Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Feb 17 1992 Date: Mon, 17 Feb 92 06:46:35 EST Message-ID: DECISIONLINE: Real Estate USA TODAY Update Feb. 17, 1992 Source: USA TODAY:Gannett National Information Network DEVELOPMENT CAPITAL AVAILABLE: California Controller Gray Davis said Friday he wants to make Orange County developers believers in the state pension fund's recent decision to provide capital for housing development. He urged $225 million be committed. Davis said as much as $375 million may be available from the California Public Employee Retirement System, the largest publicly funded retirement system in the USA. FUNDS MEANT FOR ENTRY-LEVEL: California Controller Gray Davis said Friday that the money available to developers through the California Public Employee Retirement System was primarily for entry-level housing. But he said "entry-level" would vary in different areas. He said CalPERS plans to have no more than 30% of its real estate investment concentrated in one geographic area. TAX ON GAIN CAN'T BE PUT OFF: Those who sold rental property last year can't postpone tax on the gain, even if the property was once used as the home. Exception: Temporarily renting out the home for convenience or some other non-business reason. Otherwise the gain can only be deferred if the property was used as a principal residence. IRS publications 523 and 527 have information on home sales and rental properties. LOSS ON SALE NOT DEDUCTIBLE: Homeowners who sold their home at a loss can't deduct that loss, according to the American Institute of Certified Public Accountants. Exception: If the home was converted to income-producing rental property before the sale, the loss can be deducted if the sale price was less than the fair market value of the house at the time of conversion. The IRS is picky about such conversions. RATES WON'T AFFECT PRICES: Today's low mortgage rates won't have much effect on home prices, according to the March issue of Kiplinger's Personal Finance Magazine. The magazine says prices will remain soft because of demographics, job insecurity, low inflation and income stagnation. Fewer homeowners are willing to move up and first-time buyers are hoping to limit mortgage payments. BUILDERS KEEP PRICES DOWN: Home values will be kept down for several reasons, according to Kiplinger's Personal Finance Magazine. Builders are working on keeping home prices down by building homes closer together, with simpler interior designs. They're also making optional appliances that used to be standards. The value of land is unlikely to rise much; landowners aren't eager to sell in a depressed market. IMPROVEMENTS COULD BE COVERED: The Federal Insurance Administration, which sponsors flood insurance, is trying to attract customers by fixing some of the program's flaws. Right now, a policy costing an average of $300 per year covers the structure and contents. But homeowners can't get coverage for such improvements as decks. The FIA wants to introduce riders for that and make the top coverage on a residence $250,000. TAX RELIEF IN CALIF. ANNOUNCED: The California Board of Equalization has announced that energy tax relief is available to property owners who suffered losses during the recent flooding in the Los Angeles area. Among the tax relief measures available is a reduced property-tax assessment and deferral of property taxes on damaged property. BANCONE IS COLLECTION AGENT: Ohio-based BancOne Management & Consulting Corp. has been chosen as a collection agent for closed banks in Manchester, N.H. The FDIC selected BancOne to collect $1 billion in bad loans and foreclosed real estate taken from banks closed last fall. SUIT FILED OVER FOREST LAND: Six environmental groups have filed a lawsuit in U.S. District Court in Spokane, Wash. The suit accuses managers of Colville National Forest of not keeping an inventory of lands and of allowing destruction of old-growth timber, streams and watershed in the forest. GROUP TRYING TO BUY LAND: A group in Morgantown, W.Va., is trying to raise $400,000 to qualify for a loan to buy land across a gorge from an overlook at Cooper's Rock State Forest. Unless the money is raised, 1,500 acres will go up for sale March 6. MORTGAGE RATES RISE AGAIN: Fixed mortgage rates rose last week for the first time in two weeks, the Federal Home Loan Mortgage Corp. said Friday. Thirty-year mortgages averaged 8.73%, up from 8.67% the week before. One-year adjustable mortgage rates averaged 5.78%, down from 5.87% the week before. Real Estate: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002170000D0217 SPOR-R Q Allison-wins-Daytona-500.............. A D0217 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM