As we kick off the new year, the Reno real estate market is already buzzing with activity. Whether you're a seasoned investor, a first-time homebuyer, or a property owner looking to rent out your space, January 2025 offers exciting opportunities. In this post, we’ll explore key trends, offer expert tips, and highlight the unique advantages of diving into Reno real estate this month.
Market Trends for January 2025 Steady Growth in Property Values Reno continues to attract new residents, thanks to its robust job market and proximity to outdoor recreation. Property values have seen steady growth, making this a promising time for both buyers and sellers. Increased Demand for Rental Properties With remote work remaining a popular option, many individuals are relocating to Reno for its lifestyle perks. This has driven up demand for rental properties, presenting a lucrative opportunity for property owners. Low Inventory, High Competition Inventory remains tight, leading to increased competition among buyers. Partnering with an experienced real estate agent can give you an edge in securing your ideal property. Why Invest in Reno Real Estate This January?
Tips for Buyers and Sellers in January 2025 For Buyers:
For Sellers:
Maximize Your Investment with Professional Property Management If you’re a property owner, working with a trusted property management team can help you:
At Conde Houses, we specialize in helping property owners streamline their investments and achieve their goals. From tenant screening to maintenance, we’ve got you covered. Best Neighborhoods to Live in Reno for 2025 Midtown Reno Known for its vibrant culture and walkability, Midtown continues to be a hotspot for younger buyers and renters. Somersett This master-planned community offers stunning views, a golf course, and a family-friendly atmosphere. Double Diamond Popular among professionals, Double Diamond features modern homes, great schools, and easy access to major employers. Start the Year with Smart Real Estate Moves Whether you're buying, selling, or renting out a property, January 2025 is the perfect time to capitalize on Reno’s thriving real estate market. By staying informed and partnering with experts, you can turn your real estate goals into reality. Explore essential tips and strategies for successful real estate investing in Reno. Learn about the latest market trends, investment opportunities, and property management insights to maximize your returns in Nevada’s dynamic real estate landscape. Understanding the Reno Real Estate Market Dynamics The Reno real estate market has seen a significant transformation over the past decade, driven by economic diversification and population growth. Known as "The Biggest Little City in the World," Reno has evolved from a casino-centric economy to a burgeoning hub for technology, healthcare, and education. This evolution has had a profound impact on the real estate market, making it an attractive destination for investors and homebuyers alike. The influx of major corporations like Tesla, Apple, and Google, establishing data centers and manufacturing facilities in the area, has led to job creation and a boost in local economy. As a result, there has been a surge in demand for both residential and commercial properties. Understanding these market dynamics is crucial for anyone looking to invest or purchase property in Reno. The Appeal of Residential Investments For residential investors, Reno offers a variety of opportunities that range from single-family homes to multi-unit apartment complexes. The consistent increase in population, coupled with a limited housing supply, has led to a competitive rental market with rising rents and low vacancy rates. This scenario presents a favorable environment for real estate investors looking to generate steady cash flow and long-term capital appreciation. Investing in residential properties requires a strategic approach. Key factors to consider include location, property condition, and market trends. Properties in desirable neighborhoods like South Reno or Midtown tend to appreciate faster and attract stable tenants. Investors should also pay attention to the economic forecasts for the area, as these can influence rental demand and property values. Commercial Real Estate: A Growing Opportunity The commercial real estate sector in Reno is also experiencing growth, driven by the expansion of industrial, retail, and office spaces. With the city's economy diversifying, there is an increasing demand for commercial properties that can serve the needs of startups, established companies, and retail businesses. Investing in commercial real estate can be more complex than residential investments. It requires a deeper understanding of market conditions, zoning laws, and the economic landscape. However, the potential returns are significant, especially for properties that are well-located and cater to the needs of the business community. Areas near the University of Nevada, Reno, and the downtown district are particularly promising due to their continuous development and accessibility. Property Management Essentials Whether investing in residential or commercial properties, effective property management is key to maintaining asset value and ensuring profitability. Property management involves a range of activities from tenant screening and lease management to maintenance and compliance with local regulations. For many investors, hiring a professional property management company can alleviate the burdens associated with day-to-day management tasks, allowing them to focus on strategic investment decisions. Good property management can enhance tenant retention, minimize legal risks, and optimize property expenses. This is particularly important in a market like Reno, where the real estate laws and tenant expectations can be quite specific. A professional property manager with local expertise can provide invaluable support in navigating these complexities. Market Analysis and Investment Strategies To succeed in Reno’s real estate market, conducting thorough market analysis and developing sound investment strategies are indispensable. This involves analyzing historical data, understanding current trends, and forecasting future market movements. Key indicators to monitor include median sales prices, rent prices, occupancy rates, and new construction developments. Investors should also be aware of the socio-economic factors that can impact the real estate market, such as changes in employment rates, population growth, and government policies. For instance, recent developments in Reno's tech sector have significantly influenced both the residential and commercial real estate markets. By staying informed and adopting a proactive approach, investors can identify opportunities that align with their financial goals and risk tolerance. This might include diversifying investments across different types of properties, exploring emerging neighborhoods, or capitalizing on properties that offer value-add opportunities through renovations and upgrades. In the next section, we will delve deeper into the specifics of selecting properties, the impact of economic shifts on investment prospects, and strategies for maximizing ROI in the Reno real estate market. ![]() Identifying the Right Properties Choosing the right properties is crucial for success in real estate investment. In Reno, investors should look for properties that not only align with current market demands but also have potential for future appreciation. Factors such as proximity to key amenities, schools, and business districts can significantly impact a property's desirability and rental prospects. Additionally, areas undergoing development or improvement, such as East Reno or areas near major transportation hubs, can be ideal for investments as they are likely to see increased property values over time. When selecting properties, it's also wise to consider the type of property that matches your investment strategy. For instance, single-family homes can offer long-term rental opportunities and typically attract families looking for stability, while multi-family units can offer higher rental yields but may require more intensive management. Economic Shifts and Their Impacts Economic shifts can greatly affect real estate markets, and Reno is no exception. For instance, fluctuations in employment rates, particularly in dominant sectors like technology and logistics, can influence housing demand and rental rates. Additionally, legislative changes, such as those related to property taxes or rental laws, can also impact the profitability and operational aspects of owning real estate in the area. Investors must stay informed about local economic conditions and legislative changes. This can involve subscribing to local economic newsletters, participating in real estate and business associations, or working with local experts who understand the nuances of the Reno market. Maximizing ROI Maximizing return on investment (ROI) in Reno's real estate market involves several strategies:
Building a Real Estate Portfolio Building a robust real estate portfolio in Reno involves more than just acquiring properties. It includes strategic planning, continuous market analysis, and effective financial management. Establishing clear goals and periodically reviewing your investment strategy can help in adapting to changing market conditions and achieving long-term success. Engaging with the Community Successful real estate investment often involves community engagement. By understanding community needs and trends, investors can make more informed decisions about where and what to invest in. Additionally, building relationships with local residents, businesses, and officials can provide insights and opportunities that are not evident through market data alone. Takeaway Investing in the Reno real estate market offers a promising opportunity, given its dynamic economic landscape and growing demand for housing and commercial spaces. By understanding the local market, carefully selecting properties, staying attuned to economic shifts, and employing strategic investment practices, investors can maximize their returns and contribute positively to the region's development. Reno's real estate market, with its blend of residential charm and commercial vigor, is poised for continued growth and remains an attractive option for savvy investors looking to expand their portfolios. Discover key strategies for maximizing your real estate investments in Reno. Learn about property management, house flipping, and long-term investment techniques to build lasting wealth in Nevada's vibrant real estate market. The real estate market in Reno, Nevada, offers a unique landscape for investors seeking to capitalize on property investments. With a burgeoning population and a thriving economic environment, Reno has become a hotspot for real estate investors. This article explores effective strategies for maximizing real estate investments in this dynamic market, focusing on long-term growth and sustainability.
