When the tax man cometh...

Most of my clients profit from selling their homes, and just before signing the doted line, I'm often asked about capital gains taxes.

When you sell your primary residence, you are not taxed on your profits if:

1. You have have lived in the home for two out of the last five years.
2. Your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly.

Gains above these limits are taxed at the current rate of 15% for higher income tax payers and 5% for lower income tax payers.

In 2008 the rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long term capital gains tax will once again be 15% and 5% through 2010.

Homeowners can use this tax free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption.

And last but not least, I would consult a "tax accountant" for more detailed information regarding your particular situation.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

The credit noose is tightening

New rules and restrictions are coming. Zero down-no more.....

Affected loans are:

• Mortgages for certain second home purchases.
• Short-term construction loans that convert to permanent mortgages.
• Cash-out refinances.
• Investment loan applications where the buyer already owns at least three other rental properties.
• Loans with anything less than full documentation of borrower income, credit and assets.
• Too new credit with thin files.

Freddie Mack plans to restrict financing to second and investment real estate purchasers who already own interest in multiple properties after August 8, 2008. Second home buyers will be ineligible for new mortgages through Freddie Mack if they have ownership interest in more than a total of four properties securing debt, including the one they propose to finance. The same for loans for rental houses and condos, and other investment properties. Freddie allowed up to 10 rental properties carrying mortgages.

Also affected, cash-out refinancing within the prior six months. The company defines a cash-out as any refinancing where the replacement loan balance exceeds the previous balance by 5% or more.

Meanwhile, private mortgage insurers- who provide loss coverage for lenders and investors on loans where down payments are less than 20%. Are also scaling back especially in declining areas-like Miami, Fl. One of the largest insurers, Genworth FInancial is no longer taking applications for second home purchases anywhere in Florida, irrespective of borrowers' credit scores, assets or other characteristics.

PMI Group. another high volume insurer, is following suit. Including boosting minimum credit score requirements for "Jumbo" loans nationwide to a 700 FICO, and now will require at least a 10% down payment. And also ruling out stated loans.

MGIC, the largest private mortgage insurer, eliminated all "Option ARM loans".

Now wonder get rich quick, no money down infomercial's are seen with less frequency these days.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

Downtown Miami

A Steal of a deal!

There is this 1/1, a corner unit, overlooking the pool of the  Met1,

waiting for you. Designer ready!

This would be below builders prices. Don’t delay! It would have to be a cash deal!!!! 

  (Only Unit under $300,00)   

                      $215,000

Motivated Seller!

This unit wont be listed in the MLS. Buyer can't close. Just wants out. I’ll keep you posted on the progress of this deal! This will be a good gage as to how effective blog marketing can be. May the fastest draw win! 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute?”.

Mortgage & Foreclosure

Home loans 90 days past due or in foreclosure:

                                       Subprime loans   

Florida 3Q 2007                                   Florida 4Q 2007      

     3.52%                                                                    5.19%
   12.20%                                                                 17.50%

 

  Nation 3Q 2007                                   Nation 4Q 2007
       2.95%                                                                   3.62%
      11.38%                                                                14.44%

NEW MORTGAGE LIMITS

 

The Federal Housing Administration has raised the maximum loan amount it and government-sponsored mortgage giants Freddie Mac and Fannie Mae will guarantee.

In Miami-Dade and Broward counties, the limit was raised from $417,000 to $423,750, which could bring lower interest rates to some borrowers in select high-cost markets.

Previously, loans exceeding $417,000, called jumbo loans, were subject to an interest rate of roughly .25 percentage points higher than loans for less. That gap has grown in recent months almost 1 percentage point.

The new limit means monthly payments on a 30-year, fixed-rate loan for $423,750 will drop from roughly $2,819 to $2,540, for annual savings of roughly $3,343

SOURCE: Mortgage Bankers Association.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

Get Your Condo's Check List Before You Buy

Knowing what to look for in the governing documents of condo and homeowners' associations, can save you a lot of grief. Buyers often move into homes in community associations without full awareness of the rules and regulations that govern their use of the property. I've seen closings on units where buyers don't realize that they can't have a dog or that only one vehicle per unit is  allowed. As a result the management company end up being the bad guys more often than not, on behalf of the board of directors when all they do is educate the buyers on what they bought. That's why it's incumbent upon buyers and sellers to get as much information as possible  about life in a community or condo association.

Community Association

A community association is a non-profit corporation established to preserve property values in a development. The term includes homeowners' associations, condominium associations, property owners' associations and cooperative associations.

