Buying a home is one of the single-most effective methods of building wealth over time, but it does not always come cheap. The price you ultimately pay for your home often far exceeds the asking price, and while some reasons why are obvious - such as the fact that you must pay interest on your loan - there are other fees involved that are less well-known. Some of these may include:
Purchasing a home is a huge step in anyone's life, and while it is extremely exciting, it can also be very stressful due to the various legal implications associated with owning property. There are several things one must keep in mind during the process of looking for and purchasing a home.
Leaving behind the rental market in favor of home ownership is a major decision, especially in New York City. When competition is high, buying a house or condo can not only be expensive, but it can also take time.
After you close on your new home you should apply for the NYS STAR tax credit with the New York State Tax Department. To be eligible to receive this Basic STAR credit, the home must be your primary residence and the total annual income of you and your spouse combined cannot exceed $500,000.00. New applicants will receive a check directly from New York State. (Previously owners received a school property tax exemption.) To apply, download an application at www.tax.ny.gov/star or call the STAR exemption office at (212) 639-7675.
Finding that right apartment, condominium or co-op unit in New York can be akin to searching for the Holy Grail. Once you find the property that meets your requirements for location, layout and price you may need a moment of silence to celebrate.
Internal Revenue Code Section 1031 allows owners of real estate investment property to sell their property and purchase new property with the proceeds of the sale while deferring the taxes which would ordinarily be due as a result of the capital gain realized on the sale. This is commonly known as a "1031 Tax Deferred Exchange", or a "Like-Kind Exchange". There are very specific rules which must be strictly adhered to for this vehicle to be successfully employed. However, if properly handled, the 1031 exchange can allow investors to legally defer the payment of capital gains taxes which would ordinarily be due on the profits realized from the sale.
The digital revolution keeps unfolding - bringing with it remarkably easy access to information that once required time-consuming trips to libraries or courthouses.
There is a new federal program administered by the U.S. Department of Housing and Urban Development recently launched to assist homeowners unable to make their monthly mortgage payments. However, any homeowner interested in applying to this program must submit their application no later than July 22, 2011. Therefore, time is of the essence and it is crucial to quickly review the eligibility requirements, and if you qualify for this program, apply immediately.
The downturn of the economy has drastically affected the real estate market and the ability of homeowners to stay current with their mortgage payments. Many individuals have lost their jobs, resulting in many homeowners not being able to make their mortgage payments. Homeowners have attempted to modify their loans or sell their homes in a short sale (A short sale is when a homeowner is selling his home for less than what is owed on the mortgage). Others have lost their homes in foreclosure.