Latest Articles by jcline http://www.articletrader.com/ Articles at ArticleTrader en-us Tax Advantages of Purchasing a New Home http://www.articletrader.com/finance/real-estate/tax-advantages-of-purchasing-a-new-home.html http://www.articletrader.com/finance/real-estate/tax-advantages-of-purchasing-a-new-home.html Fri, 25 Jan 2008 00:00:00 -0600
1. Capital gains: If you sell your home at a profit, this creates capital gains, which is taxable. According to the tax structure, a married couple filing a joint return does not pay tax on any amount below $500,000. This exemption is restricted to homes sold on or after May 7, 1997. To qualify, the home would have to have been a principal residence for at least two of the previous five years. Unmarried home owners filing individual returns may claim up to $250,000.

Under the old law, owners would have owed taxes on a lesser amount, but it would have been deferred if the sellers bought and occupied another home within 24 months before or after the sale of the old home. Also, home sellers were allowed a one-time only capital gains exclusion of $125,000 if the home had been a principal residence for at least three of the previous five years.

2. Penalty-Free IRA Withdrawal: First-time buyers also benefit from new tax laws. In order to assist new buyers in acquiring a downpayment, Congress passed a provision allowing first-time buyers to withdraw up to $10,000 from their IRA accounts if the money was to be used as a downpayment on a home. This would apply to IRA's owned by the buyers, their parents or their grandparents. In any other situation, early withdrawals from an IRA incur a 10 percent penalty.

3. Mortgage Interest: For joint filing, you can deduct all the interest payments up to a maximum of $1 million in mortgage debt on a first or second home. The maximum is $500,000 for taxpayers filing separately.

4. Points: When you acquire a mortgage there are a variety of additional fees your lender will make you aware of. One of these is called "points," and calculated at 1 percent of the loan principal. These points are a fully deductible mortgage expense.

5. Equity Loan Interest: Some of the interest you pay on a home equity loan or line of credit may be deductible, but there are limits. The total amount is limited to the smaller of:

- $100,000 (or $50,000 for each member of a married couple if they file separately), or

- The total of your home's fair market value - the current value of your home minus any outstanding debts against it.

6. Home Improvement Loan Interest: If you take out a loan to make capital improvements on your home, the interest is deductible. These types of renovations include those that increase a home's value, prolong its life or upgrade it for new uses.

7. Property Taxes: All property taxes are fully deductible from your income.

8. Home Office Deduction: If you allocate a portion of your home for business purposes, you may be able to deduct any home costs relating to that portion. These may include a percentage of the insurance, repairs, heating, and depreciation.

9. Selling Costs: If you sell your home, you can reduce your taxable gain by deducting some of the costs associated with the sale. Recognized deductions include broker's commissions, title insurance, legal fees, advertising costs, inspection fees, and administrative costs. Also, the costs from any home improvements that are made within 90 days of your home sale are recognized as expenses to increase the salability of your home, and are also deductible.

10. Mortgage Tax Credit: The Mortgage Credit Certificate (MCC) is a home-buying program that allows low-income, first-time buyers to qualify for a mortgage interest tax credit of up to 20% of the mortgage interest payments. You have to apply to your local government in advance and if you qualify, the credit is subtracted from the income tax owed.

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This article was written on behalf of Joe Cline and his team at AffinityProperties.com, your one-stop source for information about Austin real estate. This diversified team of highly skilled real estate agents is ready to answer all of your questions regarding Avery Ranch Texas real estate.



Source: http://www.articletrader.com ]]> Size Does Matter in The 21st Century http://www.articletrader.com/finance/real-estate/size-does-matter-in-the-21st-century.html http://www.articletrader.com/finance/real-estate/size-does-matter-in-the-21st-century.html Mon, 21 Jan 2008 00:00:00 -0600
Perhaps one of the reasons is that we love to out-do our neighbors, but the underlying root is that we Americans just love houses and homes. Homes are featured on all media outlets, often as double- page celebrity home layouts or as renovating ideas or introducing trendy fads for the home. Homes make good entertainment material!

However, homes have changed over the years and once the home was considered to be only a modest place to hang your hat and not the showcase it often is nowadays.

After the lean years of the Second World War, newly built homes were an average of only one thousand square feet. Not quite the two and a half thousand square foot monster which represents the average home built today.

Our love affair with homes is all encompassing and all aspects of the housing market seem to appeal to us from decorating them, renovating and designing them to building and expanding them. When one room or area of the home is to be decorated, it is a family affair and everyone has an opinion on the new design and decor.

