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If you’re used to not voting when it isn’t a big ticket year, or if you’ve never voted before, skipping your chance to vote this year may be a mistake you’ll be paying for, for a long time. Some of the propositions on Texas’ ballot this year deal directly with home values and appraisals, and it’s important that we understand what we’re voting for and why, even if someone would still decide it’s not important and not go. Even if you don’t own a home now, it may be an issue that affects you in the future. Here is a re-print of October 16th’s blog.

November 3^rd’s ballot in the State of Texas won’t have the same hot button races as a presidential election year, but the propositions on it will directly affect Texas homeowners and their money, right now and in the immediate future. The language can be tricky and there is misleading information floating around from misinterpretation, but it is important to understand the proposed amendments and vote.

Gabriel Lopez wrote a great column translating the amendments into simpler terms. The Houston Chronicle also offered an interpretation. There are a few amendments in question, namely, Propositions 2, 3, and 5.

Proposition 2

As it will appear on the ballot: “The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead.”

What it means: We’ve talked about the increases in appraisal rates in the state. Currently, “the central appraisers are using a practice called ‘highest and best use,’ which allows a property to be valued on potential use rather than current use,” Lopez writes. In other words, if this amendment passes, if an area is experiencing rapid commercialization, the land can’t be valued for the potential value – it will mandate “that a residence be valued only as a residence, regardless of what the ‘highest and best use’ is.”

“This amendment is intended to protect less affluent homeowners from situations in which rapid commercialization in their area threatens to drive up property taxes unreasonably year after year,” writes the Chronicle. “…such development can occur quickly and with potentially difficult consequences for homeowners. The measure would be strictly limited to residences qualifying for the home-owners exemption, thus eliminating the potential for use by speculators.”

Proposition 3

As it will appear on the ballot: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.”

What it means: This amendment is another reaction to the state appraisal policies leading to inflated rates recently. It would require uniformity in appraisal processes statewide, allowing the state to have oversight and enforcement over every district. “This is important because state funding for public schools is based on the taxable property in each school district,” says Lopez.

Writes the Chronicle: “Unfortunately, the proposition has been plagued by Internet rumors that it is a back-door method to introduce a statewide property tax. It is no such thing, assures state Sen. Tommy Williams, R-The Woodlands, an author of the amendment. Williams says it is simply a means to achieve uniformity of appraising methods in the interests of more equitable appraisals in all areas.”

Proposition 5

As it will appear on the ballot: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.

What it means: The board of equalization would hear appeals from homeowners regarding their home’s appraisal value. It can be difficult to find qualified individuals for these boards in rural and less populated counties; this amendment would assist them. “It is written to be ‘permissive,’ which means a larger entity cannot force a smaller one to participate without its consent,” says the Chronicle.

Along with the Houston Chronicle, The Texas Board of Realtors endorses “yes” votes for propositions 2, 3, and 5. A quick, concise flyer is available here.

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HAPPY HALLOWEEN!

Austin, Texas always has exciting happenings going on for this fun holiday.  If you’re in need of a costume to dress up, there are many Halloween stores to choose from, but your best choice might be South Congress Ave favorite Lucy in Disguise, full of top quality costumes, wigs, and accessories for sale or rent.

Then, there’s no better place to show off your costume and see others than 6th Street. There you can find any sort of live entertainment or dining to suit any taste. “Ghost Tours” in the the state capitol, rumored to be haunted, or through other hotels and buildings that are centuries old, can be a fun activity not for the faint of heart. There are also plenty of haunted houses created for Halloween, in the area, if you’re looking for a good show.

Many activities are available for families with little ghosts and goblins, as well, and run all weekend. If you are looking for some Halloween fun in Austin, try the Austin360 calendar.

And from the Dave Murray Team, have a safe and delightfully spooky Halloween!

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November 3^rd’s ballot in the State of Texas won’t have the same hot button races as a presidential election year, but the propositions on it will directly affect Texas homeowners and their money, right now and in the immediate future. The language can be tricky and there is misleading information floating around from misinterpretation, but it is important to understand the proposed amendments and vote.

