We just arrived home yesterday from a very short vacation trip to Pensacola FL. Jessica has some family down there, so we snuck away to go visit them and take some R&R time

While we were visiting, one of Jessica’s family members made the comment that they rarely go to the beach – maybe a few times a year. It amazes me they’ve lived their for decades, yet they rarely go to the most coveted land mark in their area.

I’ve heard this same comment from our clients in the past who say they live a short drive to the beach yet never go. It’s almost as if it grows old and normal. I must admit I’m glad that living in the mountains of Murphy NC never grows old.

The mountains and the gorgeous scenery they create becomes part of you. You simply don’t grow tired of them! Their beauty is something you constantly can enjoy – your mountain view, your creek, your lake, the mountains as you drive home – you name it. It’s inspiring and I’m proud to know we live where you never grow weary of your greatest surroundings.

John Poltrock – The Poltrock Team at REMAX of Murphy NC – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us toll free at 1-866-Murphy-NC or 1-866-687-7496

That’s right – Fortune Magazine’s April edition spreads the word that it’s time to buy real estate again – especially in Murphy NC (well, maybe he didn’t say Murphy specifically, but I bet he was thinking it! ) . Not only that, it was the cover story – not just some random article you can hardly find. Here’s an excerpt written by Fortune’s Senior Editor-at-Large, Shawn Tully:

So let’s state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

What’s his advice for folks on the fence and thinking of buying real estate?

Beat the Crowd.

The Poltrock Team – Murphy’s #1 Real Estate – RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us Toll Free Today at 1-866-Murphy-NC or 1-866-687-7496

Very recently, we closed a real estate transaction with almost 40 acres of land. It was located in the Brasstown area of Murphy, NC – and it was done in a Self Directed IRA. A Self Directed IRA (or SD IRA) is an excellent way to buy, invest, and own real estate.

The ability to buy real estate investments inside your IRA provides some excellent tax advantages. Your real estate investment essentially is provided the same tax advantages your Traditional, Roth, or SEP IRA receive through conventional investing – only in real estate!

For Example (a simple one): You buy a $100,000 rental house in your SD IRA. You collect monthly rents of $750, which is $9,000 per year for 3 years for a total of $27,000. At the end of 3 years, you decide to sell it and get $130,000. Because you own it in your SD IRA and all funds stay there, you don’t pay taxes on your rental income OR gains when you sell it! That’s a total of $57,000 you were able to shelter from taxes when you normally would have paid taxes on the rental income AND capital gains on the sale! A sweet strategy! 

As with typical IRS regulations, there are some requirements, conditions, and hoops you must jump through, however they aren’t too complicated.

Would you like to invest in Real Estate with your IRA? Call The Poltrock Team at RE/MAX Today and let us help guide you on how to do it and identify properties that meet your investment goals.

The Poltrock Team – www.MyMurphy.com – REMAX Mountain Properties in Murphy NC – Call Toll Free 1-866-Murphy-NC or 1-866-687-7496 – JohnPoltrock@gmail.com

Home prices have been something that’s been all over the news, the internet – you name it. It’s constantly being watched because its a huge part of our economy and it’s a huge part of our personal livelihood and interests. It’s a great topic of conversation, and here in Murphy NC, homes are selling for some incredible prices.

Several years back, you would have been able to build a home and have instant equity – which is why there were so many “spec” homes being built. Today, you can’t build most homes back for the price you can buy them for. If you’ve been considering a home, it may certainly benefit your pocket book and even stress level because building can be quite stressful! I encourage you to look at homes for sale to see if you can find one that fits your needs because in the long run, you can get more for your money.

For Example:

Building a Home from Scratch:

This brand new chalet home can be built for $149,500 if you go with the builder’s package (which is quite nice I might add) without doing any additional upgrades.

Now, add in this piece of land that is quite nice with a mountain view and community water so you can save the cost of drilling a well.

