How to Deduct Property Taxes – Save Money on Tax Bill

It is possible to deduct your property taxes! That’s because the government wants to encourage homeowners, and support them financially. Therefore, we have created this easy to use guide to show you the best ways to deduct property taxes, and pay less in taxes from your paycheck! Property taxes, along with mortgage tax, and real estate transfer tax, is also one of the three taxes when buying a house!

Property Tax Basics – Meaning, Definition

Property tax is often confused as being a tax on real estate property. Yet this is a misconception. The largest proportion of property taxes come from real estate, because this is the most expensive property most people own. Yet property taxes can also be levied on airplanes, computers, furniture, etc. In short, it is a tax on owning very expensive things. These are for most people real estate, which is why property taxes are also often called real estate taxes. New York property taxes are among the highest in the country!

The USA has a property tax rate of on average 1.11%, which are paid once a year on April 15th. To learn more, read our easy-to-understand guide:

Property Taxes USA

Write Off Property Taxes – Steps, Easy Guide

To write off property taxes you need to follow specific steps and meet certain criteria. These are not difficult though, and with minimal effort, you can also save a lot of money writing off your property taxes! Depending on how you pay your property taxes the steps can differ. Some people pay it semi-annually, while others use a monthly payment to an escrow account. Escrow accounts are also typically used as part of the additional closing costs when buying a house!

Criteria for Deducting Property Taxes – Types of Property

There are many types of real estate, and not all are eligible to deduct off your tax bill. What you can deduct are importantly taxes you have already paid. That means you cannot deduct taxes that are still outstanding. You also cannot deduct property taxes on assessments for various types of property. What is deductible are your home (whether primary residence or vacation home), property even outside of the country, Cars, RVs, boats, etc., land, and even co-op apartments.

• Home (Residence or Vacation)
• Property outside USA
• Cars, RVs, Boats, etc.
• Land
• Co-Op Apartments

How much Property Tax can you Deduct? Maximum Amount

You can deduct a maximum of $10.000 a year. This is then a combination of state, federal and local income taxes. This makes sense, considering New York property taxes are vastly different from Florida property taxes for example. Also, if you are married and filing separately, this is reduced to $5.000 per person.

• Up to $10.000 a year – Filing as Single
• Up to $5.000 a year – Married filing separately

Steps for Writing off Property Taxes – Guide, Checklist

These are the main steps to write off your property taxes. Importantly, you deduct your real estate taxes with the schedule A form from the IRS. First, you get a record of your tax bill, this is so that you know exactly what you are paying. Next, use the schedule A of the IRS form 1040 for itemized deduction from the IRS to file your deduction. One last thing is important, you can only deduct your property taxes in the year that you pay them! Meaning that if you pay a bit earlier, you can still deduct it from this year!

1. Get a record of your tax bill
2. Use Schedule A of Form 1040 from the IRS
3. Deduct property taxes in the year that you paid them!

Real Estate Tax Deductions

The federal government has many ways to make it easier to pay less in taxes on real estate. There are three taxes when buying real estate, and all three can be minimized! There are more ways that you could be paying less for your taxes now! Of course you’ve heard of founding a real estate LLC, or manipulating your capital gains taxes, but there’s much more to learn! Make sure to read up on how you can take advantage of

• Real Estate Tax Deductions

Der Beitrag Property Tax Write Off – How to Deduct Real Estate Taxes, Pay No Taxes! erschien zuerst auf ℄ Real Estates.

Living comfort and a prestigious effect

A villa means exclusive living comfort and a representative effect to the outside, a special challenge for real estate agents, or luxury agents. In addition, a villa is interesting as an investment property. The term villa originates from Roman times and means manor house. Today, not every villa is also a luxury object. Sometimes country houses located in urban centers are also called villas. In any case, villas are distinguished by their size, by a characteristic room layout, as well as by the land areas surrounding them.

In any case, there is a need for villas in today’s real estate market. Prices for these properties have risen sharply in recent years. The most sought-after villa locations are located in the catchment area of large cities.

Buy a villa? Our most exclusive properties

Our most exclusive properties you will actually not find online in our real estate portal. Celebrities, industrialists, sellers from business and media are looking for discretion and therefore rely on real estate experts with an internal circle of buyers and filtered communication channels. Are you looking for a villa in Germany, Europe or the USA? We have first class properties that you will not find anywhere.

• Off Market Properties
• Contact

Price development of luxury villas: Low interest rate phase

Since villas are highly sought after, especially as investment properties, and many investors are investing in real estate due to the period of economic recovery and low interest rate policy, the prices of these properties have also increased enormously. Over the long term, however, this price trend is by no means exceptional. Since 1975, real estate prices have risen only moderately. Towards the end of the last century, prices fell somewhat, but since the economic upswing they have been on the rise again.

Villa as a purchase object: Invest, instead of “only” live

In which real estate to invest? From an investor’s point of view, the villa has a special significance. It serves primarily as an investment object.

Secondarily follows the own use as a residential property and in many cases the new owner rents the villa. In vacation regions these objects are often rented out as vacation homes. This means that income can also be generated from the purchase of a villa. Indeed, the maintenance of these properties is also associated with high costs.

Checklist: Construction, extras and security

Basically, several components play a role in the purchase of a villa. These include, among others and very roughly simplified:

• Location of the property
• Property
• Living space
• Main house, if necessary adjoining houses
• Height of the rooms
• Furnishings and extras
• Security and accessibility

Location: the most expensive neighborhoods

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Many villas or country houses are located in the periphery. Whether in Berlin, such as Grunewald or in Los Angeles Beverly Hills. There, therefore, a high degree of mobility is necessary for residents. Some villa colonies, on the other hand, which are mainly found in large cities such as Paris are very centrally located.

The upscale residential environment, where most villas are located, is the decisive factor for a higher purchase price. However, the plot on which the property is located is also crucial. The property serves as an individual leisure oasis. It is private and therefore does not have to be shared with anyone.

