Questions tagged [real-estate]

A tag for questions on real estate or property.

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2
votes
1answer
428 views

What should I consider before buying a condo under construction, for flipping at a profit?

I am planning on buying a second condo, with the hope of selling it for a profit as soon as the construction is finished (i.e. flipping it). My questions are: What significant risks are there in ...
1
vote
1answer
122 views

What are the tax ramifications of an Australian citizen purchasing mortgage notes secured by California real estate?

I an an Australian citizen, and I am interested in purchasing mortgage notes secured by California real estate. The payments are tendered monthly. What are the tax ramifications in the US? Is there a ...
6
votes
2answers
28k views

Tax considerations for selling a property below appraised value to family?

I own a property that recently appraised for $350,000 in the state of Maryland that I purchased for $300,000 7 years ago. I wish to sell this property for a value of $240,000. Here are my questions: ...
8
votes
1answer
1k views

Can I bring a real estate agent with me after my first visit to a new home?

I am looking to buy a house, and I am a first-time buyer. I am reading a book on home buying, and it says the following with regard to new homes: "You might have to deal with the developer's ...
8
votes
1answer
26k views

How do I sell a home that's owned jointly if my partner doesn't want to sell? [closed]

I own a home jointly with a partner. I have made all the payments, taxes and insurance since the beginning. I have a buyer for the home but my partner does not want to sell. How can I override his ...
0
votes
2answers
6k views

Why doesn't changing the Discount Rate change IRR?

I have an analysis for a real estate project done and I'm changing the discount rate but IRR is not affected. I don't understand why this is...? It seems that changing the discount rate would change ...
-1
votes
1answer
9k views

Discount Rate vs. IRR

The more I learn about the discount rate and IRR the more confused I get.... This is related to real estate. My confusion is that I've read that you should use your desired rate of return for the ...
4
votes
3answers
423 views

What costs should I consider when planning to maintain a vacant condo for a few years?

I have a job offer in a different city. I currently own a condo that I may return to but that would be really nice to have as a hub for returning to visit family as well as I have a family member who ...
9
votes
2answers
1k views

Insurance for a house which is not homeowners insurance?

My wife and I moved last summer, and our former home is still on the market. We were recently informed by our homeowners insurance company that because the house is no longer owner occupied, they will ...
4
votes
3answers
2k views

What are the tax implications of selling an investment property?

I'm planning on selling an investment property (a condo in WA state). I've owned this property since 2004. I lived in it as my primary residence from 2004 to October of 2007. I'm planning on taking ...
3
votes
2answers
373 views

What will be the consequences if Negative Gearing is abolished in Australia?

There has been recent speculation in the Australian media about the Government possibly abolishing Negative Gearing in Australia in order to shore up falling revenues. In fact certain interest groups ...
15
votes
4answers
132k views

When can you use existing real estate as collateral to buy more?

My grandfather owned a dozen apartment buildings, and when I asked him when I was little how he got so many, he said he just bought one, and then used it for collateral to get the second, and so on. ...
6
votes
1answer
3k views

Is a lease still binding if not all of the parties sign it?

My wife and I were leasing a house with another couple. Two weeks into the lease, the other couple left in the middle of the night and we have yet to hear from them. My wife never got to sign the ...
9
votes
2answers
2k views

How should I move out of my own house?

About a year ago, my mom and I purchased a house. It was something she really wanted and I was pretty much guilt tripped into moving in. After moving into the home and seeing our relationship go ...
8
votes
3answers
639 views

Is there anything I can do to prepare myself for the tax consequences of selling investments to buy a house?

I have about $500k in Vanguard funds, in a regular (i.e. taxable, non-retirement) account. I've been building these positions over the past 12 years or so. There's a chance that I'll want to buy an ...
0
votes
3answers
223 views

Low cost real estate appraisal options

So I am buying a rental property as an investment and expect to do the purchase as a cash deal. So technically there is no lender to force me to get an appraisal on the property. Of course, I still ...
3
votes
1answer
649 views

What industry standard values should I use when making assumptions about inflation, reinvestment rates, and real estate?

