South Charlotte Living

UPDATE 2/8/2010: Apparently I have severely offended someone by reblogging this fantastic article. It seems as thought the original author, Claude Cross, allowed Magnolia Tree to purchase some of this content. Since I did not see any reference telling the reader that this gentleman was the author and I only found the information on the Magnolia Tree, I gave proper recognition to Magnolia Tree as anyone else would. This morning, I received several threatening notes from Mr. Cross stating that he was the rightful owner and I was plagiarizing because I did not give him the credit. Well Mr. Cross. Since most of this content is yours I humbly apologize for being ignorant about it as there is no where else on the internet with your name attached to this information at the time of the post. I still think its fantastic information and I have received e-mails from readers stating as such.  Enjoy the article!

As I was browsing through the internet during my lunch break I came across this thread by Magnolia Tree… Now they are mostly a Home and Gardening Blog, but I was happy to have found that they wrote about my neck of the woods. I love living in South Charlotte mainly because of the lifestyle and the people. The traffic can be hectic on occasion, but you’ll find that anywhere if you stay put long enough.  I’ve been in every one of the communities they mention and know them all pretty well. I wrote about some of the communities mentioned in the past. Enjoy!

If location is king in real estate, then Waxhaw (in Union County) uses its prime location to its supreme advantage. The town runs right up to the edge of Mecklenburg County. This area is a big draw for people venturing out of the South Charlotte real estate market. Folks like to live here for three very good reasons; it’s location, excellent schools, and low, low taxes (just shy of half that which you would pay in Charlotte)! Here, you are more apt to find homes with 6,000 square feet, than to find homes with 2500 square feet. Most of the homes are relatively new, as are the schools. The area really expanded its growth upon the heels of South Charlotte and the Ballantyne Development. Once horse country, a drive down any of its old country roads would take you past some beautiful rolling pasture land, with barns as the backdrop for the horses that grazed there. A few farms are left, but most have succumbed to developers. Home to many estates.

 Here you’ll find one very large development, with three sections: Providence Downs, Providence Downs South and The Residences of Providence Downs South. Each street within the development is named after a Derby winner or a horse of note. Home prices range from $500, 000 to $3.5 Million (July 2009). The school set up is Marvin Elementary, Middle and High School. The community offers a clubhouse, pool, tennis and basketball courts, soccer fields, a putting green, fitness center, and walking trails. Many of these homes have their own pool…and a little of everything else! Very grand, indeed.

Another development close to the South Charlotte border is Toll Brothers’ Marvin Creek. Marvin Creek’s idea of a pool area, will leave you scratching your head. It is every child’s dream pool! Noted for its incredible amenities, Marvin Creek’s residents enjoy a 6,500 square foot clubhouse with a beach pool, lazy river, geyser park, tennis and multipurpose courts. The entrance to the community is equally impressive with a spray of fountains and guardhouse. Homes in this neighborhood typically range in price from $600,000-$900,000; with 4,000-6,000 heated square feet-give or take a few!

 

The Club at Longview is also tucked in right across the border. Rated #11 in NC by Golf Digest, this gated community opened in 2003. A Jack Nichlaus Signature course, sporting a 28,000 square foot clubhouse with multiple lounges, dining areas and terraces. Stunning. The 10,000 square foot activity center’s lower level is complete with massage and steam rooms, state of the art work out equipment, and fitness classes. If you need a place for the kids, there is a Youth Lodge upstairs. The pool facilities offer both adult and family resort-style pools, with a wading area and a hot tub. There are also four Har-Tu tennis courts. This is just one of a very few gated communities in the Charlotte real estate market. Prices range from $900,000 to $3.5 million.

The draw for all of these neighborhoods, is the convenient location to South Charlotte. Within a five mile range, you can be at one of many fine establishments. Every type of restaurant, boutique, national, local and chain store imaginable…all set amongst fountains, and nightly music, theatres, plenty of plenty! It is also very easy on the eye. Each shopping area has been beautifully developed with the use of pedestrian friendly venues. Going from shop to shop is no hardship here. The use of landscaping has softened the retail shops and the roadways. It’s all very, very nice.