Gabriel Lopez wrote a great column translating the amendments into simpler terms. The Houston Chronicle also offered an interpretation. There are a few amendments in question, namely, Propositions 2, 3, and 5.

Proposition 2

As it will appear on the ballot: “The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property’s value as a residence homestead.”

What it means: We’ve talked about the increases in appraisal rates in the state. Currently, “the central appraisers are using a practice called ‘highest and best use,’ which allows a property to be valued on potential use rather than current use,” Lopez writes. In other words, if this amendment passes, if an area is experiencing rapid commercialization, the land can’t be valued for the potential value – it will mandate “that a residence be valued only as a residence, regardless of what the ‘highest and best use’ is.”

“This amendment is intended to protect less affluent homeowners from situations in which rapid commercialization in their area threatens to drive up property taxes unreasonably year after year,” writes the Chronicle. “…such development can occur quickly and with potentially difficult consequences for homeowners. The measure would be strictly limited to residences qualifying for the home-owners exemption, thus eliminating the potential for use by speculators.”

Proposition 3

As it will appear on the ballot: “The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.”

What it means: This amendment is another reaction to the state appraisal policies leading to inflated rates recently. It would require uniformity in appraisal processes statewide, allowing the state to have oversight and enforcement over every district. “This is important because state funding for public schools is based on the taxable property in each school district,” says Lopez.

Writes the Chronicle: “Unfortunately, the proposition has been plagued by Internet rumors that it is a back-door method to introduce a statewide property tax. It is no such thing, assures state Sen. Tommy Williams, R-The Woodlands, an author of the amendment. Williams says it is simply a means to achieve uniformity of appraising methods in the interests of more equitable appraisals in all areas.”

Proposition 5

As it will appear on the ballot: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.

What it means: The board of equalization would hear appeals from homeowners regarding their home’s appraisal value. It can be difficult to find qualified individuals for these boards in rural and less populated counties; this amendment would assist them. “It is written to be ‘permissive,’ which means a larger entity cannot force a smaller one to participate without its consent,” says the Chronicle.

Along with the Houston Chronicle, The Texas Board of Realtors endorses “yes” votes for propositions 2, 3, and 5. A quick, concise flyer is available here.

The Austin Statesman recently published “8,000 Reasons to Buy,” re-capping a great program that is nearing its end. A lot has been said about the $8,000 Tax Credit, but there are a few things to remember:

1. The credit increases your refund, dollar for dollar. “For first-time home buyers whose income falls within certain limits, purchasing a house, condominium or townhome might make them eligible for a tax credit worth 10 percent of the purchase price of their home, or $8,000, whichever is less. This amount reduces the amount of taxes you owe, or increases your refund, dollar for dollar, according to the IRS. For example, if you normally would have a refund next spring of $100, with a qualifying home purchase your refund could be $8,100.”

2. It takes little effort.  ”It’s money in your mailbox,” as one agent says. She likens the amount to 4% appreciation in value on a $200,000 home.

3. Now is the time to find a house. You need to have closed on a house by the deadline, and loan approval is taking four to six weeks, as the Statesman reports. The house should be under contract by later this month.

4. There are more reasons to buy a home now, not just the tax credit. “Interest rates are at a historic low. Because the market has dipped, you will be buying at a lower price point instead of a higher one,” says a 28 year real estate veteran.

Other sales promotions and tax breaks exist. For instance, Freddie Mac is offering to pay 3.5% closing costs and offers a two year warranty on Freddie Mac owned homes. For this program, you need to have made a first offer on a home before October 30.  You must first contact a buyer’s agent for this program to be valid.

Texas and Austin both offer unique first time homebuyer programs, as well.

If you have any questions about buying an home and are interested in looking, talk to your real estate agent today.

When it comes to investing, particularly in real estate, there are two big schools of thought: investing for capital gains, and investing for cash flow. Purchasing a home and watching it appreciate in value is an example of investing for capital gains. Purchasing a home then renting it to tenants is an avenue for cash flow.

