10 Real Estate Tax Deductions

It’s Tax Time

The 2013 tax deadline is quickly approaching. In this article you will find 10 Real Estate Tax Deductions Home Owners get to take advantage of. The tax laws change on a yearly basis depending on what happens in Congress and Tax Advice should always be sought from a Qualified Tax Professional. As a former owner of a Tax Firm here in the Bronx that served thousands of Bronxites I am constantly following the changes in the tax code, especially as it pertains to Real Estate Tax. April 15th is the Tax Deadline.

Disclaimer – This is only an informational summary of current tax issues in the news. If you need tax advice, please contact a tax attorney or CPA

Home Improvement Loan Interest Deduction: Have you taken out a home equity loan to make capital improvements to your home? This can be used as a tax deduction. This means that upgrading your home not only makes it more comfortable to live in, adds value to your home but you also get a tax deduction as well.
Property Tax Deduction: Did you know that you can deduct your property tax from your income tax? This is a benefit that lasts a lifetime. Unless congress changes the rules.
Mortgage Interest Deductions: One of the Prime Benefits of home ownership has always been the ability to deduct the interest of their mortgage from their tax bill. In some cases this can actually make owning a home cheaper than renting.
Mortgage Points Deduction: If you paid any points on the purchase of your home or refinance of your home. You can deduct those points from your tax bill which further reduces your liability.
Private Mortgage Insurance Deduction (PMI): If you are taking advantage of an FHA Loan and buying your home with less than 20% down, you will have to pay the PMI. This is an added cost that can add a few hundred dollars to your monthly payment. You can deduct some of those payments from your tax bill too.
Home Office Deduction: If you have a home office, this too can be deducted from your tax bill. There are some things to consider. It must be your primary place of doing business and must be used just for business.
Did you Sell your home?: One of the best benefits of homeownership is when you actually sell your home most of the money you profit from the sale is tax free money. For example: Individuals who profit from the sale of their primary residence can profit up to $250,000 without having a tax liability. Married Couples can have a profit of up to $500,000 without a tax liability. Note: It needs to have been your Primary Residence and you generally need to have lived there for 2 years.
More than $250K or $500K in Profit?: If you were able to earn more than whats allowed for a tax free windfall, all is not lost. Selling a home has significant costs that you can deduct from your tax liability. Closing Costs, Capital Improvements, repairs to damaged property etc can all be added up and used as a deduction. Make sure you have a competent tax specialist who is familiar with Real Estate Tax Benefits.
Energy Efficiency Upgrade: If you upgraded your home to be energy efficient, then not only have you helped the environment but you also helped your bottom line come tax time.
Loan Forgiveness Deduction: The Mortgage Debt Forgiveness Act of 2007 was created to help homeowners who were under water on their mortgages. For example: If you owned a home with an outstanding loan of $300K but were able to convince your lender to do a short sale and accept only $200K, the government would have considered the $100K as a gift from the bank and that would have tax consequences. The Debt Forgiveness Program relieved you of the tax liability which makes short sales viable.

These are some of the reasons why homeownership is a great opportunity for people to reduce their tax liability. Happy House Hunting!

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IRS-suggested disclaimer: To the extent that this message or any attachment concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. This message was written to support the promotion or marketing of the transactions or matters addressed herein, and the taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Real Estate News Update

In order to keep you up to date on Real Estate, I will now be providing snippets of news stories with links to some of the most trustworthy news sources for you to stay informed. Don’t forget to search for Bronx Real Estate.

FHA Premiums increasing

Government backed loans have been one of the best ways for people to purchase their first home without having to fork over a tremendous down payment.

The new increases will soon go into affect. These changes mean increased cost of homeownership. According to the FHA, these measures are necessary in order to increase its capital reserves and reduce their exposure to risky loans. For more info on the latest change, check out this article. Click Here CNN Money.

How small is too small?

Can you live in an apartment that’s less than 400 square feet? If you’re not comfortable in tight spaces then the answer is no. If that’s not an issue, then you might want to get in line for a new trend in a super small living space. For more on this topic check out this article. Click Here

Todays’s Rate

If you are looking to purchase a home, one thing to consider is the current interest rate. Today’s rate is 3.72% vs last weeks rate of 3.64%. This is a modest increase but still needs to be taken into consideration when making a long term purchase. Rate are from Here.

