Archives for October 2020

Exterior Upgrades to Refresh Your Home

October 31, 2020 by chorton Leave a Comment

When it comes to owning property, it’s the tiny details which make all of the difference. There are small, easy, and cheap things you can do to make your house a more pleasant place to live in and consider. Or, if you choose to go large, some shrewd investments may make your house both look better and increase its value.

However big or small your budget is, this guide will provide you a few suggestions about the best exterior upgrades to refresh your home’s outside and make it appear nicer and more precious than before.

Get a brand new mailbox

When considering repainting the outside of your home, the mailbox is frequently overlooked. However, consider how much spice just a fresh coat of paint brings to a old rusty mailbox.

You can either repaint the existing mailbox or build a brand new one from scratch. If money is too tight, there’s absolutely no shame in buying a new one.

Paint the front door…

Another thing that can be freshened up by a new coat of paint is your front door. This is a very simple DIY project which may be finished within a single weekend.

Just remember that the style of your residence and the overall aesthetics you are going for, and you’re ready to go.

…Along with the deck, too

Now that you have the entire vision of how your home will look and the whole color palette in your mind, show your deck or porch some love, also.

As it’s totally open, a deck may benefit from a fresh coat of paint more than the usual porch. Additionally, if you like the weathered appearance and patterns, you could just go over it with some very clear color and maintain the look you’re used to.

Update your house numbers

Updating your home numbers is yet another way for you to rejuvenate your house’s exterior without costing too much. Head to your regional arts and crafts store and find beautiful wooden or metal numbers for a quick DIY project.

A brand new home number is a excellent way to maximize your home’s curb appeal.

Add some lights

This is an update that will be visible only during the nighttime , but a well-placed mild or 2 (or six) can make the appearance of your house pop.

Add soffit lights to highlight the house’s design, floor lights to accent trees or high bushes, and a few porch lighting to make a welcome glow near the front doorway. Look at adding light near your house’s number sign, too.

Make the place more flowery

Flowers make everyone happy and create your area prettier. A pleasant, well-maintained flower garden will make your home stand out from the remainder.

If you aren’t that into gardening, a few permanent planters at the front of the house can be enough to do the trick. Planters provide a four-season opportunity to decorate the outside with timely color and accents. Besides, those planters’ color can be exactly what you need to add some spark and personality to your home.

Upgrade and update the rainwater products

However, replacing the constant spouting, downpipes, and rainwater heads may bring a completely new look for your house’s exterior.

The one thing that you ought to pay extra attention to is the longevity of the materials that you select. Cast iron has a mean lifespan of 50 decades, PVC 30 decades, aluminum 40 decades, zinc 50 decades, and lumber, based on the species, will last on average for 40 years if it’s been maintained correctly.

Go green

Another investment which will bring you benefits for many years to come is spending money on a green addition to your home.

Update your outside home with eco friendly amenities like a green roof with vegetation or get solar panels and landscape lighting powered by solar energy and reclaimed materials for your home’s exterior. These add-ons may add value to your home.

Add a bird feeder

Here is another economical yet efficient way to make your area more lively. Add a bird feeder for the birds to visit near a kitchen or living area window, and it will brighten your day.

If you’re crafty, construct it by yourself, or think about buying a bird feeder. Should you search for one, hunt for an alternative that has anti-squirrel capabilities.

Install a leading door kick plate

A kick plate includes a wide strip of glistening metal positioned horizontally across the bottom edge of a front door to protect it from scratches, kicks, and puppy paws.

Replace your old kick plate using a fresh one, or put in a kick plate if you haven’t used one before. They are decorative as well as functional.

If it comes to choosing the material for your own kick plate, brass is the conventional choice, but nowadays pewter and antique bronze are popular choices.

Think about placing a log cabin into your backyard

If you’re interested in a way to add some critical value to your property, consider adding a small log cabin to your lawn.

Log cabins make for a wonderful home office or a home gym. They are also a wonderful way to add extra rooms to your place without creating a significant investment. On the other hand, when and if you choose to sell your house, it is going to boost its total value and marketability, even when prospective owners elect to use it like a tool shed or plain storage space.

If you are thinking of selling your home in Stephenville after these refreshers are done then check out this post about get your home ready for sale. Then when your ready to sell contact Preferred Properties of Texas.