I'm trying to work out some Financial Management Rate of Return (FMRR) calculations for practice and I was curious if there are some industry standard variables to use. Here are some assumptions I'm ...
3
votes
1answer
961 views

When buying / selling a house in the UK, is it normal for solicitors' fees to be due before or after completion?

When we made our most recent house move (selling one house and buying another) we had to pay the solicitor's fees in advance of completion - the fees for searches etc. had to be paid upfront before ...
2
votes
1answer
215 views

How can I hedge against local home value?

I'd like to hedge against my neighborhood home value. I'm not terribly concerned if the overall housing market fluctuates, since if I move and sell my home for less, I can buy a new home for less. I'...
3
votes
1answer
106 views

What are the tax implications of a normal sale of a house?

What are the tax implications of a normal sale of a house, where the owner would make a "profit"? Does it make any difference if the house is owner occupied and for how long they have owned the ...
3
votes
2answers
127 views

Can I invest in the housing market via the stock exchange?

Buying houses is expensive these days, and interest on mortgages is extortionate. Do investments via the stock market exist where you can invest in the housing market? Maybe shares in real ...
0
votes
1answer
47 views

Transferring a Property (with a loan) to a relative in Maryland

We have a property in Maryland, currently in my name, on a loan with a bank. Other than selling the property and having my relative buy it, is there a more cost-effective manner, in which the property ...
4
votes
1answer
368 views

Next option(s) after house is not selling on market?

Let us say I have a house which is pretty old and is not in the best neighborhood. I put in on the market, and for one reason or another, even after dropping the price substantially I cannot get it to ...
6
votes
3answers
698 views

What are the transactional costs when buying and selling a house?

I am trying to breakdown all transactional costs related to buying and selling a house as well as their numerical values. For instance, the agents get around 3% in commission each, the inspection ...
6
votes
4answers
6k views

Buying a home without a Real Estate Agent - Who should I get to do the paperwork?

I'm considering buying a home from a friend without the aid of a real estate agent in the hopes of saving everyone the unnecessary 6% commission (since the property didn't need to be marketed). ...
2
votes
1answer
413 views

How do you go about buying a house directly from an owner? I.e. no broker involved?

I live in California. Usually when people buy a house here, they just entrust a broker. The broker deals with all the paper work, etc. for both parties. There are 4 parties involved...seller, buyer, ...
0
votes
1answer
163 views

Homebuyer Credit - 2008 Installment Repayment

I bought my house in 2008. I took the $7,500 credit. I remembered that I have payed $500 each year in 1040. Now I have to fill the tax form this year. How to fill the two textboxs.
5
votes
3answers
1k views

Assessed value of my house

I received a letter from the county tax assessor. It gave me the total appraised value $188,000. I purchased it on Sept, 2008. The price was 216,000. I am shocked at such a big difference. I use [...
7
votes
1answer
1k views

Are commissions paid to realtors for finding tenants for my rental property tax deductable as a rental expense?

I used a realtor to find a tenant for my rental home. I paid her a commission of the amount equal to the first months rent. Is this what turbotax means by Commission Expenses "Commissions paid to ...
11
votes
4answers
640 views

Buying a house for a shorter term

I've lived under the impression that it is never wise to buy a house (as your home) unless you are planning to live there "at least five years" (or something like that). But is this necessarily ...
1
vote
1answer
138 views

Equity or alternative compensation in an LLC?

I am currently working for a real estate startup (LLC) that wholesales REOs nationwide. I was one of the earlier employees to get hired. Since my time of employment, the company has been expanding ...
3
votes
1answer
470 views

New construction closing in a year; how can I lock in mortgage rate?

I've just contracted for a new house in Florida to be built. The closing won't occur for approximately a year. Is there a way to lock in a mortgage interest rate for so long in the future? It will ...
2
votes
2answers
69 views

What determines a tax resident in Florida

As a retired non-US person. I am planning to purchase a vacation home in Florida. I am told i am only allowed to reside there for a maximum of 60 days each calendar year, any longer and I will be ...
4
votes
2answers
7k views

How do banks lose money on foreclosures?

