Posts Tagged ‘property taxes’

Are you somewhat confused by all the terms that real estate agents throw around like nothing?

Well don’t worry, I can assure you that you are in good company.

Lets get a few of the basics out of the way and then we can move on to some of the specifics.

One of the first things you have to understand is that there are several components to the overall rental rate that you ultimately end up paying. There is the rent that you pay the Landlord for the use of their space, but also as a commercial Tenant you will also pay for the following items; the maintenance of the overall building, the property taxes, building insurance and management of the property. (I know, I know, it doesn’t seem fair to be paying for the management and maintenance of someone else’s property, but that’s the real world, so get used to it!)

There are basically two types of rents that you will be quoted when searching for commercial space.

They are Gross rents and Net rents. They are two separate ends of the spectrum of what is included in the rent. Gross rent is an all in rent. A true Gross rent includes all of the above mentioned expenses (Property taxes, insurance, maintenance, management, utilities etc. etc.) and any other expense that might be particular to a specific property.

Net rent is a type of rent that includes nothing extra. Net rent is simply the amount that you are paying the Landlord for the right to use their space for a specified period of time. In a single tenanted property the Tenant simply pays for all additional expenses themselves. In multi tenanted properties such as office buildings or multi tenant retail malls the Net rent is commonly accompanied by Additional rent (Also called CAM/Tax which stands for Common Area and Maintenance plus Property Taxes).

The Additional rent covers the expenses mentioned above. The Additional rent is usually an estimated amount based on the previous years operating expenses. The total expenses for the property are added up and then divided by the rentable square footage of the building. The expenses are then allocated to each tenant proportionally to the amount of space that they have of the building. So if a building has 10,000 Sq Ft of rentable space, and a tenant has 1,000 Sq Ft retail store, then they would pay 10% of the total expenses. The Additional rent is quoted on a per Sq Ft basis as well.

In different parts of the country the rents may be quoted differently. In Winnipeg the rents quoted are usually quoted as a price per square foot per year. In other parts of the country they may be quoted as price per square foot per month. When in doubt, ask.

About the Author:

Harry Logan is a Commercial Realtor with RE/MAX executives realty in Winnipeg, Manitoba, Canada. Harry represents Buyer’s & Seller’s and Landlord’s & Tenant’s in all aspects of Commercial Real Estate including the Leasing and Sales of Retail Shopping Centers, Apartment Blocks, Investment & Income Producing Property, Industrial & Warehouse Space, Office Leasing and the Sale of Businesses.

He can be reached at 204-667-SOLD (7653) or through his website at http://www.WinnipegCommercial.com

This is not intended to be Legal or Tax advice. Please discuss these ideas with a competent advisor.

Author: Harry Logan
Article Source: EzineArticles.com
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When buying vacation homes overseas there are a number of points to consider and here we will look at the basics.

If you have already have an idea of where you will buy your vacation home overseas or you are just deciding where you should, the tips below will help smooth the buying process.

You vacation home overseas can provide you with a holiday home, valuable rental income and also an appreciating asset that could make you wealthy so lets look at how to buy your perfect vacation home.

1) Research Your Location Before Buying

You need to do research and this means visiting and getting a feel for the area you wish to buy your vacation home in and find out exactly what its like to be there. Once you have done this you need to research the following in relation to your real estate purchase

1. foreign ownership of real estate rules,

2. property taxes,

3. Stability of country and political considerations

4. Investment and rental potential

5. The overall quality of life you need to visit for a few days at least!

2) Get Assistance

Finding a realtor able to assist with your search for the perfect vacation home could save you time, effort and money in the long run.

Most realtors make commission from sales so keep this in mind when buying real estate in a country abroad be careful as many don’t have to be licensed and anyone can call themselves a realtor but get a good one and its money well spent.

A local agent will understand their property market in depth and will help you buy the vacation property that suits you and relieve you of a lot of work.