 Some of our MOST popular neighborhoods on this ‘just over the border’ area of South Charlotte, would be the communities of Hunter Oaks and Somerset. They were the hottest neighborhoods going, when the roads opened up into Union County. They have continued to be top sellers in the Charlotte real estate market today. Both offer wonderful swim clubs, tennis courts and playgrounds. Buffed up by huge Oak and Magnolia trees, sidewalks a plenty and street lamps. The price ranges in here from $300,000 to $500, 000. The square footage range is between 2200 and 4500. The schools are yet another draw, with Rea View Elementary, Marvin Ridge Middle and High School. So, there you have it! If you are shopping for Charlotte NC real estate, don’t overlook it’s bordering counties!

Thank you again to Magnolia Tree Gardening (Claude Cross) for posting this information. As a resident of South Charlotte, I couldn’t agree with you more!

Toxic Chinese Drywall? It’s True!

When someone told me that there are homes built with toxic Chinese drywall, I thought… ok… yah right. This is just a spinoff scare from the lead based paint on toys issue, but it’s not and it’s true! 

Ok… so this issue has been spoke about for the greater part of a year and I thought to bring it back up because the deadline to submit your claims is rapidly approaching. December 2nd actually. There are not many cases in Charlotte, NC, but 18.8 Million pounds of it were inported to Charlston, SC.   

So how do you know if you have it? Well… homes built after 2002 to 2006, have markings like these on the drywall and have a rotten egg or sulfur smell…. It’s also grey in color and has a different texture than regular drywall. 

A great home inspector from middle TN writes a great post about this product, so rather re-write history, here’s his blog which can be found on Active Rain: 

“Is Toxic Chinese Drywall in your home? 

Over the past few months, owners of newer homes nationwide have been complaining of drywall that smells like rotten eggs. In several cases, they have had to leave their home because the smell was so bad. In addition to the putrid smell, many homeowners have reported problems with air conditioning and other systems that are likely related to the defective Chinese drywall.  This is being called the next EIFS like disaster in the real estate market! 

Many have spent hundreds and even thousands of dollars – to have air conditioning, pipes and wiring repaired. Usually, drywall is manufactured in the United States, but a shortage between 2001 and 2007 prompted many builders to buy drywall from China. 

Most of the reported problems stem from drywall imported from China during the construction boom years of 2002-2006. Florida and the Gulf Coast states have been the first to report and have issue with this drywall showing up but it also showing up in non-coastal areas. 

Knauf Plasterboard Tianjin Co. Ltd. of China, a subsidiary of German-based manufacturer Knauf, is the company at the focus of these drywall problems. If your newer home smells like sulfur or rotten eggs, you may have defective Chinese drywall. The problem is coming from coal ash that was mixed into the gypsum drywall compound. One source of tainted materials appears that China was attempting to get rid of their coal ash problems by mixing it with the drywall compound. When the drywall is exposed to moisture, such as high humidity a chemical reaction starts. The result of this reaction is the production of Hydrogen Sulfide and Sulfuric acid gas. This is the rotten egg smell that is present with the drywall. 

The difficulty for inspectors is that walls may have been built with drywall from as many as four sources — so simply pulling one clean sample is no guarantee of safety. Many times the supplies can be tracked where they were used by licensed builders. At this time it is possible although not likely that the builders insurance may pay for the damages. 

This drywall is responsible for the destruction of the copper coils in HVAC units in the homes that it has been installed in. The corrosive off gassing is also responsible for damaging many other components in the homes from the copper electrical to the nails and screws that are holding everything together in the home. 

