Indiana Realtor blog by James P Wells. Discussing Real Estate topics concerning Central Indiana and the US. Focusing on Boone and Marion County.

Sorry for not posting in a while, I’ve had some trouble with writer’s block. While it seems I could write all day about the current property tax proposals, I’ve been really busy rehabilitating a rental property for the last several weeks. With that finally done and new renters in the property I should be able to back to some writing.

Some of my posts that I hope to have in the near future:

• Indiana property tax updates- I won’t go into much detail in this article, with a vote of 93 to 1, the governor’s plan has been approved by the House of Representatives and will now move to the Senate for vote. You can view details of House Bill 1001 here
• Title Insurance and Clear Title- I am helping my father-in-law correct a title problem on a property he sold to a friend 2 years ago and will use it to explain title insurance and clear title
• Anson Indiana- Medco announced last month that they have decided to build their new distribution plant in Anson :} I’ll try and keep everyone updated on any new developments.

If anyone has topics or questions they would like me to address, send me an email and let me know.

This Thursday, Treasury Secretary Paulson and President Bush announced the details of a plan to freeze the interest rates on many subprime ARMs (Adjustable Rate Mortgages). While this spurred the stock markets and initially the idea sounds good, it’s like putting a band-aide on a gunshot wound.

Many of the subprime loans that were closed during the mortgage and real estate boom were “stated income” loans. These loans don’t require much, if any, verification of income and are often called “liar loans” within the lending industry. Unfortunately, the outcome of many of these loans will be the fact that borrowers are unable to pay the needed mortgage payments and will end up in foreclosure.

The current year has seen drastic increases in foreclosures across the nation with the south and mid-west leading the pack. The Mortgage Bankers Associations National Delinquency Survey for the 3rd Quarter of this year places the US average default rate at 19.6% (mortgage payments past due at least 1 month). Indiana is towards the top of the list at 22.3%, but the states in serious trouble are: Mississippi (30.2%), West Virginia (27.5%), Michigan (26.2%), Missouri (25.7%), Tennessee (25.3%), and Alabama (25.1%).

When the plan to freeze ARM rates is really evaluated, most experts agree that it will only help between 10-20% of the ARM borrowers facing serious problems. Combine lost projected income for mortgage investors, the increased amount of vacant homes, and the added foreclosures to the existing housing inventory, I believe the housing slump will extend well past the end of 2008; which is when many industry leaders state the upturn will begin.

I’m not going to sugar coat things. I see the current market as a strong buyers market. Several options to choose from and heavy listing competition put the negotiation power in the hands of the buyer with one big exception: Many sellers CAN’T reduce the amount they are requesting, due to the amount owed on the property. The refinance boom has effectively made the real estate market stagnant with no money down mortgages and home equity loans (2nd mortgages). Add in depreciation and many current homeowners have little to no equity in their home, or even worse, owe more than the property is worth. I speak with other Realtors on a regular basis and it is well know that we are in a bad market with no sign of change in the near future. I read a recent news article that talked about avoiding a recession, but then later in the article it was implied that we are already in a recession. Call it what you want- the overall current US economy is not good and several signs point that this is just the beginning.

I  don’t have a answer our current problems, mainly because I don’t have the authority to make the necessary changes. All I can do is try and educate people and identify some of the causes to these issues in hopes that I can help some people avoid costly mistakes. The best solution I can suggest is to begin teaching real life (practical) skills in our educational systems (and not just in colleges). Many people will say that learning about getting a mortgage, property ownership, obtaining insurance (car, life, auto, liability, etc.), managing a budget, paying taxes, and stocks (trading, options, IPO’s) should be taught in the home, but I disagree. My parents knew little about these matters and I have had significant obstacles to overcome to obtained my desired level of education on these matters. Mistakes in many of these arenas can have drastic and life-long effects for the average individual. The best way to avoid the problems we currently face is through education.

Well, it’s holiday time and things in the real estate market slow down drastically in the last 2 months of the year. Many people are too busy to mess with buying a house during the holidays.

As a homeowner, you always have to worry about legal issues when you have guests over because you may be held responsible for their actions. You also have to worry about their safety and well being- what if you give everyone food poisoning?!?! I don’t normally sweat the small stuff, but I recently ran across this interesting form that you may want to use this Thanksgiving:

I’ve owned rental property for several years now. It sure can be tough at times, but rewarding at others. In the past two years, I’ve gotten worse renters than in the past. I don’t know if it’s that I’m getting too nice in my old age, or what.

