Home in Brandon Listed under $200,000.

This cozy, 1,724 SF “Ranch Style” single family residence is situated on a 0.38 acre site. There are two small sheds (one wooden and the other one is concrete block). This location allows convent access to Lumsden Road and priced to make a great starter home. The majority of the home’s bedrooms are separated from the living area. One of the bedrooms appears to be converted from a utility area.

Alhough most poeple think that the real estate market is slow, this listing when under contract in under a few days above asking price. At this price range, its a seller’s market.

In the Real Estate Market?

KW1784102f20KW.jpg
Pool

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

You should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Align Right Realty South Shore at 443 Apollo Beach Blvd, Apollo Beach, Florida).  

Tampa’s SFR Median Housing Sales Price Trend

Tampa’s Single Family Home Prices continue to increase.  The following chart is based on information from 110,723 listings from GTAR’s (Greater Tampa Area Realtors) MLS (Multiple Listing Service):

Tampa Historic Sales Price Trend

The median single family residence in Tampa as of January 2020 is $257,49, which is a significant increase from $163,500 (four years earlier at the same time).  The following is Tampa’s Single Family Home pricing trend by month since 2016:

Tampa Historic Sales Price Trend 2

According to NAR, FSBOs accounted for 7% of home sales nationally in 2017. The typical FSBO home sold for $200,000 compared to $265,500 for agent-assisted home sales nationally.

In the Real Estate Market?

KW1784102f20KW.jpgPoolYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

AGI and What People Make

Adjusted gross income (AGI) is an income calculated from your gross income and used to determine how much of your income is taxable. Adjusted gross income is an individual’s total gross income minus specific deductions. Taxable income is adjusted gross income minus allowances for personal exemptions and itemized deductions (i.e. traditional IRA, self-employed health insurance deduction, education expenses, alimony paid, etc.). For most individual tax purposes, AGI is more relevant than gross income.

Form-1040-Total-Income

Here’s how you work out your AGI:

  1. Start with your gross income. Income is on lines 7-22 of Form 1040.
  2. Add these together to arrive at your total income.
  3. Subtract your adjustments from your total income (also called “above-the-line deductions”).
  4. You have your AGI.

Your adjusted gross income is equal to your gross income minus any eligible adjustments that you may qualify for. These adjustments to your gross income are specific expenses that the IRS allows you to take that reduce your gross income to arrive at your AGI.

According to USA Today, the IRS breaks up tax return data into income groups, so here’s the percentile rank of each income threshold. To be perfectly clear, this refers to the percent of people whose household income is less than the threshold.

Household Income (AGI)

Percent of Households With Lower AGI

$2,000

3.9%

$4,000

6.8%

$6,000

9.8%

$8,000

12.7%

$10,000

16.2%

$12,000

19.5%

$14,000

22.8%

$16,000

26%

$18,000

29.2%

$20,000

32.1%

$25,000

38.9%

$30,000

44.8%

$40,000

54.6%

$50,000

62.4%

$75,000

75.4%

$100,000

84%

$200,000

95.8%

$500,000

99.2%

$1,000,000

99.7%

$1,500,000

99.8%

$2,000,000

99.9%

Data source: IRS Statistics of Income, 2014.

The median household income in 2014 was $53,719, which means that half of American households make less than this amount, and half make more. The median AGI lies somewhere between $30,000 and $40,000. If you’ve heard anyone complain about “income inequality,” this huge difference between the average and the median shows that it’s a real issue.

Income and Getting a Mortgage

Mortgage lenders prefer to see a debt-to-income ratio smaller than 36%, with no more than 28% of that debt going towards servicing your mortgage. For example, assume your gross income is $5,000 per month. The maximum amount for monthly mortgage-related payments at 28% would be $1,4000 ($4,000 x 0.28 = $1,400). Your lender will also look at your total debts, which should not exceed 36%, or in this case, $1,440 ($5,000 x 0.36 = $1,800). In most cases, 43% is the highest ratio a borrower can have and still get a qualified mortgage.