The U.S. Consumer Product Safety Commission said it was investigating complaints about the Chinese-made drywall. All houses affected have shown a common symptom — blackened, scorched wiring behind switch plates, damaged A/C coils and damaged wall plugs — along with homeowner health symptoms, that’s allowed research to proceed, 

If you think that you might have Chinese Drywall, you should contact a reputable home inspector who is familiar with this problem. As this problem is just starting to rear its ugly head, many are not aware of this problem.” 

  

Thanks Scott!!! For those who are interested or live near Spring Hill TN, which is only a few miles south of Nashville, here’s his website where you can reach him for all your inspection needs. Trace Inspections 

 

 

 

Get your GREEN on – Recycling isn’t enough!

Thanks to Lorie Cain for her post on Facebook. She is a dear friend and trusted Realtor in Tulsa, OK. Write and thank her for her tips on what we can all do to help be a little more GREEN!  Http://www.loriecain.com

Get your GREEN on – recycling isn’t enough!  Some of us are newer to becoming green in our lifestyles, so I’m starting out with a few small suggestions. Easy stuff. I have recycled for years, but it’s time to step it up a notch.

Habits are hard to break and just as difficult to make. I am in the habit of taking my reusable shopping bags with me when I grocery shop. As long as I hang them on the door after I unload my groceries, it’s easy to remember to take them back to my car. When you’re in the check-out lane at the grocery and you are asked, “paper or plastic?” you can proudly produce your bags and respond, “neither – I brought my own!” Trust me – it will make you feel good.

After much nagging encouragement from my eco-responsible Dad, I am filling my reusable water bottle with filtered water from home and cutting back tremendously from purchasing bottled water. Although we recycle our water bottles, we just don’t know whether they’ve been stored or transported in heat and what may possibly leach from the plastic. So, yes, I will still grab a bottle of water from a convenience store when necessary, but for the most part, it’s easy to fill and carry your own bottle. Many are available today that are dishwasher-safe.

Now for the tough assignment. I shop online almost exclusively, yet retailers continue to send me printed catalogs. Usually I toss them in the trash wondering what marketing idiot thought to put me on a snail-mail list when I clearly shop online! Now, I am stacking up all the Harry and David catalogs, Williams-Sonoma, even Syracuse Cultural workers and taking time to CALL to be removed from their mailing list. It’s a time-consuming task, but almost as righteous as planting a tree yourself.

Get your GREEN on – recycling isn’t enough!

When Demetrius and I remodeled our kitchen, we converted our entire house to energy-efficient light bulbs. We may have to take out a second-mortgage when it’s time to replace them, as it was not an inexpensive endeavor. There’s lots of good information on the internet about the newer bulbs available – here’s a good “green” light bulb buying guide.

Are you doing a few simple things to be more green? Driving the speed limit or taking the bus on ozone-alert days? We can’t fix all that we’ve broken in one day, but we can darn sure start taking steps in the right direction! 

It’s my privilege as a Realtor to make suggestions to my clients when purchasing appliances or replacing a hot water heater. Why not replace those wood windows with energy-efficient vinyl windows or ditch that 25 year-old hot water heater and buy a tankless water heater? Here’s a good site to assist you in making more green purchasing decisions,

While you’re at it — look into the tax credits available for purchasing energy-efficient home improvements!

About the author: Lori is a residential Realtor with Chinowth & Cohen Realtors, servicing the greater Tulsa area. Visit Lori at her web site or call 918-852-5036.

Local Sellers Taking Less For Their Homes

 Posted:07/07/2009 6:55 AM (By Andrew Dunn, andrewdunn@charlotteobserver.com)

Amy Spurlock listed her Cornelius home for $220,000, what seemed to be the going rate in her neighborhood six months ago. Then the foreclosures started.

“Houses around here started getting foreclosed,” she said. “That lowers everybody.” She soon dropped her price about 14 percent – to $189,000.

As the Charlotte-area housing market continues to struggle, sellers increasingly have to drop their prices to make a sale. Last May, the average difference between the listing price and the selling price was about 6 percent. This May, it was about 11 percent.

Beginning last September, when the economy began its nose-dive, the numbers imply that sellers have started to shave asking prices in order to make a sale.

