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Tri-County Sentry
Friday APRIL 11, 2014
Spend Your Tax Refund Wisely
The Five Biggest Turn-offs for Homebuyers
By Jason Alderman Last year the IRS doled out over 110 million income tax refunds averaging $2,803. Another way to look at it is that collectively, Americans overpaid their taxes by nearly $310 billion in 2012. Part of that is understandable: If you don't have enough tax withheld throughout the year through payroll deductions or quarterly estimated tax payments, you'll be hit with an underpayment penalty come April 15. But the flip side is that by overwithholding, you're essentially giving the government an interest-free loan throughout the year. If you ordinarily receive large tax refunds, consider withholding less and instead putting the money to work for you, by either saving or investing a comparable amount throughout the year, or using it to pay down debt. Your goal should be to receive little or no refund. Ask your employer for a new W-4 form and recalculate your withholding allowance using the IRS' Withholding Calculator (at www. irs.gov). This is also a good idea whenever your pay or family situation changes significantly (e.g., pay increase, marriage, divorce, new child, etc.) IRS Publication 919 can guide you through the decision-making process. Meanwhile, if you do get a hefty refund this year, be-
fore blowing it all on something you really don't need, consider these options: Pay down debt. Beefing up credit card and loan payments can significantly lower your long-term interest payments. Suppose you currently pay $120 a month toward a $3,000 credit card balance at 18 percent interest. At that pace it'll take 32 months and $788 in interest to pay it off, assuming no new purchases. By doubling your payment to $240 you'll shave off 18 months and $441 in interest. Note: If you carry balances on multiple cards, always make at least the minimum payments to avoid penalties. The same strategy will work when paying down loans (mortgage, auto, personal, etc.) Ask the lender to apply your extra payment to the loan principal amount, which will shorten the payoff time and reduce the amount of overall interest paid. Just make sure to ask whether there's a prepayment penalty before trying this strategy. Boost your emergency fund. As protection against a job loss, medical emergency or other financial crisis, try to set aside enough cash to cover six to nine months of living expenses. Seed the account with part of your refund and then set up monthly automatic deductions from
CAMARILLO, Calif. – EDC-VC’s Small Business Development Center of Ventura and Santa Barbara Counties saw a record performance in 2013, helping
entrepreneurs and small businesses create 186 jobs and retain an additional 493 jobs, according to 2013 year-end statistics. The SBDC also increased
By Blanche Evans A lot of sellers don't listen to their real estate agents, so we'll tell you what your agent wants to say, but can't say to you and this is it - your agent can't get you the price you want unless your home is in pristine move-in condition. That means no sticking drawers in the kitchen. No leaning fences. No ruststained plumbing fixtures. We could go on, but maybe we need to make it clear. If you have even one of following "turn-offs," your home won't sell. Buyers can get instantly turned off. Here are their five biggest turn-offs: Overpricing your home If you ignored your agent's advice and listed at a higher price than recommended, you're going to get some negative feedback from buyers. The worst feedback, of course, is silence. That could include
no showings and no offers. The problem with overpricing your home is that the buyers who are qualified to buy your home won't see it because they're shopping in a lower price range. The buyers who do it will quickly realize that there are other homes in the same price range that offer more value. Smells Smells can come from a number of sources - pets, lack of cleanliness, stale air, water damage, and much more. You may not even notice it, but your real estate agent may have hinted to you that something needs to be done. There's not a buyer in the world that will buy a home that smells unless they're investors looking for a bargain. Clutter If your tables are full to the edges with photos, fig-
Ray Bowman, SBDC director
(NewsUSA) - How smart is your home? You can make your home smarter and safer, and make your life easier, with these five simple switchouts that make the most of emerging home technology, courtesy of Jack Thomasson, HGTV Smart Home House Planner. • Entry level. You needn't throw away your key, but save it as a backup, and install a keypad at your front door instead. The latest keypads provide not only security, but also remote access via your smartphone. You'll never again have to wonder whether you locked the door; your smartphone, tablet or other Internet device will tell you if you did, and let you lock it if you didn't. Need to open the door for someone when you're not there? Keypads allow for that option as well. • Perfect temperature. Want to come home to a cozy warm or comfort-