Luxury you have to be able to afford

However, the disadvantage of this is the high cost of maintaining the garden area. Often, a separate gardener must be appointed. A villa is also characterized by its spacious room layout. These rooms can be adapted to individual needs. Here too, however, it must be remembered that the maintenance and cleaning of these rooms involves a lot of effort. Most villas are equipped with relatively high rooms. They convey a feeling of individual freedom. Their flood of light gives a feeling of well-being. However, the disadvantage of this is the high heating costs

Tip: If you come at this point already in the calculation, buy rather a number smaller! Here you can find my guide: Buy a house.

A villa is great for customizing. If several people occupy the property, so everyone has his own retreat there.

Villa as a rental property: Rent instead of buy?

If you want to buy a villa, you can consider renting out the property. This is an additional income opportunity that justifies the investment costs, at least in the medium term. However, there are tax issues to consider here.

Rental agreements offer tenants certain freedoms with regard to the interior design and the layout of the outdoor facilities. In the case of vacation villas, individual use is particularly interesting for vacationers. These villas are mainly located on the North Sea and the Baltic Sea. Also islands like Sylt or Helgoland offer villas as vacation domiciles. Many investors use the opportunity to buy a villa in such locations and rent it to tourists. When buying a villa, it should be noted that the investment must be planned very carefully due to its size.

• Reading tip: Renting from the apartment house

First, you should in any case assess whether an object offered for sale is really a luxury property or a villa. The prices for these properties are significantly higher than for normal objects. Whether it is a luxury property, describe the following criteria:

• The exclusive location
• A generous equipment
• The presence of special details

When is a villa a villa? Assessment

An exclusive location is particularly when the property is located in an upscale residential environment or in a special area. This includes islands, properties with sea views or properties in central locations in large cities.

Well-equipped villas also have their own pool area, a large terrace and a well-kept garden. Fitness rooms or a covered swimming pool can also be part of the luxury equipment. Special details are, for example, the provision of house staff or a gated community. This is a residential area with restricted access. However, this still has secondary importance in Germany.

Evaluation of the property: house or apartment building

• Valuing a house
• Valuate multifamily house

Costs: purchase price and incidental purchase costs

When selling a property, there are also costs that both the buyer and the seller have to pay.

Who pays which incidental purchase costs?

Explained in Quick:

1. Realtor – Under the new Real Estate Realtor Act, the cost of the broker is split 50/50 (buying from a private party); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

This means that if you buy the property privately, under the new law – with reservations – the cost of the real estate agent would be divided in half. If, on the other hand, you buy through a company, such as a family office, the distribution is freely negotiable. In 98% of cases, however, the costs are borne by the buyer of the villa.

Checklist of ancillary costs: expert opinion to notary

These include, first and foremost:

• Value appraisal
• Energy certificate
• Broker’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, the real estate acquisition tax, the speculation tax and the notary fees are mandatory. The value appraisal and the broker commission are optional if these services are commissioned.

Individual cost factors

Most other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

Who bears the costs?

As a rule, the buyer.

Property transfer tax of the federal states

The real estate transfer tax is divided between buyer and seller and amounts to between 3 % and 6.5% of the notarized services for land and building, depending on the federal state.

Who bears the costs?

As a rule, the buyer.

Energy certificate and landlord info

The Energy certificate is prescribed at $ 300 for a simple certificate and $ 500 for a detailed certificate.

Who bears the costs?

As a rule, the seller.

Tip. Here we have collected for you various basics for renting. What else is important, besides the energy certificate?

Broker commission and cost allocation

The brokerage commission varies by state and ranges from 5.95% to 7.14% of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionately.

Tip. The commission amount is negotiable.

Who bears the costs?

As a rule, the buyer.

Buyer Tips: Owner occupancy / rental

1. Buy a house
2. Buy a multi-family house

Own use: buy a house

Buying luxury real estate – How many luxury properties are sold each year in Germany? There are less than 400.The market is extremely exclusive. Good contacts, a long-standing network, discreet offers and inquiries. Welcome to the world of luxury real estate. We show you how many square meters you get for your money. In New York, Berlin, Hamburg, Tokyo and Dubai. Buy and sell in the most expensive cities in the world.

• Buy a villa for the family

Build or buy?! Apartment houses

Your idea has manifested and your dream of a house is becoming a reality. You’ve already looked at a few properties, compared prices and budgeted for your home purchase. Before you enter into closer negotiations with sellers or reserve a property, you should plan your home financing and determine your terms. The more professionally you proceed and the more concretely you plan, the less complicated the house purchase will be, from the idea to the financing to the notarization to the conclusion of the contract. Then everything is ready for the renting from multifamily house.

• Build or buy?! Apartment houses

Alternative: buy exclusive condominium

The decision to buy a condominium (ETW) is made by most buyers for two reasons. The buyer wants to use the apartment to live in it himself. Other buyers are looking for a financial investment that will provide a good profit in the medium or long term.

• Buy an exclusive apartment

Der Beitrag Buy a villa: Exclusive real estates – house, investment, checklist and procedure erschien zuerst auf ℄ Real Estates.

First time selling a villa?

If you’re facing selling a villa for the very first time, you’re probably asking yourself the typical questions that come up in any house sale and a few more. Especially if you are looking to sell an inherited house or villa and accordingly have no prior experience in real estate, here’s a little insight into the process and the costs you will face as a seller.

When selling a property, there are also costs that both the buyer and the seller have to bear.

Tip. We get the optimum out for you as a seller

Here you can find our contact persons: Contact.

You as a seller know that renowned real estate agents, like ours, take over the entire sale and process from valuation to exposé to notary and purchase contract. The most asked questions refer therefore, at the beginning, almost always to the cost factor with the mansion sales. Let us therefore start with this question:

Who pays which ancillary purchase costs?

Explained in Quick:

1. Real estate agent – Under the new estate agent law, estate agent costs are split 50:50 (buying from private); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

Checklist sale: cost factors

These include, first and foremost:

• Value appraisal
• Energy certificate
• Realtor’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, land transfer tax, speculation tax and notary fees are mandatory. The value appraisal and the realtor’s commission are optional if these services are commissioned. Most of the other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain period of time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

The notary fees and land registry are usually paid by the buyer.

Property transfer tax when buying a villa

The land transfer tax is divided between buyer and seller and amounts to between 3.5% and 6.5% of the notarized services for land and building, depending on the state.

