|
Virginia Beach Second-home Sellers Pay For Tax Credits You have probably heard, last week President signed into law the Housing Rescue and Foreclosure Prevention Act. This is the most comprehensive housing bill to be enacted in over a decade. The bill is designed to help more buyers of Virginia beach real estate realize their dreams, as well as, boast the struggling housing and mortgage markets.
Up until the new legislation went into effect last week, homeowners could exclude up to $250,000 taxable profit on the sale of their home if they're single taxpayers and $500,000 if married filing joint returns. The catch being, they had to live the in house as their primary residence for two of the five years before it is sold. Many second home owners took advantage of this by moving into a property that was once a rental or vacation home, live there for two years prior to selling and benefiting from the tax-free profit. With the new legislation, owners selling on or after January 1, 2009 will have to factor out the period when the property was still a rental or vacation home and pay taxes on that portion of the profit. Here's an example courtesy of BankRate.com: Jim and Joan are in their 50s and next January buy a vacation home for $200,000. Ten years later, they retire, sell their old principal residence and make the vacation home their new principal residence. Fifteen years after that, Jim and Joan, now in their 80s, move to an assisted-living community and sell the vacation-turned-primary-residence for $700,000. That nets them a gain of $500,000. Under pre-housing bill statute, Jim and Joan wouldn't face any tax on the entire $500,000 gain. The new law, however, means that Jim and Joan can exclude only 15/25, or 60 percent, of the gain. That would give them $300,000 of nontaxable property sale profit and $200,000 upon which they would owe long-term gain taxes. As you can see, the new legislation significantly affects second home owners and their retirement strategies. The second home market has remained strong in the last few years, but this may change dramatically in the near future....something congress may not have intended. If you own Virginia Beach real estate and are in the middle of converting your second home to your main residence, you could be out of luck. If you don't have enough time left in 2008 to meet the two year lived-in rule and sell the property, when you do sell next year, you will pay. If your need to sell your Virginia Beach home before January 1, 2008, give us a call at 866-222-0158 #550. We will help you get the highest price for your Virginia Beach real estate before the end of the year! Get the current market value of your Virginia Beach home. Also read:
Below are some items to think about, courtesy of BankRate.com, before deciding to become a landlord:
In addition to extra tax advantages (on top of the regular deductions of mortgage interest and taxes), renting out your property might also allow you to continue to build equity in your old home at the expense of the renter. You might even be able to make a profit from the rent, if your expenses are low enough! If you are interested in buying or selling Virginia Beach real estate, please call us at 866-222-0158 #550. Request a complimentary market analysis of your Virginia Beach home!
Virginia Beach June 2008 Sales Statistics Residential sales in Virginia Beach dropped by 23 percent in June compared to June 2007, causing the average market time to increase 18 percent, from 55 days to 65 days. The median sales price decreased 7 percent, while the average sale price decreased 7 percent to $318,784.
What do these statistics mean for Virginia Beach real estate? It remains an excellent market for first time home buyers to get their feet wet. Market times have increased and prices have decreased, making sellers more negotiable. Search for all Virginia Beach real estate listings or get the current market value of your home.
Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. "The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy," he said. Furthermore, Yun said location has never mattered more than in the current market. "Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhoods exposure to subprime loans." Also read: Virginia Beach Real Estate: South Hampton Roads Market Trends Modest near-term movement is expected in Hampton Roads real estate sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of Realtors®. Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. "The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy," he said. Furthermore, Yun said location has never mattered more than in the current market. "Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhoods exposure to subprime loans." Let's take a look at the South Hampton Roads real estate market activity, including Chesapeake, Norfolk, Suffolk, Portsmouth, Smithfield, Isle of Wight and Virginia Beach real estate for this June. South Hampton Roads June 2008 Sales Statistics Residential sales in South Hampton Roads dropped by 27 percent in June compared to June 2007, causing the average market time to increase 18 percent, from 65 days to 77 days. The median sales price decreased 6 percent, while the average sale price decreased 7 percent to $290,741.
