Archive for December 2011
3 Steps to Saving Up to Thousands of Dollars by Reducing Your Property Taxes
December 28, 2011 | 
Author 
Did you know you can save up to thousands of dollars by challenging your property tax bill?
Follow these 3 easy steps and cash in on your taxes in less than 30 days.
1. Find Out if You are Being Overtaxed
Taxing authorities use different methods to calculate home values. Some look at recent sales of similar homes. Most County Assessors mail out tax notices and bills as early as July 1. Tax rates vary from city to city, but generally a fair rate is set at 1.2% of your assessed value. You can check your annual taxes online at your tax collector and county assessor’s websites. You should also find at least three comparable homes that were sold in 2008 to build your case. Real estate appraisers offer to do this for a fee.
2. Astray from the Herd
The evidence the assessor used to value your home is based on a wholesale or bulk review of all the homes in your area. Because a “wholesale” review is not unique to your home or property, your home may be overvalued and needs to be re-assessed. You are eligible to file an appeal to have your property re-assessed to reduce your annual property taxes. Some California homeowners are over-paying as much as 50% in property taxes. Make sure you are not overpaying.
When municipalities or counties re-assess property values, they typically hire an outside contractor who looks at hundreds or thousands of homes in a tight time period. These are bulk assessments that neglect the individuality of each home. When filing an appeal, point out all the features of your home that makes it unique: square footage, number of bedrooms and bathrooms. Does it have a fireplace or swimming pool? Is it a condo or single-family home? These attributes are important in having your property re-assessed.
3. Let the Experts Do the Dirty Work
You won’t have much time to file an appeal, generally 60 days or less from the time your annual tax assessment was mailed. When filing an appeal, the homeowner needs to know a great deal about the current market conditions, the value of his or her property and extensive knowledge of comparable properties. This information serves as evidence that you are being over-taxed. Filing the appeals application on your own can cause your application to be denied and force you to pay higher property taxes than you should. The No.1 reason County Assessors deny appeals applications for re-assessment and summon homeowners to court hearings is because applications not completed by professional real estate appraisers often contain mistakes and inaccurate market information. Do yourself a favor and hire an affordable real estate appraiser that will do the hard work for you.
By: Toni Shepherd
Posted in Finance | 
Tags: California Homeowners, Dirty Work, Herd, Home Values, Individuality, Mail, Municipalities, Neglect, Property Tax Bill, Property Taxes, Property Values, Real Estate Appraisers, Single Family, Square Footage, Swimming Pool, Tax Assessment, Tax Rates, Thousands Of Dollars, Tight Time, Time Period | 
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Business Acquisitions – Book Value Vs Fair Market Value
Book value is the accounting value of a firm and often bears little relation to an asset’s market value. It is a generally accepted accounting principal (GAAP) term that reflects the net dollar value at which the historical cost of assets are recorded on a firm’s balance sheet and represents the price paid for an asset minus the accumulated depreciation. Carrying value or depreciated cost are other terms that the financial community will use to reference book value.
Fair Market Value (FMV) is the most widely recognized and accepted standard of value for asset transfer in business acquisition and sales. The ASA definition of FMV is “the amount at which the property would change hands between a willing seller and a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts.”* The concept of FMV relates to the value at which a transfer of assets should be anticipated to occur under conditions existing at the time and date of a business valuation.
The easiest way to describe the two values is to understand that book value represents the depreciated value of what was paid for a particular asset, while market value represents the current price at which that asset can be purchased in the marketplace.
Fixed assets like machinery, equipment, buildings, and vehicles which are expected to last for more than 1 year can be depreciated as an expense on the profit and loss statement based upon the annualized usage cost of these assets. From an accounting perspective, depreciation transfers a component of the asset’s cost from the balance sheet to the P&L during each year of the anticipated life of the asset. There are a variety of depreciation methods that meet the GAAP standards and they are typically grouped into two classes: (1) straight line (2) accelerated. The fact that many owners choose an accelerated method to reduce their short term tax liabilities adds additional confusion when evaluating balance sheet values.
For example, let’s say that a business bought a piece of machinery or vehicle for $50,000 which had an expected life of 5 years. If the owner decided to use straight-line depreciation, the book value is decreased by $10,000 for each of the 5 years. If instead they opted for an accelerated method, like double declining balance, the book value is decreased by $20,000 the first year. In each of these cases the “book” value of the asset will be different and neither will have a bearing on the “market” value, as there is absolutely no way to calculate the market value of a business asset from a balance sheet.
According to the IRS, there is no simple formula to derive FMV. Depending upon the type of asset, there are many methods and industry resources utilized to value items, similar to “blue books” for automobiles. The original value of an item can also be irrelevant especially when considering that a variety of assets have appreciated in value during the very same period that the CPA has been depreciating them. This will cause certain assets being listed on the balance sheet at a fraction of their FMV value. Replacement cost is another indicator of FMV but even this process may not have a direct relationship to the assets true worth. When the FMV is in question, the recommended approach is to engage a professional firm who specializes in the valuation of each particular asset classifications.
*ASA Business Valuation Standards (Herndon, VA: American Society of Appraisers, 1997), p. 20.
By: Michael Fekkes
Posted in Business | Tags: Asset Transfer, Business Acquisition, Business Acquisitions, Business Valuation, Carrying Value, Depreciation Methods, Dollar Value, Equipment Buildings, Fixed Assets, Fmv, Machinery Equipment, Profit And Loss, Profit And Loss Statement, Relevant Facts, S Market, Tax Liabilities, Time And Date, Value Of A Firm, Willing Buyer, Willing Seller | No Comments »
What Are the Best Neighborhoods to Buy Real Estate in Sao Paulo Brazil?