The notary fees and land register is usually paid by the buyer.

Energy certificate for all properties

The energy certificate is prescribed with $ 300 for a simple certificate and with $ 500 for a detailed certificate.

The cost of the current energy certificate is usually borne by the seller.

Realtor costs

The realtor commission varies depending on the state and is between 2 % and 7 % of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionally. Tip. The commission amount is negotiable.

As a rule, the buyer bears the realtor costs.

Properties with multiple owners

The situation becomes somewhat more difficult when a property has multiple owners.

Especially in the case of villas, this can be the case. If the property is sold, it must always be unanimous among the owners. If this is not the case, the owner who wants to sell the property must bring a partition action.

Action for partition is time-consuming and costly

Heirs: community of heirs and fractional community

Villas are often real estate that has been inherited. Therefore, it may happen that several heirs are registered in the land register. If this is the case, the owners are listed in accordance with Section 47 of the Land Register Code. Their shares are levied ideally. If several owners are registered, this is a community of heirs in accordance with §§ 741 ff of the German Civil Code.

In the case of a community of heirs, the situation is somewhat different. If an heir brings a partition action, the property is put up for auction and the respective heir receives only his share of the sale proceeds. In the purchase agreement, all shareholders on the seller’s side must be mentioned by name. The respective share ratios are also listed in the purchase agreement. This is particularly important for the sellers, because the proceeds of the sale will be divided among them on a pro rata basis after the sale.

For the buyer of the property, on the other hand, this circumstance plays no role. However, problems could arise during the notarization process. Especially if one co-owner is represented by another at the notary appointment. In this case, a written power of attorney is required in any case.

Inherited a villa? Read more on the subject here

• Property and inheritance

Divorce: sale after separation

If married couples are indicated in the land register, it is to be assumed that they can sell the property only jointly. This occurs primarily in the case of divorce. The legislator assumes that both spouses have tacitly concluded a joint ownership agreement when purchasing the property. This is regulated in Section 749 (II) of the German Civil Code.

If one spouse is registered as the sole owner, he or she can also sell the property alone. The non-registered spouse only has to agree if the property is the entire property of the marital community. (§ 1365 BGB).

Selling a villa after divorce? Read more about the specifics in the topic here:

• Property and divorce

Vendor Tips: Owner-occupier/landlord

Want to learn even more about selling real estate? Read more about houses and apartment buildings here, depending on what type your villa is, there are specifics to consider here as well.

1. Selling a house: Villa for one household
2. Multi-family house: villa for several parties

House for sale: Villa for one household

Single-family houses are characterized by the fact that they are inhabited only by one family, a couple or a person living alone. They have a garden, which is also owned by the owner. Not all single-family houses are inhabited by their owners. There is also a possibility to rent a family house with a garden. In almost all federal states, single-family houses enjoy great popularity as a form of housing. Accordingly, there is a great demand in the real estate market.

• Sell your house

Multi-family house: villa for several parties

If you should decide to sell your house privately, it means a lot of time investment. From the appraisal to the creation of the exposé, to customer approach and sales phase, months pass without market knowledge. In all areas, above all, the location counts, not only in the sale of apartment buildings.

• Sell your aparment house

Der Beitrag Selling a villa: Procedure, costs, solvent buyers and speculation tax erschien zuerst auf ℄ Real Estates.

Buying New York Real Estate – Guide and How-To

If you want to buy real estate in New York, you’ll have to get informed. There’s many details and intricacies to be aware of and things to pay attention to. We will answer all your questions: What is the property tax like? Is New York property tax higher than elsewhere? Which New York neighborhoods are best? When should I invest in New York real estate? We answer all questions in this guide for buying real estate. Before we go on about the city though, let us take you through an important question. Which type of real estate do you want to buy?

If you already know in more detail what you’re looking for, go ahead and skip to one of the main articles! (opens in a new tab)

• Buy Apartment – New York
• Buy House – New York

Buying a House – Full Explanation, Guide

If you want to buy a house, our article on the topic is where to look. Our full guide takes you through all steps of the process from beginning to end, starting even before you decide to buy a house, and finishing after you close the deal. If you want to invest in a owning a home, this guide on buying a house is everything you need:

Buying a House

Buying an Apartment – Full Explanation, Guide

If you’d rather buy an apartment, we have you covered. Buying an apartment can be a long and arduous process, especially in a mega-metropolis like New York City. Many people neglect even the thought that apartments can be bought as opposed to rented. This article should convince you otherwise. There is sufficient reason to believe that a significant proportion of people who are currently renting their apartment, could easily buy that same property. Our guide, taking you from A to Z, will no doubt teach everything you need from this top guide. If you are even thinking about buying an apartment, this guide will bring you a step closer to your dream. This is your one stop for everything you need to know:

Buying an Apartment

Buying Real Estate in New York – Unique Costs

To buy real estate in New York is of course different than elsewhere. Let us explain the details which New York real estate carries with it, and what makes it different from other cities’ real estate markets. New York is a thriving metropolis of millions of people and a GDP larger than that of most countries. The real estate market, like most other markets in the city is booming, and there’s good reason to invest now. The only other market that would be similarly difficult is if you want to buy real estate in L.A., but honestly, there’s enough celebrities in the Big Apple.

• GDP: $1,57 trillion
• Pop.: 8,4 mil.

Taxes – Property Taxes, Real Estate Taxes + More

New York property taxes are very different than the general US property tax system. The state of New York changes the tax rates from year to year, depending on the needs of the state. Additionally, it is also complicated by the fact that tax rates are constructed in millage rates as opposed to tax rates. Property tax calculation is therefore more complicated than you’d like, but let us try to explain.

What are Millage Rates? New York Property Taxes Explanation

Mill Rates are Tax Rates. Quite similar to conventional property tax rates, Millage rates serve the same purpose and work quite similarly to the normal percentage of property value calculation. A millage rate, is first and foremost a number, as opposed to a percentage. This number indicates the amount of property tax a property owner is required to pay for their property. A mill rate of 1 indicates 1$ of tax for $1.000 worth of property, a mill rate of 24 indicates $24 of tax per $1.000 worth of property.

