Reduction! 450 E. Waterside #1610 $455,000 + $40,000 for parking Views, finishes, amenities, this condo has it all. Located in the luxurious Chandler, this 1 bedroom + den, 1.1 bath home has almost 1150 sq ft of living space and beautiful views of the Chicago River, Lake Michigan, Navy Pier, and the City. This practically new building features two rooftop patios and an indoor pool with breathtaking views and a fitness center, rooftop hot tub, doorman and business center. The condo features everything you would expect, including granite counters, hardwood throughout, a luxurious bathroom retreat, and two walk in closets in the master. Don’t miss this opportunity! http:// tours5.vht.com/Viewer/PhotoGallery.aspx? ListingID=1208710&Style=API
Inside this issue:
D e c e m b e r 2 0 0 9
Happy Holidays
A Great Time to Refinance
1
Hi Friends, As we wrap up 2009, we want to thank all of your for your support, your business, and your continued interest. We are fortunate to be surrounded by great clients, colleagues and partners. Despite the state of the economy, we have continued to help our clients maximize their potential in this market. Business is great for our team, and we owe it to each and every person we work for and with. We have some exciting things in store for 2010, including a team expansion and some great new listings on the horizon. Stay tuned next month for more details! We hope you all are enjoying the holiday season with your friends and families. Thank you again for your support. We wish a very healthy and prosperous year ahead. Please reach out to us with any real estate needs you may have. Ryan, Sarah & Nadine
Recipe: Pecan 2 Balls with Powdered Sugar
Restaurant: Publican
2
Tips on Winterizing Your Home
3
A Great Time to Refinance
Mortgage rates are at all time lows, and now is a great time to consider refinancing. Refinancing allows borrowers to lock in a lower rate and/or refinance from an ARM (adjustable rate mortgage) to a fixed rate. Below are some refinance topics that may be helpful: There are programs available that allow borrowers to refinance even if the mortgage amount is higher than the value of the property. Borrowers who originally put down 20% and do not have mortgage insurance may be able to refinance without mortgage insurance even if the property value decreased. Current FHA borrowers may have the ability to refinance without an appraisal and reduced documentation. When a borrower refinances they typically have the option to pay closing costs and get the lowest rate or to refinance with no closing costs at a slightly higher rate. The key is to determine the breakeven point and how long you plan on keeping the mortgage. The Fed has already spent $1 trillion of the $1.25 trillion they committed to buy mortgage backed securities to keep rates low. I expect rates to increase fast once the Fed spends the remaining $0.25 trillion so act now before the low rates are gone for good.
Year-End Tax Planning
4
Pinnacle Team 5 Listings
Todd Johnson VP of Mortgage Lending Guaranteed Rate
S
[email protected]
Page 2
Pecan Balls with Powdered Sugar
Erin McGiffert, Lakeview
1/2 cup butter 2 tbsp. sugar 1/2 cup chopped pecans 1/2 tsp. vanilla 1 cup flour
Cream butter and sugar. Add pecans, vanilla, and flour. Form into small balls. Bake at 350 for 8 to 10 minutes. Don't brown. Let cool and then roll in powdered sugar.
Publican
This new Fulton River District restaurant is a must and the perfect place to dine during the holidays. Brought to you by the team to started Blackbird and avec, Publican brings you “simple farmhouse fare in a space evocative of a European beer hall.” The menu changes often, so you’re sure to enjoy the freshest ingredients in creatively prepared dishes. They are well-known for their wide variety of beer selections, with 100 bottles to choose from and 12 on tap. The food is served familystyle, so I suggest dining with 4 people or more in order to try a variety of different dishes. Everything here is amazing, from the seafood, to the pork to the chicken to the desserts. The wait staff is helpful at walking you through the diverse menu and ensuring that you’ve ordered the right amount of food for the table. You can expect to pay about $50+/person, including alcohol. Reservations are a must as this is a new hot spot. You will not be disappointed! The neighborhood: Fulton River District. Its boundaries are officially, Ohio to the North, Madison to the South, Kennedy Expressway to the West, and the Chicago River to the East. It is a beautiful, quaint urban community that is both family friendly and great for singles as well. You are surrounded by public transportation—the bus, El, and Metra. You are also a quick walk to many downtown hot spots. Housing is comprised of mostly condos and townhomes. There are currently about 62 condos on the market priced from $229k to $699k with a median price of $400k.
845 W. Fulton Market www.thepublicanrestaurant.com
Page 3
Tips on Winterizing Your Home
Furnace Inspection Call an HVAC professional to inspect your furnace and clean ducts. Inspect Roof, Gutters & Downspouts Check flashing to ensure water cannot enter the home.
Change furnace filters monthly. Consider switching out your thermostat for a programmable thermostat. If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
Replace worn roof shingles or tiles. Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
Service Weather-Specific Equipment Drain gas from lawnmowers.
Get the Fireplace Ready Cap or screen the top of the chimney to keep out rodents and birds.
Service or tune-up snow blowers. Replace worn rakes and snow shovels. Clean, dry and store summer gardening equipment. Sharpen ice choppers and buy bags of ice-melt / sand.
If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote. Buy firewood or chop wood. Store it in a dry place away from the exterior of your home. Inspect the fireplace damper for proper opening and closing.
Check Foundations Rake away all debris and edible vegetation from the foundation.
Check the Exterior, Doors and Windows Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
Seal up entry points to keep small animals from crawling under the house. Tuckpoint or seal foundation cracks.
Use weatherstripping around doors to prevent cold air from entering the home and caulk windows. If your home has a basement, consider protecting its window wells by covering them with plastic shields. Switch out summer screens with glass replacements from storage. If you have storm windows, install them.
