Oregon’s top earners may be preparing for a mass exodus now that Oregon has voted to target the wealthy to solve their deficit problems.
It is possible SW Washington will see businesses and high income earners relocating over the border to avoid the new tax increases. Prior to this tax increase being passed we talked to several people from Oregon that said, “If Oregon increases our taxes, we are out of here.”
Time will tell if Oregon’s tax increase will cause a wave of top earners to move across the border into SW Washington. At a time when Washington has it’s own deficit problems, a move like over the border could benefit Washington state greatly.
Regarding Washington’s budget shortfall, Governor Chris Gregoire said “I will do my best to avoid any new taxes that slow our economic recovery. I will balance, as best I can, my interest in keeping new taxes down, while still protecting programs that I believe the vast majority of us agree are just too important to eliminate. We need a combination of reduced funding for services and raising revenue.”
Avoiding new taxes may sound very appealing to Oregon’s high income earners.
For more info about this tax increase, check out: http://www.bloomberg.com/apps/news?pid=20601087&sid=ajcEehgldZh0 and http://www.governor.wa.gov/news/news-view.asp?pressRelease=1391&newsType=1
Did you know that effective July 1, 2010 Washington state adopted the 2009 International Building, Residential, Mechanical and Fire Codes?
One change that is of particular interest to the real estate market is the requirement that all existing residences (Residential Building Group R1, R2 and R3) sold on or after July 1, 2011 must have carbon monoxide (CO2) alarms (complying with UL 2034) installed based on this new code and the manufacturer’s installation instructions. This means sellers will be required to install them before selling. Fortunately, a seller should be able to easily purchase carbon monoxide detectors in the smoke alarm section of any local building or hardware store or department.
Starting January 1, 2011 all new construction homes (Residential Building Group R-1, R-2 and R-3) will also be required to have CO2 detectors installed.
According to the Washington State Building Code Counsel, Group R-1 includes hotels & motels, R-2 includes apartments and R-3 single family, except owner occupied single family.
According to the US Consumer Product Safety Commission, Carbon monoxide (CO) is a deadly, colorless, odorless, poisonous gas. It is produced by the incomplete burning of various fuels, including coal, wood, charcoal, oil, kerosene, propane, and natural gas. Products and equipment powered by internal combustion engine-powered equipment such as portable generators, cars, lawn mowers, and power washers also produce CO.
The US Consumer Product Safety Commission reports that on average, about 170 people in the United States die every year from CO produced by non-automotive consumer products. These products include malfunctioning fuel-burning appliances such as furnaces, ranges, water heaters and room heaters; engine-powered equipment such as portable generators; fireplaces; and charcoal that is burned in homes and other enclosed areas. In 2005 alone, CPSC staff is aware of at least 94 generator-related CO poisoning deaths. Forty-seven of these deaths were known to have occurred during power outages due to severe weather, including Hurricane Katrina. Still others die from CO produced by non-consumer products, such as cars left running in attached garages. The Centers for Disease Control and Prevention estimates that several thousand people go to hospital emergency rooms every year to be treated for CO poisoning.
For more information about this upcoming change check out the Washington State Building Code Counsel or your local building code office.
For information about the dangers of carbon monoxide, refer to the US Consumer Product Safety Commission.
Please note that I am not endorsing the above brand of CO2 detector, I merely included a picture to show what one looks like. They look very similar to smoke detectors. There are also combo smoke and CO2 detectors on the market.
And now for my disclaimer, I’m not a lawyer, so please consult a legal professional if you have questions.
Most of the changes have to do with tightening the regulations on the lenders. The key changes that directly effect the FHA buyer are:
- FHA upfront mortgage premium will increase to 2.25% from 1.75%.
- If a borrower has a credit score below 580 they will be required to have a 10% down payment, while the minimum down payment for all other qualified buyers will be 3.5%.
- Sellers concessions will be reduced from from 6% to 3%.
- Feb. 1, 2010 the 90 holding rule on properties is being lifted for 1 year (some restrictions still apply, refer to HUD for more information).
In my opinion, the best loan out there is the VA Home Loan. If you’re VA eligible, it’s the way to go right now. An eligible vet can purchase a home with ZERO down provided they qualify for the loan (income to debt, credit score, work history, etc.).
There’s still time to take advantage of the tax credit. Let’s talk!
For more info about FHA loans, check out hud.gov.
There’s still time to take advantage of the tax credit. First time buyers ($8000) and move up buyers ($6500) must have a mutually agreed upon signed contract dated on or before April 30, 2010 and must close on or before June 30, 2010. Want to search for property? Try my MLS Property Search on my website!
