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Economist: Austin area to add 45,000 new jobs in next two years
By Kirk LadendorfAMERICAN-STATESMAN STAFF
Friday, Feb. 24, 2012
Austin's puny job recovery over the past two years will accelerate into faster job growth this year and next, economist Angelos Angelou said in his 26th annual forecast event Thursday.
The CEO of Angelou Economics forecast 45,000 new jobs will be added to Austin's five-county metro area in 2012 and 2013, more than doubling the job expansion of the past two years.
Austin added 12,800 jobs last year, and its growth rate of 1.7 percent trailed other major cities in Texas and the state as a whole, which expanded jobs by 2.3 percent.
The drivers for a stronger economy, Angelou said, will be venture-backed startups, a resurgence of established tech companies, an increase in new residents moving into the region from elsewhere and a stronger real estate development sector.
Austin's economy, Angelou said, is getting its groove back.
"I am optimistic about the forecast because I believe we had a significant recovery in the high-tech sector last year, which will continue. We had a 7 percent increase in our number of high-tech workers, expanding to 101,000 last year," Angelou said. "That is substantial. Those increased payrolls are going to kick in this year and next."
"Venture capital seems to be doing fairly well, and if those trends continue, we should see more small companies being formed. And people are continuing to move to Austin. Population growth last year generated about $1.1 billion to our total personal income."
Those new jobs, Angelou predicts, will drive the local unemployment rate down to 5.6 percent in 2013 from its current rate of 6.3 percent. He forecasts the population will expand during the two years by 88,000 to reach 1.84 million by the end of 2013.
The forecast calls for 14,500 single-family home starts during 2012-13 along with the construction of 8,000 new apartment units. It also calls for increased construction of office space, industrial space and retail space as occupancy rates continue to rise.
Angelou also is bullish on the rise in Austin's entertainment events, including continued growth for the South by Southwest festivals, the Austin City Limits music festival and the city's first Formula One auto race, which is scheduled for November.
"We are going back to being a high-tech town, a fun place to be and a great place to live and do business," he said. "Formula One is going to provide a lot to this region over time, and it will be very successful."
The eventual impact of Formula One could reach $500 million a year to the local economy, Angelou estimated.
Angelou, who runs an economic development consulting business, has been giving Austin economic forecasts since he was hired as an economist with the Greater Austin Chamber of Commerce in 1984.
Angelou's forecast usually has tracked the economy fairly closely over the years. He missed in 2009, the worst year of the latest recession, when he forecast weak growth of just over 2,000 jobs, and Austin instead recorded a net loss of more than 16,000 jobs.
While Angelou was upbeat about the local outlook, Jay Bryson, managing director and global economist for Wells Fargo Securities, gave a more guarded outlook about the national economy.
Low interest rates and strong business balance sheets in the United States should promote more growth, but the economy may be constrained by consumers' focus on paying down their debts, Bryson said.
Wells Fargo expects the nation's gross national product adjusted for inflation will expand by 2 percent this year, which is slightly better than the 1.7 percent growth recorded last year.
Continued low interest rates and strong business balance sheets will enable growth, but the key remains how much of their income consumers devote to spending versus paying down past debts.
Bryson said the United States faces a few big risks, including rising oil prices, which could slow down consumer spending, and the deep problems of dealing with heavy government deficits both in Europe and this country.
The European financial crisis still poses a substantial threat to banks in Europe, he said. If the European debt situation is not worked out, it could cause a "major disruption" for the European financial system, which could lead to tighter credit in the U.S.
"Europe is not over yet and is not going to be over for awhile," Bryson said.
Continued heavy deficit spending in the United States probably won't create an economic crisis in this country this year, but he said the issue needs to be addressed by politicians in the next 18 months or risks could rise dramatically.
Business people who are expanding, Bryson said, should consider not only the best-case economic scenario, but how well their business plans would hold up against those major economic risks.