1,518 Properties for Sale

That’s how many properties are currently for sale in the Bronx. You can search for them all by visiting the real estate site dedicated to the Bronx. BronxPad.

211 Properties Sold

This is the amount of homes sold in the Bronx since the start of 2013.

That’s all for today. Stay tuned for more.

As always, share with your friends.

Thanks again.

21.5% Interest Rate / Record High Rates

Interest Rates News

It was December 19, 1980. Interest rates rose to a record high of 21.5%. The late 70′s to mid 80′s saw double digit interest rates. This was a time of true economic crisis where purchasing real estate was truly only a dream.

So what does it mean for the real estate market when interest rates continue to hover near record lows? Will rates continue to stay at these levels for the long term? When will Interest Rates rise again?

These are the questions that many people ask. We hear daily about how the rates are at or near 3.5%. Compare that to the double digit rates of just a few decades ago. It’s easy to assume that these numbers will continue to remain low for the long term, but history tells a different story. On February 16, 1972 the rate was 4.5%. This was just a few years before the rates sky rocketed. On April 11, 1974 the rate shot up to 10%. That means it more than doubled in just a couple of years. The upward trend continued for several years. The rates fluctuated over the years leaving many wondering if it was safe to do anything that required a loan.

$5,000 Monthly Payment

Could you imagine having to pay 20% interest on the mortgage of your home? Just to put it into perspective, if you have a $300,000 loan with 20% interest your monthly payment would be over $5,000 versus $1,350 with today’s rate hovering around 3.5%.

These numbers are real, run the calculation on our handy mortgage calculator to the right of this post.

What Goes Down, Must Go Up!

I don’t have a crystal ball but what I can say is “what goes down, must go up”! Combine that with the fact that home prices are still very affordable (note, home prices have been increasing slightly) means that now is the time for action.

You can find your next Bronx Home right here on BronxPad.

As always, thank you for reading. Share this with your friends & family and let’s stay connected.

Join Me on Twitter, FaceBook, LinkedIn & Google+

Joel Rivera

Founder of BronxPad

Keller Williams Realty

Bronx Real Estate Buying Checklist

With Spring just around the corner, Real estate activity is picking up as more homes are being viewed and sold. Buyers are taking advantage of the record low Mortgage rates and still great affordability in the housing market.

Figure out how much you can afford. Calculate your monthly income and debt. Check your FICO Score and figure out your downpayment.
Get Pre-Approved for a mortgage. Speak to a loan specialist and discuss the various loan options. VA Loans, FHA Loans, Fixed Loans, Adjustable Loans, Conventional Loans, Government Loans, Jumbo Loans etc. Have them explain the pros and cons of each type of loan.
Determine what you want and need in a home. Location, Type, Price Range, Size etc.
Research Neighborhoods. Schools, Traffic, Local Amenities, Parks Shops and Restaurants.
Hire a Buyers Agent who knows the area. Sign an exclusive agreement.
Online Search. Use a site dedicated to Bronx Real Estate. BronxPad is tied directly into the MLS via an IDX Feed. What that means is you will have the most accurate information about the local real estate market. Then set up a private tour of properties you like.
Your Bronx Real Estate Agent will provide you with detailed information about the various properties on the market.
Make an Offer & Negotiate. Your agent can help you determine the best price. Remember to stay within your pre-approval amount. Get the home Inspected. Then once both parties agree, sign the Purchase Agreement.
Get the house appraised, Get Home Owners Insurance, Complete the Loan Process, Do a walk through of the home. Also Talk to a Real Estate Attorney.
Close the Deal. Review the settlement documents and make sure you have your funds in order and checks available.

As always, thank you for reading and please share.

Joel Rivera

Keller Williams Realty

347-601-1551

Search Bronx Homes for Sale

10 Ways to Increase the value of your Home

10 Ways to Increase the value of your home

Yes, we are in the beginning phase of a Real Estate Recovery. But no matter what direction the real estate market is going in, you can still benefit by having your home primed. Remember, one of the key factors buyers look at is the condition of your property.