3) The Rate Of Exchange

When buying overseas keep an eye on the exchange rates that can go for or against you. Exchange rates vary all the time and can have a significant impact on what you can afford

4) Legalities

Legal considerations vary as do land registry systems. In many countries title deed transfers are not registered which can make it difficult to prove you won the property. Get a lawyer. Like a good realtor its money well spent. Legal matters are complicated in many countries so don’t try and do it yourself – get an expert on your side.

5) Protecting & managing your home

Have a local management company look after your home. They can ensure the property is safe and if you wish to rent your vacation home when you are not their they can advise.

With your vacation home overseas it’s a good idea to rent as properties left by themselves can be a temptation to squatters or thieves. Make you sure you have insurance and that your property is looked after.
6. Why Are you buying?

If you have a favorite area for your vacation home overseas fair enough, if you are still looking you may want to pick a country where capital appreciation on your vacation home can make it a valuable asset. You get to enjoy your vacation home and make somec capital growth as well!

A Popular destination

A popular destination for many years has been Costa Rica for buying overseas vacation homes and this country just 3 hours direct flight form the US has it all.

It’s a beautiful, stable, peaceful, friendly country.

With fantastic nightlife and adventure sports, it offers same rights as residents on purchase, is 70% cheaper than the southern US states such as Florida and offers huge capital growth potential as well as good rental income!

If you are considering buying a vacation home overseas then consider Costa Rica.

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For more info on all aspects of investing in overseas real estate visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html

Author: Sacha Tarkovsky
Article Source: EzineArticles.com
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Buying a home is a part of most people’s lives. It fits right into our finances with saving for retirement and health insurance. It is simply a part of our finances.

You can turn to a lot of places for advice when buying a home. You can talk to a realtor, a mortgage lender or even your family. But there are some tried and true personal finance laws that fit the home-buying situation perfectly.

Rule 1: Do your homework

It used to be that you were told to learn as you go. After all, the saying says that you only learn by making mistakes. Not true. Don’t feel as if you need to just go out and jump into a home because that is what you are expected to do. Take some time and do your homework.

If you don’t have the money and the time to devote to a home, then buying is not for you. Look at your finances, job situation, family life and goals when deciding what and when you want to buy. Don’t forget that owning a home is a big deal. You will not only have monthly payments, but you will also have insurance premiums, property taxes, utilities and possibly even PMI to tack onto the cost. Renting could be a better choice for right now.

Rule 2: Buy what you need

If you buy something just to tide you over, you might find that it doesn’t last long. Advisors will tell you to buy quality and for the long term when it comes to big ticket items. The same goes for a house. Yes, buy a small starter home if that is what you want and what your finances dictate. But unless it is a roomy home at a good price, you may have to move fairly soon. And all of the commissions and closing costs could be avoided by simply buying what you need now.

Rule 3: Fixed-rate is the only way to go

I know that you may be thinking that adjustable rate mortgages have the potential to go down in interest rate. Well, they can. But what will you do if it goes up? A fixed-rate mortgage gives you the security in knowing that what your payment is today, it will be tomorrow and twenty years from now. It’s not going to go up and throw your budget in the pit. If you have extra cash, go ahead and add it to your payment and get rid of that mortgage early.

What is the perfect term? It depends on your finances. But remember, you will own your home quicker, have more equity faster and pay less interest over time if you pay off your mortgage in 15 years versus 30 years.

Rule 4: Have a backup plan

If you haven’t noticed it now, you will. Things go wrong. Often. They just do. And you will be glad you have a backup plan when you are down to your last penny. I see nothing wrong with taking out a equity line of credit and not using it. Just tuck it away for an emergency. Don’t touch it until absolutely necessary. Or better yet — forgo the temptation and make sure that you save some emergency money. You will need about three months worth of expenses for safety’s sake. But if you aren’t a good saver, your home equity will be a good backup plan.

