There are several resources for advice and information on real estate investments. Ilyce gives advice on books, seminars and websites for so you can get more knowledge about becoming a real estate investor, as well as recommending you get a real estate attorney and real estate agent for help.
A couple is 5 years from retirement and asks Ilyce whether they should refinance their existing home to finance the purchase of property that they will eventually build their retirement home on. Ilyce suggests holding off on refinancing their existing home and buying the vacant lot, because they don't plan on building for close to five years that kind of property is hard to sell in case they need to. Ilyce suggests not refinancing their existing home right now and saving the money they would be paying on a mortgage.
When selecting a home for retirement, make sure the property is a good investment, especially if you're buying several years out. A couple wants to buy a retirement condominium in a place they take vacations now, but they will not be moving for 15 years. Ilyce cautions the couple to choose their retirement home in a place where it will be good investment property, where they can get rental income or the land appreciates since they have 15 years before the actual move.
Deciding whether to lease our own land depends on whether the property is going to be a primary residence or vacation property. A reader wants to "purchase" land that Georgia Power owns, but it's a 99-year lease, instead of actually owning it. Ilyce explains that a 99-year land lease means that after 99-years, the land and the home on it would go back to Georgia Power, which is why as a primary residence it would be fine, but as vacation property, you'd want to own it, in case you want to keep it in the family.
Understanding 1031 exchanges and how they work with investment property can save you a lot of money. In some cases, you can save more than $10,000 in taxes if you use a 1031 exchange when selling investment property.
1031 exchanges can only be used in "like-kind" exchanges, meaning you can't use profits from a commercial property sale to pay for personal property. If you do use profits from a commercial property sale to pay for personal property, the 1031 exchange does not apply and you can get hit with big taxes. The best way to determine how to use profits from a commercial property sale and the rules of a 1031 exchange, contact a good real estate attorney.
Landlords are looking for a simple contract form they can use for tenants who rent out their basement. There may be renter's and landlord agreement contracts available online. Renter or landlord contract agreements may also be found at a local stationery store.
Check out all the laws and requirements if you're buying rental property out of state. Owning rental property out of state can be a good investment, but just make sure you have a list of rules and requirements. Owning rental property out of state means you won't always be able to get to your investment property if something goes wrong.
If you're thinking about buying investment property, think about the property taxes you may have to pay as well as the location of the land when you make your purchase. You don't want to buy investment property with high taxes that's in an undesirable location. You must also think about the future of this investment property, whether the taxes may rise and how the surroundings of the location will change as the years go on.
Your county assessor's office will give you a copy of your property tax bill and let you know if your mortgage lender has made your payment. The mortgage lender may not always send you a copy of your property tax bill so it's your responsibility to make sure your property tax bill has been paid. If your property tax bill isn't paid on time, you could lose your home, so check with the county assessor's office and make sure your mortgage lender has paid the bill.
