Property Investment Archives

March 11, 2024April 25, 2024

Condo Shopping: Does My Agent Warn Me About HOA Red Flags?

Many of today’s buyers want condos. They’re compact and low-maintenance. Condos are cheaper, typically, than standalone homes. Still, it’s entirely possible to make a costly mistake by missing condo warning signs.

Sometimes, a real estate agent notices things the buyer won’t. A good agent becomes that extra pair of eyes, extra ears and nose…

Alert real estate agents save buyers money in the long run. Know what they look for. You’ll be better prepared to protect your best interests — long after the deed is yours.

March 8, 2024April 25, 2024

Anti-Money Laundering: Federal Rule Coming to Track Real Estate Cash

The federal government wants all-cash home buyers to be easy to find.

The Financial Crimes Enforcement Network (FinCEN) is part of the U.S. Treasury Department. FinCEN has proposed a new reporting rule. It wants real estate professionals to submit forms with details about cash sales when homes are sold to legal entities — like LLCs and trusts.

The goal? Making it hard for criminals to hide behind legal entities when they launder money from their crimes. The rule would make it much easier for investigators to track down people involved in the transfers of homes for cash.

The rule would not require the reporting of sales to individuals. It would affect some residential real estate investors who plan to make cash offers. But it actually matters to everyone. Take a Look.

March 1, 2024April 25, 2024

Core of the American Dream? Three-Fourths Call Buying a Home Goal #1

The U.S. population has all sorts of goals. But of all that we strive for in our lives, seems we place the highest priority on owning a home. In recent surveys, three-fourths of respondents said owning a home is “the leading component of the American dream.”

And yet, just about the same percentage of people say housing is too expensive to buy. With each year, it feels like fewer can afford to buy a home. It’s almost like buying a home is a wealthy person’s thing.

Homeownership is still the centerpiece of the American dream, but affordability issues such as high home prices, income that is too low or not being able to afford the down payment and closing costs are holding back nearly 3-in-4 aspiring homeowners.

—Greg McBride, chief financial analyst at Bankrate LLC

You said it, Greg.

January 15, 2024April 25, 2024

Capital Gains: Were Profits on Your 2023 Home Sale EXEMPT? Head Form 1099-S Off at the Pass.

People who sold their homes in 2023, after living in them for a while and enjoying their low mortgage rates, have seen big gains in their property values. Fortunately, most of these gains won’t be taxed.

If you sold a home in 2023, your lender or broker may give you Form 1099-S. Federal law requires the party responsible for closing your deal (this could be an escrow agent or title company) to send these forms out, filled in with the closing date and proceeds of the sale.

Form 1099-S only needs to be sent to sellers who have taxable gains to report on their 2023 returns. Read on to find out why most home sellers won’t have to report their home sale to the IRS! (You still may choose to report the sale on your return, even if not required.)

January 5, 2024April 25, 2024

Buying Without Your Spouse? What to Know About a Purchase Money Mortgage

Sometimes a homebuyer who’s married wants to buy property as an individual. They want to be the sole buyer, with no other name on the closing papers.

How can it work? Consider the purchase money mortgage.

As Cleveland’s CrossCountry Mortgage® company explains, “if a married person wants to purchase a property without their spouse being on the loan OR on the title, they can classify the transaction as a purchase money mortgage.”

With this mortgage, the marriage partner is (a) not responsible for repaying the lender for the mortgage; and (b) not named on the deed.

November 6, 2023April 25, 2024

Who’s Buying Into Rural Boom Towns—And What the Locals Think

There’s a new dynamic in real estate. Companies and people are moving to Indiana, Nevada, Nebraska, Georgia, and Tennessee. Change is happening in rural areas, as so many people have left the cities to live and work in the outskirts.

Counties in Florida and Idaho are dealing with similar growing pains. People have flocked to both states since the pandemic economy unfolded. Many of their counties’ home prices are rising. So are the property taxes.

Now, add in the major U.S. carmakers’ southern expansion to build electric cars and battery factories. It’s all new to some small towns.