Rule 5: Take your time

Like rule number one, you should simply take your time and have everything lined up before you jump on in. Take the time to search for a home. Look at the neighborhoods, the market and the homes that interest you. The more you know, the better you will be at negotiating. There is no big hurry. There are plenty of homes out there. Dream homes are a dime a dozen, believe me. If they weren’t, so many people wouldn’t own homes.

It all boils down to being wise in your decisions. Look at your finances, goals and needs before you consider anything else. These factors are the necessities. The rest is just nice. By using your financial sense, you will find that homeownership is a natural part of life.

Martin Lukac represents RateTake Refinance Loan marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Consolidation help and you’d be surprised what we can do together.

Author: Martin Lukac
Article Source: EzineArticles.com
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It wasn’t so very long ago that the housing boom lured renters into homeownership. That trend is not changing. Rents are rising every year. In 2006 rents rose 4.1% nationwide.

Interest rates are beginning an upward creep and home appreciation is slowing. This gives landlords the upper hand and they are raising rents like crazy! Meanwhile, the real estate market is changing to a buyer’s market. If you are a renter who is tired of high rents and are thinking about buying a home, then now may be a good time to take a serious look at homeownership.

Just because sellers are offering incentives and interest rates are still low don’t jump into homeownership until you are really ready for it. Ideally, buying your first home should be a decision that you make regardless of what the market is doing. No one in real estate has a crystal ball, so they can’t know for a certainty what will happen in the next few months or the next year. Don’t take the advice of an eager real estate agent who only wants to make a sale. Approach the problem as if it were an important business decision. Never buy on emotion or because all your college friends are buying home. Wait until it makes sense for your finances.

Before you decide to buy there are several things you must get squared away ahead of time.

Make a budget and learn to stick to it

Owning your new home comes with a lot of expenses you do not have when renting. Money management skills are a must. You have to know exactly where you money is coming from and where it is going each month so you will know what you can afford. Just to make sure you have budgeted for a new home, find out how much houses are selling for in the area you want to buy and calculate your mortgage. Most real estate sites can provide this information. Once you estimate your mortgage payment, then factor in utility payments, homeowner’s insurances, property taxes, homeowner’s association fees, as well as higher commuting costs if you are going to be farther away from your job. If you cannot afford the increased expenses, it is not a good time to buy regardless of what the market is doing.

You have to have a reliable source of income

Buying a home is a long-term financial commitment, so you’ll need a consistent cash flow to cover your monthly expenses. If you are now in school, plan to return to school, have a small child, plan to have children, you will need to look at your future earning potential. If a couple can afford a house when both are working and a baby comes along and one has to quit their job, they are in trouble.

Have an emergency cash reserve

This is something so many people neglect. It is wise to have 3-6 months of cash in reserve in case of a lay-off, a serious illness or a natural disaster. With a reserve of cash, the pressure will be off until you can return to work.

Your credit report must be in good shape

While you don’t have to have perfect credit to buy a home, the higher your credit rating, the lower your interest rate will be and the lower your mortgage payments. If it needs cleaning up, then get to work on that. A couple of years before you buy, don’t make the mistake of missing payments or have any other black marks on your report. You want to look good for lenders.

Have your debts under control

If you have any outstanding debts, it is a really good idea to get them paid off. Lenders look at your debt-to-income ratio and your total payments, including your new mortgage payment, should not equal more than 38% of your total gross income.

Making a long term commitment

Are you ready to stay in one place for 3 to 5 years? Typically, that is how long you will have to keep the home to recoup your buying and selling costs. Selling before then means you will likely loose money. Also, if you have lived in the house for less than two years and you make a profit when you sell it, you will have to pay capital gains tax.

Karen Vertigan Pope writes for FindBuyers.com FindBuyers.com, a unique approach to home buyer and selling. At FindBuyers, we use a dynamic 30 point matching system that works much like a dating site. Go to FindBuyers.com FindBuyers.com to sign up for this service operating in the Washington DC and Mid-Atlantic areas. Our exclusive matching technology also allows for 2-way communication to whatever extent both parties desire, including the buyer’s or seller’s real estate agents!