Understanding the Reno Real Estate Market Reno's real estate market is characterized by its diverse opportunities in both residential and commercial properties. The city's ongoing development and infrastructure improvements have made it a prime location for investment. Understanding the trends and factors that influence property values in Reno, such as economic growth, demographic shifts, and housing demand, is crucial for making informed investment decisions. The Benefits of Investment Properties in Reno Investment properties in Reno can offer significant returns due to the high demand for housing and rental units. With a strategic approach, investors can benefit from both rental income and property value appreciation. Key benefits include:
Strategies for Successful Property Management Effective property management is vital for maintaining the value of your investment and maximizing your returns. This includes:
Flipping Houses in Reno: A Lucrative Option? House flipping has been a popular strategy in Reno, especially in neighborhoods undergoing revitalization. However, it requires thorough market analysis and understanding renovation costs. Key considerations include:
Long-Term Investment Strategies For those looking at the long-term horizon, investing in rental properties or commercial real estate can be particularly rewarding. Strategies for long-term investments include:
Real Estate Investment as a Legacy Investing in real estate is not just about immediate returns; it's also about building a legacy. Many investors in Reno are motivated by the prospect of creating lasting wealth that can be passed down through generations. This involves:
The Reno real estate market presents numerous opportunities for savvy investors. By employing effective investment and management strategies, individuals can maximize their returns and build a lasting legacy. Whether you're a seasoned investor or new to the market, understanding the nuances of Reno's real estate landscape is key to success. Discover how investing in Reno's dynamic real estate market with Conde Houses can help build your legacy. Explore strategic investment advice and expert property management services. Reno, Nevada, a city known for its vibrant arts scene and booming tech industry, is also a prime location for real estate investments. With its growing population and economic diversity, Reno offers unique opportunities for investors looking to build or expand their real estate portfolios. In this article, we will explore the benefits of investing in Reno real estate, the key considerations for potential investors, and how partnering with Conde Houses can help you manage and grow your property investments effectively.
The Appeal of Reno Real Estate Reno's real estate market has been on an upward trajectory, driven by its economic resilience and strategic location near major markets like San Francisco and Silicon Valley. The city's ongoing development projects and infrastructural enhancements make it an attractive spot for both residential and commercial investments. Why Invest in Reno?
Strategic Investment with Conde Houses: Conde Houses specializes in helping investors navigate the Reno real estate market with expert consultancy and comprehensive property management services. Whether you are new to real estate investments or looking to expand your portfolio, Conde Houses provides the knowledge and resources needed to make informed decisions. Investment Strategies for Success:
Property Management with Conde Houses Effective property management is crucial for maintaining the value of your investment and maximizing your returns. Conde Houses offers tailored property management solutions that include tenant screening, maintenance, and compliance with local real estate laws, ensuring your investments are well-managed and profitable. Investing in Reno real estate offers a promising opportunity to build a legacy of wealth. With the right strategies and a trusted partner like Conde Houses, you can maximize your investment's potential and enjoy the benefits of a growing market. Contact Conde Houses today to learn how we can help you achieve your real estate investment goals in Reno. Whether you're buying your first property or expanding your portfolio, our expertise will guide you through every step of the process. For many adults contemplating a return to academia, the financial implications can be daunting. House flipping emerges as an innovative solution to this challenge. This guide aims to equip you with essential strategies for successful house flipping, positioning it as a practical means to fund your educational journey. It delves into effective techniques and practices in the real estate realm, enabling you to finance your academic pursuits while engaging in a lucrative venture.
Conduct a Thorough Property Inspection The cornerstone of a successful house flipping venture is a meticulous property inspection. This critical step illuminates hidden defects and potential issues, providing a clear picture of the investment ahead. It's about being proactive in identifying possible challenges and calculating the associated costs, which are crucial in making informed financial decisions. This approach mitigates risks and paves the way for a more secure investment. Acquire Properties at Optimal Prices New Silver notes that securing properties at a lower cost is fundamental in house flipping. This involves identifying properties in need of renovation or those that are undervalued due to various circumstances. Mastery in negotiation and patience in finding the right deal are essential. This practice ensures a higher profit margin, making the venture an effective tool in funding your education. Establish a Robust Plan and Timeline Effective planning is a key ingredient in any successful business venture, and house flipping is no exception. Developing a comprehensive plan, including a realistic timeline, is imperative. This plan serves as a strategic roadmap, guiding your decisions and helping you stay on budget and on schedule. It's about setting clear objectives and milestones, ensuring that each step contributes to the overall success of the project. Prioritize Kitchen Renovations In preparing a house for the market, the kitchen often plays a pivotal role. Adding features, such as modern appliances and a range hood to remove odors, can substantially increase a property's value. A well-designed kitchen not only appeals aesthetically but also serves as a functional centerpiece of the home, making it a crucial aspect of any renovation project. Understand and Target Potential Buyers Milesbrand points out that a deep understanding of your target market is crucial in real estate. Different demographic groups have specific needs and preferences. Tailoring your property to meet these expectations can significantly increase its appeal and market value. It involves researching market trends and buyer preferences, ensuring that your property stands out in a competitive market. Explore Partnership Opportunities The complexities of house flipping can be eased through partnerships. Sharing the financial and operational responsibilities with a like-minded individual can be beneficial. It allows for the pooling of resources, expertise, and networks, enhancing the potential for success. This collaborative approach can also provide moral support, making the journey more enjoyable and manageable. Balance Academic and Business Commitments Combining education and house flipping can be challenging but ultimately rewarding. Flexible online degree programs offer a solution, allowing you to learn at your own pace and align your studies with your business commitments. For instance, you can pursue rewarding cybersecurity programs, which complements your real estate activities. This strategic approach enhances both your academic and professional profiles, offering dual benefits in your career journey. You’ll learn many aspects of IT and network defense strategies. House flipping offers a unique avenue for adults seeking to fund their return to education. By adopting these strategic measures, you can navigate the real estate market with confidence, turning house flipping into a viable financial resource for your academic ambitions. It requires careful planning, market knowledge, and adaptability, but the potential rewards extend beyond monetary gains. This endeavor not only paves the way for educational success but also provides valuable life and business skills, contributing to your overall personal and professional growth. Image via Freepik As a renter, you may often want to spruce up your living space without committing to permanent changes or spending a fortune. It's a common challenge to want a personalized touch in a rental that feels temporary. Fortunately, there are numerous budget-friendly and completely reversible ways to upgrade your living space to give it a fresh, personal feel. This article from Isaac Conde shares some practical ideas that can transform your rental into a cozy and stylish haven without breaking the bank.