“That’s part of people coming to the reality of how much their house is really worth,” said real estate broker Jeff King, who works mostly in NoDa and Midwood in central Charlotte. “People are  used to the value going up every year. They’re having a hard time adjusting to the fact that it might be worth less this year.”

He said that while there’s always been some disconnect between what sellers thought their homes were worth and what buyers were willing to pay, the downturn has exacerbated it.

Area sales prices dropped 10 percent in April compared with April 2008, according to the S&P/Case-Shiller Home Price Index released last week. It marks the Charlotte region’s worst month for home sales prices since the downturn began, but the drop is still less severe than many of the 20 markets measured by the index.

For the first part of 2008, homeowners were still able to put homes on the market and sell them for close to the asking price. It wasn’t until September that the bottom dropped out, UNC Chapel Hill professor Roberto Quercia said. “Early last year was a different mindset,” he said. “People knew the market was softening up, but they didn’t know there was a crisis.”

In September, big economic news began putting people on edge. It put uncertainty over major banks, including Charlotte-based Bank of America and Wachovia, two of Charlotte’s largest employers.

Fannie Mae and Freddie Mac were seized by the government, Bank of America snapped up Merrill Lynch, Lehman Brothers filed for bankruptcy protection, AIG got an emergency loan and Wachovia was acquired by Wells Fargo.

Now, as Charlotte continues to struggle with layoffs and pay cuts, home sellers are becoming less optimistic.

Sellers of more expensive homes are coming off their asking prices as they find the market nearly saturated.

The number of homes selling for at least $1 million could satisfy demand for 10 years, said broker Lars Hedenborg. There are about 1,200 on the market, he said; it’s a good month if six or eight are sold.

“A lot of people hold onto the fact that Charlotte was a strong market two years ago,” Hedenborg said. “Charlotte was doing (better) than most of the country. It takes time to turn.”

Jim Sudderth’s Dilworth home has been on the market for a year. Originally listed at $2.1 million, it’s dropped about 5 percent, to $2 million. “It’s horrible,” he said. “There aren’t buyers.”

Some may decide to ride out the market. Spurlock, in Cornelius, said she won’t go any lower: “I’m not going to give the house away.”

Can an S Corporation save a Realtor Money?

I came across this blog post quite by accident the other day and found it so helpful and so clearly written that I was compelled to write to the author and ask for permission to re-blog. She was wonderful and agreed.

Her name is Helen Maynard and she is a financial planner and founder of Affine Fianancial Svcs located in North Reading Massachusetts. Not too far from my hometown in NH.

So enjoy what you read and please contact her if you need further advise.

 

 

With the economy in the doldrums, many folks are starting businesses to bring in a little side money.  If you decide this is for you, there are a few important steps to take in forming your new venture.

I’ve written before about the importance of forming a limited liability company (LLC) to protect your personal assets.  Today, I’d like to discuss the advantages (and disadvantages) of forming an S corporation.

Self-employment tax

Whenever you earn money not as an employee, you owe self-employment tax, in addition to income tax. It doesn’t matter whether you’ve formally incorporated, filed as an LLC, or are just going door-to-door peddling homemade soap; it’s income, and you need to pay Uncle Sam his share.  The self-employment tax is 15.3% of income (revenue less expenses), which is a hefty bite.  Unlike income tax, the self-employment tax rate is fixed — not progressive — the smallest street vendor pays the same rate as a high-end attorney.

Self-employment tax pays for Social Security (12.4% — up to the first $106,800 (2009)) and Medicare (2.9% — no income limit). If you are an employee, you and your employer each pay half of this amount; as a self-employed person, you get to pay it all.

The advantage of an S corporation:  Pay less self-employment tax

To reduce your self-employment tax bill, you can create an S corporation and hire yourself as an employee.  You pay the employee (you) a reasonable wage for the work done.  If there is profit left over at the end of the year, the partners (that’s you again) split the earnings. Self-employment tax is only paid on wages — not on the company profit.

