Insight For The 2019 Housing Market

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The economy and the real estate market go hand in hand. If the housing market cools then the financial sector is hit with an ice storm. Last year the housing market held up while other global economic sectors took a real hit. Forbes outlook on the 2019 housing market marks this year as a crucial year for both US housing and commercial real estate. Here a several reasons why this will be a pivotal year.

The first positive factor is the Opportunity Zones. This program is part of the 2017 Tax Cuts and Jobs Act that was established by President Trump. It is basically a program that offers tax advantages for investors through capital gains tax deferment, capital gains tax reduction and capital gains tax elimination. The Opportunity Zone is an economically-distressed area that both the State where the community resides and the Secretary of the U.S. Treasury deem qualified. It is a great way for a hard hit community to become attractive for economic development. The reason it is good for the 2019 housing market? To make sure and gain the maximum benefit from the program, 2019 is the year an investor will need to purchase making this the crucial time for investors to take advantage of the program.

Secondly, will be the changes to mortgage interest deduction. This will be a sore subject for many American homeowners. With tax season around the corner, many are gathering their information to prepare their taxes. Homeowners will realize the impact of the cap on the mortgage interest deduction. Under the 2017 Tax Cuts and Jobs Act legislation limits the amount of mortgage interest a homeowner could deduct off their taxes. In the past there have been no limits to the mortgage interest deductions for homeowners. Tax deductions have always been an advantage for owning vs. renting. This is still the case, however the advantage has limits now.

Volatility in interest rates can make or break the housing market. The yield on ten-year treasuries rose from 2.47% to 2.67% in 2018 but the ten-year treasury rates dropped from 3.23% to 2.7% as of date. This level of volatility can be looked at as a catalyst for a downturn in the economy. This might make investors, future homeowners and builders shy away from investing a good chunk of change into the housing market. On the other hand, it could force housing to decrease in value making housing more affordable for many.

This leads to the next reason, a slow-down in home price is increasing in coastal markets. In the past 10 years extreme price increases in the housing market have hit in places like New York City and San Francisco. In 2018 however, the increase slowed way down. This little hiccup in the housing market can have its benefits. It can keep the supply of homes on the market in check. If the houses are priced out of most peoples pocket, then they will sit on the market a lot longer causing an oversupply in the market.

The last reason and one of the biggest is the rest of the economy. The affect from the slow down in other economic sectors and the government shut down will definitely play a part in the 2019 housing market.

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Things To Know About The Home Builders Warranty

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Buying a new home can be both exciting and nerve racking. So many decisions can make or break a deal. If you are planning on purchasing a new construction home, you should definitely require a builders home warranty. Not all builders warranties are created equal and not everything is covered. Before you decide, here are some tips to follow.

What’s covered in the warranty? As mentioned earlier, not every warranty is alike but there are standards that most warranties fit into. Workmanship and materials used in the building of a new home are covered. Typically this covers an umbrella of things such as exterior siding, roofing shingles, windows, HVAC system, insulation, septic, plumbing, electric and waterproofing. Structural issues such as roof or foundation (things that can impact the structural integrity of the home) are also covered.

What’s not covered in the warranty? Let’s start with the obvious, general wear and tear. Fading paint or small hairline cracks are examples of general wear and tear. Defects that are a result of something the home owner has done is also not covered. An example would be a sewer back up from a child flushing a stuffed animal down the toilet. Household appliances are not covered. Even if the builder puts the appliances in the home, they are not covered under a builders warranty. If a manufacturer warranty came with the appliance, the builder will pass this along to the new home owner. Lack of maintenance is also not a fault that is covered. These include pest control, HVAC maintenance etc. Last that are not covered would be natural disasters. An example would be Acts of God such as a hurricane, flood or earthquake.

Most home builders take claims seriously and will work with you, while others will fight you in the situation. Always dot your i’s and cross your t’s when dealing with a claim. Stay on top of deadlines.  Some warranty issues that are covered have an expiration date. Some structural components will have a 10 year coverage while other materials will only be covered for 1 year. Know who you are dealing with when presenting a claim. In some instances you many be dealing directly with the builder or a third-party insurance provider. Familiarize yourself with the process for submitting a claim. The specific warranty should list the process of how to submit the claim.

Do your due diligence. Have your home inspected prior to closing, a professional can spot things that may be or become a concern.

 

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Downtown Covington Film Festival, February 8 – 9, 2019

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The Downtown Covington Film Festival will be held at the Southern Hotel in Covington.


Downtown Covington Film Festival


The Southern Hotel
428 East Boston Street
Covington, LA 70433

February 8 – 9, 2019

5pm – 9pm

Tickets are $10.00

Click Here for More Information!

 

“Thank You” for the Tremendous Job

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Dear Bedico Creek HOA and Developer,

My name is Herbie and I own a home in Longview. We have lived here for almost 5 years now. This winter our area has had a tremendous amount of rainfall. Rivers have risen to the point of almost overflowing. Yet, Bedico Creek has seen basically zero street flooding despite the record rains. Two years ago when many neighborhoods very close to here had flooding in every home, we remained dry except for some minor street flooding which was addressed immediately.

I just wanted to take a minute to say “Thank You” for the tremendous job the developer and planners have done to keep our neighborhood dry. I know that it must be a major engineering effort and your efforts have not gone unnoticed.

Have a great day and hopefully we will see the sun again soon.

Sincerely, Herbie
Longview Neighborhood

 

2019 Mardi Gras Home Tour

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VISIT OUR COMMUNITY OPEN HOUSE DURING OUR HOME & NEW HOME TOUR!

 

TOUR AVAILABLE HOMES AT BEDICO CREEK!

 

2019 MARDI GRAS HOME TOUR!

 

SATURDAY, FEBRUARY 2, 2019
1:00PM – 4:00PM

 

CLICK HERE TO VIEW MORE INFORMATION ABOUT
HOMES AVAILABLE TO TOUR!

 

Krewe of Lyra Parade, March 5, 2019

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Krewe of Lyra is based on the North Shore and is now co-ed.

N Columbia St and Jefferson St
Covington, LA 70433

March 5, 2018

10am

 

Click Here for More Information.