Here are 10 Tips to increase your home value

Hire: A Realtor can give you some tips on what motivates buyers when they are looking for their next home. Realtors tend to provide this type of service free of charge with the hope of potentially listing your home if you decide to ever sell. Call Me. 347-601-1551
Inspect: A Realtor provides you with visual cues on how to prime your home. An Inspector can give you a more detailed view of the condition of your property. How is your foundation? What about your roof? Is there mold in your home? These are things that buyers consider and you can resolve so they don’t become major hazards later on.
Paint: It goes without saying that a fresh paint job can do wonders for your home. You don’t have to hire a pro for smaller jobs. Simply make sure you use quality materials and create a plan to manage the task.
Landscaping: Curb Appeal is always important. It is the first impression people get when they visit. Make sure your yard is clean and fix any issues with the exterior of your home.
Bathrooms: This is one of the most important rooms in your home. For a relatively small investment you can upgrade your bathroom so that it is better for you and to increase the value of your home. Just remember if your bathroom is dated, then you will need to renovate it to bring it on par with similar homes in your area.
Kitchens: Just like the bathroom, Kitchens are a key focus of buyers. Make sure you maximize the space that you have and modernize your kitchen within your budget.
EnergyStar: Going green can make you some green. With potential tax benefits, monthly savings on energy and increasing the value. Buyers tend to favor homes that are more energy efficient.
De-clutter: You should definitely Spring Clean! 4 times per year. By keeping your home free of clutter, you will create a less cramped home that will seem more spacious. Always a great thing.
Lighting: A home with good lighting is more inviting. Lighten the colors of your paint. Add recessed lighting where possible, make sure you use bright white lights and allow natural light to flow through your home.
Organize: Talk to your neighbors to make sure that everyone is maintaining their homes. If the neighborhood shows well, then your home will show well. You could have the best home on the block, but if every other home is dingy, then that can drag down your property value.

Your home is your castle and in some cases a long term investment. By properly maintaining your home you will ensure to keep its value up.

As always, thank you for reading and please share. Visit BronxPad for more info.

Super Bowl Sunday & The Bronx

Super Bowl XLVII in New Orleans

San Francisco 49ers vs. Baltimore Ravens

Talk about a show down. Brothers John and Jim Harbaugh will face off today as the first time in history that two brothers coach opposing teams. This should make for an exciting game.

Who are you rooting for?

Are you a 49ers fan or a Ravens fan? Both are great teams even if they aren’t from New York. The 49ers, who finished the season 11-4-1, will try to do what the Pittsburgh Steelers did by being the second franchise with 6 Super Bowl titles. The Ravens 10-6 found themselves at the AFC Championship in Foxborough for the 2nd year in a row, but this time they beat the New England Patriots 28-13 to get their spot in Super Bowl XLVII. The Ravens haven’t been in the Super Bowl since 2001 when they beat the New York Giants 33-7 at Super Bowl XXXV in Tampa – which was the 1st Super Bowl victory since the Ravens were established as a franchise in 1996.

1958 NFL Championship Game

I’m digressing for a minute. I could only imagine having The Bronx as the Host for a Super Bowl Game. Imagine having one of the greatest games ever played in America’s Greatest Stadium? In 1958 the Championship Game was played in Yankee Stadium, so it’s not that far fetched. It was the Baltimore Colts vs New York Giants 23-17. Sadly we did not win.

Back to Today

The Kickoff is at 6:30. The question is where will you be watching the game from? There are many great places in The Bronx to Watch the game. You can go check out your Local bar, Lounge, Restaurant, friends party or host your own party.

Alicia Keys will perform the National Anthem and Beyonce will sing during the Half Time Show where she is expected to take the stage with Destinys Child.

Whose style will prevail?

The Ravens QB Joe Flacco is the classic drop-back passer whose skill inside the pocket is one of the main reasons they are in the game tonight.

The 49ers QB Colin Kaepernick is considered an all around QB who has mastered the pistol offense and his combo of passing and running skills is considered to be the newest trend in the NFL.