Seeking Inspiration from Local Properties Sometimes, the best inspiration comes from exploring other homes and rental properties in your area. Check out local listings and open houses to gather ideas for your own space. Some sites let you search by home layout, price, amenities, and other categories. You can also use online tools to find similar listings and design inspirations. This can help you visualize potential upgrades and how they might look in your own rental. Revitalizing with Removable Wallpaper Removable wallpaper is a fantastic way to change your space dramatically. It’s easy to install and just as simple to remove when it's time to move out or change designs. With a wide range of patterns and colors available, you can choose a style that truly reflects your personality. This simple addition can instantly elevate the look of any room, making it feel more like your own. Upgrading with Peel-and-Stick Tiles Peel-and-stick tiles are a game-changer for kitchen and bathroom upgrades. They are durable, easy to apply, and can dramatically change the appearance of your space. Whether you want to add a backsplash in the kitchen or refresh the bathroom floor, these tiles offer a hassle-free solution. The best part is, when it's time to move, you can simply peel them off without any damage. Defining Spaces with Area Rugs Area rugs are perfect for adding warmth and color to your living space. They help define different areas within a room, such as a dining or sitting area, and can be a focal point of your decor. With various sizes, patterns, and textures available, you can choose a rug that compliments your style and furniture. Plus, they're easy to roll up and take with you to your next home. Enhancing Ambiance with Curtains and Blinds The addition of curtains and blinds can significantly impact the ambiance of your rental. They offer privacy and light control and add a touch of elegance or coziness, depending on your style choice. Look for options that are easy to install and remove, such as tension rods or clip-on brackets. This simple upgrade can greatly affect how your space feels and looks. Organizing with Adhesive Hooks Adhesive hooks are a renter's best friend for organizing and decorating without leaving marks. They are ideal for hanging everything from art to kitchen utensils and are easily removable without damaging the walls. This makes them perfect for adding personal touches to your space while keeping things organized and tidy. Plus, they're affordable and can be found in a variety of sizes and styles. Privacy and Style with Temporary Window Film Temporary window film offers a unique solution for adding privacy and aesthetic appeal to your rental. It's simple to apply and just as easy to remove, making it ideal for renters. You can choose from a range of designs, from frosted to patterned, to enhance the look of your windows while maintaining privacy. This is especially useful in areas like the bathroom or street-facing windows. There are many reversible and budget-friendly ways to upgrade your rental property. From removable wallpaper to temporary window films, each option allows you to personalize your space without permanent changes or a hefty price tag. Get creative and enjoy the process of transforming your rental into a space that feels uniquely yours. These tips will allow you to turn your rental into a comfortable and stylish home. Would you like to read more helpful content or learn about our leading real estate services? Visit CondeHouses.com today! Image via Freepik Discover the pros and cons of long-term and short-term leases for renting a home as a digital nomad. Make an informed decision today! Embarking on the thrilling journey of renting a home as a digital nomad opens up a world of possibilities. As the global trend of digital nomadism continues to soar, finding suitable accommodation becomes paramount. This article delves into the intriguing debate between long-term and short-term leases, offering insights and guidance for digital nomads seeking their ideal abode. Whether you crave stability and predictability or desire flexibility and variety, we explore the pros and cons of each option. So, join us as we navigate this exciting decision-making process, empowering you to create your perfect home base as a digital nomad. Understanding Digital Nomad Lifestyle Embracing the digital nomad lifestyle grants individuals the freedom to work remotely while exploring the world. With flexibility as its cornerstone, this way of life offers endless personal and professional growth opportunities. The benefits are abundant: escape the monotony of a traditional office, immerse yourself in diverse cultures, and cultivate a balanced work-life dynamic. However, challenges arise when finding suitable accommodations that cater to this unique lifestyle. By understanding the intricacies of the digital nomad lifestyle, you'll be empowered to navigate the challenges and make informed decisions for finding your ideal accommodations. Long-Term Leases: Pros and Cons Long-term leases offer certain advantages and disadvantages for renting a home as a digital nomad. On the positive side, long-term leases provide stability and predictability, allowing you to establish a home base while exploring new destinations. They often come with lower rental rates, especially for extended stays, helping to manage your budget effectively. Having a fixed address can be beneficial for receiving mail, setting up utilities, and even registering for local services. However, the lack of flexibility can be a drawback, as digital nomads thrive on the ability to move while working remotely. And if unexpected opportunities arise in different locations, balancing work and relocation can be challenging. Long-term leases also require a significant financial commitment, including upfront deposits and potential termination fees. Moreover, feeling tied down to one place may dampen the adventurous spirit that drew you to the digital nomad lifestyle in the first place. Consider your priorities and future plans before committing to a long-term lease, ensuring they align with your aspirations and fulfill your dynamic digital nomad needs. Short-Term Leases: Pros and Cons
Short-term leases offer their own set of advantages and disadvantages for renting a home as a digital nomad. Their flexibility is a major perk, allowing you to move frequently and explore diverse locations. This variety can enrich your experiences and offer a fresh perspective. Moreover, short-term leases require a minimal financial commitment, making them suitable for those on a tighter budget or uncertain plans. However, it's important to consider the potential drawbacks. Short-term leases often come with higher rental costs as landlords factor in the flexibility they offer. Availability can also be limited, particularly in popular destinations or peak seasons. Searching for new accommodations can be time-consuming and disrupt your work routine. Additionally, the transient nature of short-term leases means you may have to adjust to different living environments more frequently. Despite these challenges, short-term leases are ideal for digital nomads prioritizing freedom and craving new adventures. Carefully weigh the pros and cons and align them with your personal preferences and goals to make an informed decision that suits your dynamic digital nomad lifestyle. Factors to Consider When Choosing a Lease When choosing a lease for renting a home as a digital nomad, several key factors come into play. Firstly, consider your budget and financial considerations, ensuring the rent is sustainable in your desired location. Next, evaluate your desired length of stay, as this will determine whether a long-term or short-term lease is more suitable. Flexibility requirements are crucial, as you may need the freedom to move frequently. Additionally, be aware of local laws and regulations governing leases in your chosen destination. Consider the amenities and services you require, such as reliable internet access. Lastly, if you require assistance with the physical move, experts from Affordable Reliable Moving Company California advise seeking advice from professional movers. They have the expertise and experience to handle the logistics of your move efficiently. Prioritize finding reliable movers who specialize in international or long-distance relocations. Research their reputation, read reviews, and compare quotes to ensure you get the best service within your budget. Communicate your specific needs to the movers, such as