Combine them together and you’ve spent approximately $180,000, assuming you didn’t do any upgrades or have any issues come up while you’re building (read: there’s always an issue that costs more, so $180,000 is conservative)

NOW – What if you bought something already built:

Along with:

This home is right about the same size with a full FINISHED basement and the double car garage, and this chalet home is currently for sale for $174,800. If you were to rebuild it, it would roughly be $149,500 (Home) + $29,800 (Land) + $15,000 (Finished Basement) + $17,000ish (Garage) = $211,300. That also doesn’t include the cost of landscaping, etc. that has been spend on the home. Now that’s a an almost $40,000 savings!!

Don’t get me wrong – I’m not trying to discourage you from building your dream home. If you have a the perfect home you have envisioned, then building is the way to go. It can be just the way you want and out of materials you want. However, if you’re not specifically looking for something, then you should certainly explore some of the homes for sale in the real estate market.

Let’s make Murphy NC your home in the mountains of North Carolina! Contact The Poltrock Team Today!

John Poltrock – The Poltrock Team at REMAX in Murphy NC – Murphy’s #1 Real Estate Team – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free at 1-866-687-7496

Here’s the most recent article I wrote for the Cherokee Scout’s magazine, Country Roads. This is one of my favorite’s and honestly, all Jessica’s idea! Enjoy!

Murphy attracts people from all over the United States. From Florida, to Alabama, to New York, to California, to Alaska, and just about every other state in the Union. Some folks show up to rent a cabin for a while and never leave. Some come for the thousands of acres of US Forest Service land. Some find themselves here for the love of downtown, for family, and hundreds of other equally important reasons.

You may know that I didn’t grow up in Murphy and that my wife was born and raised right here. I was born in Georgia and grew up near Fayetteville NC and don’t miss it in the least. When Jessica and I got married, I moved right away and can’t imagine being anywhere else. And in case you’re from here and know the history, Jessica’s family has been here several generations – she’s a Ritz and her mom is a Cook. With that said, I get to hear a lot of reasons why being in Murphy is the best place to be in the world.

I have the benefit everyday of being able to help people come to Murphy and find their personal, favorite part of being here. And because of that, I wanted to share with you some of the few reasons why folks absolutely love it here. Not just transplants, or locals, or vacationers – a little bit of everyone. Here’s what I’ve found. Enjoy!

“The people. The people of Murphy are the best people you’ll ever meet anywhere in the U.S. It doesn’t matter if you’re at a friend’s or a local bank. They treat you like a neighbor and remember your name. You’re not a number, you’re a neighbor.”

-Bill Robbins and Kathy Pasick, Bradenton, FL and Murphy, NC

“The reason I love Murphy is simple, I’ve lived in here for 71 years and I just can’t imagine living in a better place. The temperature is cooler and the people are amazing. I’m a better person for making their acquaintance and knowing them. The people are sincere, honest, hard working, good Christian people and it doesn’t get any better than that.”

-Mayor Bill Hughes, Murphy NC

“The weather. When the rest of the country is getting record breaking heat with a heat index in the triple digits, I’m sitting on my porch enjoying the comfortable temperatures and cool nights.”

-Donald and Marilyn Blane, Florida and Murphy, NC

“Its hard for me to nail down one thing because we just LOVE it here. If I had to say one thing… locale… and temperature. I absolutely love the location. Its close to us to get to and not just that, Murphy’s close to everything. Anything we need for shopping, restaurants, you name it, Murphy’s got it.”

-Tom and Chris Barnes, Byron GA and Murphy NC

“I was born and raised in Murphy, and honestly, I’ve never left because I’ve never found anywhere better than here.”

-Tony and Susie Godfrey, Murphy NC (Parker’s Drug Store)

“I love the wildlife. We see deer, turkey, and all sorts of different animals right on our land. The nature here in Murphy is spectacular and everyday we’re thankful we moved here.”

- John and Annie Faulkner, now Murphy NC residents

“Super people. No question about it. We love coming here and the value [of real estate] is amazing. We looked for homes all over the mountains and Murphy was by far the best value we saw anywhere. Top it off with great quilting, and Murphy is our half-the-year home!”

-Stanley and Monica Stein

“The peace and quiet. There’s something about Murphy that relaxes us unlike anywhere we’ve ever been. We love it and always look forward to coming in. The hardest part is leaving!”