Finding Land: Where to Start and What to Look For

October 31, 2020 by chorton Leave a Comment

Finding Land: Where to Start and What to Look For:

article original posted on landthink.com

If you’re looking to purchase rural land for sale, there are many options throughout all parts of the United States. Many people want to buy land to build a home. Some urban dwellers may be looking for a safe place to retreat, while other people want land for farming or hunting and recreational use. It can be hard to find good land at a good price that also checks all the boxes, but it’s not impossible if you know where to look.

In many places, land for sale may be plentiful but not necessarily cheap. Texas, for instance, has some of the best land in the U.S., but its prices have risen over the years. In Texas, you can find land that spans just a few acres, as well as land that stretches for a couple of square miles (Waggoner Ranch anyone?). Population may be a key factor for some land buyers, and populations throughout Texas can range anywhere from a couple hundred people to a few million in the larger cities.

There are lots of options when it comes to land for sale in the Lone Star State and elsewhere. Here we’ll consider some of the more important aspects of finding land, including where to start and what to look for.

Find a Local Agent to Find Land

The United States is a beautiful country with many regions and diverse geographical features, including forests, mountains, lakes, deserts, canyons, plains, and coastal areas. Each has its own unique circumstances that are independent of how one might go about buying property in that area, including different issues that may arise in the transaction process.

Once you have a good idea of where you want to look for land and what your requirements are, you should reserve the services of a local agent who specializes in land. Much like politics – real estate is local. It’s acceptable to use broad resources such as the internet to begin your search, but once you get serious, you need to find an agent that knows the area and the land you are most interested in purchasing.

Location & Utilities

Location is always important to consider when buying land, but in relation to that, so are utilities. Most people think that getting utilities such as electricity, water and sewer to their property is a given, though this is often not the case when purchasing rural land. You may need to speak with a neighbor about getting an easement across their property for your electricity. As for water, different counties will have different requirements for well and septic, including where those necessities may have to be placed in relevance to other wells and structures. Be sure to consult with your local land agent for guidance.

Easements

With the mention of utility easements, I must bring up another important issue that many landowners face, which is the existence of easements currently on their property. Easements are varied in how they operate on the land. I’ll again use Texas as an example, which is a major energy producing state. As such, there are pipelines and high voltage transmission lines criss crossing much of the state. Pipelines are not all bad and can produce incremental income for the landowner, but at the same time they can restrict what you may be able to do on certain parts of your land. More importantly, in the state of Texas, major pipelines that transfer energy resources also have the right to claim eminent domain and when this happens, things may get contentious.

It is often said that once they lay one pipeline, they will lay another. When searching for land, be sure your agent does his research and notifies you of any easements currently on the property and what impact they may have.

Mineral Rights

As with easements, another potential issue that can arise in a land transaction is one involving mineral rights. Landowners can reserve the mineral rights on property that they decide to sell. When this happens, the buyer may own the newly purchased land, but the previous owner still owns the subsurface or liquid minerals and the rights to negotiate the exploration of the land in order to access and produce those subsurface minerals. This practice is now starting to extend into reservation of wind and commercial water usage on properties as well.

The negotiations into such matters can get complicated and at times strange, where certain subsurface depths and locations that are under current production may be reserved, while other areas of the subsurface end up conveying with the transaction. It can be very helpful to have a land agent that understands these things and is able to guide you through these situations.

Size & Terrain

Depending on your intended use, size and terrain are important things to consider when buying land. You may find a great piece of land in an area that doesn’t have a lot of trees, but that doesn’t mean trees can never be grown there. Maybe you’re considering buying a piece of land for a vineyard or orchard. Maybe you’re interested in having pasture land for livestock or food plots for wild game. Whether you’ll be growing wine grapes, peaches, grass or soybeans, you should first determine whether the size of the land is right for its use, and then consider the ways you may need to improve the terrain and ensure the soil will be rich with the right nutrients.

Finding Land at The Right Price

When it comes to making sure you pay the right price for a piece of land, an experienced and knowledgeable local land agent is your friend. I cannot stress this enough, as there is a huge difference between selling a million-dollar home in New York City and selling a million-dollar ranch in West Texas. Finding comparable properties is not always readily available, which makes it difficult to determine how much money land is selling for in a particular area. In these circumstances, a well-informed agent will be able to provide you with their professional opinion, as they will be up-to-date on the recent prices people have paid for properties, both on and off market, that are similar to the one that you are interested in.