fragile equipment or time-sensitive deadlines. By entrusting the moving process to professionals, you can focus on other aspects of your digital nomad lifestyle, knowing that your belongings will be handled carefully and arrive safely at your new home. ![]() Discover the key factors to consider when choosing between renting a house vs. renting an apartment. Explore the advantages and disadvantages. When finding a place to live, one of the most important decisions is renting a house or an apartment. Both options have advantages and disadvantages, and choosing the right one depends on various factors such as budget, lifestyle, and location. This article will explore the key considerations regarding renting a house vs. renting an apartment. Overview of renting a house The first option offers several advantages when renting a house vs. renting an apartment. One of the primary benefits is the ample space and privacy it provides. Houses generally have multiple bedrooms, a living room, a kitchen, and often a backyard. This extra space is particularly beneficial for families or individuals who require more room for storage, hobbies, or entertaining guests. Additionally, renting a house often means accessing outdoor amenities such as a garden or a patio. If you enjoy spending time outdoors or have pets that need space to roam, this is a perfect solution for your new home. Moreover, renting a house allows for more customization options. Tenants may be free to paint the walls, hang pictures, or make other cosmetic changes, giving them a sense of ownership and personalization. However, renting a house also comes with some drawbacks. The rental costs for houses are generally higher than apartments due to the larger size and additional amenities. Additionally, tenants are typically responsible for maintenance and repairs, which can be costly and time-consuming. Considering these factors and assessing one's ability to handle the additional responsibilities associated with renting a house is essential. Overview of renting an apartment Renting an apartment has its own set of advantages. One of the most significant benefits is the lower rental costs compared to houses. Apartments are generally more affordable due to their smaller size and shared facilities. This makes them attractive to individuals on a tight budget or those looking to save money. Another advantage of renting an apartment is the access to shared amenities. Many apartment complexes offer a gym, swimming pool, or communal areas, which tenants can enjoy without extra expenses or maintenance. This can contribute to a more convenient and enjoyable lifestyle. Moreover, renting an apartment means that the landlord or property management usually handles maintenance and repairs. This can be a significant relief for tenants who do not want to deal with the hassle and cost of fixing things themselves. However, apartments also have their drawbacks. The limited space and lack of privacy can be a concern, especially for families or individuals who value their personal space. Outdoor areas are often limited or nonexistent, which can be disappointing for those who enjoy gardening or spending time outside. In this article, we will go over some practical tips to improve your rental safety and why you should consider them seriously. Embracing the joy of moving into a new rental property involves more than decorating your space. It’s crucial to make safety your priority. This article offers practical, easy-to-follow tips to improve your rental safety, ensuring that your exciting transition into your new home is secure and serene.
Understanding Your Rental Rights Kicking things off, it's crucial to acquaint yourself with your tenant rights. National and local rental laws exist for your protection, often covering aspects you might not consider. The lease agreement is a detailed document outlining your rights and responsibilities. Therefore, a thorough understanding of its terms becomes pivotal for your safety and peace of mind. It serves as your first step in building a secure rental environment. Importance of Proper Insurance The area often underestimated by tenants is insurance. A solid renter's insurance policy covers personal property loss and liability risks, extending a safety net during unexpected incidents. Even if it's not mandatory per your lease agreement, it's worth considering. This extra layer of protection can help you avoid potential financial pitfalls. Therefore, selecting the right insurance policy is integral to maximizing your rental property's ROI. Securing Your Rental Physical security measures form the next layer of your rental's defense. Implementing high-quality locks and alarms is essential. Technological advancements have brought about smart home security systems offering a comprehensive shield of protection. Regular checks and maintenance of these security measures will further fortify your rental's safety. Enhancing Outdoor Safety Outdoor spaces often get overlooked when discussing how to improve your rental safety. However, well-lit exteriors and clear pathways can significantly reduce the risk of accidents or unwelcome intrusions. If your rental property includes a balcony or a patio, ensure they are safely enclosed. Adding these areas to your security checklist extends your peace of mind beyond your interior walls. Fire Safety Ensuring your rental property is well-equipped to deal with potential fire hazards is important in transitioning to fire safety. This means functional smoke alarms and carbon monoxide detectors at suitable locations. Safe cooking, turning off heating equipment when not used, and keeping flammable materials at a safe distance significantly reduce fire risks. Fire safety isn’t an area for compromise; these steps can protect you and your possessions. Online Safety and Rental Scams In the era of digital transactions, online safety has become a significant part of rental safety. Protecting yourself from rental scams involves vigilant verification of information. Share your details with caution. Also, a secure Wi-Fi connection in your rental home prevents potential cyber threats. Balancing convenience with caution can save you from unnecessary troubles. Neighbourhood Safety Getting to know your neighborhood is another aspect that contributes significantly to your overall security. Our friends at Miami Movers for Less recommend familiarizing yourself with the local community, building connections with neighbors, and participating in neighborhood watch programs are effective ways to enhance safety. A safe neighborhood is not only a great place to live but also contributes to the quality of your life. Dealing with Maintenance Issues Maintenance issues in a rental property are almost inevitable. A key piece of advice here is establishing a good relationship with your landlord. It aids in the smooth and timely resolution of these issues. Prompt reporting of problems prevents them from escalating into bigger, more expensive repairs. Moreover, keeping a record of maintenance requests and responses serves as a reference and can be beneficial in the long run. Pet Safety in Rentals For those of you moving with pets, their safety also plays into your overall rental safety. Ensure your rental property is pet-friendly and safe. Secure balconies and windows, safely store toxic cleaning supplies and check the property for potential hazards. Happy pets contribute to a happier, safer rental experience. What to Do in Case of an Emergency Regardless of all safety measures, emergencies can still occur. Preparedness is key. Have a well-equipped emergency kit in your rental property. Know the quickest exit routes and have important contact numbers readily available. Effective communication with your landlord and local authorities can be crucial during such times. Moving to a New Rental Moving to a new residence involves more than just packing boxes and signing agreements. It's an opportunity to reassess your safety measures and plan for improvements. By integrating safety considerations into the moving process, you can not only relocate without troubles but also ensure that your new residence provides a secure and comfortable environment from day one. Safety Inspection Before Moving In Let's delve into the importance of safety inspections before moving in. Pay close attention to things to inspect before signing a rental agreement. This procedure safeguards your security and comfort in your new home. Robust locks on all doors and windows, a functioning fire safety system, and general property maintenance