Another common measurement of personal income is the mean household income. Unlike the median household income, which divides all households in two halves, the mean income is the average income earned by American households. In the case of mean income, the income of all households is divided by the number of all households. The mean income is more affected by the relatively unequal distribution of income which tilts towards the top. As a result, the mean will be higher than the median income, with the top earning households boosting it. Overall, the mean household income in the United States, according to the US Census Bureau 2014 Annual Social and Economic Supplement, was $72,641.I n 2015, the US median household income spiked 5.2 per cent, reaching $56,000, making it the first annual hike in median household income since the start of the Great Recession.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

Second Quarter 2019 Single Family Residential Market

National and Regional Single Family Market

According to NAR, existing single family homes sales have increased slightly with projected annual sales of 5,490,000 units in August 2019 versus 5,350,000 units in August 2018.  Statistics in the South have increased slightly with projected annual sales of 2,330,000 units in August 2019 versus 2,250,000 units in August 2018..

AUgust 2019 NAR Existing SFR

As of August 2019 there was a 4.1 month supply of inventory available, which was down 4.7% from the previous year, nationwide. Months of Inventory is a measure of how fast all the existing homes on the market would last assuming no more listings are added, and the rate at which homes sell is a constant figure based on the average of the last 12 months of sales.

IMG_9119[1]Meanwhile, the median nationwide existing single family home price was $278,200 in August 2019, which is up 4.7% from a year ago.  The median price in the South was $254,900, which was up 4.5% from the previous year.

The average nationwide existing single family home price was $323,600 in June 2019, reflecting a 3.2% increase from a year ago.  The average price in the south was slightly down -0.2% from the previous year.  Since the median sales price is significantly higher than the average sale price, there is a significant amount of lower end product being sold.

August 2019 NAR Existing Sales Price SFR

Florida Single Family Market

The following data was prepared by the Florida Association of Realtors (FAR).  The following is summary of the second quarter of 2019:

As can be seen in the following charts, sales of single family homes increased in 2019 from 2018 numbers.

Q2 2019 Closings

Along with increases in the number of sales, pricing also increased in 2019.

Q2 2019 Median Sale Price

Q2 2019 Average Sale Price

In the Real Estate Market?

KW1784102f20KW.jpgMain EntranceYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

 

Prior to Listing your Home

It has been my experience that most people want a move in ready home.  Here are some relatively cheap items that could be completed prior to listing your home for sale:

  • Paint is easily the best thing to do. If you do it yourself, it’s also very cheap.
  • Curb appeal is also important and gives you potential sense that the property is well taken care of (i.e. replacing sod, trimming trees and bushes, cleaning up junk, adding flowers, etc.).
  • Patching holes and cracks in the walls and ceilings.
  • Change any dated light fixtures or ceiling fans.
  • Taking down personal items like photos to allow them to envision there items in the home.
  • Keeping the property clean.
  • Lamiante flooring versus carpet can also give that clean look that people like to see.
  • Updated homes (primarily the kitchen and bathrooms) are generally more desirable than dated homes as well as sells for more.
  • Major items like a new roof and HVAC are great selling items, but are expensive.

Some people have a pre-sale inspection to determine what needs to be fixed. However, this is not necessary to sell the house. Every home has issues that could be fixed, but do not affect the listing price it fixed.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

Tampa Bay MSA Single Family Market June 2019

We have presented an overview of the Tampa MSA and Hillsborough County Single Family Residential market.

National and Regional Single Family Market

According to NAR, existing single family homes sales have decreased slightly with projected annual sales of 4,690,000 units in June 2019 versus 4,770,000 units in June 2018.  Statistics in the South has remained the same with annual sales of 1,980,000 between June 2019 and June 2018.

NAR Sales June 2019

As of June 2019 there was a 4.4 month supply of inventory available, which was down 2.3% from the previous year, nationwide.