• Mill Rate of indicates amount of dollars of tax per thousands of dollars worth of property

New York Property Tax Rates – Most Expensive?

It is often said that New York has incredibly high property tax rates. This is true to a certain degree, New York state, and especially the counties surrounding the city of New York have relatively high property tax rates. NY has an average property tax rate of 0.86%, and this is higher than e.g. California (0.77%). Still Florida, the other major real estate state, has a significantly higher average property tax rate of 0,94%.

• New York Property Tax: 0,86%
• California Property Tax: 0,77%
• Florida Property Tax: 0,94%

Property Tax in New York Boroughs – Manhattan, Brooklyn, Queens, etc.

New York city is the real estate hotspot par excellence. Still its property tax rates are quite low compared to others in the area. New York city is made up of 5 counties (the same make up the 5 boroughs of New York), and they each have property tax rates lower than the national average.

• County of New York (Manhattan) – 0.65%
• Queens – 0.87%
• Kings County (Brooklyn) – 0.90%
• Richmond (Staten Island) – 0.91%
• Bronx – 0.97%

Want to learn more about New York Property Taxes? Reducing your property taxes? Everything you need to know in our guide on

• New York Property Taxes

Buying Real Estate Taxes – Transfer Tax, Mortgage Tax, More

You are required to pay 3 taxes when buying real estate. In New York, it is actually four. there is the real estate transfer tax, which in New York at the moment is a rate of $2 per $500 of property, amounting to 0,45% of the purchase price of a home. Additionally, you will pay the mortgage tax, called the mortgage recording tax in New York, which has a rate of 1,80% when your mortgage is worth less than $500.000 and when the mortgage is worth more than this, the rate is 1,93%. Then there is also the mansion tax, an additional 1% when the property is worth more than $1 mil. Lastly, you are typically required to pay property tax pro-rata when buying real estate.

• Transfer Tax: 0,45%
• Mortgage Recording tax: 1,80%-1,93%
• Mansion Tax: 1%
• Pro-Rata Property Tax: 0.65%-0.97%

Additional Costs – Real Estate Over-Budget

When hearing about the price of your new home, whether an apartment, condo, townhouse, or villa, you never think about all the possible additional costs in real estate. While some call these closing costs, this is not strictly true since, in addition to closing costs like real estate transfer taxes, title-search fees, escrow fees, realtor fees, etc., there are additional costs like mving and furnishing or renovation. L.A.’s closing costs are a little over 2% of the mortgage. I.e. of the mortgage principal (the money loaned to you) you can expect to pay an extra 2% to cover closing costs.

• Additional 2% of mortgage

For more information on additional costs that you can expect when buying a home:

• Buying Real Estate – Additional Costs

New York Real Estate Market Outlook

It’s almost a cliche that New York real estate is impossible to find, and that housing is a commodity for the few and rich. This is true to some degree, the real estate market in New York is intense to say the least. Yet there is enough reason to be optimistic that one can find a property, and once that is done, all evidence seems to indicate that this property will only gain in value over time.

Are Real Estate Prices Going down in NYC? – Housing Market Trends

No. The housing prices are increasing steadily, as indicated by the Case-Shiller Index. To accurately guage the development of real estate prices, the Case-Shiller statistic published by Standard & Poor’s indicates how prices are changing. To be exact, it is a residential real estate market value trend. This index allows one to view the development of housing prices in the city. In New York, one can easily see that housing prices are increasing steadily for the past 9 years.

• Housing Prices increasing steadily for past 9 years
• Case-Shiller Index NY shows development of housing prices

How much it Costs to Buy Real Estate in New York – Average Real Estate Prices

As mentioned, NYC is expensive. You will be paying more per square foot in this city than most others in the US. As mentioned though, because these prices are increasing, this investment is one which is worth the money. So how much does real estate actually cost? In New York City, the median property costs $697.000, averaging to a price per square foot of $307. If you’re looking for a passive investment and want to rent out your property, you can exxpect a Cash on Cash return of 2,1%, with rental income being around $2.200 per month.

• Median Property Cost: $697.000
• Price per Square Foot: $307

New York Real Estate Trends: Price Development Overview

Manhattan, Brooklyn and Queens are clearly a sellers market, as agreed on by the vast majority of real estate experts. The amount of sales in real estate increased by over 20% in the past year. This demonstrates the increasing power of this real estate market. Meanwhile, to get a look at what you’ll be gaining once you have bought a property, median sales price also increased. From $275.000 to $335.000, an increase of 22%! Now, you may be thinking that homes are totally overvalued then, but this seems not to be the case, with the average real estate selling 2.6% below the price asked by the seller.

• Amount of Sales: +20%
• Median Sales Price: +22%

New York Real Estate Agents – How to find the Best Real Estate Broker

Apart from experience, there are a few important things which can make or break the quality of a real estate agent. First and foremost, you will want to find someone who will act in your best interest. This can be done with an agent who is cutthroat and willing to do what it takes in negotiating with a seller, but generally, an important attribute is that your agent is compassionate and friendly. Otherwise, it can quickly turn into a nightmare experience. You of course also want to get along on a personal level with your agent, otherwise the many conversations can become quite arduous.

Finding the Perfect Real Estate Agent – Tips

These are the three things you should keep in mind when looking for a real estate agent. If he or she is missing any of these, you quickly run the risk of a financially risky situation, or simply an uncomfortable experience. This is the 3 p’s rule. The 3 p’s are

1. Personal attributes: is the agent trustworthy, approachable, diligent, etc.?
2. Payment: What is the payment structure of the agent? is their goal to make you happy or to close on as many properties as possible?
3. Past: Take a look at the agent’s past deals to see whether they have been successful

List: Top NYC Real Estate Agents

These are, according to our research the top real estate agents in New York. They are among the best and top selling agents, but also among those with the most favourable experience reports. Remember! Everyone has their own needs, and thus need different agents, but these have shown to have quality, care for their clients, and make good deals.

