Wednesday, November 30, 2016

Get Your Home Ready To Sell In Fall and Winter

Many people feel the fall and winter are not the best time to sell, I however question that. You may not have as many buyers out there, but the ones that are tend to be serious buyers. During the spring and summer months people get spring fever and want to make changes, sometimes driven by kids being out of school. We tend to get a lot of "lookie-loos" in the spring and summer, in the fall and winter not so much. If your home is in good condition and priced correctly it will usually sell anytime of year. Below are some tips to make your home more appealing during the fall and winter months;
1. In the fall and winter it is just as important to keep the yard work up, rake fallen leaves, keep gutters cleaned out and make the front of the home present itself well.
2. The simple wreath on the door, welcome mat, or just a warm glow from the front windows invites people in out of the cold.
3. Dark and dull lighting can be a problem in the fall and winter months, so opening up blinds and curtains, turning on some table lamps, a fire place with a warm cozy fire a glow in the rooms can also make the home inviting.
4. Add fall and winter colors, oranges, reds, yellows etc. Easy to do with flowers, throw blankets on chairs, fruit baskets, and pillows.
5. Inviting smells, cookies baking, coffee brewing, scented candles, fire place burning, can all add to a welcoming feeling. DON'T OVER DUE IT!!!
6. As with any time of the year keep clutter down, if your furniture is big and bulky you might want to remove some pieces to the garage or storage to make rooms look bigger. Remember less is more.
For questions or ideas on how to make your home more appealing just give me a call (916) 544-2066. Let's get your home sold

Tuesday, November 1, 2016

Should you buy property for your college student to use while in college? College is expensive, here's one way you could possibly save

You’re already helping pay for your kid’s expensive college education, so the idea of also buying a house on top of that might sound crazy. But according to one real estate agent, buying a property for your kid to use while in college could have some real financial benefits and possibly turn into a profit if it’s right for you.
Room and board is the second-highest expense for college students. Room and board on campus for a private, nonprofit, four-year college or university can average $11,516 a year. Going a little cheaper, on-campus room and board for an in-state public four-year college or university can average $10,138 a year, which isn’t much cheaper, according to the College Board’s website.
This can quickly add up after four years.
To help explain the benefits and risks of buying a home for your college student to use,Orlando Regional Realtor Association President John Lazenby, with the Colony Realty Group, lists the facts, pros, cons and tips when it comes to making a decision.
“When purchasing a home for your student, it’s vital to understand that owning a rental property is a business, and problems are likely to arise,” said Lazenby, who bought a home for his son to live in while he went to college.
“Like most business ventures, a full understanding of the arrangement by everyone involved is key, even if your child’s friends are also tenants – it can be great, but it can also create some uncomfortable situations. It’s something we would do again.”
Facts
  • Purchasing real estate is a long-term investment, and typically it takes about seven years for the investment to increase in value enough to exceed the costs associated with buying and selling the property, so you’ve got to be prepared to stick it out for a while.  
  • Although the purchase process (buyer-seller contract negotiation, inspection, closing, etc.) is similar for primary and secondary residences, you’ll find major differences in getting a second-home mortgage.
Pros
  • Money that would typically go toward renting an apartment or dorm instead goes to an investment in homeownership.
  • Income from roommates or tenants after graduation can meet or even exceed the home’s mortgage and related maintenance costs.
  • The house can provide you student with increased responsibility and real-life experience.
Cons
  • It’s not possible to control the local housing market or economy, so an increase in value can’t be guaranteed.
  • Second-home loans usually require more money down and better credit scores, and lenders take an in-depth look to ensure that a second-home buyer is financially capable of paying two mortgages – they even have formulas for calculating shortages in expected rental income.
  • Property tax rules and possible deductions for second homes are very complicated and vary widely, so it’s important to talk with a tax professional before buying a second home.
Tips
  • Carefully consider your current financial position and be sure you can fully support the extra mortgage and maintenance costs of a second home for an extended period of time, even if rental income will be provided by the students’ roommates.
  • Whether you’re familiar with the area or not, consult with a Realtor. A Realtor can provide extensive information about the current conditions and history of the local housing market and are also usually well-versed in the idiosyncrasies of a college’s location/population.
    • Will the house sit empty a few months during the summer? Is it in an area that students like?
  • To best ensure the house retains its own value, maintain it with proper upkeep inside and out, as well as landscaping and major systems.
  • Since it can take a while to see an increase in value that’s enough to offset the costs of buying and selling the property, be prepared to hold on to it for a while – purchase the property before a student starts school, and hold on to it for a few years after graduation (or through graduate school or siblings).

1031 Exchange Tips Fourth Quarter

1031 Exchange tips:
Fourth Quarter:

If you are a calendar year taxpayer and you begin a 1031 Exchange during the 4th quarter of 2016, your 180 day deadline for completing the exchange will fall in 2017 — the next tax year. Timing is crucial for your tax reporting. To properly report a successful 1031 Exchange, both the property you sell and the property you buy must be reported on the SAME tax return.

Bottom line—taxpayers should not file a 2016 tax return until all purchases in the 1031 Exchange are made and the 1031 Exchange is completed. To allow for this timing, it may be necessary to file an extension on your 2016 tax return (IRS Form 4868). Contact IPX1031® for more information.


IRS Disaster Relief Updates
Georgia Disaster Relief Notice - Hurricane Matthew
Florida Disaster Relief Notice - Hurricane Matthew
North Carolina Disaster Relief Notice- Hurricane Matthew
South Carolina Disaster Relief Notice - Hurricane Matthew

For more information contact:
James Callejas, CES®
Vice President
Account Executive
(415) 640-0794 Cell
james.callejas@ipx1031.com