"Caution is well-advised," he said.
kladendorf@statesman.com; 445-3622
Predicted job growth, 2012-13
Industry New jobs % growth
Education/health services 7,200 7.9%
Leisure and hospitality 7,000 8.1%
Retail trade 6,900 8.2%
Professional services 5,700 5.2%
Construction 4,400 11.3%
Other services 2,800 8.1%
Financial activities 2,800 6.5%
Manufacturing 2,600 5.4%
Government 1,700 1.0%
Wholesale trade 1,700 4.2%
Transportation 1,200 9.2%
Information 900 4.7%
Source: Angelou Economics
Friday, February 24, 2012
Wednesday, February 8, 2012
Tax Breaks for Homebuyers!!!
Technically speaking, April 15th is tax day. But for Americans who expect a refund - including many homeowners who want to cash in on real estate-related tax perks - filing sooner holds the promise of getting that check in hand, stat. If you count yourself in that number, here’s a handy guide for 9 pieces of paper you should be sure to round up as you prepare to file, in order to reap every penny of the tax rewards you’ve earned by virtue of owning a home.
1.Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.(If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)
2.Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed.If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet - if that’s the case, look to #3, below.
3.Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.
And here’s another handy hint - if you can’t find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well.
4.Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.
5.Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or divested of one by negotiating a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them with income in the amount of the mortgage debt that has been cancelled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.
6.Utility statements for home office. For the average everyday homeowner who works at their employer’s place of business, utilities are not deductible (sorry!). But if there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting and repairs, as a result.Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.
7.Income and Expense statements from rental properties. Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated than that of the average bear; you’ll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.
8.Contractor receipts from energy efficient home improvements. Under the Nonbusiness Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10 percent of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.
9.Mortgage Credit Certificate (MCC). If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can’t use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.
No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. And you should always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.
1.Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file.(If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.)
2.Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed.If you bought your home this year, it’s highly possible that you might not even have received a property tax statement yet - if that’s the case, look to #3, below.
3.Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes.
And here’s another handy hint - if you can’t find your copy, you might have gotten it on a disk - and you can always email your real estate or escrow agent for a copy, as well.
4.Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork.
5.Cancellation of Debt Statement - IRS Form 1099. Homeowners who lost a home to foreclosure, or divested of one by negotiating a short sale or deed in lieu of foreclosure with their lender might receive some version of Form 1099 from their lenders, charging them with income in the amount of the mortgage debt that has been cancelled. You see, if you borrow money from someone, then they cancel the debt, that money you originally borrowed becomes income in the eyes of the IRS - and income is, as you know, taxable.
6.Utility statements for home office. For the average everyday homeowner who works at their employer’s place of business, utilities are not deductible (sorry!). But if there is a part of your home that is “regularly and exclusively” used for business, you might be able to claim that portion of your home as a home office, and deduct some portion of your home utilities and costs of painting and repairs, as a result.Talk with your tax provider about what expenses are allowable to be claimed under your home office deduction, and whether or not you should take it.
7.Income and Expense statements from rental properties. Some of you have elevated the art of home ownership to a business! If you are a landlord, your tax situation is more complicated than that of the average bear; you’ll need to have complete income and expense statements when you put your tax returns together. It might actually behoove you to consult with a tax professional to make sure you are appropriately depreciating the property over time and not taking deductions that will expose you to the risk of audits, as well as to begin cultivating a long-term tax strategy for your real estate portfolio.
8.Contractor receipts from energy efficient home improvements. Under the Nonbusiness Energy Tax Credit, homeowners who have made improvements to their homes that fall within a list of energy efficient upgrades might be eligible to claim tax credits. If, during 2011, you installed energy efficient improvements such as insulation, new dual-paned windows and furnaces, you might be eligible for a tax credit of 10 percent of the cost of these upgrades, up to $500 - only $200 of which may be used to offset the cost of windows.