1. Richard Leasure (Howard Hanna Rochester)
2. John Farrell (EXIT Realty Homeward Bound)
3. Alexa Lambert (Compass)
4. Michael Kenduck (21st Century)
5. Bryan Karp (RE/Max)
6. John Lajara (RE/Max In the City)
7. Geraldine Andolina (21st Century)
8. Daniel Axtmann (Berkshire Hathaway)

Saving Money on Real Estate in New York – Tax Deduction Tricks, Tips, etc.

Real Estaet and real estate taxes are a domain where saving money is just around the corner. With the right moves, you can save in the thousands of dollars. You may want to leave this up to a tax attorney or your agent, but it’s best to be informed yourself about the options.

New York Real Estate Tax Deductions – Save Money on Mortgage

In New York City, you can deduct your mortgage interest from the first $750.000 you owe from your tax bill. This is a massive help to those struggling to make payments, especially considering that those paying mortgage interest will likely be in a harder financial situation as is. Another option for saving on taxes is to upgrade your home, which to make it more energy efficient. Lastly, if you want to improve the state of your house by taking out a home equity loan to pay for renovations, you can deduct the interest from this loan from your tax bill as well.

• Mortgage interest can be deducted
• Home equity loan can be deducted
• Energy-efficiency upgrades

We have a full-size guide on how to use tax breaks and deductions to your advantage:

Real Estate Tax Deductions

First-Time Homebuyer Advantages

For people who are not able to pay a full downpayment, there are many support programs. Real estate purchases are generally encouraged with incentives and support programs. The best are for first-time homebuyers, meaning that if it is the first time that you buy a full residence, you will pay less taxes, and have other monetary incentives. More on that in our main article on buying a house.

• Less taxes for first-time homeowners

Step-By-Step Guide – Buying Real Estate Process

These are the steps you will take when buying real estate in New York. They are by no means the most detailed (for details see buying apartment New York, and buying house New York), but cover the broad overview of what you should be keeping in mind when thinking about buying real estate. The process for all real estate will be similar, with differences only existing in the details.

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

Der Beitrag Buying Real Estate New York – Guide, Tips, Checklist for Homebuyers, Investors erschien zuerst auf ℄ Real Estates.

Buying L.A. Real Estate – Guide and How-To

We take you through the whole process of real estate investment in L.A. From the very first step, deciding on the type of real estate, to the final step, how to sign the closing contract. Buying real estate in L.A. surely is a task unto its own. There are many ins and outs, and small details which you cannot risk overlooking. What is the property tax like? Is California property tax higher than elsewhere? Which areas are best? Is it a good time to invest in L.A. real estate? We answer all your questions and more in this XXL guide for buying real estate. Before we go on about the city though, let us take you through an important question. Which type of real estate do you want to buy?

If you already know in more detail what you’re looking for, go ahead and skip to one of the main articles! (opens in a new tab)

• Buy Apartment – L.A.
• Buy House – L.A.

Buying a House – Full Explanation, Guide

In this article we go through how to buy different types of real estate in Los Angeles. It covers most of the most important information, but if you’re looking to buy a house specifically, we have the perfect guide for you. In our article Buying a House, we go through every step of the process of buying a house specifically. You won’t have to look anywhere else for info:

Buying a House

Buying an Apartment – Full Explanation, Guide

Apartments are quite different from houses, not only in their shape, but also in their demands, and in the steps you will have to take to buy one. We cover everything you need to when buying a house, from the taxes, deal negotiation and more, specifically for buying a house. This is your one-stop guide for everything you need to know

Buying an Apartment

Hidden Costs when Buying Real Estate in L.A.

There are a few costs which people don’t consider when buying a piece of real estate. These are not universal, as you may buy a furnished house which would take away moving costs, or you may buy without a mortgage, which would prevent mortgage insurance. There are also taxes which you should be aware of.

Additional Costs of Buying a House, Apartment, Condo, etc.

There are many additional costs in real estate. These are sometimes also called closing costs, as they are associated with the close of the deal. Yet closing costs aren’t all additional costs. As mentioned, furnishing and moving are also often forgotten costs of buying real estate. What you pay for in closing costs are things like moving expenses, real estate transfer taxes, title-search fees, escrow fees, realtor fees, etc. In Los Angeles, closing costs are a little over 2% of the mortgage. I.e. of the mortgage principal (the money loaned to you) you can expect to pay an extra 2% to cover closing costs.

• Additional 2% of mortgage

For more information on additional costs that you can expect when buying a home:

• Buying Real Estate – Additional Costs

Taxes when Buying Real Estate in L.A.

Thankfully you will not have to pay mortgage registration tax when buying real estate in L.A. You will likely have to pay the real estate transfer tax, called Documentary Transfer Tax in California. This is a tax you pay to the state in order to finance the documentation of your real estate in the administration. You will also have to pay pro-rata property taxes. Usually the owner of a piece of real estate will pay the property taxes for a whole year, if you buy a property in June, you will need to pay the seller back the remaining 6 months of property tax.

• Documentary Transfer Tax
• Property Taxes

There are 3 Taxes when Buying Real Estate!

Real Estate Market L.A. – Explained

The L.A. real estate market is a wild west. To understand and work in this system is complex and demanding, even for real estate experts. We’ve done our research and can give you the full run down of how real estate, buying apartments, buying houses, and investing works in the city of angels.

Home Price Trends L.A. – Housing Market Development

Home price trends for the area are reported using the Case-Shiller Index, a statistic published by Standard & Poor’s forming part of an index of residential real estate market values. This index allows one to view the development of housing prices in the city.

• Case-Shiller Index shows development of house prices

How much it Costs to Buy a House in L.A. – Most Expensive Parts of L.A.

In Los Angeles County, which includes the less-in-demand outer regions, single-family homes are at $660.000. In other counties in the region, these prices are comparable, although the famous Orange County takes the cake with a median home price of $930.000. Where in L.A. are the most expensive houses? Where is it cheapest to buy a house in L.A.? Below the list of median sales price for all of L.A.’s counties, ranked.