Author: Karen Vertigan Pope
Article Source: EzineArticles.com
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Experts estimate that most people who use a Realtor will pay as much as 10% of your selling price in costs associated with selling. The cost of selling a home yourself can range from 4% to 8% of the selling price of your home. When you’re estimating your expected gains, remember that the cost of selling a home can be deducted from that figure for tax purposes.

To give you an idea of what the costs of selling a home in the current market are, take a look at the information below. We’ve included estimated costs based on a $250,000 home sale, as well as some tips for lowering or eliminating them to lower your overall cost of selling your home.

Sales commission

If you list your home with a Realtor, expect to pay 4 to 6% of the sales price, or $8,000 to $12,000 in real estate commission.

Tip: Shop around. Real estate commissions aren’t written in stone. A Realtor may be willing to accept less of a commission in a slow market, or you may be able to save money by contracting with a Realtor for specific services only rather than a contracted listing.

250,000

-12,000

238,000

Closing Costs

Taxes, both transfer taxes and property taxes, and legal fees associated with the closing and finalizing of your home sale will be 2% to 4% of your sales price, or $4,000 to $8,000.

Tip: Check the laws in your state. If you’ve prepaid your property taxes for the year, you may get a credit instead of a bill. There may also be other refunds on prepaid escrow costs for home insurance and other costs of selling a home.

238,000

- 8,000

230,000

Paying Off Your Mortgage

Whatever the remaining principal balance is on your current mortgage will have to be paid off upon the sale of your home. Just to keep things simple, let’s say that you still owe $50,000 on your current mortgage. If there’s a prepayment penalty, you’ll need to deduct that from your eventual sales price as well.

Tip: Ask your lender to prepare a payoff statement for you to check your figures. If there is a fee charged for the service, you can deduct it as one of the costs of selling a home.

230,000

50,000

180,000

Repairs to Your Home

The cost varies widely depending on the age of your home and how well it’s been maintained. At the very least, you should get a home inspection to identify any possible problems to avoid being surprised by them at closing. You should plan on paying about $300 for a home inspection.

180,000

300

179,700

Pre-Sale Facelift

Again, the cost varies with the work that’s needed to get the house looking its best. Conservative estimate: $300 for new paint, screws and hardware, carpet for living room floor and landscaping service

179,700

400

179,300

Moving costs

The cost of moving from one home to another are included in the cost of selling a home. It may be as little as $1000 to as much as $12,000 for a cross country move. Let’s be conservative again – $3,000

179,300

3,000

176,300

Other relocation costs

You may need to replace appliances, pay off school transfer or gym fees, or pay storage for your furniture. There are many unexpected costs of selling a home which may amount to nothing, or add up to a good chunk of change.

Even without adding in other relocation costs, you can see how the cost of selling a home can reduce your final cash gain. The good news is that most of those costs are deductible on your taxes.

Learn more at www.House-Selling-Pros.com.

Author: B Shelton
Article Source: EzineArticles.com
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The greatest American dream has always been of owning land. From the crossing of the Atlantic by brave Europeans, to the migrations of Western expansion, migrations into the cities, then out to the suburbs, and now into exurbia, Americans have a love affair with land. Now that you’re ready to purchase your own piece of heaven, and build your Dream Home, there are some things to keep in mind to make sure you don’t wind up with a cup full of heartache.

