Industry Leaders Named to University of Miami Real Estate Advisory Board
CORAL GABLES, Fla., April 29 /PRNewswire-USNewswire/ — The University of Miami School of Business Administration today announced the appointment of 12 real estate industry leaders to its new Real Estate Programs Advisory Board. The Board is chaired by Steve Witkoff, the chairman and CEO of The Witkoff Group LLC, a New York City-based real estate investment firm, whose holdings include Manhattan … Real Estate Investing Research Tool
Offering the tools needed to evaluate trends and understand key factors affecting the real estate market, this book explains how to get started, where to get information, and how to apply the basic techniques to a variety of development types. This practical primer offers a step-by-step approach to developing property—whether public or private sector—and shows how market-analysis methods…
Commercial Real Estate Analysis and Investments presents the essential concepts, principles, and tools for the analysis of commercial real estate (income producing) from an investment perspective. The book integrates relevant aspects of urban and financial economics to provide learners with a fundamental analytical understanding of real estate investments. In addition, it bridges the gap between m…
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Owning Investment Property – Halcyon Hills on Samos
Owning investment property is a tremendous wealth building strategy and The Halcyon Hill on the Greek Island of Samos fits the bill!!.
Thousands upon thousands of individuals have amassed great wealth by investing in rental properties overseas. Unfortunately, few investment property owners learn how to leverage equity in a way that maximizes tax deductions while creating and locking in equity gains. Instead, they leave themselves open to price fluctuations in the property market. These fluctuations can wipe out or severely reduce equity positions in property.
Protecting Equity Gains
Protecting equity gains in your investment property requires careful planning. This leveraging strategy is fairly simple, but can sound complex. Please keep in mind this is just an introduction to the investment property tax strategy. You will need to consult an expert to learn more. The investment property tax strategy protects your equity gains by separating and leveraging them. The leveraging process is best explained with an example.
Scenario 1 Without Tax Strategy
Assume you purchased a rental property in 2002 for $250,000 with nothing down. As of July 2009, the combination of loan payments and appreciation has resulted in a gain of say: $250,000. You have amassed wealth, but all of it is at risk. If prices drop twenty percent over the next year, you will lose $100,000 of your equity in the property.
Scenario 2 With Tax Strategy
We are going to use the same exact scenario. It is July 2009, you have $250,000 in property equity, but all of it is at risk. You decide to implement the investment property tax strategy and the following occurs. Your goal is to protect the $250,000 in gain on the rental property while also maximizing tax reductions. The first step is to refinance the property with, typically, an interest only loan. A percentage of the equity gain is taken out of the property and placed into an equity index insurance product. The equity percentage is arrived at by determining the payment amount you can afford on the loan. Typically, it is tailored to match your current loan payment amount.
Going back to our scenario, what happens if property prices pull back 20% over the next year? You do not suffer the loss of $100,000 because the gain is sitting in your equity index insurance product. Essentially, you have protected the capital gains while capturing a stock market-based rate of return.
Ah, but it gets better!
Equity Index Insurance The investment grade insurance product isn’t just any policy. Instead, the policy used is tied to a stock market index. What if the stock market suffers a loss? Not to worry, this policy carries a guarantee that you will never lose a dollar, even if the market crashes. If the stock market did crash, the policy would simply credit you with nominal growth for the year in question. In all other years, the policy would grow with the stock market. On top of all of this, the money in the insurance product grows tax-free.
So, what has been accomplished?
First, you have protected your rental property equity gains from price fluctuations. Second, you have leveraged your equity into two growth channels, the stock market and appreciating property prices. Third, you have converted taxable growth [property appreciation] into tax-free growth [insurance].
With propert markets cooling down, this strategy effectively locks in your profits. Preserving equity gains should be a primary goal of any investment property owner. Consider the above in conjunction with The Halcyon Hills Investment Opportunities.
For more information on The Halcyon Hills click on http://www.thehalcyonhills.info.
Mike Matthews
About the Author
Click here http://www.thehalcyonhills.info for more in depth information and help on the subject of investment property overseas, with special emphasis on Greece
Mike Matthews
Real Estate Investment Tips : How to Refinance a Home & Save Money
For typical homeowners, the monthly mortgage payment is either their largest or, after income taxes, second-largest expense item. When you’re shopping for a mortgage without the proper knowledge, you could easily waste many hours of your time in addition to the financial losses suffered by not getting the best loan that you can. Choosing the right mortgage can help you save money for more import…
Don’t lose your ho me to foreclosure! Do a short sale! Robert Irwin, one of America’s most trusted real estate experts, provides the tools you need to avoid foreclosure—and protect your credit, your wealth, and your peace of mind. How to Use a Short Sale to Stop Home Foreclosure and Protect Your Finances removes the complications and stress often associated with short selling a property. Usi…
Every one wishes to own a dream house where he can build the most beautiful memories of his life. These days, with the economic times giving a tough life, it has become very important that one own a house. Even when you start a business, you need to have a prime office location. Unless you are located in a place that is close to your clientele you can not expect to do well. It is not a very easy decision and therefore you must be very careful while selecting that dream house of yours. The location and the surroundings of the house should be taken well into consideration. You must be sure that the place is easily reachable and is well connected to the places like market, schools and also to the rest of the city.