What do these statistics mean for South Hampton Roads and Virginia Beach real estate? It remains an excellent market for first time home buyers to get their feet wet. Market times have increased and prices have decreased, making sellers more negotiable. Search for all South Hampton Roads and Virginia Beach real estate listings. Also read: Virginia Beach Real Estate: South Hampton Roads Market Report May 2008 Before lending you a large sum of money to purchase a piece of Virginia Beach real estate, it is understandable that your lender will want to know a little bit about you and your ability to pay back the loan. If you are a first-time homebuyer, or if it has been a while since you last spoke with your lender, it is helpful to be prepared for some of the questions you may be asked and to have some responses in mind. Below are some general examples of questions you may expect to hear when applying for a home loan:
Outstanding debts • What recurring debts do you
have? • Credit
cards? <!--more--> Cash reserves and assets Down payment Loan purpose Property use • Do you plan to live in the house? • Is it investment property? Property type
• A condominium? In order to get the best possible interest rate and gain the trust of your lender, you will want to be able to prove that you've had steady employment (preferably with the same employer or in the same line of work) for two or more years. You also want to avoid making any major purchases before applying for a loan - if a lender sees that you've just purchased an automobile last week, your debt-to-income ratio goes up and your ability to pay down a home loan goes down. It is preferable to be making a down payment of at least 5% of the sales price with your own money and to prove that you have at least two months' worth of mortgage payments in the bank; however, there are many programs such as Fannie Mae that require much lower down payments. To learn more about investing in Virginia Beach real estate or for a referral to a reputable lender, please call us at 866-222-0158 #550 or visit ButlerTeamHomes.com. You may also begin searching the MLS! Also read:
Virginia Beach Real Estate: FHA Frequently Asked
Questions 1408 Bayberry Court S, Chesapeake VA for Sale
This Chesapeake VA home, located in Bayberry, has room for everyone with over 3300 sf ft with 4 bedroom and 3 baths in the main house and a 1 bedroom 1.5 bath in-law suite. In-law suite includes a fully applianced kitchen, bedroom with walk in closet and a generous living room and dining area. This house has been totally remodeled within the last four years include a 3 zone heating and air system, vinyl siding , windows and roof. This truly is a move in home with nothing left for you to do but enjoy! The fenced in back yard has an above ground pool and patio with plenty of grassy area for all your outside enjoyment. For more information about this Chesapeake VA home for sale or Chesapeake and Virginia Beach real estate, visit ButlerTeamHomes.com.
Banks are not in the business of owning Virginia Beach real estate and are motivated sellers. Often, you can get a decent price for a foreclosed property, but here is what you need to know before you shop. These tips will save you time, money and lots of headaches! According to RealtyTrac, lenders repossessed 28 percent more homes in May than April 2008 and 158 percent more than May 2007.
Here's what you need to know. 1. Search the Internet The Internet can help you locate foreclosed homes. You can search national websites, such as Foreclosures.com, ForeclosureListings.com, ForeclosureNet.net or RealtyTrac.com. These sites have Free Trial periods, but then require a subscription. Or, you can search locally at no cost and even sign up to have a list of foreclosed properties emailed to you as they come on the market. 2. Use a Realtor Getting a lender to deal with you directly is like pulling teeth (lenders typically deal only with pros) or at auction (you may get caught up in the excitement of the moment and bid more than you should). Work with a Realtor who knows the ins and outs of working with the banks. The majority of the time the banks use Realtors to sell their homes and are used to working with them. Once you've identified which properties are foreclosed REO (Real Estate Owned or bank owned), you'll know those are the ones for which less than stellar offer is more likely to be accepted. You'll get the best deal with houses that have been on the market for over 90 days. 3. Keep an Eye on Repair Costs Bank-owned houses typically need a lot of work. People facing foreclosure usually have other things on their minds and maintenance is not a top priority. Many take appliances and fixtures with them when they leave and often take other frustrations out on the house....meaning causing damage for damage sake. Never buy a foreclosed property without an inspection, and be sure to factor repair and remodeling work into your offering price. It is a good idea to present your repair estimates to the bank with your offer, so the bank understands where you are coming from on your price. We have helped numerous families buy foreclosed properties, negotiating excellent deals with the banks. But foreclosures are not for everyone. You have to be prepared for the sweat equity that will be involved. If you think buying a foreclosed house is right for you or you at least want to explore the possibility, contact us at866-222-0158 #550or Info@ButlerTeamHomes.com. We are glad to help! Also read: Search all Virginia Beach real estate foreclosures!