Meanwhile, the median nationwide existing single family home price was $288,900 in June 2019, which is up 4.5% from a year ago.  The median price in the South was $254,900, which was up 4.5% from the previous year.

The average nationwide existing single family home price was $323,600 in June 2019, reflecting a 3.2% increase from a year ago.  The average price in the south was up 3.2% from the previous year.  Since the average sale price is significantly higher than the median sale price, there is a significant amount of higher end product being sold.

NAR Sale Price of Exxisting Homes 6 19

Florida Single Family Market

The following data was prepared by the Florida Association of Realtors (FAR).  As can be seen in the following charts, sales of single family homes increased in 2019 from 2018 numbers.

Florida SF 2019

Along with increases in the number of sales, pricing also increased in 2019.

Fla Median Sale Price 2019

Avg Sales Price 2019

Tampa Bay Single Family Market

The following data was prepared by the Greater Tampa Association of Realtors (GTAR).

GTAR June 2019

As can be seen in the following charts, sales of single family homes has increased in 2019 from 2018 numbers.  Sales in the first six months of 2019 decreased 1.6% from 2018.  However, the months supply of inventory decreased 3.6% during the same time frame.

Tampa Bay Closed Sales 2019

MONTHLY SALES FIGURES

Both in the first six months of 2019 over the same time frame in 2018, with the median sales prices increasing 2.0% and the average sales price up 2.9%.  It should also be noted that the prime time to sale properties in the summer months.

Fla Median Sale Price 2019

TAMPA MSA MONTHLY MEDIAN SALES PRICE FIGURES

Avg Sales Price 2019

TAMPA MSA MONTHLY AVERAGE SALES PRICE FIGURES

CONCLUSION

The Tampa Bay MSA experienced large growth in residential housing during the residential “boom” period of the early to mid 2000’s. Since the beginning of 2014, the market has shown increases in both pricing and sales figures.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

 

Active Versus Passive Income

According to Investopedia, here are a few terms that a real estate investor should know:

What is Passive Income

cropped-cropped-cropped-img_3917_thumb1.jpgPassive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive.

Understanding Passive Income

Main EntranceThere are two main categories of income: active income and passive income. Active income is something where you will be investing lot of time. For example, consider you are working on a daily 9 to 5 job and get paid at the end of the month. if you stop working you don’t get paid. So you need to keep investing time to get paid. So you need to keep working  (or investing time) to get paid.

Passive income has been a relatively loosely used term in recent years. It’s been used to define money being earned regularly with little or no effort on the part of the person receiving it. Popular types of passive income include real estate and dividend stocks. Proponents of earning passive income tend to be boosters of a work-from-home and be-your-own-boss professional lifestyle. The type of earnings people usually associate with this are gains on stocks, interest, retirement pay, lottery winnings, online work and capital gains.

cropped-summit-swimming-pool1.jpgThe trouble with a job or “active income” strategy is that you always have to work or the income dries up. One of Warren Buffet’s famous quotes is  “If you don’t find a way to make money while you sleep, you will work until you die.” So it makes sense to build enough position financially to start chasing passive income. If you manage your money better than most of the American public during their career, you will have “passive income” that can allow you to gradually scale back your “active income” efforts to be able to retire early. The goal is to earn more passive income than your monthly expenses. The sooner you do it, the sooner you can retire. (i.e. we afford retirement because of years of putting money in investment accounts  or real estate and earning interest on these investments).

How is Passive Income Taxed?

deposit-clipart-gold_theme_money_dollars_clip_art_7759 - CopyYou can only treat rental real estate as an active business if you meet stricter tests to be a real estate professional, which requires at least 750 hours of service and more than half of all personal service you provide to be in the real estate category.

Those who don’t meet this test can qualify for a limited $25,000 allowance for losses if they qualify as an active participant. Active participation requires only limited activities, such as approving new tenants, setting rental terms, and approving payouts. If you qualify, you can then take up to that limited amount of loss each year, carrying over any excess losses until you generate rental income to offset it.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.