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Judi Monday, Your Green Valley AZ Expert

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Got Allergies? 9 Plants To Avoid & What To Grow Instead

by Judi Monday, Your Green Valley AZ Expert

 

 

Selling? How To Make Your House Shine In Photos

by Judi Monday, Your Green Valley AZ Expert

HOT OFF THE PRESS--RE/MAX Agents Beat Competitors 2 To 1

by Judi Monday, Your Green Valley AZ Expert

Today's release of the full REAL Trends 500 report illustrates the extent of the RE/MAX network industry-leading quality and production.  It confirms the 2 to 1 sales edge that RE/MAX agents have over agents in competing agencies.  In addition to high quality and productive agents, RE/MAX is a brand that people know and one which has an unmatched global presence.

If you are considering selling or buying a home in Green Valley, Arizona please give me a call at 520-241-7780.  Your real estate needs are my top priority!

3 Kitchens That Shy Away From White

by Judi Monday, Your Green Valley AZ Expert

My Houzz: Mila Kunis Surprises Her Parents With a Condo Makeover

by Judi Monday, Your Green Valley AZ Expert

Would-Be To Should-Be

by Judi Monday, Your Green Valley AZ Expert

Some would-be buyers have emotional reasons to own a home like having a place of their own where they can raise a family, feel safe and secure and enjoy their friends’ company. Other buyers’ dominant reasons might be financial in nature such as building equity or lowering their cost of housing.

Would-Be To Should-Be

Regardless of what might be motivating people to want their own home, it is easy to justify that now is a good time to purchase. Let’s look at a $250,000 example using a FHA loan. 

The total payment will be about $1,835 dollars a month. If the payment is lower than the rent a person is paying, that should encourage a person to continue investigating.

In this example, when you consider the monthly principal reduction, the monthly appreciation and the tax savings, even with money added for monthly maintenance, the net cost of housing is less than half the total house payment.

Considering all those advantages, the would-be buyer is spending over $1,100 per month more to rent than it would be to own. In a year’s time, they would lose close to $14,000 which is more than the down payment of $8,750 required on this price home.

Most would-be buyers understand that a home is a big investment but they may not understand the advantage of the leverage caused by the low down payment mortgage. The benefits extend beyond a return on the down payment but to the value of the home.

In this example, the $8,750 down payment grows to an equity of $73,546 in seven years based on 2% annual appreciation and normal amortization on a 30-year loan. If you calculated that as a rate of return, you’d be challenged to find anything that could compare with it.

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To see what your numbers might look like, check out this Rent vs. Own. If you need any help or have any questions, contact us. Part of our greatest satisfaction is helping would-be buyers understand why they should-be.


An Alternative To Paying Tax Today

by Judi Monday, Your Green Valley AZ Expert

The cartoon character Wimpy would say that he’d gladly repay you Tuesday for a hamburger today. Some real estate investors say a similar thing to Uncle Sam to be able to hold on to their proceeds from the sale of an investment and agree to pay the tax later. 

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The benefit of a 1031 exchange is that it allows the investor to defer the tax due from the sale into the replacement property. This allows more money to be reinvested. In the example shown, the investor has 27% more to invest now by deferring the tax into the future.

The property to be exchanged must be like-kind which means real estate for real estate.   Rental property can be exchanged for other rental or investment property.  Personal-use properties like a first or second home are not eligible for exchanges.

There are some critical dates that restrict the validity of the exchange. The investor must identify the replacement property within 45 days of the sale of the relinquished property. The replacement property must be closed within 180 days of the sale of the relinquished property.

  • The replacement property must be equal to or greater in value, equity and debt than the one being relinquished.
  • All net proceeds must be used in acquiring the replacement property.

There are specific rules involved in constructing a valid tax-deferred exchange. There are three professionals that should be involved: a tax advisor, a real estate professional and a qualified intermediary who will assist in the acquisition and transfer of both the relinquished property and the replacement property. Additional information can be found in IRS Publication 544.


Hardworking Laundry:Room For Hampers & Baskets

by Judi Monday, Your Green Valley AZ Expert

Stunning Black And White Kitchens

by Judi Monday, Your Green Valley AZ Expert

Grand Dream Kitchens

by Judi Monday, Your Green Valley AZ Expert

Displaying blog entries 1-10 of 310

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Judi Monday
RE/MAX Valley Properties In Green Valley, AZ
210 West Continental Road
Green Valley AZ 85622
Direct: (520) 241-7780
Fax: (520) 648-2221