Finding land for sale that is going to fit your needs and preferences will be easiest if you do your research and use an agent who knows where to look and what to look for. You may not find the perfect property that checks all your boxes, but keeping an open mind will help you find a great piece of land that checks most. And while it can be difficult to determine whether a piece of land is worth the price you are willing to pay, it will always be worth the effort it serves your needs and brings you joy.

1031 Exchange Rules

October 30, 2020 by chorton Leave a Comment

The word, which receives its title from IRS code Department 1031, is bandied about by realtors, title companies, shareholders, and soccer moms. Some individuals even insist on making it into a verb, as in:”Let us 1031 that construction for a different.”

IRS Section 1031 has lots of moving parts that property investors must know before trying its usage. A market may only be made out of like-kind possessions and IRS rules restrict use with holiday properties. Additionally, there are tax consequences and time frames which might be debatable. Nonetheless, if you are thinking of a 1031–or are simply interested –here is exactly what you ought to know more about the rules.

Even though most swaps are taxable as earnings, if yours fulfills the needs of 1031, you will either don’t have any taxation or restricted tax due at the time of this trade.1

In effect, you are able to change the kind of your investment with no (since the IRS sees it) cashing out or realizing that a capital profit . This allows your investment to continue to develop tax-deferred. There is no limitation on how many times or how often you can perform a 1031. It is possible to roll over the profit from 1 part of investment property to another, to another, and yet another. Even though you might have a gain on every swap, you prevent tax until you sell for money several decades later. Next, when it works out as intended, you will pay just 1 tax, which in a long term capital gains rate (currently 15 percent or 20 percent, based on earnings –and 0 percent for some lower income taxpayers).2

Most trades should only be of”like-kind”–an enigmatic term that does not mean exactly what you think it means. It is possible to swap an apartment building for raw land, or even a ranch to get a strip mall. The principles are amazingly liberal. You may even swap 1 company for one more.

The 1031 provision is for investment and business real estate, even though the principles can apply to a former main residence under particular conditions.3 There are also ways that you may utilize 1031 for swapping holiday houses –more on this later–but this loophole is a lot narrower than it was.

To be able to be eligible for a 1031 exchange, the two properties have to be found at the U.S.

Particular Rules for Depreciable Home
It may activate a profit called depreciation recapture that’s taxed as regular revenue .4 Generally if you swap a single construction for a different construction you are able to stay away from this recapture. But if you exchange enhanced land with a construction for unimproved land with no construction, the depreciation you have previously maintained on the construction is going to be recaptured as ordinary income.

Such issues are why you want professional assistance if you are performing a 1031.

Under the law, just property qualifies.5

It is worth noting that the TCJA total expensing allowance for certain tangible personal property might help compensate for this shift to taxation law.6

The TCJA comprises a transition rule which allowed a 1031 exchange of qualified private property in 2018 if the initial property was offered or the replacement property obtained by December 31, 2017.7 The transition rule is particular to the citizen and didn’t allow a reverse 1031 exchange in which the new land was bought prior to the old land is sold.

Classically, a market involves a easy swap of one home for another involving two individuals. However, the probability of finding someone with the specific property you need who wants the specific property you’ve got is slender. Because of this, the vast majority of exchanges are delayed, three-party, or Starker exchanges (called for its initial taxation case which enabled them).8

In a delayed exchange, you want an experienced Realtor (middleman) that retains the money after you”sell” your house and uses it to”purchase” the replacement house for you. This three-party market is treated as a swap.9

There are two main timing rules you need to observe at a delayed trade:

The first relates to the feasibility of a replacement house. When the purchase of your house happens, the intermediary will get the money. You can not get the money, or it’ll spoil the 1031 therapy. Additionally, within 45 days of the sale of your house, you have to designate the replacement house in writing about the intermediary, specifying that the house that you would like to obtain.10 The IRS says it is possible to designate three possessions provided that you finally close on among these. You may even designate over three when they fall within specific valuation tests.9

The next time rule at a delayed trade relates to closure. You have to close on the new home within 180 days of the sale of this old.10

Both time periods run simultaneously, so you get started counting as soon as the sale of your house closes. If you designate a replacement house just 45 days after, as an instance, you will have only 135 days left to shut on it.

