Brian Vanderhoff's North Fulton Real Estate Blog

If you're like most first-time home buyers, you've probably listened to friends', family's and coworkers' advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.

Pride of Ownership
Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation
Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions
Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions
IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

Capital Gain Exclusion
As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation.

Preferential Tax Treatment
If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Morgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans
Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

Labels: Alpharetta, buying a home, City of Roswell, Cumming, eight reason, Flags Over Johns Creek, Georgia

Could a 475,000 square-foot apartment complex be built in Technology Park?

Officials from Tech Park and Newport Development brought forth a rezoning application to the Johns Creek Community Association [JCCA] meeting May 8.

The application is a request to rezone the nearly 39 acre area adjacent to CIBA Vision World Headquarters from M-1A (Industrial Park Conditional) to A (Medium Density Apartment) Conditional. The site-plan specific, 475,000 square-foot project would include 399 apartment units.

The proposed gated complex, named The Woodlands at Johns Creek, would include 14 buildings, ranging from three to four stories, complete with a clubhouse and fitness center.

"The primary objective…in Tech Park is to bring jobs," said Jim Warren, vice president of Tech Park. "So predominately, we're in the business of building office buildings but we also have an obligation to bring those accessory uses to the employees need – shopping, etcetera. Our policy has always been transitional zoning."

Tech Park is home to several office buildings, medical offices, assisted living center, churches and townhomes.

"Without suitable places for our workers to live, we're shortchanging our office park," said Warren.

He added that 11,000 people work in Tech Park and there is a need to accommodate those workers.

According to a letter from the Atlanta Regional Commission, the ARC determined that the proposed apartment complex does not increase the size of Tech Park by 10 percent or more and therefore does not need to be reviewed as a Development of Regional Impact.

"There's another threshold of 400 units. We've made a conscious decision to stay below that number," said Warren.

One resident at the meeting asked since the development is one unit short of undergoing a Development of Regional Impact review at 399 units, why not just increase the units to 400 and ask for a review as a "good faith" effort.

"We can ask for it, but they won't review it," said Lauren Hansford, an attorney representing the applicant. "The whole Tech Park project was approved [by the ARC] up to 11 million square feet and since Tech Park is well under that, they're not requiring a review."

Bob Strauss of Newport Development said that once it's actually planned, the development will probably have around 386 units.

Residents' main concerns at the meeting involved how the project will affect traffic, school enrollment and density.

Traffic

Residents voiced concerns about an increase in traffic.

Warren said the Tech Park campus has interconnectivity and sidewalks, which improve the pedestrian experience in the area.

"The [apartment] housing is closer to where the jobs are," said Strauss.

According to report by Street Smarts provided by the developers, "apartments generate less vehicle trips per day than office buildings, significantly less during peak hours." The report states approximately 32 percent more daily trips would be generated by the offices compared with the apartments.

Comp Plan

A resident at the meeting said he was concerned about the low percentage of office-industrial space compared to the high percentage of residential communities in Johns Creek, noting that the city's land use plan calls for more commercial development.

He added that city officials have encouraged residents to think about whether or not they would like to see more commercial developments in the city, in an effort to balance the tax digest.

Hansford said there are a lot of policies in the preliminary Johns Creek Comprehensive Plan that would make the proposed apartment complex appropriate.

"The interim Comprehensive Plan specifically notes the need and demand for rental housing," said Hansford. "In this case, these apartments would be geared toward young professionals."

According to documents disbursed by Tech Park officials, the campus currently has approximately 600,000 square feet of non-residential ongoing construction.

Schools

Hansford said since several residents are concerned with overcrowding of schools, Williams Management Company conducted a study on how many school age children are predicted to live in the apartment development.

According to the Williams Management Company report, 48 school age children are predicted to live in the apartment complex.

Strauss said The Woodlands of Johns Creek holds a Class A profile, which doesn't typically have highly concentrated numbers of children. A Class A description relates to rent rates, according to Strauss.

Rent rates will range from around $900 a month for a one-bedroom unit to more than $1,500 a month for two and three bedroom units, according to Strauss. He added that 86 percent of the units will be one and two bedrooms and 14 percent will be three bedroom units.

Density

Sean Coughlin, president of Tech Park, said there are no plans to develop any more residential within Tech Park.

The proposed complex will hold 10 units per acre, compared to Johns Creek Walk, which has 22 units per acre.

Environment

Buffers will be included around the site and there is plans to preserve some of the trees. Warren said about 70 percent of the proposed site will be pervious surfaces.

A resident asked about the upkeep of apartment units, stating that some complexes are subject to degradation over periods of time.

Warren said all properties in Tech Park are subject to "strong" covenants, which are strictly enforced.

"Where the jobs are, is where the covenants can protect," said Warren. "The demand is there. Let's set the standards."

Strauss said that if approved, construction would begin in the fall and completed in nearly two years.

The developers will present the application to the Planning Commission in June.

Labels: Alpharetta, apartments, Flags Over Johns Creek, Georgia, technology park

The City of Johns Creek is encouraging residents and business owners to show their patriotism by displaying an American flag starting on Flag Day, June 14 and continuing through the Fourth of July.

The initiative, dubbed "Flags Over Johns Creek," is designed to encourage patriotism, inspire citizens to think about the meaning of the American flag, and serve as a symbol of support for troops abroad, said Council Member Liz Hausmann, who suggested the program.

"I don’t think we can do enough as individuals or as a community to encourage knowledge of and respect for this symbol of freedom and democracy," Hausmann said. "Likewise, we can never do enough to express our appreciation for the men and women serving in our armed forces. I think it would be an awe-inspiring sight to see a flag flying at every home and business in Johns Creek."

City officials are planning a formal announcement ceremony for the initiative on

Thursday, May 15 at 4:30 pm at City Hall. More details and additional activities will be described at that time.

Labels: Flag Day, Flags, Flags Over Johns Creek, Johns Creek, Patriotism