In just two minutes, you can tell your representative in Washington that you support the Mortgage Interest Deduction (MID) and encourage them to oppose any effort to change the MID. It’s as simple as 1,2,3:

Date:  April 12, 2010

It’s the weekend and you have a whole list of household chores to do. Oh, we know you’d rather be golfing or playing tennis or watching TV, but keeping your home in good shape is important. Your home may be the biggest investment you will ever make. Taking good care of it with regular maintenance is necessary to maintain its value and ensure it will provide a comfortable, safe shelter for you and your family for a long time.

Here is a home maintenance quiz that will test your maintenance knowledge. While this quiz does not address every home maintenance project, it does provide helpful tips and reminders for chores you may have overlooked.

1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.

2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.

3. Should you run hot or cold water through your garbage disposal?
Cold water.

4. How often should the moving parts of garage doors be oiled?
Every three months.

5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.

6. What tool can be used to unclog a toilet?
Coil spring-steel auger.

7. What faucet part needs to be cleaned every three to four months?
Aerator—the screen inside the end of the faucet.

8. What can you use for traction on icy sidewalks, steps and driveways?
Cat litter or sand—never use salt because it damages the pavement.

9. Where should the fire in your fireplace be built?
On the andirons or grate, never on the fireplace floor.

10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.

11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.

12. What helps keep unpainted concrete floors easy to keep clean?
Concrete sealer.

13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.

14. When can you clean hardwood floors with water?
When the floors have a polyurethane finish.

15. Do hardwood floors need to be waxed?
Hardwood floors that do not have a polyurethane finish probably will need to be waxed periodically. Use liquid or paste “spirit” wax.

16. What is the best polish for vinyl floors?
Water emulsion wax.

17. When is basement condensation at its maximum?
In new homes because gallons of water went into the concrete of basement walls.

18. Why should noisy water pipes be fixed promptly?
The condition that causes noisy pipes may be accompanied by vibration that can cause fittings to loosen and leak.

19. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could  cause the pipe to burst.

20. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.

21. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.

22. To ensure your safety, what household equipment uses batteries that must be checked regularly to make sure they are operable?
Smoke and carbon monoxide detectors.

23. What do you use to fill nail holes and cracks in plaster walls and gypsum wallboard?
Spackling.

24. What is the white powdery substance that develops on masonry walls?
Efflorescence sometimes appears on masonry walls. It is crystallized soluble salts that can be removed by scrubbing with water and a stiff brush.

25. At what temperature should your water heater be set?
120 degrees Fahrenheit

26. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.

27. What is a simple solution you can use to wash extremely dirty exterior windows?
A solution of equal parts vinegar and water or 3 tablespoons of denatured alcohol per quart of warm water. Use a piece of crumpled newspaper to wash the glass to avoid lint left behind by papertowls.

28. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.

29. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.

April 4, 2011

While the housing industry celebrates New Homes Month in April, home builders want Americans to know just how much of a positive, direct impact residential construction has on the U.S. economy throughout the entire year.

“Home building is a key driver of the American economy,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. “By generating economic activity including new income and jobs, purchases of goods and services, and revenue for local governments, housing—which has historically accounted for around 17 percent of the GDP—can put America back to work.”

Economists at the National Association of Home Builders estimate that the one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs.

The employment effects extend beyond the home building industry. About half of the jobs are in construction, with the other 50 percent creating employment opportunities in industries ranging from production and sales of home furnishings to service providers such as real estate attorneys and landscapers.

Those 100 new homes also provide the community with additional, annually-recurring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.

The income earned from construction activity is spent and recycled in the local economy, and the new homes that are built become occupied by residents who pay taxes and buy locally produced goods and services. Those tax revenues help pay for a wide range of government services, including local school teachers, police departments and road repairs.

In order to accommodate population growth and necessary replacement of older homes, however, a long-run trend of approximately 1.7 million new homes a year is needed. Yet as of February 2011, the annual projection for housing starts stood at less than 500,000.

“The gap between actual home starts and what is required to fulfill America’s future housing needs represents more than 3 million jobs,” said Nielsen. “Restoring the health of the housing industry is a crucial first step in stabilizing our country’s path to economic recovery.”

During New Homes Month, home builders also bring attention to the advantages of newly-built homes, including safety, amenities, energy efficiency and floor plans to fit a wide variety of modern lifestyles. Combined with today’s near record-low interest rates and competitive prices, the current market offers new home buyers unprecedented opportunities.

Home buyers can access resources to help guide them through the home-buying process on NAHB’s website at www.nahb.org/forconsumers.

Form 1098, which home owners receive from their lenders, shows the total amount of home mortgage interest paid during the year. Home owners who itemize their federal income tax deductions can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt. They can also deduct the interest paid on up to $100,000 of home equity loans.

For most home owners, this means they can deduct ALL of the mortgage interest they’ve paid on their home each year.

The ability to deduct home mortgage and home equity loan interest isn’t the only tax benefit for home owners.

