All markets go up and down, and when buying or selling property, it is possible for both parties to win......as long as you are patient. Many fortunes have been made in the real estate market. Savvy buyers become savvy sellers. We have all heard the phrase "buy low and sell high" and now is the time to buy! This year, Winter Park has a higher than average inventory which creates property that is on the market longer than normal. Savvy sellers know that to sell their property, it must be priced correctly for this years market, versus last years market. This means that they may not make as much profit if they would have sold last year, but profit is profit.
What really makes the difference in making money in the real estate market? Stay in for the long haul and only buy what you can afford.
-Don't nickel and dime the buyer or seller. Although it will make you feel good for the short term, saving 1% will not make the difference if it is the right property.
-Don't think you can time the market for short term flipping. This is a high risk venture and many "wanna be" investors are currently caught in this dilemma and can't sell their property as quickly as they thought they could. Buy property that you can afford for the long haul and make sure you are buying into the best location, location, location possible.
-Don't think that you can time the market. Period. Even the very best property in the very best location will fluctuate in value. Don't be afraid to buy because you think the value has not bottomed out or not sell because you don't think the value has topped out. Even the very best economists can't predict this.
Team "Winter Park Partners" can help with you with your Winter Park area property purchase by supplying you information so that you can make in informed decision.
Call or email us with your real estate needs.
www.winterparkpartners.com
1-866-538-8666
Sunday, September 21, 2008
Sunday, September 14, 2008
It’s a Buyer’s market in Grand County
Well it’s hard to believe that ski season is right around the corner. Well actually, the mountain peaks are covered with snow from our 1st fall snowfall. Yes, we had snow in the town of Winter Park this past Friday. So I guess ski season really is right around the corner.
So if you love the mountains and love Winter Park and Mary Jane and don’t already own a mountain property or are just looking for an investment this could be the right time to buy. With inventory high we are seeing Sellers selling at reduced prices. In fact our team just closed a single family home that closed over $90,000 off of the asking price. Talk about a deal. In August we had 200 new listings hit the MLS so there is a lot to choose from.
Enjoy what is left of fall and feel free to call us with any of your real estate needs!
So if you love the mountains and love Winter Park and Mary Jane and don’t already own a mountain property or are just looking for an investment this could be the right time to buy. With inventory high we are seeing Sellers selling at reduced prices. In fact our team just closed a single family home that closed over $90,000 off of the asking price. Talk about a deal. In August we had 200 new listings hit the MLS so there is a lot to choose from.
Enjoy what is left of fall and feel free to call us with any of your real estate needs!
Thursday, September 11, 2008
1031 Exchange Facts....to use with your Winter Park real estate
This is great information to use when you're thinking about tax savings moves for your Winter Park property!!!...
This is compliments of Kennen Cohen of ASSET PRESERVATION
Internal Revenue Code (IRC) Section 121 permits a taxpayer to exclude gain in the amount of $250,000 or $500,000 for married couples filing jointly on the sale of the a principal residence. A residence is a principal residence if the taxpayer has owned and used the residence as the taxpayer's residence for any two (2) years during the five year period ending on the date the residence is sold. The Housing Assistance Tax Act of 2008, signed by President Bush on July 30, 2008, amends §121 and may reduce the exclusion available to taxpayers who initially acquired the principal residence in a §1031 tax deferred exchange or used the property as a rental property before converting the rental property into a principal residence. As of January 1, 2009, the exclusion must be allocated between the period the principal residence was used as an investment property or second home, and the period of time the residence was used as the taxpayer's principal residence. Any portion of the exclusion amount that is allocable to the period the property is not used as the taxpayer’s principal residence is eliminated.
How does this change affect §1031 tax deferred exchange planning? Suppose a single taxpayer exchanges into a rental property which is rented for four (4) years, and then moves into this former property and lives in it for two (2) years as a principal residence. The taxpayer then sells the principal residence and realizes $300,000 of gain. Under prior tax law, the taxpayer would be eligible for the full $250,000 exclusion and would pay tax on the $50,000 remainder. Under the new law, the exclusion would have to be prorated as follows (Note: This example does not take into account deprecation taken after May 1997, which is taxable at 25%).
• Two-thirds (4 out of 6 years) of the gain, or $200,000, would be ineligible for the $250,000 exclusion.