The first step in building a new home or buying an existing home is evaluating the site. Look at the topography of the site. Is it very steep; will you be able to get up a driveway in possible snow? What type of exposure is the site optimized for? Most home owners want southern exposure. It has a “warming” affect in the winter and makes for a nice bright home year round. So you’ll want to make sure the southern side of the site isn’t crowded with trees. Do your research on zoning regulations and restrictions. What are the set-backs? Are there any large developments planned for or applied for in the area? Consider the water table height and the drainage of the site. If the water table is too high, having a basement is a bad idea. If the drainage is poor you may want to select another site, or risk flooding. Are you in a flood plain or wetlands? Both are signs of a poor site. A good indicator is the number of pine trees on the lot. Pine trees avoid wetlands, and you should too. Find out where the utilities are regarding your site. Where’s the closest public sewer and water connection? Will you have a well and septic system? Where are the electric lines? Having a perk test done, and a well drilled can be expensive. If there is a well in place, find out how many gallons per minute it provides, to get an idea of how much water you’ll have on hand. Also consider the area the site is in. Are the schools good? Even if you don’t have children this will affect your re-sale value and property taxes. Are you close to a large city? Are there any restrictions on what you can build on the property? The most important part of buying a piece of land or a home is to get title insurance right off the bat. If you don’t, you may be liable for a previous owner’s misdeeds. If there are liens on the land or home, without title insurance, they’ll wind up becoming your responsibility. Make sure you update the title report and do a title search.

After you find a suitable site, it’s time to set the stage for construction. This includes meeting with an architect to design the house and draw plans, or you may choose to use pre-packaged plans provided by the general contractor; selecting a general contractor or builder (many people are opting to take on this duty themselves, but it takes a lot of effort and research, something we’ll be detailing in a future article); creating a construction agreement; and securing a construction loan.

Will you need an architect to design “custom” plans for your house, or will you be choosing plans from several choices your builder might already have, or will you be using pre-packaged plans from one of the many catalogs of building plans? If you decide to build a truly one-of-a-kind custom house, you’ll need an architect to help you design it and draw plans for it. This would include its overall orientation to your site as well as designing the interior layout and picking suitable building materials based on what you’re trying to accomplish. An architect will help you figure out the types of rooms you will require, their size, layout and function. If the house will serve later as a retirement place, make sure you provide for that in the original design. If you do a lot of entertaining, have numerous overnight guests, or like to make use of outdoor areas frequently, make sure your architect understands your needs and purposes. Interview several architects and find out the types, styles, and sizes of the houses they have designed.

Selecting your general contractor (builder) is a very important decision. Do not turn to the yellow pages. Word of mouth is a great way to find someone reliable and reputable. If you have friends in the area, see if they have any recommendations. Another option is to drive around the area in which you are planning to build to see if you like any of the homes there, or even if some are under construction. If you do, ask the owner who built it, or if a house is under construction, speak to the builder. Ask if you can contact the owner, or if he can have the owner contact you. Contact the local Home Builders Association for a list of builders and their qualifications. Many areas have local Home Shows which you can attend. Many planned communities require you pick a builder from a list of builders that build in their community. Once you have a list of general contractors, meet with all of them. This stage is almost like a first date. If you have instant misgivings about a person, it’s a good idea to find someone else to work with. Ask if they have a current builder’s license in their name and what their insurance limits are. Inquire as to whether they are bondable and to what limits. Find out how long they’ve been in business, and if they have experience in building the type and size of house you have in mind. How often will the builder meet with you to discuss his progress or any problems? Does he have a website from which you can monitor the progress of your house? Do not ask for references. Ask them for the contact information of their last three clients, so they can’t stack the deck with only sterling references. How long is their work guaranteed? Visit several of his houses that are 3-5 years old to see how they have held up. Talk to the owners. When you have a couple general contractors you like, it’s time to start asking for construction bids, based on your building plans.

A “construction contract” is put in place to protect you and motivate the contractor, so make sure it does. Critical points should include such things as what the penalties are for not meeting the agreed upon schedule; what happens if tools or equipment left on the site are lost or damaged; how does he secure the site during construction; who is responsible to get the building permit and paying the associated fee; what happens if someone is injured on the site; and what if you want to change something while they’re in the middle of building your house? Make sure the contractor provides you with his insurance certificate, names you as an additional insured, and has a valid workmen’s compensation policy. Ask the contractor for valid building licenses as required by each state. Having an attorney review the contract is a must and well worth it. There are plenty of sample contracts online to get you started. Many contractors will have their own skeleton forms to start with, but you may want an attorney to draft your own contract to make sure your concerns are covered.

