Many things need to be considered when buying a property, regardless of whether your plans are to live in it or whether it is an investment. 2013 marked a year of many changes in the tax code by the Internal Revenue Service, including changes as to how mortgage interest income can be deducted and reported on tax returns, as well as Capital Gains taxes and limits, and numerous others are planned and will take effect upon property purchased in 2013.
If the property you are considering purchasing is distressed, you will have a wide array of considerations. For instance, if the seller purchased in a foreclosure auction or as an REO, was the foreclosure accurately handled and/or dismissed. As a buyer, you will need to make sure that the title is clean and that no other interest holders have rights, that may haunt you after you have signed on the dotted line. This is the important, often overlooked role of the real estate attorney/title agent who will make sure that all this is reviewed prior to closing. Moreover, whether the property and the loans associated with it are being audited by the Department of Justice is also a huge impacting consideration, as it may force titles that were issued to property owners and bona fide purchasers to be reversed, causing siginificant economic damages.
Real estate taxes also have a huge impact on whether a property should be considered or not. In the advent of another real estate bubble, and with home values increasing by dramatic amounts, October may cause us to witness increased assessed values by the Property Appraiser causing once lower valued property taxes to double.
Return on Investment is also a big consideration. If the property you are purchasing will be improved for rental, the rental values permitted in the particular market need to be assessed. What amounts will you be paying yearly in maintenance, insurance, taxes versus what the market will allow you to charge in rent. Attorney Jacqueline A. Salcines states: “At my firm, we use state of the art realty programs and tools that allow us to calculate up to the minute rental values for the most accurate assessment of what our client can rent the properties they are considering purchasing for. This allows our investors to calculate their return on investment and make a sound decision as to whether to embark on the investment or walk away.” There are countless other considerations that must be evaluated before you sign on the dotted line.
For many, buying a home is the single most costliest investment ever made. It makes sense to have the right professionals by your side to guide you every step of the way.
At The Law Offices of Jacqueline A. Salcines, P.A., attorney Jacqueline A. Salcines is not only a real estate attorney and title agent with Attorney’s Title Insurance Fund, Inc. and Old Republic National Title Insurance, but also an Accountant and Realtor. Of equal importance, our firm has partnered up with Tax Accountants and real estate professionals to provide the best guidance and advice to make sure your decision is a sound one.
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