I finished laying, then grouted, the bathroom floor today in the front unit of a current property. A little over 1/2 of the place has been cleaned and painted. The bathroom now looks 1000% better (I also took the “warning gas” sticker off the bathroom door). I don’t do all the work needed on the property, a plumber is the among the 1st professional I’ll call, right with an electrician. But the ceramic tile floor in the bathroom is now much more durable than the previous laminate that one renters had scorched, and another tore out. It adds beauty, functionality, and durability.

I had 2 types of sanded grout that would give me just about enough to do the job. I took the chance and mixed the bags: I was 1/4 a medium to light gray and 3/4 a coffee brown by 2 different manufacturers. If I ran out, I would have a really tough time matching the grout. I worked my way from the back corner giving the areas that needed the grout, the grout they needed. A little over halfway done, I realized how close it was going to be on whether I would have enough to finish the job. I started grouting strategically, planning to hide any other future grout needs behind the toilet. Fortunately, the toilet sits right next to the door, so I was able to save those areas till last. The best part was finishing the bucket of grout perfectly in sync with finishing the floor. All I had to do was clean the bucket, wasn’t any leftover grout.

Making improvements to a property, if done properly can definitely add to the value. Whether it’s your residence or investment property, don’t forget to re-invest over time and as needed.

I attended the Boone County MIBOR meeting yesterday at the Boys and Girls Club of Zionsville, “Club West” location. David Ide, their Chief Operating Office, was very welcoming and informed us they are always looking for volunteers.

After our usual formalities, we received a presentation by Craig Anderson of Duke Realty Corporation, who is also a Boone County resident. The Anson project covers 1709 acres of land adjacent to I65 on the east between the 334 and 267 exchanges. This project is just 20 minutes from downtown and the airport. It is expected to employ approximately 25,000 people with an average income range of $55,000, with the non-residential construction cost estimates for this P.U.D. being placed at $810 million.

The project is planned for three different phases:

• Phase I (Marketplace at Anson) encompasses the Eagle Township section of the project and includes retail, residential, parks, medical and office space. This Phase will include names such as: Lowes, Meijers, Witham/St. Vincent (scheduled to break ground in the spring), Lincoln Bank, Indiana Members Credit Union, CVS (already open for business) and more.
• Phase II (AllPoints at Anson) is in Worth Township and will include distribution, manufacturing, and industrial buildings. The ASI Limited building is currently under construction and we received information regarding “Project Viking” that is currently under negotiation. Project Viking involves the 51st largest company in the US who is a pharmaceutical company which handles mail order prescriptions and should provide approximately 1300 jobs. The project is still in competition with other areas including Louisville and will likely decided by State/Local incentives such as TIFs.
• Phase III covers the small section of Perry Township in the project and primarily focus on office space.

While the Anson development is off the ground and running there are still several unanswered questions because the project is based partly upon speculation. Duke is highly vested in this project and should ensure a very successful venture, but has several obstacles yet to overcome. For example, they were involved in talks with KB Home regarding portions of the residential housing project. KB Home has since pulled out of the Indianapolis market leaving Duke to find other alternatives. Ryland Homes is already selling town homes starting at around $158,000 for 1700 sqft. within the Anson Development.

Some of the discussion during and after the presentation: Phase I will include 680 homes in the Zionsville school district, but these homes will have a Whitestown address. The potential for a Theater and/or an outdoor Amphitheater within Anson. The expansion of I65 from 865 to the Lebanon exits over the next several years. Craig also explained how several of the office/retail locations will be combined with apartment complexes, having the business on the 1st floor and upper levels providing housing.

Boone County is on the verge expansion with Anson leading the way. I am extremely excited to see these much needed changes and upcoming benefits to Boone County residents and would be happy to help anyone looking to buy in Anson or other Boone County Indiana Real Estate.

Well, I just got done greeting a bunch of strange little ghosts and goblins at my house and realized I didn’t write about the holiday. Each year a house at 748 Beach Street in Kenova, West Virginia is transformed into the Great Pumpkin House. The owner Ric Griffith and hundreds of other volunteers carve thousands of pumpkins to put on display at this home each year during Halloween.

This year, there are 3,036 pumpkins on display between 10/28 and 11/4.