Home owners who can’t or don’t want to sell their homes in today’s market but must move should consider renting out the property.
Current rents may not be high enough to cover carrying charges, including mortgage, taxes, and insurance. Nevertheless, renting out the property may still make sense if property values rise in the next few years.
Offering a 12-month lease that converts to month-to-month is a good idea, if the owners are considering selling eventually. Include language in the lease that allows a real estate professional to show the home to potential buyers with 24 hours’ notice to tenants.
Source: Money Magazine, Amanda Gengler (07/28/2010)
Friday, July 30, 2010
Tuesday, July 20, 2010
Seller Financing Can Have Tax Advantages
Offering to hold either a second mortgage or a primary mortgage in either a residential or a commercial sale can be a good deal for the seller.
The primary advantage is deferral of taxes due. Sellers are normally taxed as the principal is received, spreading the tax bill over several years, explains Richard Schank, a financial planner with PTS Brokerage in Mt. Laurel, N.J.
Other advantages can include:
· Support for a higher-than-average price.
· An interest rate that provides a relatively high return on investment.
The safest arrangement includes obtaining a deed in lieu of foreclosure from the buyer, which allows the seller to take back the property if the note isn’t paid in a timely fashion.
Source: Investor’s Business Daily, Jeff Schnepper (07/15/2010)
The primary advantage is deferral of taxes due. Sellers are normally taxed as the principal is received, spreading the tax bill over several years, explains Richard Schank, a financial planner with PTS Brokerage in Mt. Laurel, N.J.
Other advantages can include:
· Support for a higher-than-average price.
· An interest rate that provides a relatively high return on investment.
The safest arrangement includes obtaining a deed in lieu of foreclosure from the buyer, which allows the seller to take back the property if the note isn’t paid in a timely fashion.
Source: Investor’s Business Daily, Jeff Schnepper (07/15/2010)
Friday, July 02, 2010
What to Look for in an Outdoor Kitchen
Outdoor kitchens continue to be one of the hottest trends in home décor, but not all of them are created equal.
Here are some things to consider when evaluating the safety and durability of this attractive yet vulnerable feature:
• Is there adequate ventilation? Extensive outdoor cooking spaces should be carefully designed to keep smoke and odors away from dining spaces.
• Was the installation done by licensed and insured installers? If something does goes wrong — even years later — these professionals will stand behind their work.
• Are the cabinets, countertops, and appliances really weather proof and likely to hold up?
Source: The Plain Dealer (Cleveland, Ohio), Roxanne Washington (07/01/2010)
Here are some things to consider when evaluating the safety and durability of this attractive yet vulnerable feature:
• Is there adequate ventilation? Extensive outdoor cooking spaces should be carefully designed to keep smoke and odors away from dining spaces.
• Was the installation done by licensed and insured installers? If something does goes wrong — even years later — these professionals will stand behind their work.
• Are the cabinets, countertops, and appliances really weather proof and likely to hold up?
Source: The Plain Dealer (Cleveland, Ohio), Roxanne Washington (07/01/2010)
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