Condominium or cooperative residents often miss the fact that upgrades to the common areas of communities can affect the amount of tax an owner pays when the home is sold.If the property is a principal residence and the owner has lived in it for two of the previous five years before the sale, a big chunk of the profit is already exempt from federal tax — $250,000 for a single person and $500,000 for a married couple. But the seller will owe taxes on any profit beyond that, and he will owe taxes on the whole amount if the property isn’t a primary residence.
A proportional share of the amounts spent by the condo or cooperative association on improvements to the property — not simple maintenance — can be added to the amount paid for the property, or in tax lingo, “the basis.” The basis is subtracted from the sales price to determine any taxable profit.“It surprises me that many community association owners are not aware of this tax benefit. Particularly for older home owners who have watched real estate profit build up over many years and now have a profit of more than $500,000, every dollar of capital improvements they can document is valuable,” says Benny L. Kass, real estate attorney.
Source: The Washington Post, Benny L. Kass (06/21/08)
Saturday, July 5, 2008
Friday, June 27, 2008
In the Shadow of Foreclosures: NYT Graphic
Here's an excellent graphic from the New York Times showing an overview of subprime foreclosures in the United States. Higher means more foreclosures, and redder means more foreclosures specific to subprime. Fort Myers, Florida is the subprime champ. The original New York Times story is here.
Monday, June 23, 2008
Read "The State of the nation's housing markets 2008" from the Joint Center for Housing Studies of Harvard University
"The current housing slump is far from over and is shaping up to be the worst in 50 years, according to an annual report on the state of the nation's housing markets from the Joint Center for Housing Studies of Harvard University.
The report, "The State of the Nation's Housing 2008," is more optimistic about medium- to long-term prospects, estimating that unless there's a serious, prolonged economic decline or a marked cutback in immigration, the nation will gain 14.4 million new households between 2010 and 2020, compared with 12.6 million between 1995 and 2005." Courtesy of Inman News.
I have seen a marked increase in home buyers who are taking advantage of the great prices and low rates and their good credit to get into long term homes. Ultimately, housing is needs driven and the pent up demand is starting to get buyers out. On good buys, I am seeing multiple offer situations and we have definitely picked up pace in the office.
The report, "The State of the Nation's Housing 2008," is more optimistic about medium- to long-term prospects, estimating that unless there's a serious, prolonged economic decline or a marked cutback in immigration, the nation will gain 14.4 million new households between 2010 and 2020, compared with 12.6 million between 1995 and 2005." Courtesy of Inman News.
I have seen a marked increase in home buyers who are taking advantage of the great prices and low rates and their good credit to get into long term homes. Ultimately, housing is needs driven and the pent up demand is starting to get buyers out. On good buys, I am seeing multiple offer situations and we have definitely picked up pace in the office.
Sunday, June 22, 2008
At least Trump is making a profit on his properties
Russian Billionaire Part of Record Deal For Trump Mansion
By CHRISTINA S.N. LEWISJune 20, 2008; Page W8
An investment company linked to a little-known Russian fertilizer billionaire, Dmitry Rybolovlev, has agreed to pay $100 million to Donald Trump for a Palm Beach, Fla., mansion called Maison de l'Amitié.
The Trump Organization
Mr. Rybolovlev is paying $100 million for Donald Trump's Palm Beach mansion, Maison de l'Amitie. If the deal closes in the next few weeks, as planned, it is likely to be the most expensive sale of a U.S. single-family home. "This is the highest price ever paid for a house. And I think it's a bargain," said Mr. Trump.
The developer paid $41.4 million for the estate at a bankruptcy-court auction in 2004 and did a cosmetic renovation. Some brokers describe the house as a teardown, saying the property, among Palm Beach's largest parcels, would be more valuable if subdivided.
The 33,000-square-foot French Regency-style mansion, built in 1990, sits on 6.5 acres with 475 feet on the ocean. Mr. Trump announced the home's then-record $125 million asking price three years ago, then switched brokers in March and cut the price to $100 million.
Mr. Rybolovlev, born in 1966, is one of Russia's richest and most discreet businessmen. Since 1996, he has been the chairman of JSC Uralkali, a major fertilizer maker. The Forbes list of the world's billionaires places him at No. 59, with an estimated net worth of $12.8 billion.
"This acquisition is simply an investment in real estate by one of the companies in which I have an interest," Mr. Rybolovlev said in a statement released by Alan Basiev, the head spokesman for Uralkali. It "does not represent a decision by me to live in the U.S."
He said the company in the Trump deal is one of a number in which he has interests world-wide and that its managers had decided the deal "would be a good investment decision." Mr. Rybolovlev received a degree in medical care from Perm Medical Institute in 1990.
