Striper Talk Striped Bass Fishing, Surfcasting, Boating - View Single Post - One in Four 2nd Quarter Home Purchases Was A Foreclosure

Fly Rod · 10-02-2010, 09:53 AM

With record low interest rates there is no better time to buy then now, if one can afford to buy a first or second home. No one can predict the market 4 -5 years down the road. Real estate is a roller coaster ride, the market goes up and down as we have noticed since 2005. They that have purchased a home in 2004 - 2005 were the first to be short saled or foreclosed on, next came the ARM(adjusted rate mortgages) and jumbos came due and you could say that sticker shock set in when their payments doubled and homeowners could not afford the payments

If purchasing a 2nd home you may have to have a down payment of twenty five percent, lender may consider it investment property. When is a good time to purchase, when you want to buy. Do not under estimate the real cost of owning a 2nd home, there are maintence cost as is with the first home. In most or all cases of owning a vacation home capital gaines exemptions do not apply.

Should seek professional advice from a CPA prior to purchasing a 2nd home. There are strict IRS rules, 14 day rule when renting out a 2nd home. Your deductions are limited if you use the property for personal reasons for more then 14 days a year or if at least ten percent of the total rental days are for personal use.

Minimize your tax burden and use an accountant if you do it legally.

10-02-2010, 09:53 AM	#8
Fly Rod Registered User iTrader: (0) Join Date: Mar 2003 Location: Gloucester Massachusetts Posts: 2,678	With record low interest rates there is no better time to buy then now, if one can afford to buy a first or second home. No one can predict the market 4 -5 years down the road. Real estate is a roller coaster ride, the market goes up and down as we have noticed since 2005. They that have purchased a home in 2004 - 2005 were the first to be short saled or foreclosed on, next came the ARM(adjusted rate mortgages) and jumbos came due and you could say that sticker shock set in when their payments doubled and homeowners could not afford the payments If purchasing a 2nd home you may have to have a down payment of twenty five percent, lender may consider it investment property. When is a good time to purchase, when you want to buy. Do not under estimate the real cost of owning a 2nd home, there are maintence cost as is with the first home. In most or all cases of owning a vacation home capital gaines exemptions do not apply. Should seek professional advice from a CPA prior to purchasing a 2nd home. There are strict IRS rules, 14 day rule when renting out a 2nd home. Your deductions are limited if you use the property for personal reasons for more then 14 days a year or if at least ten percent of the total rental days are for personal use. Minimize your tax burden and use an accountant if you do it legally. Last edited by Fly Rod; 10-02-2010 at 10:05 AM..