9.Mortgage Credit Certificate (MCC). If you own a home you bought in the last few years using a Mortgage Credit Certificate issued by a local housing authority, that Certificate may entitle you to a pretty hefty tax credit, based on a percentage of the mortgage interest you paid - on top of your mortgage interest deduction. MCCs apply as long as you live in the home and have a mortgage on it, but they only apply to defray taxes you actually owe - you can’t use them to get a refund. In any event, your mortgage credit certificate, if you have one, is a must-have document as you start putting your tax prep plan in play.
No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. And you should always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure.
Friday, February 3, 2012
Another opportunity for FIRST TIME BUYERS!
The Texas State Affordable Housing Corporation (TSAHC) is offering a grant to Texans interested in purchasing their first home.
The programs will now offer a grant of 5% of the loan amount that the homebuyer can use towards down payment and/or closing costs. This grant is in addition to the programs' low fixed mortgage interest rate of 4.00%. This new grant amount is effective on the Home Sweet Texas, Professional Educators, and Homes for Texas Heroes Home Loan Programs.
Eligible homebuyers can apply directly through an approved participating mortgage lender. The program is available statewide on a first come, first-served basis, to homebuyers who wish to purchase a newly constructed or existing home.
Qualifications for each of TSAHC's first-time homebuyer programs are:
- Professional Educators Home Loan Program: Must be a full time Classroom Teacher, Teacher Aide, School Librarian, School Nurse or School Counselor employed by a public school district in the state of Texas; or a full time faculty member of either an undergraduate or graduate professional Nursing or Allied Health program in the State of Texas.
- Homes for Texas Heroes Home Loan Program: Must be a full time paid Firefighter, Emergency Medical Services Personnel, Peace Officer, Corrections Officer, Juvenile Corrections Officer, County Jailer, or a Public Security Officer working in the State of Texas.
- Home Sweet Texas Home Loan Program: Must be a family or individual whose annual income is at or below 80% of their county's Area Median Family Income (AMFI). These values can be found here:
http://www.tsahc.org/pdfs/2012_Income_and_%20Max_Purchase_Price_Limits.pdf
Additionally, a homebuyer must:
- Be a first-time homebuyer, or not had an ownership interest in any residence during the last three years;
- Meet the income and home purchase price limits (see link above);
- Complete a HUD-approved homebuyer education course prior to closing on the home loan;
- Occupy the home as their primary residence; and
- Reside in the State of Texas.
The programs will now offer a grant of 5% of the loan amount that the homebuyer can use towards down payment and/or closing costs. This grant is in addition to the programs' low fixed mortgage interest rate of 4.00%. This new grant amount is effective on the Home Sweet Texas, Professional Educators, and Homes for Texas Heroes Home Loan Programs.
Eligible homebuyers can apply directly through an approved participating mortgage lender. The program is available statewide on a first come, first-served basis, to homebuyers who wish to purchase a newly constructed or existing home.
Qualifications for each of TSAHC's first-time homebuyer programs are:
- Professional Educators Home Loan Program: Must be a full time Classroom Teacher, Teacher Aide, School Librarian, School Nurse or School Counselor employed by a public school district in the state of Texas; or a full time faculty member of either an undergraduate or graduate professional Nursing or Allied Health program in the State of Texas.
- Homes for Texas Heroes Home Loan Program: Must be a full time paid Firefighter, Emergency Medical Services Personnel, Peace Officer, Corrections Officer, Juvenile Corrections Officer, County Jailer, or a Public Security Officer working in the State of Texas.
- Home Sweet Texas Home Loan Program: Must be a family or individual whose annual income is at or below 80% of their county's Area Median Family Income (AMFI). These values can be found here:
http://www.tsahc.org/pdfs/2012_Income_and_%20Max_Purchase_Price_Limits.pdf
Additionally, a homebuyer must:
- Be a first-time homebuyer, or not had an ownership interest in any residence during the last three years;
- Meet the income and home purchase price limits (see link above);
- Complete a HUD-approved homebuyer education course prior to closing on the home loan;
- Occupy the home as their primary residence; and
- Reside in the State of Texas.
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