Mr. Trump publicly confirmed the deal last month, saying the buyer was Russian but declining to name him. Lawrence Moens, a Palm Beach broker, had the listing. In 2007, investor Ron Baron paid $103 million for two adjacent vacant parcels in New York's Hamptons.
By CHRISTINA S.N. LEWISJune 20, 2008; Page W8
An investment company linked to a little-known Russian fertilizer billionaire, Dmitry Rybolovlev, has agreed to pay $100 million to Donald Trump for a Palm Beach, Fla., mansion called Maison de l'Amitié.
The Trump Organization
Mr. Rybolovlev is paying $100 million for Donald Trump's Palm Beach mansion, Maison de l'Amitie. If the deal closes in the next few weeks, as planned, it is likely to be the most expensive sale of a U.S. single-family home. "This is the highest price ever paid for a house. And I think it's a bargain," said Mr. Trump.
The developer paid $41.4 million for the estate at a bankruptcy-court auction in 2004 and did a cosmetic renovation. Some brokers describe the house as a teardown, saying the property, among Palm Beach's largest parcels, would be more valuable if subdivided.
The 33,000-square-foot French Regency-style mansion, built in 1990, sits on 6.5 acres with 475 feet on the ocean. Mr. Trump announced the home's then-record $125 million asking price three years ago, then switched brokers in March and cut the price to $100 million.
Mr. Rybolovlev, born in 1966, is one of Russia's richest and most discreet businessmen. Since 1996, he has been the chairman of JSC Uralkali, a major fertilizer maker. The Forbes list of the world's billionaires places him at No. 59, with an estimated net worth of $12.8 billion.
"This acquisition is simply an investment in real estate by one of the companies in which I have an interest," Mr. Rybolovlev said in a statement released by Alan Basiev, the head spokesman for Uralkali. It "does not represent a decision by me to live in the U.S."
He said the company in the Trump deal is one of a number in which he has interests world-wide and that its managers had decided the deal "would be a good investment decision." Mr. Rybolovlev received a degree in medical care from Perm Medical Institute in 1990.
Mr. Trump publicly confirmed the deal last month, saying the buyer was Russian but declining to name him. Lawrence Moens, a Palm Beach broker, had the listing. In 2007, investor Ron Baron paid $103 million for two adjacent vacant parcels in New York's Hamptons.
Wednesday, June 18, 2008
I "hope" these bankers are serious for a change
No pun intended of course.... The sooner we prevent more foreclosures from bringing market values down, the better for the entire industry.
"According to the most recent news from the Hope Now alliance -- a new set of procedures and guidelines have been set that will help homeowners quickly receive the help they need -- before they go into foreclosure. According to Hope Now, "The guidelines establish a common set of principles on the possible foreclosure prevention alternatives including loan modifications, repayment plans, partial claims, and temporarily suspending the need to make monthly payments."
"It's critical to remember that nobody benefits when a homeowner faces foreclosure," said Jonathan L. Kempner, President and CEO of the Mortgage Bankers Association. "Creating these servicing procedures was the right thing to do, both for consumers and for the industry, and it's something that the HOPE NOW Alliance is entirely united on as it continues to fulfill its mission of helping as many homeowners as possible stay in their homes each and every day."
For more information, check the Hope Now website. "
Market Conditions
by Realty Times Staff
"According to the most recent news from the Hope Now alliance -- a new set of procedures and guidelines have been set that will help homeowners quickly receive the help they need -- before they go into foreclosure. According to Hope Now, "The guidelines establish a common set of principles on the possible foreclosure prevention alternatives including loan modifications, repayment plans, partial claims, and temporarily suspending the need to make monthly payments."
"It's critical to remember that nobody benefits when a homeowner faces foreclosure," said Jonathan L. Kempner, President and CEO of the Mortgage Bankers Association. "Creating these servicing procedures was the right thing to do, both for consumers and for the industry, and it's something that the HOPE NOW Alliance is entirely united on as it continues to fulfill its mission of helping as many homeowners as possible stay in their homes each and every day."
For more information, check the Hope Now website. "
Market Conditions
by Realty Times Staff
Friday, June 13, 2008
WSJ: Extraordinary Deals on Real Estate in Miami Beach
Looking for a house in Miami Beach? If you put on your bargain hunting boots, you can find extraordinary deals in prime neighborhoods. The Wall Street Journal's Brett Arends says:
In West Palm Beach, if you look hard, you can find new, upscale one-bedroom condos for less than $200,000 if you look hard. A few years ago, when they were being built, the same units were selling for nearly twice that.
In Fort Lauderdale, the cheapest bargains are in some of the older co-ops a few blocks from the beach. I looked at some one- or two-bedroom units for around $150,000. A few years ago, they would have cost around $250,000 or more.
But probably the cheapest deals I saw were in the historic Art Deco district of Miami Beach itself. Here you can get small one-bedroom units for well under $200,000. Some are selling for much less than that.
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