Reverse Ceiling Fans
Reverse the direction of your ceiling fan (to turn clockwise). By reversing, the fan will push warm air downward.
Page 4
Year-End Tax Planning
What is year-end tax planning? Year-end tax planning and investment decisions may result in substantial tax savings. Year-end tax planning primarily concerns the timing and the method by which you report your income and claim your deductions and credits. The basic strategy for year-end planning is to time your recognition of income so that it will be taxed at a lower rate and to time your deductible expenses so that they may be claimed in tax years when you are in a higher tax bracket. In a nutshell, focus on the following: Financial investments Pay attention to the changes in the capital gains tax rates for individuals and try to sell only assets held for more than 12 months.
Maximize the tax benefits you derive from your second home by modifying your personal use of the property in accordance with applicable tax guidelines.
Retirement contributions Make the maximum deductible contribution to your IRA. Try to avoid premature IRA payouts to avoid the 10 percent early withdrawal penalty (unless you meet an exception). Contribute the full amount to a spousal IRA, if possible. If you meet all of the requirements, you may be able to deduct annual contributions of $5,000 to your traditional IRA and $5,000 to your spouse's IRA. You may be able to contribute and deduct more if you're at least age 50. Set up a retirement plan for yourself, if you are a self-employed taxpayer. Set up an IRA for each of your children who have earned income. Minimize the income tax on Social Security benefits by lowering your income below the applicable threshold.
Consider selling stock if you have capital losses this year that you need to offset with capital gain income. If you plan to sell some of your investment this year, consider selling the investments that produce the smallest gain.
Personal residence and other real estate Make your early January mortgage payment (i.e., payment due no later than January 15 of next year) in December so that you can deduct the interest paid in the current year. If you want to sell your principal residence, make sure you qualify to exclude all or part of the capital gain from the sale from federal income tax. If you meet the requirements, you can exclude up to $250,000 ($500,000 for married couples filing jointly). Generally, you can exclude the gain only if you used the home as your principal residence for at least two out of the five years preceding the sale. In addition, you can generally use this exemption only once every two years. However, even if you don't meet these tests, you may still be able to qualify for a reduced exclusion if you meet the relevant conditions.
Charitable donations Make a charitable donation (cash or even old clothes) before the end of the year. Remember to keep all of your receipts from the recipient charity for all donations. Use appreciated stock rather than cash when contributing to charities. This may help you avoid income tax on the built-in gain in the stock, while at the same time maximizing your charitable deduction. Use a credit card to make contributions in order to ensure that they can be deducted in the current year.
Christopher Davidson, CRPC® Financial Advisor Ameriprise Financial
S
Consider structuring the sale of investment property as an installment sale in order to defer gains to later years.
[email protected]
Page 5
Pinnacle Team Listings
Price Reduction! 1048 W. Byron, G $264,900 Very high garden unit in hot Wrigleyville! Features grade level separate entrance on front and rear. This 2 bed, 1.5 bath condo is well maintained and has been nicely updated. Large rooms. Master bedroom features private half-bath. PARKING INCLUDED! Unbelievable outdoor space for entertaining. Walking distance to train, restaurants and bars, Lake Michigan, this location is primo. Priced to sell! http://tours5.vht.com/Viewer/ PhotoGallery.aspx? ListingID=1208710&Style=IDX 1528 W Jonquil, D3 - $283,000 This amazing 2 bed/2 bath condo is just under 1500 Square feet. Built in 2005, this 6 unit building is on a beautiful tree-lined street on Chicago's northern edge. Just steps from the beach, the red/purple line, Evanston, and Jarvis Square, this Rogers Park find is one of the best deals in Chicago! Featuring hardwood floors throughout, cherry cabinets, and garage parking - this condo is ready for its new owner! FHA Financing Available! http:// tours5.vht.com/Viewer/PhotoGallery.aspx? ListingID=1174724&Style=IDX Price Reduction! 6400 N Sacramento, 3 Units - $114,900 - $174,900 These wonderfully finished 1 & 2 bedroom, 1 & 2 bath condos offer luxury and affordability. The intimate 16 unit building offers parking included in the price, storage, and an elevator. Each condo is finished standard with double ovens, marble baths, Kohler fixtures, granite counters, central heat & air, oak floors, 42” cabinets, and Jacuzzi tub. Exceptional value! FHA and VA Approved! http://tours5.vht.com/Viewer/ PhotoGallery.aspx? ListingID=1184844&Style=IDX For our commercial investors, we also have a storefront for sale: 3008 W. Devon - $224,900
Price Reduction! 6157 N. Sheridan, #18K $145,000 Gorgeous 1 bed, 1 bath condo on Lake Michigan, north of downtown Chicago. Desirable floor plan w/ generous room sizes & panoramic lake views from the bedroom & living room. Freshly painted, new blinds & oak flooring thru-out. Updated kitchen with new maple oak cabs, countertops, apps. Seperate dining area. Updated bathroom with marble tiles, new sink and toilet. 24/7 doorman, parking available, sundeck. Steps away from transportation! http://tours5.vht.com/API/ T1208540 Price Reduction! 450 E. Waterside #1610 $455,000 + $40,000 for parking Views, finishes, amenities, this condo has it all. Located in the luxurious Chandler, this 1 bedroom + den, 1.1 bath home has almost 1150 sq ft of living space and beautiful views of the Chicago River, Lake Michigan, Navy Pier, and the City. This practically new building features two rooftop patios and an indoor pool with breathtaking views and a fitness center, rooftop hot tub, doorman and business center. The condo features everything you would expect, including granite counters, hardwood throughout, a luxurious bathroom retreat, and two walk in closets in the master. Don’t miss this opportunity! http:// tours5.vht.com/Viewer/PhotoGallery.aspx? ListingID=1208710&Style=API