The three most important sources of tax savings for home owners are:

• Deductions for mortgage interest
• Deductions for real estate taxes
• The capital gains exclusion for the sale of a principal residence

Home owners are also able to deduct the state and local real estate taxes they pay each year on an owner-occupied home.

When it is time to sell a home, in many cases home owners don’t have to pay capital gains tax on the profit from the sale. Under present law, married couples who have owned and occupied their principal residence for at least two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Single filers earn up to $250,000 tax free.

Another deduction home owners may be able to take is for mortgage insurance premiums. Generally, people who purchase a home without putting 20 percent down have to buy mortgage insurance, and those premiums can also be deducted from taxable income.

Even home owners who don’t use the home as their principal residence and rent it out may be able enjoy some tax benefits, including interest and depreciation deductions.

Buying a home offers tax savings that can add up to tens of thousands of dollars over several years. Home owners rely on the mortgage interest deduction each year to help offset the costs of homeownership and prospective buyers take the deduction into consideration when choosing homeownership over renting.

But the mortgage interest deduction, which has been included in the tax code for about 100 years, is in danger. A national deficit commission has proposed reducing or eliminating the deduction as part of a restructuring of the tax code.

Find out more about the threat to the mortgage interest deduction, and read “The Tax Benefits of Homeownership,” a study from economists at the National Association of Home Builders that provides specific examples of savings for a variety of income levels and ownership situations, at www.SaveMyMortgageInterestDeduction.com.

All homes with photos, descriptions and driving directions are online at the event website, www.ParadeofHomesIndy.com. In addition to homes to tour, the website offers a directory of homebuilders who do not currently have homes to tour but are ready to home build the home of your dreams. New to this year’s Parade, remodeler members of the association created a virtual showcase of home transformations at the event website. Also online is a page dedicated to energy saving tips and advice for everyone on how to save money on their utility costs.

The Builders Association of Greater Indianapolis Parade of Homes is sponsored by Indianapolis Power & Light Co. and Lockhart Cadillac.

In total over 50 new homes crafted by Central Indiana’s premier custom and production homebuilders will be open to tour. Developer members also participate in the tour with information on lot availability in new subdivisions across the nine-county area.

“It is an area-wide open house, Indy’s Biggest Open House,” said Stacy O’Gara, BAGI director of events. “The Parade includes production and custom homes in a variety of price ranges. Some of the homes may be fully decorated and landscaped, others may be left for the buyer to finish themselves, it just depends how far along each builder is in the process. Every home is for sale, with the exception of builders’ models which may not be available for immediate sale.”

All homes in the Parade of Homes have been built by Association members who agree to adhere to the Quality Assurance Builder Standards, a detailed set of building standards the association’s members have adopted.

Rick Schmadeke of Westwind Custom Homes & Remodeling serves as 2010 chairman of the event.

Parade of Homes Indy

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For the first six months of 2009, the BPCI totaled 31 new home starts and 50 remodel jobs.  Over the course of that same period in 2010, they reported 43 new home starts and 74 remodel jobs.  This equates to an increase of 38% for new homes and 48% for remodel jobs.

Asked to explain this increase in their activity, BPCI Board President, Mark Gradison of Gradison Building Corp. said, “We have seen a flurry of activity among our BPCI group in both new home permits and remodels.  We attribute much of that increase to the confidence that the consumer is having in our building and vendor members.  As more people are learning, BPCI holds its members to the highest level of service, quality and professionalism. Our group of 30 builders and 50 vendors continually works to stay ahead of the industry by hosting educational seminars and sharing best practices.”

Also commenting on the increase was BPCI Board Member John Lazaro of J.R. Lazaro Builders, Inc. who explained “I think new home construction is finally pulling out of this downward spiral. We are definitely seeing a marked improvement in activity. Potential customers are calling and visiting our homes. I feel that once the consumer learns about the professionalism that is required of a BPCI member that it will definitely be an advantage to the consumer interested in building or remodeling.”

If you’d like more information regarding the Building Partners of Central Indiana, please contact Matt Ochs, the Operations Manager at matto@bagi.com or go online to www.bpci-indy.com.  All builder and vendor members of the Building Partners of Central Indiana are also members of the Builders Association of Greater Indianapolis.

The HOI showed that 72.2 percent of all new and existing homes sold in the first quarter of 2010 were affordable to families earning the national median income of $63,800, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter a year ago.

“Today’s report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within reach of more households than it has for almost two decades,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy.”

Indianapolis-Carmel and Youngstown-Warren-Boardman, Ohio-Pa., shared the ranking as the most affordable major housing markets in the country. In Indianapolis, which has held this top ranking for nearly five years, almost 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,700. In Youngstown, the same percentage of homes were affordable to households earning a median $53,500.

Click to read entire NAHB release

Bedrock Builders entry at Park Place in Sagamore

Interest rates are low, tax credits are weeks away from expiring and the selection is great – so now is an excellent time to look at your home buying options! Homes in all price ranges and on all sides of town will be open to tour on April 10, 11, 17 and 18 from noon to 6 p.m.