As pr the Raleigh NC real estate listings, one can always think of investing in the real estate in the Brittany Woods subdivision in Raleigh NC. According to the Raleigh NC real estate information, the Brittany woods sub division was developed in the 1980’s. It boasts of a superior position in the sub urban region of Raleigh. This area is fully furnished with single and family homes. As the Raleigh NC real estate listings tells us. These homes are not the regular boring homes, but have fresh and new designs. The designs have a certain uniqueness to then that makes them a good piece of investment. As the Raleigh NC real estate information says, these houses are even located in a location which is close and well connected to the shopping places and also to the entire city. The famous research triangle park is also close by and can be commuted to easily. There are many parks and shopping and entertainment centers located at walking distance.
There are as many as 333 homes in the area and according to the Raleigh NC real estate information the neighborhood has wooded lots. The sizes of the lots vary in between 0.11 acre to 0.2 acres. The cul-de-sacs that are throughout the neighborhood give the area a feeling of a small town. As the Raleigh NC real estate listings tells us, there are even tennis courts, swimming pool and clubhouse in Brittany Woods. There is good water and sewer service that comes from Raleigh city and the Time Warner gives the cable TV wire. PropaneNet provides the gas. There is also a homeowners association that is responsible for the collection of the annual dues that are used up in the maintenance and the development of the facilities that are provided, like the pools and the courts.
As per the Raleigh NC real estate listings, the general house in Brittany woods is furnished with cathedral ceiling and fireplaces. In fact, some of the kitchens even have a separate space for breakfast and you can also expect to have the microwaves, dishwashers and other appliances.
All these facilities make this a very tempting investment for people who wish to buy their dream house or are interested in investing in a good property.
Have you heard of a law that makes it illegal for a sister to sell her home to her brother.?
My sister recently became ill and unable to make her mortgage payments. I tried to buy it from her as investment property and all was going well until the underwriter found out that we was relatives, they told me that they couldn’t give me the loan, because in Texas there is a law against a brother or sister selling real estate to each other. If this is true please refer me to the source of this law, or tell me about it.
No such law! Find a new lender — that underwriter is an idiot! If the underwriter claims that that is the law, they MUST provide proof of that fact. Sales between relatives may warrant a closer evaluation of the value of the home but homes are sold to relatives all the time.
I could see the underwriter raising a B/S flag if the appraisal was done by a family member but that’s about the only thing that would impede the sale.
Get an attorney to handle the closing for you. He or she will make sure that there’s no funny business going on. The attorney’s fee should be competitive with a title company’s closing fee and you have a right to choose your own closing agent.
Facing foreclosure? You need to do three things: stop worrying about why this has happened to you; resolve to fight the foreclosure and save your home; and read Foreclosure Self-Defense For Dummies. It delivers the knowledge, strategies, and tactics you’ll need to take command of your situation and achieve the best possible outcome.This practical, no-nonsense guide helps you size up your options…
One of America’s top real estate authorities explains the inside secrets of the mortgage businessEach year, more than ten million American homebuyers, homeowners, and realty investors enter the mortgage arena to finance or refinance their homes and rental properties. And each year, millions of borrowers pay more than they have to. But you won’t be one of them with Gary Eldred’s 106 Mortgage Secret…
How do you estimate what your capital gains tax would be on investment property?
This is a difficult situation. We own a piece of undeveloped land in FL and are considering selling to put a down payment on a house in CA. We have owned it for about 14 years. My husband is military and a FL resident. We currently are stationed in CA and I am a CA resident. The land is a joint tenancy. FL doesn’t have a capital gains tax, but CA does. So I am guessing that we have to split the gain 50/50 and have 50% taxed by the state of CA. We are trying to use an online capital gains tax calculator to figure how much we will have to pay.
We had an assesment to pave the street. Would that be an improvement cost?
Also, the state bought a small portion to widen a highway. Would the money they paid us be deducted from the basis?
How do you come up with the depreciation? My property value has went up (according to the county assessment).
How do you figure out what the tax rate is on the gain?
I know this is tough one, but I appreciate all the help.
If you file a joint CA return, ALL of the gain is subject to CA tax. If you file a separate return, only your half of the gain is taxed. The entire gain is subject to Federal capital gains tax.
The assessment raises your cost basis and therefore will lower the gain.
What the state bought constitutes a sale of part of the property. That was a taxable event when it occurred. You may or may not have taxable gain that needs to be claimed in the year of the sale. It will reduce your basis for the remaining portion of the property as well.
Land is never depreciated. No tax impact with that.
Since the property was held for over one year, the tax rate is 15% unless your marginal rate is 15% or less in which case it would be 5%. (Had you held it for 1 year or less it would be taxed at your marginal rate.) That’s the Federal rate. Not sure what the CA rate is. If I find it, I’ll post more later but it’s late and I’m heading to bed.
That was easy!
My Coach Mentor’s Investment Property Analysis Calculator
Many investment books include a chapter or two on investment performance measurement or focus on a single aspect, but only one book addresses the breadth of the field. Investment Performance Measurement is a comprehensive guide that covers the subjects of performance and risk calculation, attribution, presentation, and interpretation. This information-packed book covers a wide range of related top…