If you can actually renovate yourself you will get all the glory for the new look of your modern home. In most cities these days, the local Home Depot is practically the largest store you will ever find.

The real story line is in the mega-rich houses. The percentage of homes costing over $1 million has doubled since the 1970s and the sale of these homes has increased by 500%!

Filling the space in our new large homes is not a problem, as people have a list of amenities that they now want in a home. They include luxuries like his and hers showers, mini-theaters, home offices, media areas and walk in pantries.

But size counts, the garage is now the largest sized single space in the modern home, and the master bedroom is creeping up to be almost double the measurements of the other bedrooms.

When renovating a home for sale, do not do away with too many bedrooms when you are modernizing. Some people make the mistake of developing one of their smaller bedrooms into a luxury bathroom.

Real estate agents tell us that the number of bedrooms in a home is still a factor in boosting the price; it also still counts in boosting the prestige of the property!

One of the reasons that our homes started to get bigger was simply because we bought more possessions. More clothes encouraged the idea of two separate closets and/or the walk- in dressing room. More cars and more recreation vehicles meant bigger garages. Even the TV is now bigger and many people have a home theater in their own home.

Between 1950and 2006 the average U.S. home measured has risen by 150%. The amount of homes that have three car garages has doubled in that time period. But, there are a couple of factors about modern day homes that are getting smaller! However, neither of them relate to the size of the house - one is the plot of land that the house is built on, and the other is the family that is living inside the house!

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AffinityProperties.com, your one-stop source for information about Austin real estate. This diversified team of highly skilled real estate agents are ready to answer all of your questions regarding Cedar Park Texas real estate.

Source: http://www.articletrader.com ]]> ARMs versus Fixed Rate - a No Brainer! http://www.articletrader.com/finance/mortgage/arms-versus-fixed-rate-a-no-brainer.html http://www.articletrader.com/finance/mortgage/arms-versus-fixed-rate-a-no-brainer.html Fri, 28 Dec 2007 00:00:00 -0600
This means that with the housing market the way it is, you can buy a house now at a good price and lock the mortgage in at a low interest rate for many years. The result of this is that you can budget your monthly expenditure, and live within your means while you pay down your house.

So with the offer of this relative realty security available, why do so many buyers opt for the variable rate mortgage? Perhaps it is because the gambler in us all thinks that we can beat the odds! And sometimes we can, hence the temptation.

Variable rate mortgages are also called Adjustable Rate Mortgages (ARMs) and they fluctuate according to the interest rate, therefore making it difficult to budget. What's more, if you are on a tight budget (and what new home owner isn't?) then signing up for an ARM can be stressful. You will find yourself watching the news all the time and your stomach will lurch when there is news of an interest hike. So why do we do this to ourselves?

Fixed rate mortgages and ARMs are made up of two components: the monthly repayment and the interest payment. With a fixed rate mortgage these two amounts stay the same for the duration of the number of years that you 'fixed' it for. With an ARM the interest part of the monthly payment can change up or down according to the money market and this change in the interest rate will change the amount of money that you have to pay each month.

Each ARM varies according to its own pre-agreed index which in turn alters your interest rate. There is always a margin involved here, and a 'margin' is your percentage that is added onto the index rate. Sounds complicated but look at an example: your ARM mortgage payment is comprised of (1) the lenders index plus (2) your agreed margin. These two together add up to the fully indexed rate that you are charged. Say your margin is 3% and the indexed rate becomes 4%, this means you will be paying 7%

There are 'caps' in place which make it sound as if you are protected. For instance you can have a limit on the amount of the increase per annum, and a limit on the amount of the increases over the entire life of the loan; there is also what is called a payment cap.

If you still feel you want to go the ARMs route, then get a written disclosure from your lender and make sure you understand it. However, any reliable broker will point out that choosing a rate that will fluctuate at a time when the fixed interest rates are low is not sound financial sense.

When the market is already offering a low rate that you can fix in and avoid worry, it makes sound economic sense to shop around and find that deal.

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Use AffinityProperties.com as your one-stop source for information about Austin Texas real estate. Award winning, local Austin REALTOR ®, Joe Cline will be happy to assist you with your questions and concerns about the Teravista real estate market.

Source: http://www.articletrader.com ]]> Tile Flooring 101 http://www.articletrader.com/home-and-family/home-improvement/tile-flooring-101.html http://www.articletrader.com/home-and-family/home-improvement/tile-flooring-101.html Fri, 28 Dec 2007 00:00:00 -0600
In fact, the variety of tile available can be quite overwhelming. It's important that you choose the correct type of floor for your planned use. A general rule of thumb is:

Entryways & Kitchens: Use a hard, abrasion-resistant, moisture-proof tile.