All homes with photos, descriptions and driving directions are online at the event website, www.ParadeofHomesIndy.com. In addition to homes to tour, the website offers a directory of homebuilders who do not currently have homes to tour but are ready to home build the home of your dreams. New to this year’s Parade, remodeler members of the association created a virtual showcase of home transformations at the event website. Also online is a page dedicated to energy saving tips and advice for everyone on how to save money on their utility costs.

The Builders Association of Greater Indianapolis Parade of Homes is sponsored by Indianapolis Power & Light Co. and Lockhart Cadillac with supporting sponsorship from Citizens Gas and Vectren Energy Delivery.

In total 65 new homes crafted by Central Indiana’s premier custom and production homebuilders will be open to tour. Three developer members also participate in the tour with information on lot availability in new subdivisions across the nine-county area.

“It is an area-wide open house, Indy’s Biggest Open House,” said Stacy O’Gara, BAGI director of events. “The Parade includes production and custom homes in a variety of price ranges. Some of the homes may be fully decorated and landscaped, others may be left for the buyer to finish themselves, it just depends how far along each builder is in the process. Every home is for sale, with the exception of builders’ models which may not be available for immediate sale.”

All homes in the Parade of Homes have been built by Association members who agree to adhere to the Quality Assurance Builder Standards, a detailed set of building standards the association’s members have adopted.

Rick Schmadeke of Westwind Custom Homes serves as 2010 chairman of the event.

Indianapolis again was the most affordable major housing market in the country during the fourth quarter, a position the metro area now has held for four and a half years. More than 95 percent of all homes sold were affordable to households earning the area’s median family income of $68,100.

The HOI showed that 70.8 percent of all new and existing homes sold in the final quarter of 2009 were affordable to families earning the national median income of $64,000, slightly higher than the previous quarter and near the record-high 72.5 percent set during the first quarter of 2009. Affordability during the final quarter of the year was up from 62.4 percent during the fourth quarter of 2008.

 “Favorable mortgage rates and sliding house prices that have now started to stabilize nationally have both contributed to a record year for housing affordability in 2009,” said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “With interest rates still hovering at low levels and the economy beginning to rebound, the federal housing tax credit will encourage even more first-time and repeat home buyers to enter the market and help further stabilize housing and the economy by creating new jobs, stimulating home sales and reducing foreclosures.”

Also near the top of the list of the most affordable major metro housing markets were Detroit-Livonia-Dearborn, Mich.; Dayton, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; and Akron, Ohio.

Five smaller housing markets posted even higher affordability scores than Indianapolis, with Kokomo, Ind., which historically has had a favorable income-to-house price ratio, outscoring all others. In Kokomo, 98 percent of homes sold during the fourth quarter of 2009 were affordable to median-income earners. Other smaller housing markets near the top of the index included Monroe, Mich.; Flint, Mich.; Lima, Ohio; and Bay City, Mich., respectively.

New York-White Plains-Wayne, N.Y.-N.J., continued to lead the nation as its least affordable major housing market during the fourth quarter of 2009. The New York metro area has occupied this position for seven consecutive quarters. Slightly less than 20 percent of all homes sold during the final quarter of 2009 were affordable to those earning the New York area’s median income of $64,800.

The other major metro areas near the bottom of the affordability scale included San Francisco; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Redwood City, Calif.

San Luis Obispo-Paso Robles, Calif. was the least affordable of the smaller metro housing markets in the country during the fourth quarter. Others near the bottom of the chart included Santa Cruz-Watsonville, Calif.; Ocean City, N.J.; Napa, Calif.; and Santa Barbara-Santa Maria-Goleta, Calif.

Please visit www.nahb.org/hoi for tables, historic data and details.

Beyond these updates, the IRS is also requiring additional documentation for home buyers who claim the credit for purchases after Nov. 6, 2009. Buyers must now provide a copy of the HUD-1 form or, in cases where that form is not used, a certificate of occupancy for a newly constructed home. For purchases taking place after April 30, a copy of the signed sales contract must also be supplied. Meanwhile, in order to claim the $6,500 repeat buyer tax credit, home buyers must attach one of the following for five consecutive years of the last eight to demonstrate that they meet the repeat buyer qualifications: a Form 1098 reporting mortgage interest; a property tax statement; or home insurance records.

Tax credit buyers should also know that, due to the new documentation requirements, those claiming either the $8,000 first-time home buyer credit or the $6,500 repeat-buyer credit cannot e-file. As a result, taxpayers should be prepared to wait at least 12 to 16 weeks to receive their refunds. On a final note, NAHB has recommended options to Treasury and IRS officials for homebuyers who do not use a HUD-1 form and whose local jurisdiction does not issue a certificate of occupancy. We are awaiting their response at this time. Get more information on NAHB’s consumer tax credit Web site at: www.federalhousingtaxcredit.com.