New answers tagged

-1

Walk away, walk fast. A 20% rofl "discount" on some estimate is, literally, meaningless. (When you sell a flat at auction in London, it's totally common that the price achieved will vary by far more than 20% one way or the other, a "20% discount" simply has no meaning. Note too that in London if you are paying cash ("OMG - WTF&...


5

Before you commit to buying the apartment, check who will be responsible for paying for the work on the outside of the building. It's usually shared between the owners of the apartments in the block. That may be why the landlord is in a hurry to sell now. They may want rid of the place before a big bill arrives.


3

Ask yourself 'Why can't I get a mortgage due to the construction?' I don't know about the specifics, but I assume it is because the bank considers property with such construction ongoing to be higher risk. Either because construction may fail, reducing value of your property, or something in that vein. So if the bank considers it higher risk... should you? ...


0

Yes, a listing agent can make the difference. I had just experienced this recently in Sydney, Australia. Basically, we had some 2 agents appraise a 4 bedroom house between $2.4M to $2.6M and a 3rd agent appraise it between $2.6M to $2.8M back in July. We had a family member offer $2.5M off-market, but due to them taking more than 3 months to try and get ...


1

To reinforce @S Springs's answer: "When you sell your home for significantly less than its fair market value, the IRS considers the value of that reduction as a taxable gift to your relative—even if no actual cash changes hands." Thus, that "value of that reduction" would be subtracted from the (currently) $22.36M Estate Tax exemption. ...


1

The deed to the house can be transferred and the value transferred can be accounted against the estate-tax-threshold. Or the deed can be changed to co-owners with right-of-survivorship. Or the property can be listed in a will. Of course a will can be changed at any time or even legally challenged. A transfer of the deed can be reversed within 3 years or so, ...


1

Any day the property is rented for less than fair-market value is a "personal use" day. If it was rented below fair-market value for the entire year, then you cannot deduct any rental expenses and have been filing incorrectly. From 1040 Schedule E instructions (I bolded key items): If you rented out a dwelling unit that you also used for personal ...


5

Dividends, interest and capital appreciation via investments are "free money", given to you by someone else (or the Market Gods). But the interest "gained" via paying yourself back is your money. Thus, you aren't gaining anything. IOW, if you have enough cash flow to pay the mortgage AND the 401(k) loan, then you could be using that ...


7

I recently looked into a 401(k) loan for a house purchase, though I ultimately decided against it. While I'm not a finance expert, I did consider a few things which impacted my decision and which might be useful for you: If your employer allows you to contribute to your 401(k) while the loan balance is outstanding, taking the loan will be less painful. If ...


9

The risk in taking a large 401K loan comes from the speed of what one must repay the loan if one changes jobs. This can happen by choice, or not, and the risk has been substantially lessened with the new tax laws enacted by President Trump. One used to have 60 days to repay a loan, and it has now been extended until the tax day of the next year. However, ...


2

For the sake of filling in the answer box, it depends utterly on your local government. this varies drastically across the US, and even within one municipality, depends greatly on other factors, whether it's a division, zoning, etc Your supplementary questions about fencing etc: exactly the same applies. Pick up the phone and call the local council/...


3

Don’t be too concerned. Inflation is a function of both the money supply and the velocity of money, and of course the velocity of money has slowed down a lot during the pandemic and so the money supply has had to be increased in order to compensate for that and avoid serious deflation. In most cases, it’s been done in ways that can be reversed as the ...


2

Two important things to know: FHA-insured loan will require that you occupy the subject property for a year, and Security instrument will have a clause to the effect that "If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or ...


3

Generally you must occupy the home when getting an FHA loan. There can be exceptions, especially during COVID, but the general rule is that you have to live in the property. That is something they will make sure you understand when you apply for the mortgage. Expect that you will have to sign paperwork to this effect during the settlement process. Now after ...


0

I recently refinanced in Oregon and there was no property taxes or insurance collected. The lender wanted to setup an Escrow, but I told them that I did not want it and they let me pay separately. I've been doing this for many years.


1

Tax liens take first position. Therefore even if you opt for no monthly impounds a lender will require current taxes installment to be paid in order to limit liability on their collateral. (the property). Enlighten me if I'm wrong. This is my understanding.


4

You don't know what your neighbor earns with his freelancing - freelancers can earn very well even if they occasionally have less work. The Augenoptiker might have his own business, earning a lot more than 3000€/month. And the construction worker might also earn more than you think - I know the ones working on our house had all sorts of profitable side ...


6

They may be living on borrowed money and saving very little for the future. They probably don't own the cars they drive around in, and the house has a very large mortgage. Also, they may have inherited much of the money they have. Families in Europe can be quite small, maybe one or two children. So when the parents die, their descendents may be left with ...


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