Tax Implications: Money and Debt
You might have money left over following the intermediary acquires the replacement property. If this is so, the intermediary will cover it to you in the conclusion of this 180 days. That money –called”boot”–will probably be taxed as partial sales proceeds from the sale of your house, normally as a capital profit.11

One of the chief ways people get into trouble with those trades is neglecting to think about loans. You have to contemplate mortgage loans or other debt on the home you relinquish, and some other debt on the replacement property. If you do not receive money back, however, your accountability goes downthat, too, will be treated as income to you, exactly like money.

Suppose you had a mortgage of $1 million over your old home, however your mortgage to the new home you get in exchange is just $900,000. You’ve got $100,000 of profit that’s also categorized as”boot,” and it’s going to be taxed.

1031s for Holiday Homes
You may have heard stories of taxpayers that used the 1031 provision to exchange 1 holiday home for yet another, possibly even for a home in the place where they wish to retire and Section 1031 postponed any recognition of profit. Afterwards, they moved to the new home, made it their main home and finally intended to utilize the $500,000 capital-gain exclusion. The exclusion permits you to market your main residence and, along with your partner, protect $500,000 in funds profit, provided that you have lived there for a couple of years from the previous five.12

In 2004, Congress cautioned that loophole.13 Yes, taxpayers could turn holiday homes into rental properties and also do 1031 exchanges. Case in point: You quit using your shore house, rent it out for six months or annually, and then swap it for a different property. If you receive a renter and conduct yourself in a businesslike manner, you have probably converted the home to an investment property, which ought to create your 1031 exchange OK.

But in the event that you only offer it for rent but not really have renters, it is likely not allowable. The truth will be crucial, as is the time. The more time that elapses once you convert the house’s usage to leasing the greater. Even though there isn’t any absolute benchmark, anything less than half a year of bona fide leasing use is most likely insufficient. Annually will be better.

If you would like to use the house that you swapped for as your new moment or perhaps primary house, you can not move in straight away. In 2008 that the IRS put forth a safe harbor rule, below that it stated it Wouldn’t question If a replacement house qualified as an investment land for purposes of Department 1031.14 To fulfill that safe haven, in each of both 12-month periods immediately after the market:

You need to lease the dwelling unit to a different person for a Reasonable lease for 14 days or more15
Your Personal usage of the home unit Can’t exceed the greater of 14 days or 10 percent of the Amount of times throughout the 12-month interval the home unit is rented at a reasonable rental.15
Additionally, after successfully swapping one holiday or investment property to another, you can not instantly convert the new home to your principal residence and make the most of the $500,000 exclusion.11

Before the legislation was changed in 2004, an investor could transfer one lease house in a 1031 exchange for another rental house, lease out the brand new rental house for a period of time, move in the home for a couple of years and then sell it, even benefiting from exclusion of gain from the sale of a primary home. But if you get property in a 1031 exchange and after try to market that property as your main residence, the exception won’t apply throughout the five-year phase beginning with the date that the land was obtained in the 1031 like-kind market. To put it differently, you are going to need to wait a lot more time to utilize the primary-residence capital-gains tax break.

The Main Point
A 1031 exchange may be used by informed property investors as a tax-deferred strategy to construct wealth. The many, complicated moving components not only need understanding the rules but also enlisting skilled help–even for experienced investors.

If you are wanting utilize the advantages of a 1031 exchange and would like to buy Texas Ranch Land for Sale then read this post about why you should work with a Realtor

Check Out Our Latest Newsletter

October 30, 2020 by chorton Leave a Comment

https://newsletter.homeactions.net/archive/newsletter/14759/7073108/2198683

Your Mortgage Lender Will Be Asking You Questions

October 29, 2020 by chorton Leave a Comment

You’ve found the home of your dreams and are prepared to take another step — taking out a home mortgage. Your mortgage lender will be asking you a lot of questions which you will want to get ready for. Have a look at those 5 loan program questions you ought to be all set for when it is time to apply for a mortgage for your new residence.

Where’s the evidence of income?

You’ll have to earn two decades’ worth of earnings documentation to apply for financing. You’ll also have to disclose different kinds of income like child support or alimony.

Which are the outstanding debts?

More debt means you’ll need to pay a higher rate of interest. The ordinary debt-to-income ratio limitation on many mortgage loans is approximately 43%.

What’s your credit rating?

Before beginning the home buying process, you must check your credit rating. Before you approach a lender, ensure your credit rating is in great shape by obeying any discrepancies on the accounts and paying off the debt which you owe.

You might not have the ability to buy a house once you would like, but taking the opportunity to boost your credit rating will help you save you tens of thousands of dollars on interest over the life span of your loan.

