Affluent French Make Plans To Relocate

PARIS – May 14, 2012 – France’s national election will mean a change of residence for many more French than simply outgoing President Nicolas Sarkozy, a real estate firm says.

Winkworth, a real estate firm in South Kensington, Britain, said there has been a 50 percent jump in customer traffic from France since last weekend’s election, which analysts attribute to Socialist President-elect Francois Hollande’s plans to raise taxes on the wealthy, The Daily Telegraph reported Sunday.

Hollande, who defeated the center-right Sarkozy last weekend, has said his tax policy would include raising the tax rate to 75 percent for those earning $1.2 million per year or more. He also expects to raise the tax rate to 45 percent for those earning $193,000 per year or more.

On the other side of the English Channel, British Prime Minister David Cameron is planning to cut the 50 percent tax rate for those earning $241,000 per year or more to 45 percent. This explains the sudden interest in relocating, said one banker.

Hollande has also said, flat out, “I don’t like the rich.”

One French financier remarked that the new French president has triggered “the third-biggest exodus from France – the first being the Revolution and the second when (Socialist President Francois) Mitterrand got into power.”

Copyright © United Press International 2012

IRS- Taxes – Finally, All Filed!

And, here is what I have to say: “Everyone should be paying their taxes with a smile! I tried… but the IRS wanted cash!”

Fortunately, there is Real Estate! Owning real estate has always been the most beneficial investment.

Top Ten Tax Deductions for Landlords

Rental real estate provides more tax benefits than almost any other investment. Here are the top ten tax deductions for owners of small residential rental property.
1. Interest; 2. Depreciation; 3. Repairs;  4. Local Travel; 5. Long Distance Travel; 6. Home Office; 7. Employees and Independent Contractors; 8. Casualty and Theft Losses; 9. Insurance; 10. Legal and Professional Services

Owning a Home — What’s Deductible?

Home ownership allows a lot of tax advantages not available to someone who merely pays rent. A homeowner can deduct points used to obtain a mortgage when buying a home, mortgage interest paid during the year, and property taxes. Your biggest deduction – Interest!

Here are some points to consider:
Defining “Home”:  your home can be a house, co-op, condominium, mobile home, trailer, or even a houseboat. For trailers and houseboats, one requirement is that the home must have sleeping, cooking, and toilet facilities. Even a rental can be considered a second home, provided you live in it either fourteen days out of the year or at least ten percent of the number of days you rent it for, whichever is greater.
Interest as a Tax Deduction: At the end of each year, your lender should send you a form 1098. This is your deductible interest, provided you meet certain conditions.

Home Acquisition Debt (an IRS Term): An important IRS term is “home acquisition debt.” Any first or second mortgage used to buy, build, or improve your home is considered to be home acquisition debt:

Home Equity Debt (another IRS Term): The IRS has another term called “home equity debt.” Basically, this is any loan amount in excess of what was spent to purchase, build, or improve your home.  For the interest to be fully deductible, home equity debt cannot exceed $100,000 and the total mortgage debt on the home must not exceed its value. This can create a problem for those using 125% loan-to-value second mortgages to consolidate debt. That portion of the loan amount that exceeds the value of your home is not tax deductible (unless you used it for home improvement).

Deducting Points When Refinancing
: Points paid during refinancing must be deducted over the life of the loan. For a thirty-year loan, you divide the points by thirty and get to deduct that amount each year. Exception:  If you did a “cash out” refinance and used some of the funds to improve your primary residence, a portion of the points are deductible in the year you paid them. If you obtained a $200,000 loan and $50,000 was used for home improvement, then one-fourth of the points are deductible in the year you obtained the loan.

Deducting Property Taxes: Most homeowners pay property taxes to a local, state or foreign government. In most cases, property taxes are deductible.

Impound Accounts: Many mortgages have impound or escrow accounts. When calculating your property tax deduction, don’t deduct what you pay into that account. Only deduct what is paid from the account to the taxing authority.

Limits on Deductions: You may be subject to a limit on some of your itemized deductions.

Certified Public Accountants: Whenever you reach a point where you begin itemizing deductions, it is best to have your tax returns prepared by a Certified Public Accountant. Internal Revenue Service rules and regulations can quickly become…confusing.

As always, if you need a sound real estate advice, remember that “Real Estate Is A Serious Business; Get A Pro!”

Kate Smith, Realtor®, ABR, CRS, E-Pro,TRC, CLHMS, SFR, CDPE
Luxury Residential, Commercial and Distressed Properties Specialist
Cell: 786.412.8510; Fax: 954.923.4554;
kate@hollywood-beach-real-estate.com
http://www.hollywood-beach-real-estate.com
http://www.facebook.com/MiamiFloridaEstates
blog: http://4realestate.wordpress.com
http://www.linkedin.com/in/miamirealtorkatesmith

“Some make it happen, some watch it happen, and some say, what happened?”

BofA: Offering Rent Option As Foreclosure Alternative- Good Or Bad?

BofA to offer rentals as foreclosure alternative

NEW YORK – March 23, 2012 – Bank of America says it has begun a pilot program offering some of its mortgage customers who are facing foreclosure a chance to stay in their homes by becoming renters instead of owners.

The “Mortgage to Lease” program, which was launched this week, will be available to fewer than 1,000 BofA customers selected by the bank in test markets in Arizona, Nevada and New York.