An example:  Pat and Alex run similar web-design businesses.  Pat organized his business as a sole proprietor, and Alex organized his as an S corporation.  At the end of the year, they each made $50,000, after expenses.  As a sole proprietor, Pat will pay 15.3% of the entire $50,000, or $7,650 in self-employment tax.  Alex researched other web-design firms and found that it was reasonable to assess a $40,000 wage for the work that he did that year.  Alex will pay 15.3% on $40,000, or $6120, saving himself $1,530.

So far, sounds good.  What’s the hitch?

The disadvantages of an S corporation

You have to decide what is a “reasonable wage.”  The IRS doesn’t define it any further than that.  Obviously, you don’t want to pay yourself only $1.  Uncle would call that tax evasion — not avoidance.  You need to do a little research to back up the value used for your assessment.  If you can document it, you should be able to pass an audit.  Another approach I heard tossed around was to make a 60%/40% split (60% of earnings taxed as wage), but I didn’t find any substantiation for that number.  It’s probably better to do your homework and determine a reasonable wage.

You are now an employee.  Hopefully you’ll get along with the boss.

You are now an employer.  You must now file taxes for your employee, and you must withhold employee earnings for taxes and submit these to the proper revenue authorities.  You must now pay federal unemployment tax (FUTA) (6.2% of the first $7,000 in earnings), which you do not have to pay as a sole proprietor.  The FUTA tax reduces Alex’s tax advantage from $1,530 to $1,096.  Depending on state regulations, you may also be required to pay state unemployment and disability insurance, too.  You must generate a W-2 for your employee, too.  The additional paperwork is sufficient hassle that some folks end up hiring a payroll contractor, similar to ADP or Paychex, or more likely, your local small-business accountant.  If you’re the DIY type, QuickBooks can help you track payroll transactions.

You must form a corporation.  The paperwork is a bit more complicated than for an LLC.  It varies by state, but the Articles of Incorporation can be sufficiently complex that you’ll need to see an attorney to understand if you’re really doing the right thing.  The Articles of Incorporation for an LLC are usually quite straightforward.

You may have to deal with other state requirements.  For example, Massachusetts now requires all employers to provide health insurance to employees.  Many self-employed persons rely on their spouse’s health insurance.  So even if you’re covered by your spouse’s policy (fulfilling the requirements for the Massachusetts Form 1 Schedule HC), you may need to file additional paperwork with the state to demonstrate that all of your employees have health care coverage.

How to create an S corporation

You create an S corporation by first creating a corporation (technically, a C corporation).  You then notify the IRS that you want to have your corporation taxed under the S corporation rules by filing Form 2553: Election by a Small-Business Corporation.  This form must be filed by March 15th; otherwise, you have to wait until the next year.

How to file taxes as an S coporation

S corporations, like partnerships, are separate entities and require their own tax return.  (Sole-proprietorships are pass-throughs, and the income is reported on the owner’s 1040 Schedule C or C-EZ).  The tax form is 1120S:  US Income Tax for an S Corporation, and it is due on March 15th (A month earlier than our usual deadline — just to keep you on your toes).  On your 1040, your wages are reported on line 7, and the business income is reported on line 17.

Spreadsheet example

I put together a spreadsheet comparing Pat’s and Alex’s taxes in Excel and pdf form.  In the Excel version, you can modify the revenue, expenses, and tax rates to test your own situation.  I added a few other considerations, such as the fact that a sole proprietor can deduct one-half of the self-employment tax.  Please have a look at the details, if you’re interested.

The bottom line:  Is an S corporation right for me?

Answer:  It depends.  Your business situation is unique.  You should seek advice from your accountant, attorney, or other financial professional.  The S corporation option is preferred (relative to a sole proprietorship) when the business is relatively large — the greater the income, the more you’ll save by forming an S corporation; therefore, the more likely it’s worth the additional paperwork.

Re-blog with permission. Click HERE for the original post