Top 4 Home Renovations for Maximum ROI [INFOGRAPHIC]

  • By Eddie Yandle
  • 17 Nov, 2017

Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “Return On Investment” (ROI).

Some Highlights:

  • Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “ Return On Investment” (ROI).
  • While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.

The Villas News

By Eddie Yandle 04 Jan, 2018
Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return.

This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.

When the tax code was originally being overhauled by the House and the Senate, there were three major proposals being considered that would have substantially impacted the residential real estate market:

  • Changing the requirements for the exclusion of gain on the sale of a principal residence
  • The reduction on the limit of the Mortgage Interest Deduction (MID)
  • The elimination of the State and Local Tax deduction (SALT) which includes property taxes

Let’s look how the tax code has evolved from the original proposal, and decipher what impact experts believe it may have on the housing market.

1. Exclusion of gain on sale of a principal residence

Original Proposal: Owners would need to live in their house for at least 5 out of the last 8 years to claim this exemption. Under the former tax framework, a typical owner, who has lived in their house for at least 2 years out of the last 5 years, would pay nothing in capital gain taxes if they sell the house.

The New Tax Code: No change. The “at least 2 years out of the last 5 years” requirement is unchanged.

Impact on the Market: None.

2. Mortgage Interest Deduction

Original Proposal: Reduce the limit on the mortgage interest deduction (MID) amount from $1,000,000 to $500,000.

The New Tax Code: Reduces limit on deductible mortgage debt to $750,000 for new loans taken out after 12/14/17. Current loans up to $1 million are grandfathered.

Impact on the Market: Assuming a 20% down payment, this reduction in the MID will impact buyers that are purchasing a home between the prices of $938,000 and $1,250,000. Any home under the lower price is still covered and any home over the higher price was not covered under the former tax code either.

What does that mean to the market? Experts disagree. Calculated Risk ’s Bill McBride:

“I think the impact of reducing the MID from a maximum of $1 million in mortgage debt to $750 thousand in mortgage debt will have very little impact on the housing market.”

On the other hand, Capital Economics claims :

“The impact on expensive homes could be detrimental, with a limit on the mortgage interest deduction raising taxes for those that itemize.”

3. State and Local Taxes (SALT)

Original Proposal: The elimination of the state and local tax deduction (which includes property taxes).

The New Tax Code: Allows an itemized deduction of up to $10,000 for the total of state and local property taxes and income or sales taxes.

Impact on the Market: Most experts agree that higher taxed regions will be impacted as homeowners in those communities now have a cap on these deductions.

Calculated Risk ’s Bill McBride stated:

“SALT will have an impact on housing in some areas. Some people might choose to live in one state over another (if they have a choice), based on taxation. This could impact demand in certain states – especially for the middle and upper-middle class homeowners.”

Mark Zandi of Moody’s Analytics  said:

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

What will be the overall impact on the housing market?

For most of the country, the new tax code will not have a negative impact on the market. As Capital Economics  reports:

“Given most households will see an overall tax cut, and potential buyers are likely to put that saving towards their home, we doubt it will have a significant detrimental impact on the housing market.”

There is also no doubt that some higher priced, higher taxed regions will be affected more than others. However, most experts agree that other portions of the tax code will favor the high-end buyer and seller, and this might mitigate many concerns. McBride explains:

“The corporate tax cuts (and other tax cuts) will mostly benefit the wealthy, and this will be a positive for high end real estate.”

What does this all mean to you?

To know for sure, you should sit with your accountant or financial planner and explore how all the aspects of the new code will impact your family.

Most families consider homeownership an essential part of the American Dream, and don’t purchase a home based solely on the tax advantages. The main reasons they buy a home are personal (they just got married, they are looking for a good place to raise children, they want to be near friends and family, they want to better enjoy their retirement, etc.). This will never change.

Looking at the new tax code, Mr. McBride’s opinion makes the most sense:

“There will be some negative impact based on SALT, but overall the impact of these policy changes on housing will be minimal.”

By Eddie Yandle 06 Dec, 2017
Sometimes we all get so busy that we forget the loved one that is always waiting for us at the door.  During this holiday time, we searched for several articles that may help with keeping your favorite furry friend content during all the rush.
By Eddie Yandle 06 Dec, 2017

Try these 5 décor pieces that will make your home sophisticated and elegant

Want to know some of the easy décor tips to give your home a sober and elegant look? This article has got all the hacks for you. Learn some easy décor pieces that will make your home look sophisticated.

By Eddie Yandle 17 Nov, 2017
South Carolina is teeming with history, culture, and nature and no visit to Columbia is complete without taking some time to see what our neighboring cities have to offer!
By Eddie Yandle 17 Nov, 2017

Some Highlights:

  • Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “ Return On Investment” (ROI).
  • While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.
By Eddie Yandle 17 Nov, 2017

Mortgage interest rates, as reported  by Freddie Mac , have increased over the last several weeks . Freddie Mac,  along with Fannie Mae,  the Mortgage Bankers Association and the National Association of Realtors,  is calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 3.5%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades:


By Eddie Yandle 17 Nov, 2017
By Eddie Yandle 09 Oct, 2017

The Aspiring Home Buyers Profile  from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that non-homeowners cite the main reason for not currently owning a home, as not being able to afford one.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

NAR’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 39% of non-homeowners say they believe they need more than 20% for a down payment on a home purchase. In actuality, there are many loans written with a down payment of 3% or less.

Many renters may actually be able to enter the housing market sooner  than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO® Scores

An Ipson survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score”  is over 780. In actuality, the average FICO® scores  of approved conventional and FHA mortgages are much lower.

The average conventional loan closed in August had a credit score of 752, while FHA mortgages closed with a score of 683. The average across all loans closed in August was 724. The chart below shows the distribution of FICO® Scores for all loans approved in August.

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options.

By Eddie Yandle 09 Oct, 2017
Spirits Alive!
Thursday, Oct. 12
Tours every 30 minutes from 6 - 9:30 p.m. (Last tour begins at 8:30)

Grab your flashlight and join Historic Columbia and Elmwood Cemetery staff for guided tours presenting some of Columbia’s eerie and peculiar past by the light of the moon! Different than the regular monthly tours, Spirits Alive! Cemetery Tours feature costumed tour guides, snacks and other Halloween-related activities. These are some of our most popular tours and a great way to get in the mood for fall!
By Eddie Yandle 06 Oct, 2017
The Villas is about easy, MAINTENANCE- FREE LIVING!
 Take your weekends back and spend time doing what matters most. 
Brick luxury homes in a gated community surrounded by walking trails, tennis, golf, restaurants and shopping.
Woodcreek Farms!

Augusta III- MLS 429052-  $432,161
355 Turnwall Lane- 3 BR, 3BA, Bonus Room, 2967 Feet

Sawgrass III- MLS 429245- $395,139
361 Turnwall Lane- 4BR, 3BA, Bonus Room-2750 Feet



Torrey Pines I- MLS 432717-$382,323
362 Turnwall Lane- 3 BR, 2BA, Study/Dining, 2340  Feet


All Pricing and Plans are subject to change without notice.    All plans/renderings/photos displayed on website and marketing materials are conceptual and subject to change. Please see sales contract for your home’s specific sales specifications and design, as all homes pricing, options and features are subject to change without notice. Homes to be complete to industry standards.


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