Robert Kiyosaki, best-selling author of “Rich Dad Poor Dad,” and writer of Yahoo! Finance’s “Why the Rich Get Richer” column, recently wrote about these two investment styles. He always advises readers first and foremost to educate themselves on investing, and to always prepare for the worst when it comes to managing your money. Then, in this article, he prefaces: “the following are the steps I did to prepare for the worst. I do not recommend my path; I will simply state why I did what I did and what benefits were gained.”

He then explains that for himself, he invests for cash flow. When the real estate market hit trouble, he explains, most people had invested for capital gain and either “lost a lot of money or are afraid of losing more money.” Investing for cash flow has kept money coming in for him, even through hard times.  “Even though the real estate market crashed in 2007, my rental properties continue to produce cash flow.”

1915 Cullen

Further, when the market turns down, these options become cheaper. “The good news is, when prices crash, cash flow investments become more affordable.” Now is a great time for investors, even new ones, to add these real estate investments.

1915 Cullen, for instance, is an Austin duplex with two units that rent for $1,790 a month together. Currently for sale at $269,000, this charming Crestview home, pictured, is a great investment.

This past weekend, Austin City Limits wrapped up another successful festival weekend. The talk of the weekend is the rain and the mud. Wet weather had fans in ponchos and under umbrellas while they attended three full days of their favorite bands’ music. Even on grassy fields, the revelers trudged through mud “like melted chocolate Haagan Dazs ice cream,” the Statesman wrote. Still, the clouds broke at points and brightened the weather, and you’re likely to hear nothing but fun stories and good reviews from sun-kissed faces.

Austin360.com offers thorough reviews of many shows, photos from around the event of the best-dressed and candid moments, and updates on the status of Zilker Park’s closings for cleanup. (Zilker’s great lawn will be closed until at least October 16, and C3 Productions, who organizes the event, will pay for the cleanup and repairing the grass as it has in years before.)

If you missed the event, KLRU airs many of the acts during their season of Austin City Limits, which you can see Saturday nights at 7 pm. Now in its 35^th season, here is what the show will air and when:

       Oct. 3: Dave Matthews Band

       Oct. 10: Ben Harper and Relentless7

       Oct. 17: Kenny Chesney

       Oct. 24: Andrew Bird / St. Vincent

       Oct. 31: M. Ward / Okkervil River

       Nov. 7: Elvis Costello / Band of Heathens

       Nov. 14: Willie Nelson & Asleep at the Wheel

       Nov. 21: Pearl Jam

       Nov. 28-Jan. 2: Encore episodes

       Jan. 9: Allen Toussaint

       Jan. 16: Mos Def / K’Naan

       Jan. 23: TBD / Heartless Bastards

       Jan. 30: Steve Earle / Kris Kristofferson

       Feb. 6: Madeleine Peyroux / Esperanza Spalding

       Feb. 13: Them Crooked Vulture

Yesterday, Forbes released their feature on US Cities on the Rise: vibrant cities welcoming the most newcomers. They’re not the big cities you’d think they are – in fact, New York is at the bottom of the list. It turns out Americans are most attracted to “job growth centers,” and college towns.

Three of the cities on the list are home to major universities, including Austin, Texas. Many young professionals, and everyone in thes areas, are very welcoming to newcomers. “If there are lots of newcomers, it’s easier to make friends; there’s a sense of vibrancy there,” says a senior fellow of the Brookings Institution, about these areas. “Places that don’t have a lot of new migrants tend to be older and more stagnant. They’re also more close-knit.”

Another draw to these cities are the universities themselves: universities are top employers and offer a steady flow of jobs. The population is educated, and it helps cities like Austin thrive. Says a senior fellow at the Joint Center for Housing Studies at Harvard, “these places retain people after they’ve graduated, and attract like-minded people.”

Austin sits at #4 on the list of US Cities on the Rise, with a population just over a million people and just over 6% of them having relocated to the area in 2008.

Forbes just recently published their “Best States for Business” list, ranking all states from 1-50. The list factors in six categories of data, with 33 points of data from nine different sources. Business costs including labor, energy and taxes were weighted most heavily.