Chesapeake Real Estate Market Report A modest gain in the level of home sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®. The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It's the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5. Let's take a look at the Chesapeake real estate market activity to see how the spring market is shaping up. Chesapeake May 2008 Sales Statistics Residential sales in Chesapeake dropped by 14 percent in May compared to May 2007, causing the average market time to increase 30 percent, from 63 days to 82 days. The median sales price decreased less 5 percent, while the average sale price decreased 4 percent to $282,514.
What do these statistics mean for Chesapeake real estate buyers and sellers? Chesapeake residential sales have not started to pick up, which means more inventory for buyers to choose from and motivated sellers. Also read: To learn more about Chesapeake and Virginia Beach real estate, please contact us at 866-222-0158 #550 or visit ButlerTeamHomes.com and AllVirginiaBeachRealEstate.com. Search all Chesapeake and Virginia Beach homes for sale. Find out what your home is worth.
Virginia Beach Real Estate Market Report A modest gain in the level of home sales is possible over the next couple months, and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®. The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It's the highest index since last October, but remains 13.1 percent lower than April 2007 when it stood at 101.5. Let's take a look at the Virginia Beach real estate market activity to see how the spring market is shaping up. Virginia Beach May 2008 Sales Statistics Residential sales in Virginia Beach dropped by 25 percent in May compared to May 2007, causing the average market time to increase 323 percent, from 51 days to 74 days. The median sales price decreased less than 1 percent, while the average sale price increased 9 percent to $338,609.
What do these statistics mean for Virginia Beach real estate buyers and sellers? Virginia Beach residential sales have not started to pick up, which means more inventory for buyers to choose from and motivated sellers. The good news for sellers is Virginia Beach real estate fared better than South Hampton Roads with a 9 percent increase in prices compared to a 2 percent increase for the region as a whole. Also read: To learn more about Virginia Beach real estate, please contact us at 866-222-0158 #550 or visit ButlerTeamHomes.com or AllVirginiaBeachRealEstate.com. Search all South Hampton Roads and Virginia Beach real estate homes for sale. Find out what your home is worth. Statistics compiled from Real Estate Information Network. They are deemed reliable, but not guaranteed.
Honolulu, HI took #1 place honors, while Clarksville, TN came in last. The survey considered schools with favorable student-teacher ratios, above-average test scores, and respectable budgets. Also looked at were the number of museums and parks, commute times, housing costs and number of divorced families. Data from the U.S. Census Bureau, National Center for Education Statistics, FBI, American Association of Museums, National Center for Health Statistics, and American Bar Association was also used to evaluate 257 cities. Other honors for Virginia Beach include:
Being recognized nationally not only reinforces what we locals already know, but is also a boom for Virginia Beach real estate. National attention puts Virginia Beach on peoples' radar for possible relocation, creating more demand for housing and keeping Virginia Beach real estate values up. If you are considering relocating to Virginia Beach, you can search all Virginia Beach real estate for sale or get a list of new homes for sale as they hit the market...automatically and for FREE! For all other Virginia Beach real estate information, visit ButlerTeamHomes.com. Also read:
|
Dave Macklin Virginia Beach, VA More about me… RE/MAX Allegiance Office Phone: (757) 490-7300 Ext.: 302 Cell Phone: (757) 237-2751 Email Me
RE/MAX Allegiance Realtor specializing Virginia Beach real estate, homes for sale and market trends.
;) Links;) Tags (Tag Cloud);) Archives
|
One of the biggest benefits, and probably one of the most talked about provisions in this legislation, is the $7,500 tax credit to first time home buyers. Tax breaks are all well and good, but they have to be paid for somehow. While first time home buyers are getting a break, second home sellers will be paying for the $15.1 million dollars in tax cuts.
With Virginia Beach real estate sales slowing a bit for the summer, many sellers are left wondering if they may be better off renting their home out for the time being until market activity picks back up. If you have already purchased another home, this option is especially attractive as it allows you to cut down on the expense of paying two mortgages while you wait for your home to sell.
Modest near-term movement is expected in Virginia Beach real estate sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the 
Employment and income 
Although banks don't want to be in the real estate business and will sometimes accept ridiculously low prices to get rid of their inventory of foreclosed homes, buying such properties has drawbacks.
It is no surprise to those of us who live here, that Virginia Beach is a great place to raise a family. Best Life Magazine agrees, ranking Virginia Beach #2 in its 
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved
