around 1.2 million per year, according to Gaines, this figure was only 398,000 in 2009. When the economy fully rebounds, Gaines said, there will be pent-up demand created by the delays in household formation.

Gaines also points out that the construction of new homes is at a pace that’s only half of what’s needed long-term to keep up with the natural population growth in the U.S.

(Continued on page 3)

In case you haven’t noticed, many of real estate markets across the United States are down. Foreclosures and distressed sales have heaped a big in-ventory of unsold homes onto the mar-ket.

However, at least one economist predicts there could actually be a housing shortage.

James Gaines, a real estate economist at Texas A&M, says that

supply could soon fall behind demand for homes. "It is ironic, but there is a growing con-sensus that there may be a new housing shortage coming," Gaines told CNNMoney.com in a recent article.

Gaines contends that the economy has led to an artificially low figure of “household formations” – which occur when people move in together and create demand for housing. Usually

Believe It or Not, Housing Shortage Possible

Could the Mortgage Interest Deduction Disappear?

For years, one of the benefits of owning a home in the United States has been the tax break that comes with it -- the income tax deduction for mort-gage interest paid. This deduction has been in place since 1913, but it has come under some scrutiny lately.

In fact, a recently re-leased paper pub-lished by researchers at the Tax Policy Cen-ter suggests it might be time to reform the tax policy as it pertains to this deduction.

In some ways, that might make sense. Look overseas, and you will see a nation -- Greece -- that has all

but collapsed eco-nomically because its government can't raise enough revenue to prop up all its expen-sive entitlement pro-grams. The amount U.S. taxpayers will de-duct for home interest in the tax year 2012 is expected to cost the U.S. government

(Continued on page 3)

LAWYERS REALTY LLC

JUNE 20, 2010 VOLUME 1, ISSUE 2

PAUL ’S PAGES

Publisher’s Note:

Welcome to Paul’s Pages. I hope to make this a weekly forum where useful information about the real estate market is passed along as well as a forum for discussion on current events that affect us all.

You are encouraged to follow my team on Facebook, Twitter and LinkedIn.

As always, your referrals are welcome and encouraged as are your comments about this newsletter. My team specializes and excels in foreclosure prevention. If you know of somebody that is struggling to keep up with their mortgage or simply looking to make a move, you may contact the team by calling 877-45SOLVE or by visiting us on the web at

www.RealEstateResources.com or our sister site

www.PaProblemSolvers.com

PAGE 2 PAUL ’S PAGES

24 Hour FREE Recorded Information 800-757-7963

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Felton: 5 Bank Owned building lots ranging from 0.46 acres to 2.8 acres. Any builder!!! Can be sold individually or as a package.

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And while there is a sur-plus of homes on the market, many of these homes are in very bad shape or are in undesir-able areas, making it hardly a foregone con-clusion that they will be the homes snatched up when big demand re-turns to some markets

(Continued from page 1)

Shortage?

In Canada, mortgage interest is not deductible on a primary residence. Yet home ownership rates in Canada are largely the same as in the States. What's dif-ferent is the amount of equity Canadians have in their homes -- about 70 percent on average compared to about 45 percent. So it's fair to ask if the MID promotes ownership of homes that could be too expensive for their owners.

The Tax Policy Center study mentioned above actually says that the deduction does not af-fect home ownership rates. In fact, many tax-payers don't use the de-duction, even if they own a home. This is be-cause most tax payers do not itemize deduc-tions.

The paper also argues that the wealthy benefit much more than the lower class when it comes to the tax credit. More expensive homes mean larger mortgage interest deductions, and higher tax brackets mean the bigger dollar-for-dollar breaks for the better off. President Obama's budgets for 2010 and 2011 have included capping the MID at 28 percent, even for those in the 33 and 35-percent tax brackets.

Congress has not en-acted that cap, however.

The paper compares alternatives for reform-ing the tax policy as it pertains to mortgage interest. Making the tax break a credit rather than a deduction, for example, might help lower-income tax payers more than the current system, the paper finds. The study suggests that there policy could be reformed to either in-crease the U.S. tax revenue, or to promote home ownership more at the same dollar cost as the current MID.