are crucial areas to assess. Take your time during this inspection. Documenting any pre-existing issues will help you avoid potential problems and strengthen your standing as a tenant. Home Safety Gadgets In addition to basic locks and alarms, several modern gadgets can improve your rental safety. Doorbell cameras, motion sensors, and smart lights can act as deterrence for potential intruders. Smart home devices can also alert you of unusual activity, letting you control your home's security remotely. The convenience and added safety make these devices worth considering. Child Safety in Rentals If you have children, their safety becomes another crucial aspect of your rental safety. Ensure that the property is child-proofed. Install safety gates, secure heavy furniture, and check for hazards like sharp edges or loose electrical outlets. A child-friendly rental keeps your little ones safe and lets you relax, knowing they are in a secure environment. ![]() Building good credit in college is one of the best financial moves students can make. Having good credit allows them to qualify for loans, rental applications, auto insurance, phone plans and can help them get a job. Being responsible with credit is the best way to establish and improve a credit score. For college students without much credit history, there are small but important steps they can take to build up their score. Obtaining a Student Credit Card Some credit cards are marketed to students and others who don’t have much borrowing history. Federal laws restrict issuing credit cards to anyone under 21 unless the applicant has the independent ability to repay debt or has an adult co-signer who accepts joint liability for the account. Student credit cards may have low credit limits, such as $1,000, but they are otherwise indistinguishable from other credit cards. They may even have features such as cash back, no annual fees and budget management tools. Using Credit Cards Wisely After getting a credit card, students can start using it slowly and for occasional, small purchases that can be paid for on time. This will help build credit history and help them stay out of debt. Students shouldn’t let a new card sit in their wallet. They must use it or risk the bank closing it due to inactivity. Putting small, recurring charges on it, such as a Netflix account or other website subscription, is an easy way to maintain use at a low cost. Students shouldn’t make any big purchases unless it’s an emergency. Having low debt levels on their credit card will allow them to have enough of a credit line available in an emergency, and will increase the credit utilization part of their credit score. Building Credit With Student Loans One of the last things college students want is to default on their student loans, as this affects credit. Borrowers should make at least the minimum payment each month and do it on time. They should borrow only what they need to go to school, instead of using the funds to buy a car or dine out. Once they graduate, they may want to consolidate their student loans to get a better interest rate. On-time payments and paying off student loans will improve the credit score over time. If students run into problems making payments, they should contact their student loan provider and ask for forbearance. Federal student loans also offer Income-Driven Repayment plans that base payments on a borrower’s income. The Federal Reserve increased short-term interest rates (known as the Federal Funds Rate) by 0.25% on February 1. This means the Fed Funds rate is currently 4.75%. The Prime Rate is based on the Fed Funds rate. The Prime Rate is set by large banks and is often used to determine the interest rates on lines of credit, credit cards, and business loans (see below). The formula for Prime is Fed Funds Rate + 3. This means the Prime rate is currently 7.75%. Here are four ways this could impact you:
It may seem like there’s always something going on as a homeowner, from silencing a squeaky hinge to unclogging a temperamental toilet. But many household problems can be easily fixed without calling a repair service.
A can of WD-40, a toilet plunger and a bottle of vinegar are great basics to keep on hand for easing sticky fittings, clearing the toilet and making short work of common stains. Here are some simple fixes for common home problems that even the non-handy can handle: Squeaky Floorboard Banish that annoying squeak by sprinkling a little talcum powder over the noisy area and brushing it into the cracks. Stained Tub Removed stubborn stains by combining equal amounts of cream of tartar and baking soda with enough lemon juice to make a paste. Rub the mixture into the stain with your fingers or a soft cloth. Let sit for a half hour, then rinse well with water. Stuck Sliding Windows Loosen stuck windows by spraying a little silicon spray lubricant (found at hardware stores) onto a rag, then wiping along the tracks, whether metal, wood or plastic. Dry and Worn Cutting Board Revive a worn board by warming a bottle of mineral oil (available at drugstores) in a bowl of hot water, then wiping the oil onto the surface with a soft cloth. Wipe off the excess four to six hours later. Scuffed Linoleum Take care of scuff marks by rubbing the spot with white toothpaste and a dry cloth, or spraying WD-40 on a towel and rubbing lightly. Later, degrease the area with liquid dishwashing soap and water. Poor Toilet Flush Before you call a plumber, look for the water valve behind the toilet, on the wall or the floor. Turn it counter-clockwise as far as you can. Once it’s fully open, the tank will get its optimal water fill and power up your flush. Torn Window Screen If tiny tears are letting bugs in, apply clear nail polish to any tiny holes. For larger rips or tears, look for new and effective screen repair patches at the hardware store. ![]() For $600 or so a year, plus a service fee of around $75 every time you ask for repair, a home warranty can be an inexpensive way to have peace of mind as a new homeowner. Home warranties cover breakdowns in a home, from HVAC systems to appliances. A broken water heater can be repaired within hours, but if it can’t be fixed, a home warranty can pay for a new one to be installed. For homeowners with an older house, they may want more things covered than a newer home would need—such as older appliances—and will likely pay more for it. If you just bought new appliances and have a manufacturer’s warranty for a year or more, you won’t need this coverage. You may be able to exclude new appliances from a home warranty to cut down on costs. Things that can be covered by a home warranty include ductwork, electrical, plumbing, dishwashers, refrigerators, ovens, stoves, clothes washers and dryers, and water heaters. Things that are unlikely to be covered include expensive items such as septic tanks, wells, heating systems, pools, garage doors, windows and doors, sprinkler systems, pre-existing conditions, and walls. Coverage for such items may cost more. Roofs may also be exempt, though some home warranty companies sell plans to fix leaking roofs. Consider Cost A big factor in deciding if a home warranty is worth buying is cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls. Contractors are screened and sent out by the company. To determine if a home warranty cost is worth it, start by learning how old your appliances and home systems are and if the original equipment manufacturer warranties still cover them. Find out what the expected lifespan of each item is to help you figure out if a home warranty is needed. Some home warranty companies require annual maintenance on appliances and home systems to keep the warranties valid. Some may ask how long you’ve had them. Don’t expect the home warranty company to pay for the annual maintenance of your appliances or home systems. Read the contract carefully to make sure that old appliances are covered in the home warranty. Some don’t cover old appliances, such as anything more than 10 years old. Any home, whether old, new or somewhere in between, will have things break sooner or later. Appliances and home systems only last so long. For $50 a month or so, a home warranty can provide peace of mind when things eventually fail. While world peace is a great idea, if you want to add a touch of calm to your life, begin with your bedroom. Your room isn’t merely the place to rest your head, it’s where you wake, and the vibe of your room can set the tone for the rest of your day. Below are five tips for bringing a peaceful vibe to your bedroom.