-James and Cheryl Palmer, Chapin SC

“Family brought me to Murphy, and to this day, that keeps me here. I love the beauty and tranquility of the area – there’s nothing like it. Coming from a fast-paced corporate job in California was certainly a change of speed, and I simply can’t imagine going back to it. I’m able to slow down and genuinely enjoy life. I love this area and everything it offers and look forward to many more years here.”

- Mike Webb, Murphy NC (Duke’s Marina)

“The seasons. There’s nowhere in the entire United States that offers the perfect blend of the seasons like Murphy does. The Spring is unbelievably comfortable as all the foliage comes back to life. The Summer is warm without the thick humidity. The Fall is one of my favorites with the change of the colors on the leaves. Even the Winter is quite mild and offers just the right amount of snow – not too much and not too little. You won’t find a more wonderful place with so much to offer.”

- Mark W., now a Murphy NC resident

If you’d like to come to Murphy and join us, give us or your Realtor a call. There’s no better place on Earth and we’re always looking for a new neighbor.

John Poltrock – The Poltrock Team at REMAX in Murphy NC – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us Toll Free at 1-866-Murphy-NC or 1-866-687-7496

Think the tax stimulus was  a great deal – think again! Mortgage rates here in Murphy NC are so good, you can beat it! We have lots of local lenders that can help you with this.

For missing the $8000, you gained $54,612 in interest charged for your loan. On a $200,000 mortgage at 5.5% interest over 30 years vs, the current 4.25% you will have saved $54,612*. If you look at a 15 year mortgage, it would have saved you EVEN MORE!

Buy now and gain so much more than the $8,000 tax credit, you really don’t want to miss out on this benefit.  Call us today to start finding your new home!

The Poltrock Team – Murphy’s #1 Real Estate Team – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free 1-866-Murphy-NC or 1-866-687-7496

*interest rates change daily so savings can change based on your interest rate lock

Insurance

We thought it might be helpful for you to know a little bit about real estate insurance in Murphy, NC. Insurance is something most everyone has to deal with and plan for no matter where you live, and we commonly hear of insurance rates in the thousands of dollars in other places around the U.S. – and thankfully my bill is not like that!

When you buy a home, did you know the rate is very commonly around a mere $600-$900 for a year?! You can’t beat that for coverage. Of course that can change depending on the size, type, and other factors of your home, but as a general rule, that’s a great place to benchmark yourself for planning purposes. I only pay $650 per year for my home!

Did you know that if you buy a piece of land, you most likely don’t need to insure it at all? You probably should double check with your insurance agent to make sure of this on your policy, but your current homeowner’s policy covers any liability you might have with vacant land. That means you’ve got no additional cost there!

If you’re looking to buy a home, you may or may not be considering renting it out. If that’s the case and you would like to rent it out as a full time rental or vacation rental, be sure your insurance is right. Some of our local insurance agents can find and rental rider that’s included at no charge or very inexpensively!

Taxes

When  it comes to land, it’s an extremely affordable tax bill. The tax bill is commonly around $50-$150 for an average 1-2 acre parcel and can be higher for a more expensive or desirable parcel. Large tracts vary and its best to research them on a per parcel basis.

In regards to homes, a cabin or chalet yearly tax bill is around $700-$900. A nice home assessed at $300,000 is right around $1,350, so it’s not too bad!

Tax Rate – The current tax rate is $0.385 per $100 of assessed value. Assessed value is currently higher than market value on most homes by 20-30%.

We’re really blessed with fair taxes that aren’t outrageous compared to so many other areas in the country!

FAQ’s

Will my tax bill change when I purchase a property in Cherokee County? No, generally not. Taxes here are based on “bulk appraisals” that are assigned roughly every 4 years. Your purchase will have a small bearing as to a future assessment but won’t directly change your tax assessment.

Is there a homestead exemption? No. Cherokee County assesses equally amongst everyone generally keeping all taxes lower.

Why are taxes lower in Murphy NC/Cherokee County than where I live? Although I can’t directly answer that, I do find that most people I’ve spoken with that have higher taxes often live in cities or close to them that have more “infrastructure” and “programs.” Things like garbage pickup all the way to big public works projects that cost money to operate and can attribute to higher taxes.