Just how much do you need for a deposit?

The more income you may put back on your house, the further you are going to have the ability to influence your creditor that you’re taking the process seriously.

Which are your resources?

Your mortgage lender may wish to understand details on the money reserves you might have. In case you’ve got a balanced investment portfolio, then this will demonstrate your investment preparation and targets aren’t focused solely on your house value appreciation. This also reveals the creditor that you have the financing to cover your mortgage in the event you lose your work, etc..

If you are considering applying for a mortgage, then get in touch with me for a list of reputed sellers in our region.

The Home Upgrades That Pay Off

October 28, 2020 by chorton Leave a Comment

At some point or another, virtually every real estate agent was asked by their customer regarding what home updates they can make prior to listing for the greatest impact. After all, everyone wants to find the most potential out of their home, sell it quickly, and finish the home sale process with no major surprises or headaches. The best way to achieve this is by finishing strategic updates that net the highest return on investment (ROI).

As any long-time realtor may tell you, attempting to close the deal on a house with a leaky roof, even a deceased air conditioner, or a slab leak is extremely hard. All these major problems can instantly endanger any house sale. Outside of very particular conditions, most buyers will shout at closing to a home with thousands of dollars in repairs that are needed. They will likely ask your customer to make the repairs prior to closure, knock the price of the repairs from their listing price, or most likely–determine this is all too much trouble and straight out of the deal altogether.

So, what exactly counts as an”key”? Basically, consider anything which may appear as a significant red flag in the buyer’s home inspection, or that you need to disclose based on local or state laws. Homebuyers and their representatives expect a house to come with minor defects and standard wear-and-tear. In this scenario, have your homeowner local plumber out for repairs. Whatever the price of dealing with the plumbing issue is now, it is well worth it.

If you’re working with a homeowner who is prepping their house for list, inquire about these possible deal breakers ahead of time. While fixing a slab escape or addressing structural damage may not be as sexy as an upgraded kitchen or master toilet, you and your client need to remove as many red flags as you can from the property ahead of listing. In the event the homeowner’s budget only allows for all these vital repairs, then prioritize them more than other updates.

Kitchen Remodels:

Assuming that all the essentials check out, a homeowner seeking to add value to their home should next turn into the kitchen. Kitchen remodels are among the best home projects for lasting return-on-investment: homebuyers, just like us, enjoy remodeled kitchens and dining areas. If your customer invests into their home by remodeling the kitchen, they not only can anticipate their home’s worth to leap, but they’ll also see their home get much more attention when listed.

The first thing prospective buyers will notice are the cabinets and countertops. If your customer is asking for your advice about what to redesign in their kitchen, urge that they proceed with stone countertops and wood cabinets in neutral colors, like white quartz paired using charcoal cabinets. Not only are neutral colors in vogue at this time, but they appeal to the broadest assortment of potential buyers, making them the ideal choice for homeowners looking to optimize their value and curb appeal.

While kitchen remodels are generally high-value projects, make certain it’s a fantastic match for your client’s home. If none of the comp attributes feature a remodeled kitchen, then that’s going to blunt the positive impact of the job and reduce their ROI. If the comps all have kitchens which are far nicer and more extensively renovated than what your client is planning, you should also take that into account. It’s hard to entice buyers to a unicorn: for the most part, you want to spend just enough to remain competitive with comps and other homes in the area.

Energy-efficiency upgrades:

If there’s something that unifies all homeowners, it is their disdain for high electric and gas bills. More and more buyers–especially real estate homebuyers, who now compose a majority of the actual estate marketplace –are considering purchasing homes which have energy-efficiency upgrades already ready to go. This is good news for you and your client: efficiency updates can be a comparatively low-cost way to add value to the property, make it even more attractive to buyers, and also bet out an edge over other properties in your size and price range.

For starters, invite your customer to phone their regional HVAC company out for a whole-home energy audit. This specialized service will supply them with an assessment of where their home is squandering the most energy and what they can do to address this regular energy reduction. A professional energy audit provides the homeowner with a punch list of items they need to finish to get the most-possible yield.

Typically, homeowners can complete a complete suite of energy-efficiency upgrades for under $500. If you’ve got a client who would like to invest back into their home before sale, but is short on upfront money, you may want to recommend they go in this direction.

Selling your home in Stephenville

Buying a home in Stephenville