Super Bowl Commercials

Now obviously it’s the game that drives millions of fans to turn on the tube but that also means that companies will spend an average of $3.8 million dollars for a 30 second commercial. Some are spectacular and others not so much.

What to Eat?

That’s an easy one. Game food. Wings, Chips & Beer. Drink Responsibly and have a designated driver. You can get beer from The Bronx Brewery.

Super Bowl and Real Estate

I wish I could afford the $4 million dollar price tag for a Super Bowl Commercial but the reality is unfortunately I can’t. So Before and After the game you can search my site dedicated to Bronx Real Estate for your next home and share this with your friends.

Enjoy the game.

Joel Rivera

I Love The Bronx

The Bronx is Building

The year was 1977 and it was game 2 of the World Series. The Yankees were on there way to win against the LA Dodgers, 4-2.

In the first inning, ABC’s Cameras showed buildings nearby Yankee Stadium on fire. That is when Howard Cosell spoke those words “There it is, ladies and gentleman, The Bronx is burning.” Oh how times have changed.

Between the 1970′s and the 1980′s, the Bronx saw a large quantity of its housing stock lost to fire and abandonment. Since then we have had various President’s, Mayors, Local Electeds and Private Citizens banding together to Rebuild this great borough. I am proud of how Bronxites have come together in all fields and walks of life to remake the place that we call home.

Today we are all a witness to a rebirth. The Bronx has many great attractions like The Bronx Zoo, Botanical Gardens, Yankee Stadium, Bronx Museum, Wave Hill and Famous Neighborhoods like Arthur Ave, Riverdale, Mott Haven, Throgsneck, Morris Park and others that have literally risen from the ashes and have brought about a resurgence of positive activity.

Looking for good food? Visit City Island, Arthur Ave, Morris Park, Riverdale and other local hot spots. Looking to shop? Check out Fordham Rd, Bay Plaza, Parkchester, Gateway Center and other cool spots.

What to do during the evening? Check out Babalu’s, 900 Park, Havanas and Toscas.

Maybe you are more interested in theatre. Check out Lehman Colleges Center for Performing Arts & the Lovinger Theatre that features everything from Jazz concerts, Salsa Concerts and everything between. Teatro Pregones is renowned as the hot spot for latinos in the borough.

What about Park Space? We have that too. DYK the Bronx is home to the cities largest park? Pelham Bay Park. We also have Vancortlandt Park, Crotona Park, Orchard Beach and others. Yes Orchard Beach is Parks Property.

Major investments in housing and economic development have made this all possible. Our Not for Profit sector has come together to bring about the services that our borough needs. The 1.4 million people that call the Bronx home have made this a great place to live. Our community activists have spoken and City Hall, Albany and Washington are listening.

Check Out Bronx Real Estate.

LET’S GO BRONXITES!!!

Time to Celebrate

BronxPad 2.0

BronxPad’s Makeover

When I decided to enter the exciting field of Real Estate I realized that the most valuable asset for Buyers, Sellers and Myself, is a solid website that can provide important information about Bronx Real Estate.

Enter BronxPad

It is no secret that I am a techie. In a time when everything is digital, I opted to create a website dedicated to the Bronx. Made in The Bronx!

On BronxPad you can search for homes from the comfort of your home, you can use our awesome mortgage calculator to see what your monthly payments will be and best of all you can touch base with my team of Realtors that are some of the most knowledgeable Agents and Brokers in the Bronx.

Past, Present and Future!

With BronxPad & Keller Williams, you get the benefit of working with a Real Estate Company that has a tremendous amount of Experience, You also get to work with one of the largest Real Estate Companies in the Bronx Today and finally you get to have a team that is always working on improving our services for the future.

Visit

I hope you get the opportunity to visit our main site dedicated to Bronx Real Estate .

Thank you for this quick read. Let me know what you think about the new site.

Joel Rivera

Real Estate & the Holidays

Real Estate & The Holiday Season

It’s that time of the year. With Christmas, Hanukkah, Kwanza and Three Kings Day around the corner. The stores are packed with people looking to find that perfect gift. Home Decorating is also on peoples mind as the Christmas Trees and lights go up.

One of my favorite commercials on TV is the Car Advertisements with the big red bow on top. That is a nice present to get during the holidays, even though I don’t know many people actually buying someone a car as a gift. lol

What about Real Estate?