Is there a separate school tax? No, there is not.

Who do you recommend for insurance coverage? Easy! Check out our Gotta Guy List for great insurance agents you can work with here locally.

John Poltrock – The Poltrock Team at REMAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call us Toll Free at 1-866-687-7496

Here’s this week’s article for The Cherokee Scout – Murphy NC’s Main Local Newspaper. Enjoy!

Everybody knows who Rock Stars are – hugely famous and successful people in the music business. Different people come to mind depending on your generation. Some people think of Elvis, Buddy Holly, Bob Dylan, Led Zeppelin, Aerosmith, and even some new guys out today who are destined for fame.

Real estate has the same type of people – Rock Stars in their own right. Everyone knows Donald Trump, who is arguably the most famous investor of today. There are many others – Steve Wynn in Vegas, Donald Bren in California, and a list that continues on. In fact, you’ll find several billionaires who owe their fortune to real estate on the Forbes list of the 400 Richest people in America. Realistically, it’s hard to fathom a billion dollars – that’s one thousand million dollars, two hundred million Big Mac combos, just imagine that kind of money. That’s the fortune these men above have accrued through real estate investing.

The good news is you don’t need that much money to be an excellent real estate investor. They key to being a real estate investor is to buy smart, buy right, buy for the investment and not emotion, and don’t stretch yourself financially thin. There are thousands of people who have made themselves financially independent by buying one rental house at a time, and most of them weren’t their class valedictorian. Solid investments are all over the place, and you can find one to meet your own personal needs and goals.
It’s common not to plan for the future, and I find that more and more people don’t have the foresight to do so. You can easily leave the pack and plan for the future, all you need to do is have a bit of foresight, competent counsel, and act. Procrastination on something you know can positively change your future or that of your heirs is as dangerous as idle hands.

There are so many goals you can accomplish through real estate investing that are far more reliable and “real” than what most investment brokers lead you to believe. If you’ve ever been “pitched” a whole life insurance policy, you should know what I mean! STAY AWAY! Many annuities, mutual funds, and stocks are commission makers that are not in your son or daughter’s best interest. Some disreputable brokers use techniques that play on your emotions rather than your intelligence to make decisions for your loved one’s future. Diversification is extremely important, and you should consider an alternative.

Do you dream of your son/daughter going to college? How about them growing up to be a “Rock Star” brain surgeon, teacher, or fill-in-the-blank? Real estate offers so many options that can alleviate your stress in paying for their future. A rental house or a land parcel is a perfect way to invest for the long term.
Consider this simple math:

-Rental Home – $100,000 initial investment (read: purchase price), you have a $10,000 down payment (the minimum investment some whole life and annuities will take), and you obtain a mortgage loan for $90,000.  Your payment would be $594 on a 20 year mortgage at 5% – which is a 33% faster payoff than your average mortgage. Rental income – $600 would pay your mortgage, $750 would be profitable. Let’s say your son/daughter goes to college 10 years after you bought it – Here’s what you’ll have. At $600 per month on your $10,000 investment at only 8% appreciation per year – Equity of $159,892.50 – and someone else paid your mortgage. You don’t have to be the valedictorian to figure out that math works. If you run profitable rent at $750 per month (and factor in NO rental increases over the 10 years), you can stick a free-bie $18,000 in profit in your pocket or pay extra on your mortgage. If you pay extra, you’ll really blow out the formula and have a ROCK STAR amount of equity at a whopping $184,117.17. Your child can go to Yale on one stinking rental house.

-Let’s suppose you don’t want to fool with the trouble of handling renters and their problems because they “forgot” you’re actually supposed to put the shower curtain on the inside of the bath tub. That same $10,000 cash investment at, again, only 8% interest adds up to be an amazing $21,892.50. That will certainly pay for quite a bit of, well, anything.

Facts are facts, the unemotional numbers simply make sense and you too can be a real estate investor and amass your own fortune. If you don’t believe $100,000 rental houses exist or $10,000 land parcels aren’t out there, call me and I’ll have one for you. You and your child’s future depend on it.