Texas ranked first for Economic Climate, and third in Growth Prospects. It also ranked tenth in Regulatory Environments. Strong rankings in these three categories, and three others, put Texas in the eighth spot on Forbes’ top ten list.

"A common theme with our top-ranked states is an expanding, educated workforce," writes Forbes.

The top ten states were:

1. Virginia

2. Washington

3. Utah

4. Colorado

5. North Carolina

6. Georgia

7. North Dakota

8. Texas

9. Nebraska

10. Oregon

You can see all fifty states ranked here.

This is not the first time Texas has been recognized as a top state for business – in June, Directorship named Texas number one.

Austin area home sales pending to close in the month of September are up 10% from a slow August, the Austin Statesman reports. Should the almost 2,000 transactions go through, September’s home sales for the city will be 18% higher than September 2008.

This is a positive return from August, which saw home sales down 10% from August 2008, and down 11% from Austin’s strong July. While home sales were down, median home prices took less of a fall, at 4%.

BBVA Compass bank economists are predicting a return to growth for the State of Texas in 2010 - partly because of the stabilizing housing market in this region, according to their chief economist Nathaniel Karp. They predict a 4.5% increase in home sales for 2010 (along with a 1.2% increase in jobs and a 1.7% increase in gross domestic product).

There has been a lot of discussion about the role of the $8,000 first time homebuyer tax credit and its effect on sales. The IRS reports that 1.4 million homebuyers have taken advantage of the credit, and Austin has seen the effect, particularly in homes under $200,000. There has been talk of extending the credit, and some congressional leaders are pushing a six month extension or more, a move the White House is considering. Currently, however, there is no announcement, and the credit is set to end November 30. With how long it takes to process a mortgage application and other pre-closing requirements, buyers must have a house under contract a month ahead of the deadline, ideally even earlier, according to the Washington Post.

Most homeowners understand the value of updating and upgrading their home to add value, either because they’re selling their home now, or plan to in the future. But many feel overwhelmed or unsure when considering their options. Some updates are easy and obvious, like adding a fresh coat of paint or replacing the old dishwasher. But if you really want to invest in remodeling to up the value of your home, where do you start, and what do you do? And how do you make sure you don’t spend more in upgrades than you’ll make in return?

On Sunday, the Austin-American Statesman published “Upgrades that Pay Off,” full of helpful tips for homeowners looking to invest in their property. They spoke to experienced home investors for their ideas on money-making home improvements, specifically for homes in Austin, Texas. Here is some of their advice.

- Remember your budget. Because you don’t want the most expensive home on the block, keep your renovation costs at 20% to 30% of the home’s value.

- Don’t overdo, but don’t go cheap especially on core elements like flooring, counters, wall treatments, appliances, and outdoor living spaces.

- Consider your home’s positives and potential. Look at your home, take out a sheet of paper, and list the positives and negatives. Look at the lot, the house, the neighborhood, everything. Every home is unique, and has positives; your goal for remodeling is to bring the house to its potential.

- Keep a time frame. Three months is appropriate.

- Consider the land. Make sure the house and land work together. Make the most of an outdoor water feature, wooded lot or great view by adding a patio or other outdoor living space. (If you don’t have one, consider adding a manmade water feature, such as this.) Outdoor living areas are very much in demand, especially in Austin, and add space and value fast.

- Add privacy like fences or gates, particularly on high-dollar homes.

- Look at the whole house. Beware of completely renovating some areas, and completely neglecting others. You don’t want to redo your whole house, but leave in the old staircase. This will require planning your budget.

Infinity Edge Pool

- Make your home unique (if even just a little). “Every house is going to have a kitchen, every house is going to have a master bath. What many don’t have is those other areas – the wine room, the pergolas, the outdoor places you can see from within the house.” An Infinity Edge (or negative edge) pool, for example, will pop out. But of course, beware of going overboard and making too many exotic choices. Always consider what a buyer would like. You should always assume, no matter how much you love it now, you may one day decide to sell your home.

The photo featured is one of our newest listings. You can see it and other great homes at www.DMTX.com.