• One-third (2 out of 6 years) of the gain, or $100,000, is eligible for the exclusion. [This example was changed to show that the allocation formula takes into account years before the 5 year lookback period in §121(a).]
Non-qualified use prior to January 1, 2009 is not taken into account in the allocation for the non-qualified use period (but is taken into account for the ownership period). Suppose the taxpayer had exchanged into the property in 2007, and rented for 3 years until 2010 prior to the conversion to a principal residence. If the taxpayer sold the residence in 2013, after three years as a principal residence, only the 2009 rental period would be considered in the allocation for the non-qualified use. Thus, only one-sixth (1 out of 6 years) of the gain would be ineligible for §121 tax exclusion.
In general, the allocation rules only apply to time periods prior to the conversion into a principal residence and not to time periods after the conversion out of principal residence use. Accordingly, if a single taxpayer converts a principal residence into a rental property and never moves back in, and otherwise meets the two out of five year relinquished under §121, the taxpayer is eligible for the full $250,000 exclusion when the rental property is sold. This rule only applies to non-qualified use periods within the 5 year lookback period of §121 after the last date the property was used as a principal residence. Therefore, if the taxpayer used the property as a principal residence in year one and year two, then rented the property for years three and four, and then used it as a principal residence in year five, the allocation rules would apply and only three-fifths (3 out of 5 years) of the gain would be eligible
This is compliments of Kennen Cohen of ASSET PRESERVATION
Internal Revenue Code (IRC) Section 121 permits a taxpayer to exclude gain in the amount of $250,000 or $500,000 for married couples filing jointly on the sale of the a principal residence. A residence is a principal residence if the taxpayer has owned and used the residence as the taxpayer's residence for any two (2) years during the five year period ending on the date the residence is sold. The Housing Assistance Tax Act of 2008, signed by President Bush on July 30, 2008, amends §121 and may reduce the exclusion available to taxpayers who initially acquired the principal residence in a §1031 tax deferred exchange or used the property as a rental property before converting the rental property into a principal residence. As of January 1, 2009, the exclusion must be allocated between the period the principal residence was used as an investment property or second home, and the period of time the residence was used as the taxpayer's principal residence. Any portion of the exclusion amount that is allocable to the period the property is not used as the taxpayer’s principal residence is eliminated.
How does this change affect §1031 tax deferred exchange planning? Suppose a single taxpayer exchanges into a rental property which is rented for four (4) years, and then moves into this former property and lives in it for two (2) years as a principal residence. The taxpayer then sells the principal residence and realizes $300,000 of gain. Under prior tax law, the taxpayer would be eligible for the full $250,000 exclusion and would pay tax on the $50,000 remainder. Under the new law, the exclusion would have to be prorated as follows (Note: This example does not take into account deprecation taken after May 1997, which is taxable at 25%).
• Two-thirds (4 out of 6 years) of the gain, or $200,000, would be ineligible for the $250,000 exclusion.
• One-third (2 out of 6 years) of the gain, or $100,000, is eligible for the exclusion. [This example was changed to show that the allocation formula takes into account years before the 5 year lookback period in §121(a).]
Non-qualified use prior to January 1, 2009 is not taken into account in the allocation for the non-qualified use period (but is taken into account for the ownership period). Suppose the taxpayer had exchanged into the property in 2007, and rented for 3 years until 2010 prior to the conversion to a principal residence. If the taxpayer sold the residence in 2013, after three years as a principal residence, only the 2009 rental period would be considered in the allocation for the non-qualified use. Thus, only one-sixth (1 out of 6 years) of the gain would be ineligible for §121 tax exclusion.
In general, the allocation rules only apply to time periods prior to the conversion into a principal residence and not to time periods after the conversion out of principal residence use. Accordingly, if a single taxpayer converts a principal residence into a rental property and never moves back in, and otherwise meets the two out of five year relinquished under §121, the taxpayer is eligible for the full $250,000 exclusion when the rental property is sold. This rule only applies to non-qualified use periods within the 5 year lookback period of §121 after the last date the property was used as a principal residence. Therefore, if the taxpayer used the property as a principal residence in year one and year two, then rented the property for years three and four, and then used it as a principal residence in year five, the allocation rules would apply and only three-fifths (3 out of 5 years) of the gain would be eligible
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