I read that when banks give out a mortgage the bank itself doesn't actually lend any of its money out. It is just accounting that adds the money to the borrowers account and adds the same amount of ...
1
vote
1answer
472 views

What are the tax rules of owning a vacation rental property?

I am considering purchasing a vacation property and renting it out for a majority of the season. Best case scenario I could generate about 50% of the annual cost (mortgage, tax, utilities, ...
4
votes
2answers
285 views

Closing on two mortgages (investment refi & primary home) — is it ok to do them simultaneously?

My wife and are are simultaneously in the market for a new home and trying to refinance a condo we rent out as an investment. The stars may be aligning that both loans could go into underwriting ...
20
votes
5answers
18k views

What is the purpose of property tax?

I currently rent, but have been looking to buy a home. I always imagined how great it would be to have a dream home, worth, say, $500K, and to have it fully paid off. My thought was the only recurring ...
2
votes
5answers
1k views

Why could rental costs for apartments/houses rise while buying prices can go up and down?

In this U.S. city, I have the impression that the rents of apartments and houses always go up, say, about a 5% per year, while the prices of buying them fluctuates throughout the same years. If my ...
14
votes
3answers
1k views

My landlord is being foreclosed on. Should I confront him?

I just found out that my landlord is being foreclosed on. My lease agreement runs out at the end of this month, but I had, through email, agreed to stay for another year (no new contract was signed). ...
2
votes
1answer
108 views

Is a trustee sale winning bid all inclusive, or are prorated taxes & fees due?

Is my winning bid at a trustee sale on a foreclosed home all inclusive, or can the trustee make us pay prorated taxes and home owner association fees? If we must pay the fees, when would they be ...
7
votes
4answers
860 views

What are my investment options in real estate?

In a nutshell, I'm 21 and I'll be starting a job soon which will give me a fair amount of spare income, which I would like to look into investing. What are my options here? I'm considering investing ...
10
votes
4answers
2k views

Owning REIT vs owning real estate - which has a better hypothetical ROI?

Let's say I want to invest in the real estate market because I am bullish on it. Consider two options: invest in REITs or actually purchase real estate. My question is which option has a better ...
6
votes
2answers
335 views

How can one offset exposure created by real-estate purchase?

Is there any viable way to offset exposure introduced by buying a real-estate (house/land)? By "way to offset" I mean financial instruments (like derivatives) that you can buy to decrease the risk of ...
12
votes
4answers
2k views

How can one hedge against property price change when buying a home?

Let's say I want to buy a home, with intent to sell it down the road ( < 10 years). If I want to minimize my exposure to market fluctuation, what would be the best way to accomplish that? I ...
4
votes
1answer
2k views

How much does a tenant eviction cost in Miami and New York City?

I heard it's easy to evict a tenant that does not pay the rent in US (at least easier than in Italy). I heard in 60 days comes the sheriff and kicks the tenant out of the flat. I suppose the ...
6
votes
4answers
32k views

What is the standard real estate commission to sell a million dollar home?

I want to list my condominium for US $1.3 million. How can I decide on a fair real estate commission?
5
votes
3answers
1k views

Can I check multiple lenders for mortgage rates, via preapproval, and have it only count as one hard inquiry on my credit?

Note: This applies to the State of New York (the NYC metro area), in the United States. I'm shopping around for mortgage rates. I'm not sure if I have to get a preapproval mortgage to get their ...
7
votes
3answers
328 views

I have an “excellent” credit rating. Do I need to get a preapproval mortgage letter?

I'm in the infancy of buying a residential property. I have a credit rating of EXCELLENT. Do I need to get a preapproval mortgage letter? I thought that getting preapproved would expedite the ...
10
votes
1answer
2k views

What are the risks in buying a property from a “Tax Deed” auction?

Recently, I was approached by a friend of my wife's, and she said that she and her husband were making a lot of money bidding on properties that went up for sale in our area, at auctions like this one,...
5
votes
3answers
2k views

Why is mortgage interest deductible in the USA for a house you live in?

In Australia, if you have a mortgage on the house you live in the interest and other expenses are not tax deductible, unless you rent out one or some of the rooms or run a business from your home, in ...