I Am Joining John R. Wood Properties -- The Market Leader

I am proud to announce I have joined the market leader in luxury home sales in Southwest Florida -- John R. Wood Properties.

This is a great company, with deep roots in Naples and surrounding communities. The other firms can say they sell more properties or dollar volume in Florida, but John R. Wood leads in both when it comes to the Paradise Coast, which encompasses Marco Island to the south, Naples, Bonita Springs, Estero, and Captiva/Sanibel Island to the north.

This company is solid. Its reputation is sterling. Of the top 500 real estate companies across the United States, JRW ranked Number 13 in the entire nation and Number 1 in Florida in Per Agent Sales. Not too shabby for an independent real estate brokerage on the coast of SWFL.  

I didn't come by this decision lightly. A respected agent with whom I knew well, trusted and spent eight or so years exchanging referrals, suggested that I come aboard. The details of the partnership took some time, and then I had to take a leave of absence in order to take care of an ailing family member.

2017 is going to be a great year for my customers in Florida, and my many client and broker relationships in Ohio and the Midwest, with whom I still work. The market in the Naples area is stable-ish, and as we had into "season," inventory is growing. Naples continually ranks among the most livable cities in America. Plus, you just can't beat the white sugar sand beaches -- or golf -- depending on your interests.

Rest assured, I bring you readers, buyers and sellers, the kind of expertise, ethics and professionalism you want in a real estate adviser.

My job isn't to sell you anything. I'm here to make the process simpler.

SWFL: Not Enough Housing, New Building To Keep Up With Demand

THIS is a great market, for buyers and sellers!

"After analyzing employment and permits, the National Association of Realtors concluded that there’s a shortfall of 13,609 new single-family homes in Cape Coral-Fort Myers, and a shortfall of 3,020 homes in the Naples-Immokalee-Marco Island metro areas."

THIS is why I love working and living here!

CLICK HERE for the full story . . . . 

In Case You Missed It

Here is a news recap from last week that impacts the U.S. residential housing industry.

The major headline? First-time buyers represent 35 percent of home-buyers overall, according to a recent survey from the National Association of Realtors.

-- The Federal Reserve voted not to raise policy rates at last week's meeting, but did signal that they may raise rates at December's meeting if economic improvement continues.

-- Jobless claims were up slightly, but layoffs were at a five-month low. A strong non-farm payroll report could fuel speculation that the Fed will raise rates in December.

-- Consumer spending is up and factory orders rose for the third straight month. As the economy slowly heats up, inflation could become an issue and bring higher rates. It also might not. We have been in an inflationary period for some time with the non-stop printing of money (evidenced by spikes in food prices at stores, etc.), though the way the government "officially recognizes" inflation, we official have had none. With rates held artificially low for so many years, in my opinion we are due for an increase soon.

-- Although construction spending was down slightly in September, most of the drop was non-residential. Spending on residential construction was up 0.5 percent for the month.

-- Mortgage purchase applications were down slightly from the previous week, but were up nine percent compared to the same week in 2015.

Its Election Day!

VOTE!!!

In Port St. Lucie, Florida's Foreclosure Capital, Voters Are Mixed

An interesting read from CNBC, on how voters on this east Florida coast city are mixed on the election.

More than anyone else across the United States, homeowners are voting either for Donald Trump or Hillary Clinton because of their pocketbooks. Some eligible voters are even sitting out the election this year, having no idea which candidate they prefer.

Check it out here.

U.S. Presidential Observations

Isn't it interesting.

For all the blather, bloviating, etc. from both presidential candidates, isn't it interesting that neither candidate has elevated housing or mortgage lending to a central issue.

From a business view, this is a bit startling. Trump has talked about easing regulations on lenders. Clinton has forwarded an idea of providing down-payment match for households earning less than the median income.

Overall, however, both candidates have been remarkably vague in the few cases where housing or lending was the subject.

Tax Straddling: The Surprise Advantage of a Year-End 1031 Exchange

Halloween may be over, but a treat might exist for those taxpayers who initiate a 1031 tax-deferred exchange on their second home residential property investment (or rental investment, or commercial/investment property) toward the end of 2016, only to find that their exchange fails in 2017 or they receive any amount of cash boot in 2017.

The good news is the IRS provides the treat in that there might be a back-up benefit in store – 1031 tax straddling – which provides added incentive to most taxpayers selling investment property at the end of the year who face the above mentioned circumstances.

Here is how it works. In a tax deferred exchange, taxpayers typically have 45 days from the sale of the old property to identify potential replacement property and 180 days to complete the purchase of the identified property. Once a 1031 Exchange is initiated, if replacement property is not purchased to complete the exchange, the earliest the Qualified Intermediary can return the taxpayer’s funds is on the 46th day (the day after the identification time period has ended) or, in some cases, the 181st day (the day when the 1031 Exchange time period is complete).

Taxpayers who enter into a 1031 Exchange during the fourth quarter of 2016 and receive their funds back from the Qualified Intermediary in 2017, have the option of deferring payment of taxes on the profits from their sale until 2018 – the due date of their 2017 tax return. Combining §1031 with §453 permits the cash received from the Qualified Intermediary at end of the exchange to be treated as a payment in the year of actual receipt, rather than in the year the property was sold.

The best part? The IRS does not penalize investors for attempting to complete a 1031 Exchange. Tax straddling merely provides added incentive to taxpayers selling investment property at the end of the year. So why not attempt to complete a 1031 Exchange when a one year deferral is available as the back-up plan?

PLEASE KEEP IN MIND THIS IS NOT ACCOUNTING NOR LEGAL ADVICE and I AM NOT AN ACCOUNTANT.

Consult with your tax advisor since tax straddling does not apply to all sales, and any gain attributed to debt relief will still have to be recognized in the year of sale.