Personally, I don't see this deduction disap-pearing any time soon.

For one, it would be po-litical career suicide for any incumbent member of congress to start in-troducing any measures that would essen-tially amount to higher taxes during an election year. The fact that the home builders and real estate agents have some pretty powerful lobbying efforts in Washington would also make it difficult for radi-cal changes to take place.

On top of that, real es-tate is an industry that's down right now, and for the federal government to kick it while it's down

PAGE 3 VOLUME 1, ISSUE 2

about $131 billion.

That's just a drop in the bucket of the national debt, but if you get the feeling that the U.S. government is going to have to one day "pay the piper" in regard to its spending, that $131 bil-lion or so might seem like a good start to you.

It's also fair to ask whether the government should be subsidizing homeownership with tax policy, which, in effect, it does with the mortgage interest deduction. Even if promoting homeown-ership is something that's desirable -- I, for one, believe it is -- is the mortgage interest de-duction an efficient way of doing it?

(Continued from page 1)

Mortgage Interest Deduction

would deal a severe blow to the overall economic recovery in the U.S. Why would the feds prop the industry up with the tax credits that just expired, only to turn around and deal a blow that would knock the market back?

There's no question that the U.S. cannot keep spending money it doesn't have -- on social se-curity, on proposed health care pro-grams -- without somehow adjusting revenue to keep up. So you will probably continue to read about the mortgage interest deduction disappearing.

But don't bet on it any time soon.

If you’re considering purchasing a home in Leola, you’ll definitely want to check this park out.

Wanna earn dinner for two?

Submit an article about your community. Include some commentary about what makes it special. You can talk about the shopping, the restaurants, the schools, what ever. Include a couple of pictures (no people please). If your article is used, you’ll be thanked with dinner for two at a restaurant in your community. All submissions become the property of Paul Chase. Include your name, address, telephone

number and a valid e-mail with your submission. Submissions may be sent to info@PaRealEstateResources.com.

Leola Pa is located just a few miles east of Lancaster city at the junction of routes 23 and 772. According to BestPlaces.net the population of Leola in 2009 was 10,712 and that represented an increase of 4.4% over the 2000 number of residents. The cost of living here is 5.53% below the national average.

Since this is a real estate newslet-ter, I suppose we ought to talk a little bit about the real estate market in Leola. The average sold price for homes in Leola was $206,980 in May 2010 according to statistics compiled by the Lan-caster County Association of Realtors (LCAR) in the multi-list. The average Days on Market (DOM) in May was an astonish-ingly low 20.

What attracts me to Leola is that my kids go to school there and I really like the BackPage restau-rant.

Veritas Academy (www.VeritasAcademy.org) is a small classical Christian school. While it’s not associated with any church or demonization it does expose it’s students to reformed theology and it does so unapolo-getically. Veritas curriculum is challenging for even the most advanced students. You’d be surprised at the level of educa-tion the students receive here. My oldest daughter is entering the 10th grade this fall and she’s studying material that I didn’t see until I was in college.

The BackPage restaurant is lo-cated right on Route 23 in Leola and is in the same strip mall as the Smart shopper. It’s a family

type restaurant and the menu fea-tures a wide variety. My kids tend to like the burger bar. You can create your own burger from a list of top-pings and sides. My wife and I prefer the entrees and sal-ads. En-trees vary between steaks, seafood and pasta dishes. Besides the standard soft drinks, BackPage has a full bar featuring wine, cocktails and a decent selec-tion of beer.

When the weather is nice we like to eat out on the patio behind the restaurant and the kids will occa-sionally stroll into the game room.

Backpage is a great place to come not only for lunch or dinner but to meet friends and catch up for a little while. The staff is always friendly and the food is good. What more could you want.

You can visit their website at www.backpagerestaurant.com.

The final stop on our tour of Leola is the community park. This is a fantastic asset for the residents of Leola. The park features a swimming pool, two large shelters for picnics and a really cool playground for the kids.

