Similar to many people today, you might want to get yourself a getaway place not very far away from home, a spot where you can settle back and recharge with family and friends. Depending on your needs, you may really want the second home for work as well as play.

In cases where a getaway is something you’ve been considering…discover the information you need. It’s essential to make a good determination.
To Find Out:
What are your favorite second-home locations?
How may I determine my return on investment?
I’m interested in resort property.
Should I purchase resort property now?

What’s my second step?
What are the best second-home locations?
1. Typically, the most beneficial locations are not any more than 2-3 hours from major metropolitan areas by car or plane.

2. A number of second-home locations are highly sought after and dissuade overdevelopment, such as Vero Beach or the Florida Keys..

3. How can I figure out my return on investment?

No one can predict the foreseeable future. However, certainly, there are elements you can give consideration to to help make sure a 2nd home is effective for you.

Tips on second homes:
You will definitely enjoy it more if you use it regularly.
Be sure you can get to it easily for spur-of-the-moment getaways.

Consider your interests.
Determine a location you’ll enjoy playing in today and retiring in down the road.
Trust your awareness about your regional area.
You’re most likely to come up with a better investment decision when it’s nearer to your home.

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Bargains on Foreclosed Households, Although the Buyer Better Be Conscious!

Finding the deal of a life-time for a property foreclosure dwelling or condominium could very well become the solution to your desires. However, sometimes the procedure is filled with problems…if you try to go it alone. You will find situations everywhere with the purchase of foreclosures and an skilled realtor can be really affordable insurance policy against making a massive and expensive property error. What we’ll be working with here is the technique of obtaining bank owned or foreclosed properties, the ‘how-tos’ with an focus on things to stay away from and in the end who should be part of your team.

For more information on foreclosures in the Lower Keys and Key West contact Robert Severin at http://www.keywestpropertyforsale.com
Foreclosure Sales vs. REOs
Before getting into the process, we’ll need to cover some principles. The bank will ordinarily and to begin with offer the household as a “foreclosure sale” with an public auction.

For more information on foreclosures in the Lower Florida Keys contact Ruth Pasquale at http://www.bestkeysrealestate.com/The transaction presumes that the house loan continues to be in position. In a foreclosure sale the retail price is determined at a minimum to include the following: the loan balance, any accrued interest, plus any other associated costs. The successful bidder will need to have a cashier’s check in his possession at the time of the auction. In today’s market place, this type of sale hardly ever occurs. If there is enough equity from the property to deal with the mortgage plus the market was more stable, the owner could have potentially offered his property himself and steer clear of the plain negatives associated with this transaction. Nowadays, this scenario is probably unlikely

For more information on foreclosures in the Middle Florida Keys contact Karen Angle at http://www.allfloridakeysrealestate.com/If the bank resells the home inside a REO (Real Estate Owned) sale, as the alternative, the mortgage then ceases to exist and the bank owns the property 100%. .

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The tax benefits of homeownership
Real Estate Tax Talk
By Stephen Fishman
Inman News™
February 04, 2011
Q: How can real estate agents be a resource for buyers on tax issues, such as the tax benefits of buying vs. renting?
A: Unless a real estate broker or agent is a bona fide tax professional — for example, has an MBA or other specialized training in taxation — he or she should not give clients detailed tax advice. As a real estate professional, you are licensed to help your clients buy real estate — not serve as their professional tax adviser.
If you give tax advice and it turns out to be wrong, it could cost the client a bundle of money, and leave you with a lawsuit for malpractice.
If a client does ask you for tax advice, and you give it, a good practice is to have the client sign a statement providing that he or she has not relied on your advice and that the transaction is contingent on the approval of the client’s tax or legal counsel.
That said, the tax benefits of real estate ownership are something every buyer should understand. You need to understand them as well.
When it comes to the tax benefits of renting vs. buying, the benefits of buying are many, while there are few or no tax benefits for renting. This simple fact can help get renters motivated to take the plunge into homeownership.
The tax benefits of buying a home include:
Home mortgage interest deduction: The interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home is deductible as an itemized deduction. In the early years of a home loan most of the payments consist of interest, so this deduction is particularly substantial during the first years of homeownership.
Depending on the state a buyer lives in and his or her tax bracket, this deduction can reduce the cost of borrowing by one-third or more.
Home equity loan deduction: Homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. The money can be used for any purpose, such as paying off high-interest credit card debt. In contract, the interest on credit card debt is not deductible.
Property tax deduction: Homeowners also get to deduct from their federal income taxes the state and local property taxes they pay on their home. This is another itemized deduction that renters don’t get.
Deductible homebuying expenses: Various closing costs ordinarily involved in a home purchase are also deductible as itemized deductions, including loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
$250,000/$500,000 home-sale exclusion: Perhaps the greatest tax benefit of owning a home comes when a person sells it at a profit. Homeowners who lived in their home for two of the prior five years prior to its sale need pay no income tax on a substantial amount of their profit — $250,000 for single homeowners and $500,000 for married homeowners who file jointly. This exclusion can be used once every 24 months.
14 days of free rental income: Another little known tax benefit of owning a home is that the owner can rent it out for up to 14 days during the year and pay no tax at all on the rental income. In contrast, a renter who sublets his or her rental must pay income tax on all the rental income he or she earns.
Tax benefits of renting:
The only tax benefit that a renter can qualify for by virtue of being a renter is the home office deduction. This is a business deduction available to renters who own a business and have a home office they use regularly and exclusively for business purposes.
Some employees can qualify for this deduction as well. The deduction is limited to the amount of profit earned from the business each year. If a renter pays a lot of rent, this deduction can be substantial. Homeowners who are in business and have a home office can also qualify for the deduction.
Of course, the value of the tax benefits of buying a home depends on the state the buyer lives in and his or her tax bracket. Buyers who live in high tax states like New York or California get the most benefit.
This is why the blanket statement “it’s always better to buy than rent” is not always true. It all depends on the buyer’s individual circumstances.
You should encourage prospective buyers to run the numbers. There are some excellent websites you can refer clients to that have online calculators they can use to compare the costs of renting vs. buying a home.
A good rent vs. buy tool can be found on the Smart Money Magazine website: http://www.smartmoney.com/personal-finance/real-estate/to-rent-or-to-buy-9687/.
Freddie Mac also has a good online calculator: http://www.freddiemac.com/corporate/buyown/english/calcs_tools/.
Stephen Fishman is a tax expert, attorney and author who has published 18 books, including “Working for Yourself: Law & Taxes for Contractors, Freelancers and Consultants,” “Deduct It,” “Working as an Independent Contractor,” and “Working with Independent Contractors.” He welcomes your questions for this weekly column.