Choose calming colors. While red or orange may be your favorite fiery hue, when picking shades for your room, choose soothing, calm colors like light blue or a gentle gray. Pick minimal patterns. Keep the fun, funky patterns for the living room throw pillows. Busy patterns can make us feel crowded and overwhelmed, so minimize zany patterns in your sleep space. Clear the room of clutter. Create a sanctuary in your bedroom by keeping it clear of clutter, from laundry to oversized furniture. Spend a few minutes before bed each day storing any items you pulled out, close the closet doors, put the books back on the shelves and dive into bed with a clear head and space. Bring in nature. Houseplants can boost mood and pump more oxygen into the room. Choose a few easy-to-care for plants, like a fern or a ficus, and place them where you can see them when you wake. Select the right lighting. While blackout shades can be great for blocking disruptive light, it can also negatively impact your sleep patterns by keeping your body from waking at its natural time. Find a set of blackout curtains that filter light but allow you to wake in the morning naturally. THREE QUESTIONS TO ASK ABOUT YOUR HOME EQUITY LOAN ![]() The Internal Revenue Service has advised taxpayers that interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. Click here to view the announcement. Here are three examples from the announcement with updated dates: ARE YOU USING THE FUNDS FOR HOME IMPROVEMENTS? In January 2023, a taxpayer takes out a $500,000 mortgage to purchase a main home with a fair market value of $800,000. In February 2023, the taxpayer takes out a $250,000 home equity loan to put an addition on the main home. Both loans are secured by the main home and the total does not exceed the cost of the home. Because the total amount of both loans does not exceed $750,000, all of the interest paid on the loans is deductible. However, if the taxpayer used the home equity loan proceeds for personal expenses, such as paying off student loans and credit cards, then the interest on the home equity loan would not be deductible. IS THE LOAN ATTACHED TO THE RIGHT PROPERTY? In January 2023, a taxpayer takes out a $500,000 mortgage to purchase a main home. The loan is secured by the main home. In February 2023, the taxpayer takes out a $250,000 loan to purchase a vacation home. The loan is secured by the vacation home. Because the total amount of both mortgages does not exceed $750,000, all of the interest paid on both mortgages is deductible. However, if the taxpayer took out a $250,000 home equity loan on the main home to purchase the vacation home, then the interest on the home equity loan would not be deductible. ARE YOUR TOTAL BALANCES LESS THAN $750,000? In January 2023, a taxpayer takes out a $500,000 mortgage to purchase a main home. The loan is secured by the main home. In February 2023, the taxpayer takes out a $500,000 loan to purchase a vacation home. The loan is secured by the vacation home. Because the total amount of both mortgages exceeds $750,000, not all of the interest paid on the mortgages is deductible. A percentage of the total interest paid is deductible.
Congratulations on your mortgage refinance or home purchase closing! Here is a general overview of some information that may be helpful to you and your CPA as you prepare your 2023 tax returns (the return you'll file by April 2024).
POINTS PAID ON A HOME PURCHASE IN 2023 Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company to reduce your interest rate, you can deduct those points in the year paid… even if they are paid by the seller. Other fees in this section (application, underwriting, processing, etc.) are NOT tax-deductible. Only bonafide points are deductible if they are expressed as a percentage of the loan amount and paid in exchange for a lower interest rate. POINTS PAID ON A MORTGAGE REFINANCE IN 2023 Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company in exchange for a lower interest rate, you can deduct those points in the following manner:
PROPERTY TAXES (ACTUAL AND PRO-RATED) Closing Disclosure Page 2, Section F - Property taxes itemized in this section are generally tax-deductible in the year they are paid. However, property tax escrows in section G are NOT tax-deductible until they are actually paid by your mortgage company to the municipality (city, state, county). Keep in mind there's a cap of $10,000 in total state and local taxes (SALT) that you can deduct on your federal income tax returns. PRE-PAID INTEREST Closing Disclosure Page 2, Section F - Mortgage interest is calculated in arrears. This means that your monthly mortgage payment actually covers the month that just passed. For example, your February payment covers the interest for the month of January, your January payment covers the interest for the month of December, and so on. Oftentimes, when you refinance a mortgage or buy a new home, you “skip” a month’s worth of mortgage payments. That is why you sometimes pay "pre-paid interest" or “daily interest charges” in Section F of the Closing Disclosure. These daily interest charges cover the interest for the current month. If your mortgage interest is deductible, then the pre-paid interest that you pay in this section is also deductible (this will be included in the 1098 statement that you receive from your mortgage company). PREVIOUS YEAR POINTS NOT YET DEDUCTED You may be able to deduct the remaining portion of the original points paid on an old mortgage if you refinanced that old mortgage in 2023. For example, assume you paid points on a refinance transaction 3 years ago. You probably were not able to deduct all the points you paid in the year they were paid. Instead, you had to spread that deduction out over the 30-year life of your mortgage. So, assume you’ve deducted 3/30ths of those points so far, and you refinanced your mortgage again in 2023. You can now deduct the remaining 27/30ths of those old points that you have not yet deducted. PRE-PAYMENT PENALTIES A pre-payment penalty paid on an old loan would be deductible on your 2023 tax returns as long as the new loan was taken out from a different lender than the old loan. OTHER CLOSING COSTS Closing costs not mentioned above are not tax-deductible. However, they are added to your “tax basis” for purpose of calculating your capital gain when you sell the property. In other words, you may be able to reduce your capital gains tax (if applicable) when you sell the property in the future because your home purchase closing costs get added to your cost basis. DISTINCTION BETWEEN A QUALIFIED RESIDENCE AND AN INVESTMENT PROPERTY Everything mentioned above pertains to a mortgage transaction involving a primary home or vacation home that is elected as a “qualified residence” for tax purposes. If your transaction involved an investment property, see IRS Publication 527. STANDARD DEDUCTION AMOUNTS FOR 2023 TAX RETURNS:
![]() Opening mail from your credit card company is never fun. If it isn’t a bill or marketing letter, it’s often an update to the terms of the credit card agreement, including changes to the annual percentage rate, or APR, that determines the interest rate paid on revolving balances. Credit card interest rates are tied to the benchmark rate set by the Federal Reserve, so if you’re paying attention to what the Fed does then you might get an idea of upcoming increases. Or if you wait to receive a letter from your credit card company, the notification will usually come 45 days in advance, giving you at least one billing cycle to pay down your balance or find a better credit card. When You Won’t Be Notified However, you may not get such explicit notice if you incur a penalty APR for missing payments. The APR increase is immediate and is explained in the terms and conditions you originally received with the card. The contract will also list how you can get back to the original interest rate. Promotional rates are for a fixed period and you likely won’t get notified of when they’ll end. If your APR is variable and tied to interest rates set by the Fed, then you may also not be notified early. Your credit card company may notify you anyway, but it isn’t required. What to do About a Rate Hike If you receive a credit card rate increase notice, your best solution is to ask the bank to lower your rate. It just takes a phone call and can often get you a reduction if you have good credit history and always make payments on time. You can also shop around for a better credit card elsewhere—be sure to let your bank know of better offers that it should at least match. If you have a large balance, a balance transfer card can help you avoid the higher interest rate that’s coming soon. Balance transfer cards often offer 0-percent interest for a year or so, giving you time to pay it off before having to pay interest. The best solution is to pay your credit card balance in full each month to avoid paying interest. Not carrying a balance is one of the best things you can do to raise your credit score. If you’re nearing retirement and haven’t saved much for it, you’re not alone.