• San Bernardino County: $370.000
• Riverside County: $490.000
• Los Angeles County: $660.000
• Ventura County: $750.000
• Orange County: $930.000

Home Price Trends in L.A.: Where Los Angeles Houses are Gaining Value

The most important question when looking into buying real estate is how the home prices are changing. You do not want to buy real estate in a region where prices are decreasing. That would mean that when you sell your property you will make losses. According to the data, Riverside County, just east of L.A., and including Joshua Tree National park, is gaining in value second most. Where in L.A. are home prices increasing the most? San Bernardino county, with a year-over-year increase of 20% is gaining the most in value. In Los Angeles County, home to most of L.A.’s best neighborhoods, includes the less-in-demand outer regions, single-family homes are also gaining in prices.It is experiencing the most modest increase with 12%. Below the year-to-year change of single-family residences of Los Angeles.

• San Bernardino County: +20%
• Riverside County: +15%
• Orange County: +13%
• Ventura County: +12%
• Los Angeles: +12%

Joshua tree national park is considered one of the most beautiful national parks in the whole USA.

Average Rent Prices L.A. – Trend, Prediction

The median price of an apartment at the moment is $667.000. On top of this, rental prices have been steady in the past years, when looking at average rent. A price increase of about $100-$200 is very acceptable, and you can see a very similar development over the past years. These are the prices per square meter that you can expect to pay in rent ($/m²).

• 2017 – $2.281
• 2018 – $2.385
• 2019 – $2.516
• 2020 – $2.524

Where is the Highest Rent in L.A.? Most Expensive, Cheapest Areas

So where is the rent highest and where is it lowest? That’s an important question, even when you are looking to buy. For real estate investors, some areas, with very high rent can be attractive as an investment opportunity, as it is likely that the purchase price will quickly be balanced out by the high rent. The highest rent in L.A. can be found in North of Montana, with $4.690. Meanwhile, the lowest is in Jefferson Park ($1.355), where the beautiful houses and architecture allow this formerly high-class area to be attractive to people of all walks of life.

• North of Montana ($4.690) – Highest rent
• Jefferson Park ($1.355) – Lowest Rent

How to Calculate House-Buying Budget? L.A.

Assuming you have job security as well as a salary to pay for mortgage payments, you can make quite an easy calculation to decide on your budget. It’s based on the simple addition of your downpayment plus additional costs.

How much is a Downpayment in L.A.?

More on mortgage further below, but typically you want to pay at least 20% on your downpayment in L.A. as well. Although there are fairly low mortgage interest rates at the moment, and FHA loans make low downpayments possible, these are unnecessary costs, and you should only invest in real estate if you really have enough savings. On the average house of $600.000, you will pay a downpayment of $120.000.

Calculation for Buying a House – Budget

Now you know your downpayment (20%). Now you should add the additional costs which come with buying a home. These are typically around 2-5% of the mortgage, but in L.A. comparatively low at around 2-2.5%. That means you can calculate your budget by taking the money which you have on hand to spend, and multiplying this by 4.85!

Savings x 4.85 = Budget!

In What Type of Real Estate Should I Invest?

This is the first and most decisive question you will have to ask yourself. Don’t worry if you don’t know the answer! That’s what we’re here for. We’ll also let you in on a little secret, it’s actually not bad at all to not be certain of the type of real estate you want to buy. You may just have a little extra cash, be fed up with your current living situation and just looking out there. Well I’d recommend that you take a look at what you could afford.

Best House Hunting Tip! Don’t Narrow your Search

There is a great two-step process for making a decision on what you want to buy: first you calculate your budget, second go hunting on real estate portals for houses, apartments, condos, etc. With this you can start searching before being nailed down on what type of real estate to buy. Too many people assume that they will need to buy a house because of particular reasons, and end up narrowing their search. You may be able to afford a house in an area only slightly outside of your main search radius, or an apartment which is large enough for your dogs, etc.

What Types of Real Estate in L.A.?

Los Angeles has different types of real estate than e.g. New York. Whereas New York is all apartments and townhouses, L.A. has much more opportunity for single houses, condos or duplexes, and of course also the infamous vacant lots, where you can build your dream home. These are popular because they allow for a fairly private space, and prevent the stress which comes with door-to-door neighbors. Other types of property are townhomes, small lot homes (advantage: no homeowners’ association!), coops, much like the New York apartment market, TICs (Tenancy in Common), and of course the infamous vacant lots, where you just buy a piece of empty land.

• Single-Family Home
• Duplex
• Condo
• Townhome
• Small-lot Home
• TICs
• Vacant Lots

Is it Hard to Buy a Duplex in L.A.?

Yes! Duplexes (or even triplexes) are typically hard to own for the resident, as investors tend to buy these and rent them. These are some of the most popular investment properties in all of Los Angeles, and if you want to move into your home, this will be a hard buy! Go for a condo, apartment or house instead!

Preparing to Buy Real Estate in L.A. – 5 Steps to Prepare

To buy real estate there are 5 easy things to do which will prepare you perfectly for the purchase of real estate. These are largely financial, as you could guess. Not to worry though, it is not complicated, only requiring you to get some things in order. Before buying real estate, you need to do these 5 things:

• Look at your finances – outstanding debts, savings, etc.
• Gather documents about finances
• Speak to a mortgage broker
• Decide on your financing – which type?
• Find a real estate agent, an attorney, and finally a home inspector

Buying Real Estate Steps – Guide & Explanation for L.A.

Now the most important stuff. The process of buying real estate can be long and arduous, or if you know what you’re doing, a fun and engaging project. Either way, you will have to invest time and thoughts into your search.

Before you Begin – Preparation for Real Estate

Before doing any searching or getting in touch with a realtor, you should check your finances and get a mortgage pre-approval. Especially in L.A.’s market, this is vital. This means an in-depth credit report and an intensive search for a good mortgage lender. More on good mortgage lenders and how to find them in our article Mortgage Explained.

Mortgage pre-approval shows sellers and mortgage lenders that you are a serious buyer, and that you are good for the money you owe. Not only that, but it makes the search much easier because you have, on paper, exactly how much you can spend.

A mortgage broker is the first person you want to have in your team for buying a house. When finding a mortgage broker, shop around and see what brokers are best suited for your case.