Baths: Tile should be moisture-proof and non-slip. The slip-resistant tile is treated to roughen the surface to prevent slipping.



Here is a guide to some of the basic types of tile and their preferred uses.

Brick: This is a rustic style of tile, perfect for outdoor settings such as a patio. It should be treated with a stain resistant sealer.

Cement: Cement tiles are created from a mold, then fired or dried naturally. A cement stain can be added for color and sealing is required.

Ceramic: Made from clay and then kiln dried, ceramic tiles come with two finishes:

Glazed - The color is added to these tiles after firing and the glazing acts as a sealer. Glazed tiles are used mostly on walls or counter tops and offer a wider range of color choices than unglazed tiles.

Unglazed or Quarry Tiles - These are colored with the natural pigment already in the clay and fired in a kiln. Unglazed tiles require sealing for moisture protection.



Mosaic: These tiles come in a porcelain or ceramic finish and are generally 2 inches square or smaller. They can be installed individually or premounted on a mesh backing and come glazed or unglazed.

Pavers: Pavers are like a thin brick tile and generally used for patios or interior floors in a sunroom. They require sealing for moisture and stain proofing.

Quarry: This is a clay-based, unglazed tile. It is commonly used in commercially due to its durability and economical pricing. It requires sealing and comes in a variety of earth shades.

Saltillo: Also called Mexican tile, Saltillo is air dried rather than kiln dried. This type of drying creates a softer and less durable surface. It requires sealer for moisture protection.

Terra cotta: This is the same material that is found in clay garden pots. It has an attractive earthy look that requires sealing for indoor use.

Terrazzo: Commonly found used Italy and warmer Mediterranean climates, these tiles are made from stone or marble chips embedded in cement. The polished surface makes for a durable floor material.

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Use AffinityProperties.com as your one-stop source of information for the Austin real estate market. Award winning, local Austin REALTOR , Joe Cline will be happy to assist you with your questions and concerns.

Source: http://www.articletrader.com ]]> A Little Country in Downtown Austin http://www.articletrader.com/travel/destinations/a-little-country-in-downtown-austin.html http://www.articletrader.com/travel/destinations/a-little-country-in-downtown-austin.html Tue, 20 Nov 2007 00:00:00 -0600
No matter what your recreational interests are, Town Lake has something for everyone.

Organized Sports & Recreation

Town Lake Park has 17 ball fields for baseball, football, soccer, rugby and volleyball. If you like water sports, the Rowing Dock provides rentals for various types of water crafts as well as promoting the rowing club. The north side of the park features the Austin tennis courts. Also on this side of the park is the Deep Eddy Pool at Eilers Park.

Within Zilker Park, the favorite swimming hole is Barton Creek Swimming Pool; a spring fed pool over 1,000 feet long.

Trails

This park contains 10.1 miles of hiking and biking trails that either wind around the lake, or branch off to other Austin trails. One of the favorites is the 8.5 mile Tow Lake Hike & Bike Trail, complete with shaded, wide paths, washroom facilities, benches and plenty of water fountains. There are three pedestrian bridges that can be used to cross the lake on foot as well.

Entertainment & Events

The south side of Town Lake is known as Auditorium Shores, home to many concerts and large events. Many of the trails around the lake lead to lively restaurants with great food, outdoor patios and music. Also on this side are the UMLAUF Sculpture Gardens, named after famed artist Charles Umlauf; the Botanical Gardens and the Zilker Hillside Theater. The oldest professional theatre in Central Texas, the Zachary Scott Theatre, provides a wide range of productions from Dream girls to Stephen King's, Misery.

East of 1H 35 you'll find areas such as Fiesta Gardens and Festival Beach, perfect spots for large events.

Other Features

The area around Deep Eddy Pool includes rental cottages, concession stands and a ferris wheel. Town Lake is also a great place for wildlife viewing. There are resident swans, ducks and turtles. Make certain the kids go for a ride on the miniature train.

Whether you're biking, jogging, rowing, or just sitting back and soaking up the scenery, Town Lake Park is a must see.

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Let "The Joe Cline Team" at Affinity Properties handle all your Austin Texas real estate enquiries. If you're looking outside of Austin, check out Canyon Creek TX real estate, an area full of natural beauty in a small, family-friendly community located just northwest of Austin.




Source: http://www.articletrader.com ]]>