Forty-eight percent of workers age 55 or older say they have less than $100,000 in savings and investments, according to a 2016 retirement confidence survey by the Employee Benefit Research Institute. They may not want to rely on Social Security to fund their retirement. Social Security will replace 39 percent of pre-retirement income for the average worker retiring at 65, according to the Center for Retirement Research at Boston College. If you’re nearing retirement in 10 years or so, there are still some moves you can make to help ensure you’ll have enough money. Here are four ideas: 1. Save more This isn’t as easy as it sounds, but it’s the best way to lessen the gap. Federal law allows people 50 and older to “catch up” in retirement savings accounts by increasing the limits on tax deferred savings to a 401(k) plan of $24,000, and $6,500 to an IRA. If your children are out of the house and you’re no longer paying for college, put that extra money into savings. 2. Collect Social Security later Social Security benefits can be claimed at age 62, but waiting until you’re 70 can increase the monthly benefits by 8 percent for every year you wait when adjusted for inflation. Almost half of American workers file at age 62. Waiting can especially help married couples, giving a surviving spouse up to 100 percent of a deceased spouse’s benefit. 3. Work longer Working beyond age 62 helps in many ways. It gives you more time to earn money and contribute to retirement accounts, reduces how long you’ll need to rely on savings before taking Social Security at age 70, and delays claiming Social Security. Retirement at ages 65 or 67 is becoming more common, and online, part-time jobs can make working later in life easier. 4. Spending less in retirement A rule of thumb when saving for retirement is that 80 percent of pre-retirement income is needed to maintain your standard of living when retired. But that goal may be overstated. You may need as little as half of your pre-retirement income, based on data that people spend less over the course of retirement. You may take a few big trips when you first retire, but chances are you’ll spend less as you get further into retirement. Retirees can save money by moving to a smaller home or a less expensive location, and can save if they no longer have a mortgage. I hope you found this information helpful. Please contact me for all your real estate needs today! ![]() Children are often oblivious to the many dangers around them. Accidents in the home are a leading cause of injury and death among children. Here are a few ways to childproof your home and keep your little one safe. Potential Hazards Look at your home from a baby’s or toddler’s perspective. Ask yourself: What would catch my eye if I were low to the ground? Look for those things that your child would reach for, pull down, play with or put in their mouth. When babies are learning to walk, they grab furniture and bookcases for support. Many injuries and deaths occur each year when young children pull on furniture or televisions and the objects fall on top of them. Secure heavy objects to the walls to prevent this. Keep dressers and filing cabinets closed when you’re not using them. Cover sharp corners on furniture to prevent injuries if your child falls. Use childproof gates to keep your baby or toddler out of hazardous areas, such as specific rooms or stairs. Choose gates that are difficult to climb and do not have V-shaped openings, which can trap children. Open windows from the top or keep them closed. A screen is not strong enough to prevent a child from falling out of a window. Do not place furniture near windows because that can make it easy for a child to climb onto a windowsill. Children can be strangled by cords on blinds. Use window coverings without cords. Outlets are a common source of injuries. Children are tempted to play with them and stick objects in the openings, which can lead to electrocution. Use outlet covers with safety latches to protect your child. Store any medications, vitamins, cleaning supplies or other chemicals in cabinets with childproof locks to keep them out of reach. Properly dispose of any expired medication. Store the phone number for your local poison control center in your cell phone. A child can drown in just a few inches of water. Never leave a child unattended in a bath, even if he or she is sitting in a chair. Install a latch on the toilet’s lid to keep it closed. If you use a bucket of water for cleaning, never leave it unattended and dump it as soon as you finish. Always supervise a child using a pool or kiddie pool. Install smoke detectors throughout your house and check the batteries regularly. When your child is old enough, explain the dangers of fire and how to prevent accidents and injuries. Never allow a child to touch the stove. Put away any appliances that use heat, such as a hair dryer and curling iron, when they’re not being used. Look Around Your Home Your child will want to explore your house as soon as they’re able to crawl. Dangers are everywhere, and they will increase as your child becomes more mobile. Take the time to childproof each room in your home to prevent accidents. ![]() Like the generation it’s named for, millennial pink is all around us. It’s a fun, daring, sophisticated hue that isn’t exactly new, but lately seems to have caught the eye of legions of clothing and décor designers. Not quite salmon, not quite rose and a far cry from traditional Barbie pink—millennial pink can best be described as a soft, subtle pink with some gray tones and a slight hint of peach. It’s hard to miss if you’re browsing the racks for trendy clothes or checking out the newest paint colors. At your hardware or home maintenance store, check out Victoriana or Precocious by Benjamin Moore or Everything’s Rosy by Behr. If the hues appeal, and you’re ready to add their subtle vibe to your home décor, here’s few fun tips to maximize the color’s sunshine-like qualities: Mix it up. Paint the whole living room or bedroom pink, or paint just one wall pink and accent with white or other pale neutrals and a touch of black. Framing neutral artworks with simple black frames are a good way to help a pink wall sing. Add bolder pinks. Accenting millennial pink walls with deeper pink vases, lamps, bed linens, furniture and/or pillows can make the overall look of the room both relaxing and cohesive. Try it on a door. Want just a dash of millennial pink? Paint a door this color to create an eye-catching architectural statement without overwhelming the room. Switching out the hardware to something with a black or bronze finish can be a perfect punctuation mark. Use it as an accent color in your guest bathroom. You can add personality to a white bathroom with rosy pink towels, soap trays and other fun accessories. Try a blush pink for small accents, then top off the look with a few fresh pink blossoms in a pink vase to make the small space stand out. How does the gift tax work when using gift funds to buy a home?