• Get a mortgage broker!
• Shop around

Beginning the Search – First Steps

Assuming you have a real estate agent (which you should), this process is mostly delegated to them, although you can help by doing some of the work yourself. Your real estate agent can then get in touch with these property owners and pave the way for the process. Another good option: Ask around with family and friends. It’s much better to deal with people you are friendly with than strangers.

• Look at Listings Yourself
• Drive through a Neighbourhood you like
• Ask Friends and Family

Check Your Credit! How to Check your Credit Score

To prepare for your mortgage and preapproval, you will have to check your credit score. This is really not as difficult as it sounds. Your credit score will make or break your real estate purchase. The first thing you have to do is get a credit report. This is free. You can choose from one of three agencies in Equifax, Experian, and TransUnion. After you get this report, you should check if everything is in order. There are occasional errors, and other methods by which to improve the way this report looks. After, you order your credit score. You can choose to either pay a credit reporting agency (e.g. Equifax), or check for free in your online banking or on your credit card statement.

1. Order credit report
2. Check for errors in report
3. Check credit score from your bank (free) or from a credit reporting agency (costly)

L.A. Mortgage – Most Important Facts, Tips you have to Know

When buying any property, you will need to pay a downpayment on your mortgage. In L.A., with comparatively high real estate prices, your downpayment should be at least 20% in order to avoid the likely very high mortgage interest rates. While we dscussed above how you should be looking at a mortgage broker, these are the things you have to know about paying your mortgage.

Average L.A. Downpayment Price – High Mortgage Rates, High Interest Rates

Mortgage in L.A. means for many people, a downpayment that is not only a financial burden, but often also a burden too heavy to stem. That means many people who need to buy a house, will either struggle to save up, or make large sacrifices to pay such a downpayment, or, potentially worse, make a smaller downpayment. This smaller downpayment leads to high mortgage interest rates, and of course principal mortgage insurance. With a home price of e.g. $700.000, the classic 20% downpayment is a hefty $140.000! How much is a downpayment in Los Angeles? The average person pays over $100.000 when buying a home in L.A., just on their mortgage.

• L.A. Average Downpayment: >$100.000

L.A. Real Estate Agents – How to find the Best Real Estate Broker

What to look for in L.A. real estate agents: Real estate agents will often show off with their amount of experience. That’s of course important, but a young agent can be much more knowledgeable, and a person who has worked in the field can also be incompetent. Next, also make sure that you personally get along well with your agent. That means meet yor agent, and see what you think and what kind of an impression they make.

How to find the Perfect Real Estate Agent – Easy Rule

There is a tried and tested method by which to identify the perfefct real estaet agent for you. You can use the 3 p’s rule. The 3 p’s are

1. Personal attributes of the agent – is he/she trustworthy, approachable, diligent, etc.?
2. Payment structure – How is he/she being paid? is their goal to make you happy or to close on as many properties as possible?
3. Past track record – You can often quite easily find out the agent’ss history, and whether they have been successful in the past

List: Best L.A. Real Estate Agents

These are, according to our research the best real estate agents in L.A. Remember! Everyone has their own needs, and thus need different agents, but these have shown to have quality, care for their clients, and make good deals.

1. Suarez Team
2. Park Regency Realty
3. Stephanie Younger
4. Pinnacle Estate Properties
5. Jon Grauman
6. Billy Wynn
7. David Yun/Eighty8
8. Rafael Gevorkian

Before you Buy – What type of House Ownership?

There are many ways to own a home, these usually depend on whether you are a sole owner, or whether your spouse is also owning part of it. Finally, the differences are mostly in who will own the property when ways part. Apart from the classic sole ownership, you have joint tenancy with right of survivorship (2 or more people own a home, equally), tenancy by the entirety (identical to joint tenancy but when owners are married). Lastly, there is tenancy in common, where 2 or more people own a certain poportion of a home.

• Sole Ownership
• Joint Tenancy with Right of Survivorship
• Tenancy by the Entirety
• Tenancy in Common

Finding a House, Apartment, etc. in L.A. – Best Method

If you want o buy a piece of real estate in L.A., you have to go ahead methodically. Of course you’ll likely have an agent helping you with everythign along the way, but you will want to get involved in the search as well. Firstly, how to find good properties, and next, what you should be paying attention to.

Beginning the Search – First Steps

Of course your real estate agent will be looking at listings constantly for you. They often send weekly reports of possible properties, of which you can then decide which you like. Additionally though, it’s also good if you take a look yourself at listings on different websites. Some real estate listings are also not online. That means it can be a good idea to drive around neighborhoods which you’d like and look for open houses or for sale signs. Your real estate agent can then get in touch with these homeowners and pave the way for the process. Another good option: Ask around with family and friends. It’s much better to deal with people you are friendly with than strangers.

• Look at Listings Yourself
• Drive through the Neighbourhood
• Ask Friends and Family

What to Look for in a House – Tips!

The main things you have to look out for in your house are likely first and foremost financial in nature. Is it in your price range? Does it need many repairs? Etc. There’s other things you may personally find important like, proximity to city, public transportation access, a swimming pool, and more. Your realtor can tailor your needs and desires so that you receive listings which align with your wishes. Another important thing, if your financial situation is not as liquid, you can look out for homes which are in need of renovation. These are often sold undervalue, meaning that you can buy and renovate them for a lower price than a similar house in perfect condition.

Things you may need to look for are the following:

• Price
• Size
• State of proeprty (e.g. possible renovations)
• Schools and Leisure Opportunities in the area
• Number of baths and Befrooms
• Local real estate market (rising or decreasing value)
• Access to Public Transportation
• Distance to Shopping and Supermarkets
• Amenities like Swimming Pool or Balconies

How Long it Takes to Buy a House in L.A.

From start to end, the process is going to take a few weeks at least. The time can range anywhere from three weeks to three years, but on average you can expect about 6 months from start to finish. Some people search for years and fail to find anything. In the end, how long you spend finding a new house depends on how well-prepared you are. If you are financially responsible, have a lot of money saved, the process can be shortened, as your pre-approval will be easier to obtain, and you are able to financially outbid and provide security to sellers. In any case you should not rush it, as that leads to mistakes and misjudgements that can cost you in the long run

• 3 Weeks to 6 Years

How to Buy Real Estate – Closing the Deal

So you’ve found your dream property. It’s everything you ever hoped for, and you can afford it. What now? Now is the critical step where you are going to have to make an offer that’s not too much and not too little. The best scenario is that you make an offer slightly lower than what the seller is willing to accept, they make a new offer, and this offer is the lowest they will go. Then you will have paid the least possible for your property.