Community Spot Light - Leola

PAGE 4 PAUL ’S PAGES

PAGE 5 VOLUME 1, ISSUE 2

Visit one of these sites to find out!!!

www.LancasterHomeValues.info

www.LebanonHomeValuesOnline.info

www.HarrisburgPropertyValues.com

www.WestShoreValues.com

A FREE Report will be delivered automatically and show you what’s happening in your neighborhood.

Lawyers Realty LLC is located in Lemoyne Pa and serves Dauphin, Cumberland, York, Lancaster and Lebanon Counties. We have experts in Residential, Commercial, Foreclosure Prevention and Auctions.

What makes us truly unique in South Central Pa is that we provide our clients, both buyer and seller, with FREE legal representation during your real estate transaction.* We also don’t believe in charging extra for things that you should be getting already. Other brokerages in the area will charge extra fees. Be sure to ask about them.

* Lawyers Realty LLC is not a law firm but hires attorneys to provide certain legal services for its clients.

307 Market St Lemoyne PA 17043

Office 717-364-3000 Toll Free 877-45-Solve (877-457-6583)

Fax 800-300-9025 www.PaRealEstateResources.com

LAWYERS REALTY LLC

activity known as sleep. For best results, try to keep it under four or five hours per night.

4. Take everything seriously because, obviously, it is.

5. Don’t fall into the trap of expecting big, amazing, wonderful things to hap-pen. They probably won’t and you’ll just end up dis-appointed anyway. And while you’re at it, pat yourself on the back for outgrowing the silly prac-tice of believing in things like Santa Claus, the Tooth Fairy, and God.

6. Make sure you eat most meals either in the car, near the microwave, or from your recliner. If someone invites you to join them for a dinner that is likely to last more than fifteen minutes, respect-fully decline.

7. Don’t bother asking ques-tions. You probably know all the answers anyway. If

Have you ever wondered to yourself, “How can I add more stress to my life?” Of course, we all have. But now, for the first time ever, comes a comprehen-sive guide to take the guesswork out of getting stressed. Never before has such a thorough, step-by-step guide to your very own mental breakdown been pub-lished, be it online or off. If you can master these easy to follow instructions, you too can be the envy of all your friends and find yourself well on your way to a life you’ve only dreamed of!

1. Treat traffic jams exactly as they are: carefully planned and sinister conspiracies designed to keep you from your destination.

2. Pack your day so full that you are not distracted by superficial things like the sunset, the smell of roses, or the toddler smiling at you from across the gro-cery aisle.

3. Avoid the time wasting

you don’t, just act like you do. And remember, “Because we’ve always done it this way” is a per-fectly good answer to a almost every question.

8. You can take some time for yourself, but only if you’e caught up on all of your work, your e-mail inbox is completely empty, your bills are paid, and your junk mail has all been al-phabetically sorted. And the grass has been cut.

9. If someone drags you on some sort of “vacation,” be sure to bring your beeper. Also, figure out the total time you’ll be on said “vacation” and plan things to do and see that will accommodate roughly double or triple that time.

10. Spend most of your waking hours — remember, you should be shooting for about 20 of those a per day — doing things that com-pletely drain you. You

How To Have a Mental Breakdown in 11 Easy Steps By Jason Kotecki

WE’RE ON THE WEB!

PAREALESTATERESOURCES.COM

know, the stuff you’d never do in a million years if they didn’t pay you such a good salary.

11. If all else fails and you for-get the other guidelines, a handy shortcut is to ob-serve a child and do the exact opposite.

As you can see, a complete and utter mental breakdown does not require any extraordinary skills. By following these simple steps, literally anyone can have one. However, a failure to com-ply with the majority of the steps listed here may result in a life that is less-stressed and more fun and fulfilling. Good luck!

Jason Kotecki is an artist, author, and professional speaker. Jason and his wife Kim (a former kindergarten teacher) make it their mission in life to fight Adultitis and help people use strategies from childhood to create lives with less stress and more fun. Learn more at www.KimandJason.com