Written By: John Poltrock, Certified Residential Specialist – The POLTROCK TEAM at RE/MAX Mountain Properties – Toll Free 1-866-Murphy-NC or 1-866-687-7496 – www.MyMurphy.com

Why is the Government doing this?

            It is a pretty simple concept to understand.  If the Government can pass legislation that grants a tax credit to first time home buyers…it just might stimulate people to buy houses! When people start buying houses it starts a trickle effect on the economy and in the end helps everyone! 

Who is a First-Time home buyer?

            To be deemed as a First-time home buyer the purchaser or his/her spouse may NOT have owned a home during the passed 3 years from the date of purchase of your new home. 

How is eligible for the Tax Credit?

            If you are a first time home buyer that purchases a home between January 1, 2009 and December 1, 2009.

Are all properties eligible?

            NOL This is for primary residences only. This includes single-family homes (example stick built or manufactured), condos, town homes and co-ops.

How much is the Tax Credit?

          The maximum Tax Credit is $8,000. There are 2 factors that determine the amount First-Time Home buyers will get.  

• 1) The purchase price of your home. The Tax Credit is 10% of the purchase price of the home, up to $8,000.
• 2) Buyers Income- Single men and women with income up to $75,000 and married couples up to $150,000 can qualify for the maximum tax credit of $8,000.

What if we make to much money?

          If you are single and make between $75,000 and $95,000 or married and make between $150,000 and $170,000 your tax credit decreases but you still may qualify for a reduced tax credit.  If you make over the amounts stated you do not qualify for any credit.

Do I have to pay back the Tax Credit? 

No!!! J As long as you occupy the home or at least 3 years you do not have to pay it back.  However, if you sell with-in the first 3 years the credit will be recouped on the sale of the home.  

Since laws change every 27 seconds it seems like, if you are interested in the First Time Home Buyers Tax Credit, please call us or contact your local Certified Public Accountant to see how this affects your personal situation. Visit our Murphy NC list of local Recommended Certified Public Accountants.

-Written by Jessica Poltrock of The POLTROCK TEAM – Call us toll free at 1-866-687-7496 today!

            Perhaps Mr. Warren Buffett said it best when he said “Be fearful when others are greedy. Be greedy when others are fearful.” We could even look to Mr. Shelby Collum Davis for some insight when he said, “You make most of your money in a bear market, you just don’t realize it at the time.”

            Many legendary investment strategists are excellent at working through trying times like we are now facing in our country. Call me an optimist, blind, a fool, or anything for that matter, and no matter what you might think of my visions, I believe that we live in the greatest country the world has ever seen and that we will come out on the other end very prosperous as we have time and time again.

            There are many opportunities to come out of the recession very well! As of this writing, there are 809 homes and 2,308 tracts of land available for sale and some of them are just that – they are really on sale. Now is the time when you can buy a rental property and actually come out ahead. There are tracts of land where you can buy them and just sit on them like you would a CD, stock, or bond – the only difference is its real. You can have a garden, go check on it, and its still there. Land has a remarkable historical track record of appreciation and its something you can use and enjoy in the mean time.

            Take the time to go on our website at www.MyMurphy.com and shop what’s available out there. Look for land, look for houses, and really shop. If you have money to invest and you want to find out what’s a “real buy,” call or email and let us take the time do to the research for you and send you a few proposals. There are some great choices out there and if you have cash and/or great credit, you can really leverage yourself in negotiations and save even more.

            Now is absolutely not the time to run scared. Now is the time to be aggressive. If you have cash to invest, and many of you do, why aren’t you investing it? You can buy an investment property while folks are practically giving things away. Everyone around us is scared, and if you follow Mr. Buffett, who obviously has done very well for himself, now is the time to be greedy. Now is the time to buy. Whose advice would you rather take – Mr. Buffett or your broke brother-in-law?

Written by John Poltrock for The Cherokee Scout, Murphy NC’s primary newspaper (to be published in the March 4, 2009 edition) – Call Toll Free 877-837-3002 – JohnPoltrock@gmail.com – The POLTROCK TEAM – Murphy’s #1 Real Estate Team