Step 1 – Making an Offer

Your agent will help you htourgh this whole process. Beginnning with telling you what your first offer should be. You will also want to have the agent present the offer to the seller, taking over from you. You may want to do this in person, but if you have the right agent, it will always be the better option to have them take care of this, as it will certainly not be the first dealing they are brokering.

• Agent makes the First Step

Also! Remember that you may not be the only one trying to buy this piece of real estate. That means that you may end up in a bidding war with other buyers, especially for desirable, and affordable homes. Things that make you a stronger candidate are better finances, mortgage pre-approval, as well as being lenient in the closing date.

How to Prepare a Purchase Agreement – Important!

What’s a purchase agreement? It’s basically you saying what you imagine under your purchase. the seller will then agree to these (hopefully), and the rest of the deal will depend on this. For this reason there are many details in this agreement. This includes personal information of you, the buyer, as well as the owner, i.e. the seller. The location of the home, the price which you want to purchase it for, who is lending the mortgage, and the amount of the downpayment. Decorations, or other features which will be left in the house, and the circumstances on which your purchase decides. This is very important. A purchase agreement must ensure that your purchase depends on the home inspection, the mortgage approval, and the appraisal. Lastly, it will also include the closing date

• Price of House
• Mortgage Lender
• Personal Infos
• Anything Left in House
• Contingencies of Purchase
• Official Closing Date

Home Appraisal + Inspection – What to do After Closing

Closing on your home is not the last step of the process. You will have to get your home inspected, appraised, and your mortgage approved. These are critical steps, and while not all are mandatory, skip them at your peril. Don’t get lazy now! Skipping steps here will leave you regretting it for years! This is what you absolutely have to do after closing on your real estate:

1. Home Inspection
2. Home Appraisal
3. Mortgage Approval

Avoid Issues and Traps in Real Estate – Home Inspection!

Not only should you do this, but it is also your legal right to get a home inspection. It is more of a precaution than a convenience. This can prevent you from unseen future payments that can haunt you for years. A professional home inspector will go through the house, taking a look at everything from electrical systems to heating. This professional inspector gives you a summary of the house. It includes all possible issues. There are always some issues, and the may not be very significant, but can be, and even if they are not, can be used as leverage in your negotiations.

• Not necessary, but good

Should I get a Home Inspection? When to get Home Inspected

There are almost no circumstances under which you should avoid a home inspection. It may seem like an avoidable cost at first, but in the end you will be thankful that you did get it done. Especially in L.A., where roofing issues, and other things like sinking are much more common than elsewhere, a home inspection will be a blessing, and will most likely save you thousands of dollars.

What’s the Value of My House? Home Appraisal done Right

A home appraisal is where an expert comes to take a look at the property and takes a detailed look at everything in order to properly estimate the true value of the piece of real estate. This is an important step, and will likely be obligaotry. It is influential when looking at reselling, but also for your mortgage. Importantly, you should take note of the detailed report, as the appraiser may have gotten something wrong, and you can contest the appraisal given there is a mistake.

• Contest the appraisal if necessary!

Why is a Home Appraisal Important?

Your lender will most likely require the official appraisal of an expert. That is why there will often be no way around it. But also, because it is good practice to have this done. For lenders, the motivation of the home appraisal is to avoid giving you a loan for a house that is worth less than you buy it for, because it is less likely that you will be able to pay back the loan. Therefore you likely want your appraisal to be the same as your purchase price. If the appraisal is lower than the price, you may not get approval, if it is higher, count yourself lucky, but this may become a factor in renegotiations.

• Avoid a low Appraisal Price!

Saving Money on Real Estate in L.A. – Tax Deduction Tricks, Tips, etc.

Real estate, like taxes is a domain where experts always seeem to pay considerably less than everyone else. That’s because they know all the ins and outs. There are countless ways to save money, but many of them consist of complicated processes like founding a corporation or a charity, or going into business with other people. Still, there are simpler methods which you can start using today, with little energy expended. These are our top tips for saving money on real estate in L.A.

L.A. Real Estate Tax Deductions – How to Save Money on Taxes

For people who are not able to pay a full downpayment, there are many support programs. Real estate purchases are generally encouraged with incentives and support programs. The best are for first-time homebuyers, meaning that if it is the first time that you buy a full residence, you will pay less taxes, and have other monetary incentives. More on that in our main article on buying a house.

• Less taxes for first-time homeowners

In addition to these incentives and deductions, there are also programs such as veterans’ loans, or less costly mortgage programs for low- and middle-income buyers from Home Possible Mortgages. In Los Angeles specifically you can make use of ‘California’s First Mortgage Program’ and ‘First Home Mortgage Program’ given you are eligible. These provide finanical assistance and make the process much less financially risky.

We have a full-size guide on how to use tax breaks and deductions to your advantage:

Real Estate Tax Deductions

Saving with Home Improvements

The planet is dying, and everyone has to do their part. That’s why many houses in L.A. nowadays are sold with eco-friendly upgrades already done. These inlcude renewable energy sources such as solar power, or other variants such as more insulated roofing or smart thermostats. Having these can cut down on your recurring costs.

• Eco-friendly = Wallet-friendly

Final Checklist – Steps to Buying Real Estate in L.A. Explained Shortly

These are the steps you will take when buying real estate in L.A. Behind each of these steps there are more details and things you should take a look at. Remember that in total, the process of buying real estate, when doing it right, is not a short 2 week affair. That’s a good thing though, do not hurry the purchase! That’s where errors and mistakes come up most frequently. Finally, these are our top tips and tricks, our steps to buying real estate in Los Angeles.

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

Der Beitrag Buying Real Estate L.A. – Guide, Tips, Checklist for Homebuyers, Investors erschien zuerst auf ℄ Real Estates.