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Scott Ingraham Real Estate Group
9722 Front Beach Road
Panama City Beach, FL, 32407
Phone: 850-249-7355
Thursday | February 28, 2013

Buying a home: Mortgage Interest Deductions

The mortgage interest deduction allows homeowners to deduct the amount of interest paid on a mortgage loan to be deducted on their tax returns.  It has been touted by many, including the National Board of Realtors, as functioning as an incentive to prospective homebuyers to buy residential real estate by lowering the overall cost of buying a home for sale.

There are some limitations on the real estate mortgage interest deduction.  It is applicable only to the first and second homes.  You cannot take the mortgage interest deduction against more than two homes.  The mortgage interest deduction cannot be taken against commercial real estate. 

In order to qualify for the mortgage interest deduction, the homeowner must itemize deductions.  The total amount of all itemized deductions taken by the homeowner cannot exceed the standard deduction.

To fully determine whether you can and should take the real estate mortgage interest deduction if you own a home, talk to your tax accountant. 

Disclaimer:         

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.

 

 


Friday | February 15, 2013

Selling a Vacation Rental

Thinking about selling a home in a market dominated by vacation rental properties?  Like all real estate markets, those with a high degree of vacation rental properties have their own unique characteristics.  Whether it’s a mountain cabin, a condo near a ski lodge or a house on the beach short term vacation rentals always have certain things in common. 

In a tourism driven community, there is always something that brings the tourists in.  There is always some attraction—a beach, landmark sightseeing, casinos, Disney World, mountain views, events (think about the Monterey Jazz Festival, Mardi Gras and the Sundance Film Festival, for instance).  In real estate, they like to use the phrase “Location, location, location.”  In no market is that more true than vacation rentals—the closer the property is to beach, the parades, the ski lifts, etc.—the easier the sale will be. 

Don’t forget that most of your potential homebuyers in this case will be looking at the property to rent out themselves.  Homebuyers in this market want to see a property with a proven rental track record.  Be prepared to provide them with rental history and income (now is no time to be shy about sharing the news of your success). 

Selling a home as a vacation rental is a little different than selling a residence but, to paraphrase Mary Poppins, a little forethought and a good realtor can make it a “jolly holiday.”

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.


Friday | February 08, 2013

Real Estate Fraud

Real estate fraud basically occurs when anything in the real estate process of buying a home or selling a home is done in violation of the law. 

A homebuyer mis-stating his or her income, assets, liabilities, employment status, etc. when applying for a home mortgage to buy a home for sale or a commercial real estate loan to buy commercial real estate for sale.

There have been cases—usually in conjunction with identity theft—of individuals masquerading as the owner of a piece of real estate, selling it to an unwary buyer and disappearing before the fraud is discovered.

It is important for the homebuyer or buyer of commercial real estate to be aware of those with whom he or she is doing business.  While your realtor, mortgage lender, real estate title agent, real estate attorney, etc. may all be perfectly ethical and honest, there are so many times during the process when personal information is given out, copied, passed on to others, etc. that it is easy for an identity thief who is not associated with the legitimate players in the process to fool a homebuyer into thinking they are and handing over personal information.  While not necessarily “real estate fraud” in the technical sense, it is nonetheless just as devastating to the victim.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.


Friday | February 01, 2013

Buying Home-ARMs and Interest only Loans

As the demand for real estate financing grew and the standards loosened in the 1990s and 2000s, Adjustable Rate Mortgages (ARMs) grew in popularity.

As the name would suggest, ARMs were like a traditional mortgage except that the interest rate was tied to some external index—typically the Constant Maturity Treasury (CMT) or the London Interbank Offered Rate (LIBOR).  As the underlying index moves up or down, the mortgage rate moves with it.  When interest rates are moving down, this means monthly payments go down accordingly.  But when they start to rise, so does the payment amount and the borrower may find himself strapped for cash.

One of the more popular real estate financing vehicles offered during the boom years of the housing bubble—especially among property flippers—was interest only loans.  These were short-term (five years or so) mortgages that the monthly payment only paid the accumulating interest.  At the end of the term the entire principle was due in the form of a balloon payment.  The purchaser of the real estate for sale had to either pay off the loan or refinance it.  The attraction to many was that the monthly payment was very low and since prices of homes for sale during the housing bubble boom were rising rapidly they could re-sell the property for more than the original price, pay off the loan and pocket the difference.  This worked well as long as prices for homes for sale were going up, but when the housing bubble burst many speculative flippers found themselves holding real estate for sale that would not sell and faced with a massive balloon payment. 

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.


Tuesday | January 22, 2013

Buying Commercial Real Estate – Buying vs. Renting

In residential real estate, sometimes it’s just not time to buy a home for sale.  Sometimes renting for a while is the best way to go.  Likewise with commercial real estate—sometimes it makes more sense to rent.

This is one of those situations where it makes sense to talk to your realtor.  Explain your business’ needs and financial situation.  Look at your local commercial real estate market and determine what’s right.  Most realtors will work with you regardless of whether you want to rent or buy, so it makes sense to be upfront with them and listen to their advice.

Is your business likely to quickly outgrow any piece of commercial real estate you can afford to purchase?  Does your business require such an extensive piece of commercial real estate that to purchase it will cripple your budget?  In such situations, leasing commercial real estate may make the most sense.

Again, a good realtor (like those here at findpanamacityrealestate.com) will be able to advise you.

Disclaimer:

The material on our website is intended to provide only general information and comments as a courtesy to the general public and potential real estate clients. Although we make our best efforts to ensure that the information found on our website is accurate and timely, we cannot, and do not, guarantee that the information is either. Nor do we guarantee the accuracy of any information contained on websites to which our website provide links.

Do not, under any circumstances, rely on information found on our website as a replacement for sound professional advice from individuals who specialize in such matters. Legal, insurance, and other related subjects are often complicated. For assistance with your specific real estate questions or inquiries please contact one of our knowledgeable real estate agents, any of whom will be pleased to determine whether our agency can assist you.