There are two types of general construction loans; construction only loans, or construction-permanent loans which are applicable to people planning on staying in the home for two or more years, as most do. Regardless of what you choose, you should get a single-close loan. With a single-close loan, even if you get one loan for the construction and one loan for your permanent mortgage, they are considered one loan and you avoid having to qualify twice and pay two closing fees. Most loans are interest only until the construction is finished. Your lender will require documentation in many areas, including but not limited to, the builder’s license and construction contract, the plans for the home, the purchase contract, and a property profile.

You’ve purchased the site, designed the home, picked the contractor, signed a construction contract and arranged for a construction loan. Now, let’s make sure your money stretches as far as it can. The building stage is the best time to save money over the long term. Often, spending a little more money upfront can lead to huge savings down the road. One way to save money at first is to use pre-packaged home plans. If the area you’re building in allows it, bypassing the use of an architect to create signed and sealed documents can save you 10% of your total building costs! A way to save money through the life of your home, add re-sale value, and create a healthier environment for you and your family is to invest in a radiant heating system. Radiant heat comes up from the floors, either through water pipes, electricity, or air. Savings of up to 30% of your heating bill can be had, there’s no airborne pollutants such as dust and allergens common with forced air heating, and best of all, the floor is toasty on your feet. Maintaining air quality in your home has huge health benefits and will extend the life of your home. Make sure the humidity level doesn’t exceed 50-60%. Humid homes are hosts for mold and building rot. Pay attention to what building materials are used. Beware of interior plywood, particle board, and carpeting that emit gases after installation. Invest in an air-purifier. Incorporating design features in accordance with Universal Design standards will make your home easier to live in as you age, and add re-sale value. Visit, http://www.PlacesOfValue.com for a great article on Universal Design, entitled “How to Design a Home that Lasts a Lifetime”.

Based on today’s changing lifestyles, there are certain design features that are becoming very popular, and including them in your design will add value to your home. Some current design trends include; grander eat-in kitchens and omission of the traditional dining room. People are interested in open spaces where entertaining and family involvement flow from eating to living areas. Outdoor spaces are becoming more and more integrated into the living areas, because you can expand the living areas at lower cost, whether that be as a porch, deck, or patio. Bathrooms are also getting a facelift with “spa type” multiple head showers, higher larger toilets, and fancy jacuzzi soaking tubs. They’ve been transformed from their utilitarian purpose into a place to hang out and luxuriate. Many homes include workout rooms, home offices and home theaters. Today, time has become a scarce commodity. People are more interested in enjoying an active lifestyle than spending time maintaining their homes. Exterior finishes and outdoor elements that require little or no maintenance are preferred.

The process of building a new home can be one of the most daunting and rewarding experiences a person can have. Picking the site, and designing the home of your dreams and making it a reality can be achieved with the proper research and professionals, you just need to know where to look and what to watch out for. Now you’re ready to go! With planning and a bit of luck, you can live in the home you’ve always wanted and dreamed of!

Visit http://www.PlacesOfValue.com for more articles on best places in North Carolina and South Carolina, relocation made easy, top retirement communities, cost of living, and designing and building your Dream Home.

I’ve spent over 30 years finding the best real estate locations for major corporations. These companies have made hundreds of millions of dollars based on the locations I’ve selected.

I’m a professional real estate site locator and location analyst. During the last 5 years, I’ve been researching the growth of towns in North and South Carolina, for the relocation of my family.

I’ve studied hundreds of towns to find those areas which are still affordable, have a high quality lifestyle, and the potential for future growth.

My purpose is to share what I’ve found with you and help you find your Dream Place in the Carolinas.

Author: Bob Bencivenga
Article Source: EzineArticles.com
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