$17,000 ANNUAL EXCLUSION The federal government gives each of us an allowance to gift anybody $17,000 per year without incurring any gift tax. This $17,000/year replenishes every year, and it’s $17,000 per person. So, theoretically, I could gift every person that I know $17,000 today, and then another $17,000 next year and the year after, and there would be NO gift tax. This $17,000 limit is up from $16,000 in 2022. $12,920,000 LIFETIME EXCLUSION What most people don’t realize, is that there’s a second allowance of $12.92mm! This is up from $12.06mm in 2022. In other words, let’s say that I want to give you $117,000. That’s $100,000 more than what I can give you out of my $17,000 annual bucket. That’s not a problem at all because I also have the $12,920,000 bucket. The $12.92mm bucket is called my “Lifetime Exclusion.” If I use any of it during my lifetime, I simply reduce my estate tax exclusion by that amount. So in our example, if I gift you $117,000, I would take $17,000 out of my annual bucket and $100,000 out of my lifetime bucket. My annual bucket replenishes each year. But my lifetime bucket does NOT replenish. In fact, I must reduce my lifetime bucket by $100,000, so now my lifetime exclusion is “only” $12.82mm instead of $12.92mm. Now, if my estate is less than $12.92mm, this would not be a problem at all, because my heirs would have no estate tax anyhow. However, if my estate is more than $12.92mm then my heirs would have to pay estate taxes on anything inherited above $12.92mm. In other words, the lifetime exclusion bucket is used for both gift and estate tax purposes. So every time I use it to not pay gift taxes, I’m also reducing my estate tax exclusion… that’s how and why the gift tax and the estate tax are related to one another. ADDITIONAL RULES:
Contrary to popular belief, mortgage interest is not always tax-deductible. Do you itemize your tax deductions? You cannot take the mortgage interest deduction if you are taking the standard deduction. In 2023, the standard deduction is $13,850 for single taxpayers, $20,800 for heads of household, and $27,700 for married taxpayers filing a joint return. (Please see a CPA for details.)Is your home a qualified residence? Mortgage interest is only deductible if the mortgage is attached to a "qualified residence". Taxpayers can generally deduct the mortgage interest on two qualified homes: one primary home and one vacation home. Is your mortgage classified as "acquisition indebtedness"? Your mortgage or home equity line of credit is considered "acquisition indebtedness" if it was used to buy, build, or improve a qualified residence. Generally, you can deduct the interest on mortgage balances up to $750,000 of Acquisition Indebtedness. Here are two examples:
$1MM ACQUISITION DEBT LIMIT ON PRE-2017 LOANS. Your acquisition debt limit is $1 million if you closed on your home loan prior to December 16, 2017, and the loan qualified as acquisition indebtedness at that time. You can keep that $1 million limit if you refinance that home loan as long as you do not increase the current balance on the loan. For example, if your current balance is $950,000, the new loan you’re refinancing into can’t be more than $950,000. This is also true when consolidating or refinancing a home equity loan or line of credit taken out prior to December 16, 2017, as long as you used that home equity loan to buy, build or improve a qualified residence. In that case, your combined aggregate total limit would be $1 million, whether you keep both loans separate, or whether you consolidate them into a single loan. DISTINCTION BETWEEN A QUALIFIED RESIDENCE AND AN INVESTMENT PROPERTY. Everything mentioned above pertains to a mortgage transaction involving a primary home or vacation home that is elected as a “qualified residence” for tax purposes. If your transaction involved an investment property, see IRS Publication 527. Number of the Week: $750,000 You can deduct the interest on mortgage balances up to $750,000. (If you follow the rules outlined above.) Source: Momentifi
Asphalt is a popular choice for paving driveways. It’s an environmentally-friendly material that can be recycled and is unlikely to cause damage to vehicles. Asphalt also lasts for decades and can enhance your home’s curb appeal, but eventually, it may show signs of wear or damage. If you notice any of these problems, they should not be ignored.
Visible Signs of Damage If your driveway is cracked in one or more places, you should have a professional inspect it. Even if the cracks don’t seem like a big deal, they can expand. A cracked driveway can cause damage to vehicles and increase the risk of a person falling and getting injured, particularly at night or when guests visit. Wear and tear from vehicles driving over asphalt can cause potholes as the ground becomes weak and cracks. If your driveway has several potholes, the surface may not be strong enough to support the weight of vehicles. Rain and water from melted snow can settle in the holes and cause them to expand, which can lead to serious injuries or damage to vehicles. If your driveway has potholes, it most likely needs to be repaved soon. If your driveway’s surface is uneven and covered with bumps, that means it has structural damage below the surface. Contact a professional to have the driveway inspected. Sometimes an old driveway will begin to crumble. If the pavement is eroding, that is a clear sign that the driveway needs to be repaved before the problem gets worse. Since asphalt is porous, it should be able to filter water and allow it to enter the ground below. If water is pooling or running off the driveway in a stream, that needs to be addressed as soon as possible. If it isn’t, you could wind up with a serious drainage problem that affects your entire property. Have Your Driveway Inspected The last thing you want is for a family member or visitor to fall and get injured on your driveway or to suffer damage to a vehicle. If you notice cracks, potholes, bumps, erosion or drainage issues, it’s most likely time to repave your driveway. That can be a significant expense, but it can prevent many more serious and expensive problems later. Even if there’s no visible damage to your driveway, there could be some that is hidden. The foundation may have broken down over the years, and you will see damage on the surface sooner or later. If your driveway was paved 20 or more years ago, or if you’re unsure of its age, you should have it inspected. A professional can let you know if it needs to be repaved. If it’s currently in satisfactory condition, it can still be helpful to know approximately how many years of use your driveway has left so that you don’t wind up with a costly and unexpected project. Credit card rewards can be a free way to travel and get cash back for your daily expenses.
But if you’re not paying your credit card bill in full when it arrives, then you’re paying interest and those free rewards are no longer free. That’s not a surprising fact, but it’s a top one to keep in mind when considering these four surprising facts about credit card rewards: A 1% reward Don’t expect to receive nearly in much in rewards points as you do in spending to get them. The typical reward point is worth about 1 percent of what you paid to earn it when you cash it in for airline miles, hotel room, cash back or any other reward. The lender expects that you won’t pay the monthly bill in full, and possibly late, meaning you’ll pay interest charges and late fees. That can make rewards points more costly. Remember the annual fee Rewards cards with annual fees usually offer better rewards than cards without them. But the fees can require you to spend a lot of money to make the rewards worthwhile. If the average rewards point is worth 1 cent, you’d have to spend $9,500 annually, or $791 per month, to offset a $95 annual fee. Annual fees can be worthwhile in other ways. A rewards credit card can offer rewards such as upgrades on flights and rooms, airport lounge access, and free luggage check-in. New cardholders may have the fee waived in the first year as an enticement to join. Rewards expire Look on your credit card’s website or in the agreement it mailed you, and somewhere in the fine print you’ll find details on when your rewards points expire. From 12-24 months is likely, though some may let you buy back points after they expire. Points drop in value If you don’t redeem points regularly, you could see them drop in value as airline frequent flier programs and other programs change their redemption requirements. You’ll likely get advance notice from the credit card company before any program changes are made. With a few months’ notice, you should have some time to redeem your points earlier than planned and get the most out of them. As with any financial product you pay for, be sure to read the fine print in the long, boring contract you get in the mail when the credit card is sent to you. It should explain in detail how its rewards points work. I hope you found this information helpful. Please contact me for all your real estate information needs today! WHEN IS INTEREST ON HOME IMPROVEMENT LOANS TAX DEDUCTIBLE? 1. THE IMPROVEMENTS MUST BE "SUBSTANTIAL."In order to deduct the interest on the mortgage as acquisition indebtedness, the IRS requires the project to be a "Substantial Improvement" that:
2. YOU HAVE A 24-MONTH LOOK-BACK PERIOD.If you are pulling cash out to reimburse yourself for improvements already made, those improvements must have occurred within the past 24 months in order to qualify for the acquisition indebtedness deduction. 3. YOU ONLY HAVE 90-DAYS AFTER WORK WAS COMPLETED.You must take out the mortgage or home improvement loan within 90 days after the work is completed in order to qualify for the tax deduction. The home acquisition debt is limited to the amount of the expenses incurred within the period beginning 24 months before the work is completed and ending on the date of the mortgage.
|
Isaac Conde
305 West Moana Street Suite C Reno, NV 89509 775-553-8805 B.S. 0143661 ROI
All
|