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With the historic decline in real estate values, many are wondering, “Which is the best investment, a home or condo?”  To be sure, in some parts of Florida, the real estate market for condos is not good.  But should one still shy away from a condo investment? The answer, believe it or not is, “Absolutely not!”

The Real Advantages of Condo Ownership in Florida

There are several key advantages that one need consider. There is a key qualifier: the following pertains to properties that are located within coastal/vacation areas.

1. Cost/Return on Investment – Vacation condos in coastal areas that are both South of Tampa and Daytona Beach have an almost year round vacation market. Further north and the weather during the winter months is really too cool to attract tourists. Therefore, given the relatively low upfront cost in purchasing a vacation condo versus a single family home, weekly rental rates for condos are often a net positive cash flow, almost from the outset with a real positive return on investment.

1. Market Size – The market for short term condo rentals in the Florida vacation market is much greater than the market for single family vacation home rentals. The rental rates are much lower and the probability of keeping a condo rented on a continuing basis is much greater, because in the current market, fewer can afford the relatively high cost of renting a three or four bedroom home near the beach or waterfront areas.

1. Views – One of the other advantages of a vacation condo is that condominium complexes near the ocean, gulf or in the Florida Keys usually have better views than would a moderately priced single family home in the same area. In other words, it is significantly less expensive to purchase a condo with a “decent” view than a single family home with the same view.

1. Condo House Keeping Cost – Typically, in mid sized to large condominium complexes that are rented to vacationers, it’s relatively simple to find reputable and dependable individuals to perform cleanup services after a one or two week vacation stay. Also, the clean up cost of a typical condo is a fraction of what it might cost to perform the same services on a single family rental home.

1. Facilities – A key advantage of a condominium over a single family home is that because there are so many units sharing the cost of all the facilities (a pool, recreation room, and work out room, etc.) the number and quality of facilities usually far exceeds that which might be found in a typical single family home.

1. Ease of Management – If one buys a condo situated in one of the Florida vacation destinations and the owner is located in Texas or New York, maintenance problems are an absolute annoyance. Even if the owner is only 15 minutes away, it still is an annoyance. With a condo, often there is an on site manager who normally handles a vacationer’s problems, like a jammed toilet or sink. Also, local maintenance companies can be contracted to respond to a problem when summoned by a tenant resolving the problem without ever bothering the owner.

1. Ultimate Sale of a Condominium – As mentioned above the market for vacation condos to purchase is significantly larger than the market for single family vacation homes. When an owner of a condo elects to sell his property after having owned it, it is certainly easier to find buyers with the necessary down payment and financial resources to purchase a condominium as opposed to a much more pricey single family vacation home.

Like anything else, doing the background work in purchasing a condominium is of key importance. A potential investor must research the area, the rental history, the condition and the suitability of purchasing whatever condominium in which he might have an interest. Even in today’s market and perhaps, especially in today’s market, a Florida vacation condominium has so many obvious advantages as an investment.

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With prices where they are right now, there’s never been a better time to buy waterfront property in Florida.

Anyone who has ever been to Florida has at one point in their lives considered a life of relaxation with only the sound of the sea and the ocean breeze to worry about. While this may sound like an unobtainable form of paradise, with the current pricing, it is actually much more realistic than it seems. Here are several reasons.

1. A second home that generates income. For those who already own a home and are happy living where they are, waterfront property in Florida’s popular beach areas can be a lucrative investment. Each year, thousands of tourists flock to Vero Beach to soak up the sun. Because of this, waterfront rental properties generally take in good rental income. In fact waterfront properties are always the first to get rented.

So, by purchasing a piece of waterfront property and renting it out, you can have all or certainly part of your home payments made plus enjoy it as a vacation home. The goal being, that eventually, you’ll be in a position to retire and live the relaxing life you’ve worked so hard to attain or the property will simply be a good investment for the future.

2. Waterfront properties have historically always had the best appreciation. If you’re on the fence regarding whether or not to purchase property, remember that.
I’m sure you’ve all heard the phrase, there is only so much waterfront property available-which is absolutely true.

3. Buying vacant land. Another consideration is purchasing a waterfront lot and then even if you don’t build on it, the property can still grow in value over time or you can build your dream home later. Lots of investors have made their careers out of purchasing multiple vacant lots.

4. The current pricing. Waterfront property in Vero has never been cheaper than it is now and likely never will be again. The result is that people of all walks of life and nationalities are currently taking advantage of the Florida Beach housing market.

The only way to make sure you can even get your hands on a piece of waterfront property in Florida (and for less money than ever before) is to start looking now, while there are still excellent property investments available.

In summary, if you’re in the market for waterfront property in Florida, there’s no better time than now to buy. For more information please go to our ask an expert section

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