If you are considering buying or selling a home in the near future, now might be the right time!

First Time Home Buyers Holiday Advantage.

During this time of the season, most buyers are busy shopping for assets that depreciate in value versus assets that in the long term appreciate. With little competition in the buyers market, you might be able to scoop up a great home that hasn’t sold during the past few months at a reduced cost and without competing offers.

HomeOwners Holiday Advantage

Now is the time to list. Yes, I know that technically we are in the Real Estate Off Season but the competition in comparable homes might favor you. Here’s why, if there are 100 homes that have been on the market for the past 6 months, some have sold, others are in contract and you are left over with the rest that just won’t sell for various reasons. This means if you have a home that is Priced to Sell and Marketed Right, your home will be on top of buyers lists. If you wait a few months when the Real Estate Peak season is upon us, the competition will be greater.

So, while you are doing your holiday shopping, take a moment to consider looking for your first or next home, or Selling your current home.

As always, thank you for taking the time to read our ideas.

Have a Happy Holiday Season from BronxPad.

For more on Bronx Real Estate Check out our main site. BronxPad

Joel Rivera

Keller Williams Realty Group

photo by: kevin dooley

The White House – 1600 Pennslyvania Ave – Home of the President

The White House – $284.9 Million Dollar Price Tag

Every 4 years Americans are faced with choosing who will reside at 1600 Pennsylvania Ave – The White House.

With the greatest Military Force at his disposal and a $3.729 TRILLION Dollar budget, the President is considered the most powerful person in the world.

It is important that American Voters exercise their Constitutional right. Wars have been fought for this right, people risked and dedicated their lives so we can have the Greatest Democracy in the Free World.

The President of the United States of America lives in the nation’s most valuable real estate. Have you ever wondered how much the White House would cost if it were for sale? Have you ever wondered how many rooms are in the White House?

Property Facts:

Beds: 16
Baths: 35
Total Rooms: 132
Square Feet: 55,000
Lot Size: 18 acres
Property Type: Single Family
Year Built: 1792
Parking: Garage
Cooling: Central Air
Heating: Forced Air
Fire Place: Yes
Security: Secret Service
Estimated Value: $284.9 Million
Previous Est. Value: $299.9 Million

The Battle for The White House

President Barack Obama vs Governor Mitt Romney.

Tail of the tape.

President Barack Obama Democrat

The Economy: Wants to repeal the Bush Tax Cuts for households earning more than $250,000. Cut Spending and raise taxes on the wealthy. $800 Billion Dollar Stimulas Plan, Auto / Wall Street Bail Out. Business’s Added Jobs for 2 years straight.
Health Care: Signed the 2010 Health Care Bill. Allows coverage for pre existing conditions, Health Care for all. Further known as Obama Care.
Immigration: Supports legalization for illegal immigrants that includes learning English & paying fines; toughen penalties for hiring illegal immigrants; voted for fence along Mexican border.
Global Warming: Supports a Cap & Trade System to reduce carbon emissions.
Gay Marriage: Supports same-sex marriage.

Governor Mitt Romney Republican

The Economy: Make Bush tax cuts permanent. Lower corporate tax rate across the board to 25%. Cut taxes and regulations to encourage business. Wants Energy Independence, Better Skills Training, More Trade Deals, Cut the Deficit.
Health Care: Created similar legislation in Mass. but believes it’s not appropriate for all of USA and wants to repeal.
Immigration: Wants to eliminate the tuition breaks or other breaks that attract people into this country illegally. In favor of promoting legal immigration.
Global Warming: Opposes cap and trade legislation.
Gay Marriage: Opposes same-sex marriage; supports legal unions

How much will be spent by both campaigns? Est. $6 Billion Dollars.

November 6, 2012 is Election Day. American Voters will choose who wins the Ultimate Job in America and the Ultimate in Real Estate. Make sure you make your way to the voting booth and exercise your right to choose who will Lead America. If you live in NYC and need to see where your polling site is Click Here.

After you vote, visit BronxPad to search for your next home.

Thank you for reading and share with your friends and family.

Joel Rivera