A community association is governed by a board of directors consisting of homeowners who are elected by their fellow residence and who volunteer their time to set policies. Some associations hire an outside management company to handle the day to day job of running the association (collecting monthly assessments, handling maintenance of common areas, notifying homeowners of rule violations, etc). Smaller associations may rely on volunteers to handle such tasks.

It's a thankless job and because of that there are ample opportunities for opportunist to take advantage of the fact that there are hardly any checks and balances procedures in place to stave off those of poor character and judgement. (Boards of directors- some times self appointed, while shuffling paper around and doing nothing but getting kickbacks from a corrupt management company).

Common Restrictions

Pets - Some prohibit pets outright; others allow pets of a certain size or type.

Rentals - This is a common issue in Florida, as many buyers - particularly those buying into resort areas- want to retain the right to rent out their units.

Vehicles - Some restrict the amount of cars and type. For those who own commercial vehicles, RV, boats and trailers, you might want to get answers to very specific questions regarding this matter.

Home Offices

Most associations have updated their documents to allow residents to maintain home offices in certain situations. Generally, home offices are allowed when permitted under local zoning codes and one that generates no traffic or noise.

Exterior Alterations

Many buyers are unaware that there are strict limitations on their right to alter the exterior of a unit or home in a community association. Must get association approval before any changes are undertaken. This includes painting, additions and even landscaping changes.

Coral Gables has no association but city ordinances takes care of what can and can't be done. And are very strictly enforced.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

 

The Recuset Group

“The purpose of life is a life of purpose”

Credit Scoring

Credit Score- a mathematical model, can make you or brake you. It is a lenders table of measure and should be your main concern if you care about  your money. The score can determine the fees, interest rates and terms you will be offered, or not.

Remember the following:

35% The Way You Pay

Your credit history is the most important factor!

30% What you owe

Keep your debt below 50% of your credit limit. Thirty percent would be ideal.

15% How long of a history

In other words, build a track record of stability and dependability. This factor assures you future credit. One important item-never close an account.

10% Types of credit

Try to have different types of credit. (mortgage, retail accts. etc.),

10% Trying to get new credit.

Try not to go crazy in applying for credit. Doing so can decrease your score in a heart beat. However, if you do go batty with this, do it within 14 days. In doing so, it  will count as only once.

In times of tight credit-like now, the tougher it is for those with less than stellar scores to get any kind of reasonable credit.

 

Hope this helps!

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group .

 “The purpose of life is a life of purpose”

Are there any sellers in the market?

Are you kidding? What rock have you been living under?  You might add, what about the sea of for sale signs sticking out in every major market throughout the U.S.?

You see, it is my contention that, it is not that there aren't a whole lot of ready, willing, and able buyers these days, but,  the the lack of serious sellers in the market place. Yes, that's right, no, it's not a typo.

You see, if a seller, a real serious seller, not one that simply thinks that because the neighbors house or condo next door sold last year for X amount that there property should sell for the same amount or more.

What is a serious seller you might ask? A serious seller is:

• Willing to accept the best offer from the best buyer in the market.
• Has something to lose if they don' sell.

If you're a Realtor and your seller doesn't fit the bill, your wasting your time and everyone else's.

If you're a for sale by owner, take heed. (Your swimming upstream against strong currents)

Bottom line- Seller's, price your property right so that it would sell, mix in some effective marketing and a pinch of luck, and you too could find yourself in the annals of sold property records.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “The purpose of life is a life of purpose"

Mortgage Rates

WASHINGTON – Jan. 25, 2008 – Rates on 30-year mortgages dropped for a fourth straight week to the lowest level in nearly four years, raising hopes that low rates will help spur a rebound in the hard-hit housing industry.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 5.48 percent this week, down from 5.69 percent last week.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

Credit Report. Get it!

So many people are being affected by the credit crunch these day's, I thought a reminder that you can get your credit report for free from the three leading credit reporting companies  would be in order.

 

Go to it. http://annualcreditreport.com/

P.S. Don't fall for the subscription pitches if you don't need the additional services.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

Real Deal!

While the Grovenor is not in Coral Gables, it's worth living in it.

Marquee building in the Grove.     16th flr              2/2          Approximate      1,600 sqft

This unit is selling for $40,000 less than what it last sold for. It has been on the market since March 2006. You think there might be some motivation here?

THE ULTIMATE IN LUXURY LIVING!  TOP LEVEL AMENITIES THIS GORGEOUS UNIT HAS, SPECTACULAR VIEWS, TOP OF THE LINE KITCHEN, MARBLE BTHS, WOOD FLRS, & OUTFITTED CLOSETS. OUTSTANDING FITNESS FEATURES

NOW!!   For Only $920,000

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.