Use your smartphone to control many functions of your home. ably cool house? Make the ing a delivery. In addition switch to a WiFi-accessi- to viewing camera feeds, ble thermostat, and adjust remote home monitoring the temperature of your systems allow you to arm home remotely. or disarm your home secu• Guess-free garage. rity system and to receive With wireless technology specific notification by and your smartphone, you text, email or phone in case can check the status of of emergency. your garage door and open • Smart cookies. Preor close it as needed. heat your oven while • Who's there? Security you're still at the grocery cameras accessible from store. Certain apps and apyour smartphone let your pliances will let you adjust house tell you who's makHOME, See page 12A
its economic impact by 87 percent, emerging as a regional leader in facilitating business access to capital. Other impacts created through the center’s services included an increase in sales to more than $30 million; the launch of 39 new businesses, nearly double that of the previous year; and helping businesses access more than $37 million in loans and equity infusions, which was two-times greater than 2012 figures. The center was nominated for the national SBDC network’s Center of Year, in recognition of its outstanding efforts in 2013 and its ongoing, free advising and training services offered to businesses in the region through its nearly 30 expert business advisors. “Our advisors’ expertise and dedication proved instrumental in achieving the results we saw last year. Their innovation and passion helped develop new businesses and strengthen existing businesses poised for growth,” said Ray Bowman, SBDC director. “We continue to set our goals SBDC, See page 12A
By Teresa Mears The TV shows make it look so easy. You buy an ugly house, fix it up in a week or two and then sell it for a whopping $100,000 profit. But as anyone who has ever tried it knows, house flipping is a lot harder than it looks. “The math never lies,” says Brandon Turner, senior editor and community manager for BiggerPockets, a website for real estate investors, and a veteran flipper near Olympia, Wash. And often, the math doesn't add up to a sizable payday when you factor in the time, effort, labor and money to execute a flip. But that doesn't keep people from trying. Investors flipped 156,862 single-family homes in 2013, according to RealtyTrac, which defined a flipped home as one bought and sold twice within six months. The number of flips was up 16 percent from 2012 and
32 percent in Phoenix, 17 percent in Tampa, Fla., and Houston, and 15 percent in Denver. In 2013, there was a bigger increase in the flipping of properties that sold for $400,000 or more than in lower-priced properties. “Investors have not lost interest in purchasing and flipping homes. In fact, now that we are seeing home price appreciation, they are more interested than ever,” Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, which covers Oklahoma City and Tulsa, Okla., said in a RealtyTrac news release. “The challenge for many would-be flippers in our markets is a shortage of available inventory to flip.” Flippers face four key challenges: • Finding a good house at a low enough price to make the deal work • Finding reliable contractors to do quality work at a reasonable price FLIPPING, See page 12A
your paycheck or checking account going forward. Increase retirement savings. If your debt and emergency savings are under control, add to your IRA or 401(k) accounts, especially if your employer matches contributions; remember, a 50 percent match corresponds to a 50 percent rate of return – something you're not likely to find anywhere else. Finance education. Enroll in college courses or vocational training to gain additional skills in case you lose your job or want to change careers. And ask whether your employer will help pay for job-related education. You can also set money aside for your children's or grandchildren's education by contributing to a 529 Qualified State Tuition Plan. As an incentive, the government allows your contributions to grow tax-free until they're withdrawn. And finally, to check on the status of your refund, go to the IRS's Where's My Refund site. You can usually get information about your refund 24 hours after the IRS acknowledges receipt of your e-filed return or about four weeks after filing a paper return.
SBDC Creates and Retains 679 Jobs in 2013
urines, mail, and drinking glasses, buyers' attention is going to more focused on running the gauntlet of your living room without breaking any Hummels than in considering your home for purchase. Too much furniture confuses the eye - it makes it really difficult for buyers to see the proportions of rooms. If they can't see what they need to know, they move on to the next home. Deferred maintenance Deferred maintenance is a polite euphemism for letting your home fall apart. Just like people age due to the effects of the sun, wind and gravity, so do TURN-OFFS, See page 12A
Home, Smart Home -With Wireless Technology
What You Should Know Before Dipping into Home Flipping
114 percent from 2011. The average gross profit for a completed flip – or more accurately, the difference between the first sales price and the second sales price -- was $58,081. Only 21 percent of those flips were foreclosure properties, according to RealtyTrac, down from 32 percent in 2011. And it has proved much more popular in some cities than others. Home flipping was up 141 percent in Virginia Beach, Va., 92 percent in Jacksonville, Fla., 88 percent in Baltimore and 79 percent in Atlanta. But it fell 43 percent in Philadelphia,