Last week, air conditioning was needed to dry out and cool off from the tropical rain storm. In less than 1 week, our thermostat was set to heat to dry out and WARM up from a much cooler rain event.
Flip flops are optimistically sitting on the front porch…there might be another beach day yet!
 
Looks like the weather will cooperate for the free events scheduled for Columbus Day weekend.
In Avalon, The Green Fair will be held in the Community Hall on Saturday, October 9th from 10am to 3pm.  In the open lot next door (29th Street), the annual Seafood Festival will take place both Saturday and Sunday- 11am to 5pm.Â
The Art & Music Festival will take over 96th Street in Stone Harbor, Saturday and Sunday between 10am and 5pm. The local art galleries will join in with special exhibits for the weekend, too.
Effective January 1, 2013, net investment income for high-income households (over $200,000 individuals/$250,000 married couples) will be subject to the 3.8% Medicare Tax (part of the health care bill). Capital gains are included in the definition of net investment income, so this additional tax could apply to the sale of real property.
Primary homes will continue to benefit from the first $250,000/$500,000 exclusion before the tax applies. Second home sales do not have this exclusion, so the 3.8% tax would apply to “the portion of the gain realized on the sale of a second home or investment property that with bring the filer’s AGI (adjusted gross income) over the $200,000/$250,000 limit”.
Source: New Jersey Association of Realtors- legislative update 10/2010. The National Association of Realtors posted a Q&A on the provisions of the new health care bill on www.realtor.org/healthreform
Well, yes, I was the only car on the road this morning.  Yet, defensive driving skills were needed to avoid 3 separate rolling trash cans!
Part time Avalon residents often place their trash cans at the curb when leaving town Sunday afternoon. High winds (common in the off season) topple the cans…and then the sea gulls arrive for a feast!
A better option? The Borough of Avalon provides a courtesy trash/recycling collection area at the 15th Street facility (just off Dune Drive).  Open Monday through Friday 7:30am to 3pm; and on Sunday, from 12 noon to 5pm.
My “commute” home from work includes bay views as I drive along Ocean Drive.Â
If the tide is high, and the water calm, I commit to kayaking before pulling in my driveway.
And with earlier sunsets, I have to hurry. There is a great deal of (self imposed) pressure to take advantage of the nice weather and remaining daylight!
Good article today about shore real estate in the Business section of the Philadelphia Inquirer (I would link the article, but the pop up ads drive me crazy).
An interesting quote: “In Avalon and Stone Harbor, home to some of the Shore’s most expensive dwellings, prices rose 59.3% between 2000 and 2010. They have fallen 18.8% since 2006’s second quarter…”
The bottom line is that residential real estate (including seashore real estate) is a solid long term investment.  Â
For a vacation home purchase- pick a great location, and spend only what you can afford to carry. Rental income will help with the expenses, but will not pay the mortgage. It’s a lifestyle decision.  Will your family enjoy time at property?  Will the home be a gathering spot for your grown children? Will this provide the needed escape from the real world?
I feel so fortunate to be part of the dream – helping hundreds of buyers/sellers/tenants on our seven mile island over the years.  This is my home as well as my business, and I appreciate the real “value” of our real estate!
After October 1st, our island towns turn completely WILD!Â
Parking restrictions end, and meters are pulled. 2 traffic lights return to blinking signals. Right on red is permitted at the 96th Street intersection. Vehicles with permits can drive on the beach; and leashed dogs can walk on the beach.
Enjoy the weekend 🙂
My work computer is once again “talking” with my cell phone for e-mail and pictures.
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For those of you missing my exciting beach walk photos…   😉
By the way, the Ocean Drive toll bridge between Avalon and Sea Isle City will be closed for approximately 3 weeks starting next Wednesday (10/6). After looking at the corroded metal while waiting for a boat to pass under, I can confirm that this bridge is in SERIOUS need of repair!
Avalon &Â Stone Harbor, NJ– sale stats for the past 30 days.
31 properties SOLD (settlement). Ranging from $310,000 for a hotel/condo unit on 79th Street; to $3,300,000 for an ocean front single family home on 27th Street. The median sold price was $1,150,000. Average days on the market- 294.  Break down by town: 7 of the properties sold were in Stone Harbor; 24 in Avalon. 25 were single family homes; 5 condo/townhouse units, and 1 duplex (sold for land value- new side by side units to be built on the site).
There are an additional 42 properties SALE PENDING (settlement scheduled within the next few months). The list prices range from $364,900 for another hotel/condo on 79th Street; to $4,695,000 for a new, custom bay front home on 42nd Street. The median list price is $1,048,250. Break down by town: 12 in Stone Harbor; and 30 in Avalon. 26 are single family homes; 15 condo/townhouse units; and 1 vacant lot.
Home Loans
Our first mortgage was a subsidized Farmer’s Home Loan. It was true negative amortization. The house appreciated enough to pay back our subsidy and still break even when we sold. We were thankful that the program gave us a start as young homeowners.
The next purchase was made with a traditional 30 year fixed mortgage.  We refinanced with another 30 year fixed loan to help with a small addition on the house.Â
Then we bought a nearby vacant lot- the seller held the financing for a year until we sold our other home. We applied for a construction loan…and eventually converted to 30 year fixed once the new house was complete.
More creative borrowing options existed when we wanted to buy rental property (and eventually our current primary home).  Adjustable rate mortgages, option ARM, 80/10 loan (to avoid PMI), interest only loans, and owner financing enabled those purchases to work. Â
We have never held a property longer than 9 years (an important factor when considering loans).  The 30 year loan provides a sense of security, but it’s not always the most logical choice.Â
Discuss your plans and comfort level with a lender- it may save you thousands of dollars. If you need a recommendation for a local mortgage representative, let me know.  ann@anndelaney.com
P.S. The clock is ticking… We have owned our present location for 7 years, but maybe we should only count after we moved in to the new house built 5 years ago ;) less pressure that way!