Participants will transfer their home’s title to the bank, which will then forgive the outstanding mortgage debt. In exchange, they will be able to lease their home for up to three years at or below the rental market rate. The rent will be less than the participants’ current mortgage payments and customers will not have to pay property taxes or homeowners insurance, the bank said.

“This pilot will help determine whether conversion from homeownership to rental is something our customers, the community and investors will support,” Ron Sturzenegger, legacy asset servicing executive of Bank of America, said in a statement.

Among requirements to qualify for the program, homeowners must have a BofA loan, be behind at least 60 days on payments and be “underwater,” owing more on their mortgages than their homes are worth.

The bank based in Charlotte, N.C., said it will at first own the homes, then sell them to investors. If the program is successful, it could be expanded to include real-estate investors who buy qualifying properties and keep the occupants on as tenants.

“If this evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community and curtail neighborhood blight by keeping a portion of distressed properties off the market,” Sturzenegger said.

Foreclosure tracking firm RealtyTrac says foreclosure activity has picked up in some states, as banks deal with a backlog of homes with mortgages that had gone unpaid yet remained in limbo due to delays stemming from foreclosure-abuse claims.

Nevada has the nation’s highest foreclosure rate as of last month, with one in every 278 households in the state receiving a foreclosure-related filing, twice the national average, according to RealtyTrac. Arizona ranks third behind California, while New York has not been as hard hit, with one in every 4,604 households receiving a foreclosure-related filing.
AP LogoCopyright © 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

As always, it pays to consult someone who knows. As I say, “Real Estate Is A Serious Business, Get A Pro”!

Kate Smith, Realtor®, ABR, CRS, E-Pro,TRC, CLHMS, SFR, CDPE
Luxury Residential, Commercial and Distressed Properties Specialist, Brosda & Bentley Realtors
Cell: 786.412.8510; Fax: 954.923.4554;
kate@hollywood-beach-real-estate.com
http://www.hollywood-beach-real-estate.com
blog: http://4realestate.wordpress.com
http://www.linkedin.com/in/miamirealtorkatesmith

“Some make it happen, some watch it happen, and some say, what happened?”

Nearly 100 house markets improving; the list includes seven Florida cities

NAHB: Nearly 100 house markets improving

 

WASHINGTON – Feb. 6, 2012 – The list of housing markets showing measurable improvement expanded by 29 metros in February for a total of 98 entries on the National Association of Home Builders/First American Improving Markets Index (IMI).

With the latest addition of Miami, the list now includes seven Florida cities: Cape Coral, Deltona, Jacksonville, Miami, North Port, Punta Gorda and Tampa. Thirty-six states have at least one metro area that’s improving.

The index lists metropolitan areas that have shown improvement in housing permits, employment and house prices for at least six consecutive months. The February index adds some metropolitan areas that have been particularly weak. The IMI measures improvement from an economic trough, and NAHB says new notable entrants with six months of an upswing include Miami along with Boston; Detroit; Kansas City, Mo.; Portland, Ore.; Memphis, Tenn.; and Salt Lake City.

“The number of improving housing markets has risen for six consecutive months,” says NAHB Chairman Bob Nielsen. “Despite the many challenges that continue to drag on a housing recovery – including the tight lending environment for builders and buyers – improving conditions are slowly but surely spreading from one housing market to the next.”

“While many of the markets on the February IMI are far from fully recovered, the index points out where employment, home prices and housing production are no longer retreating and have held above their lowest recession troughs for six months or more,” said NAHB Chief Economist David Crowe. “This is a sign that a large cross section of the country is starting to turn the corner as local economic conditions stabilize.”

The IMI measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas (MSA). The three indicators are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. An MSA must have improvement in all three areas for at least six months following their respective troughs to be included on the improving markets list.

Seven markets dropped from the NAHB/First American Improving Markets Index in February as they experienced softening house prices: San Jose, Calif.; Washington, D.C.; Kankakee, Ill.; New Orleans; Worcester, Mass.; Jackson, Miss.; and Sherman, Tex.

A complete list of all 98 metropolitan areas currently on the IMI, and a separate breakout of metros newly added to the list in February, is available at: www.nahb.org/imi.

© 2012 Florida Realtors®

Unprecedented Buyer’s Market: Mortgage Rates Sink to Lowest on Record!

Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of  “Operation Twist.”

The central bank’s new stimulus policy entails reinvesting principal payments from its holdings of GSE debt and mortgage-backed securities back into new mortgage bonds issued by Fannie Mae and Freddie Mac. The Fed also intends to purchase $400 billion more of Treasury securities by the end of June 2012.

Data released by Freddie Mac Thursday puts the average 30-year fixed-rate mortgage at 4.01 percent (0.7 point)
for the week ending September 29. That’s down from 4.09 percent last week. A year ago at this time, the 30-year rate averaged 4.32 percent.

Isn’t real estate great? Low mortgage rates, abundant inventory, reasonable and better informed sellers- all of these combined together make it the best market ever. The market conditions are great not only for first time home buyers, but also for investors, retirees who are looking for a second home, or for all these people looking for that investment opportunity that is REAL- after experiencing the shocking disappointments resulting from lost 401-K’s, crashing stock markets, Ponzi schemes- the list goes on and on.

It is wise to remind ourselves that real estate was called “real” for a reason and it is time to “jump off” that fence and take advantage of this unprecedented opportunity.

Copyright © 2012 | Kate Smith, LLC | Information deemed reliable, but not guaranteed |