S?o Paulo is the biggest Metropolitan city in all of South America in terms of urban area population. It is also considered the largest economic metropolis in the region. The variety of housing types and real estate options available is quite overwhelming. There is so much choice that you can practically find a neighborhood to meet just about anyone’s needs or wants.
So Where Should You Buy?
That’s a tough question and there are several possible answers. This article will walk you through some of the most popular areas that local buyers are currently pursuing and why. It will also attempt to give you the average price of a home in all of the neighborhoods covered in this article in order to help you decide what suits you best.?
The Most Sought After Neighborhoods By Local Home Buyers are Pretty Disperse
The ton of neighborhoods in the city make it practically impossible to pin point what the single best location within the city would be. In fact, most home local buyers consider many things before they take the plunge. Factors which most affect the purchasing decision are:
How close the property is to their work location How safe the neighborhood is Which shopping areas are within walking distance Ease of mobility Whether or not the property is near the city’s Metro/Subway. How much can people afford to spend What the demand for rental property in the neighborhood is in the event they wanted to rent out the home at a future date. Who your potential tenants would be and what their average incomes are What traffic is like in the area (One of the most important) etc.
All these things play a huge roll when deciding what the best place to buy a home is.
Traffic is Probably one of the Biggest Factors People Consider
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S?o Paulo is a huge city with tons of cars. In fact, statistics show that there are over 6 million cars within the metropolitan area. This makes mobility a huge concern since traffic and proximity can mean the difference between a daily commute of a few minutes to that of a few hours. So where people work and what the traffic is like is probably the biggest factor new home buyers consider before making the final purchasing decision.?
Access to S?o Paulo’s Subway / Metro
Those who can’t afford to live within walking distances to their work locations generally preffer to buy or rent real estate in neighborhoods that are close to the city’s Metro. This gives the general working family a more convenient method to commute to their work locations. It is also much faster than traditional public transportation methods such as city buses.
Neighborhoods Near the Metro and Real Estate Prices in the Sector
According to research done through Datafolha the following neighborhoods are in high demand because of their location:
Important Neighborhoods Near Av. Paulista: (Prices in here range from R$4.000 to R$7.000 Brazilian Reais per square meter)
Para?so Cerqueira C?sar Bela Vista Consola??o
Neighborhoods in the Southern Zone:
(Price around R$4.000,00/m2)
Vila Mariana
Neighborhoods on the East Side:
(Price around R$3.000,00/m2)
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Tatuap? M?oca (A Neighborhood of Immigrants)
Datafolha Research classifies M?oca as the top ranking neighborhood within S?o Paulo. It is a neighborhood that has traditionally attracted a large amount of immigrants, mainly from countries such as Italy and Spain. Its culture is very diverse and people seem pretty happy here. It is known for having that small town aura where residents have a sense of community and there is a good feeling of peace and security.
M?oca is not too close the city’s Metro, however it is still considered pretty central and is easy to get to.
Real estate prices in M?oca
The average per square meter cost in M?oca is of around R$3,000 to R$3,500 per m2. The demand is also constant so the liquidity factor is pretty positive as well.
Popular Upscale Neighborhoods in S?o Paulo
For the higher income crowd, S?o Paulo offers beautiful neighborhoods such as:
Higien?polis Moema Perdizes Pinheiros Brooklin Campo Bel
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Average real estate prices in these neighborhoods go for approximately R$ 4,000.00 to R$ 8,000.00 / m2.
Almost everyone in these areas drive cars so public transportation is not too great. The Metro is a bit far but these neighborhoods are still considered pretty central. Due to the high demand for property in these areas buying real estate here makes for a pretty good investment.?
Morumbi – A Surging Community
In the Western part of S?o Paulo we find one of the fastest growing neighborhoods in the city -? Morumbi. Morumbi has become quite popular and home prices are quickly escalating.
Real Estate Prices in Morumbi
The average per square meter price in Morumbi goes for around about R5,000 /m2 which is on the upper end of S?o Paulo real estate prices. This is pretty interesting considering there are two things which would lead people to believe the area would be worth much less.
Morumbi is very near Parais?polis which is one of S?o Paulo’s largest slums The neighborhood is a bit far from central S?o Paulo (approximately 8 to 14 kilometers)
Despite these facts, Morumbi is growing at an alarming rate and real estate here is considered a great investment. New construction projects are booming everywhere and home appreciation is accelerating quicker than in other S?o Paulo neighborhoods.
By: Serapis Murillo
Posted in Real Estate | Tags: 6 Million, Average Incomes, Best Place To Buy A Home, Economic Metropolis, Home Buyers, Many Things, Metro Subway, Metropolitan Area, Metropolitan City, Million Cars, Plunge, Proximity, Real Estate Options, Rental Property, Sao Paulo Brazil, Shopping Areas, South America, Urban Area, Walking Distance, Work Location | No Comments »
How You Can Own Your Own Dream Home At 90% Off Market Value
You most probably do not own the roof over your head. And the dream to own your own Real Estate looks so far in a dark tunnel that you can’t imagine how your hands can ever reach such a lofty desire without winning a lottery.
Interestingly a lot of people feel just as you do even though they can own their own Real Estate at 90% of market value. Unfortunately, just like you, they do not know how.
Take a pen and paper and calculate your annual rent for a couple of years. Later you will see that you would have spent more the amount you need to own your own house and leave the league of those paying ridiculously high annual rents.
Yes you can own your own Real Estate at 90% off market value by taking advantage of Real Estate auctions: The Auctions are legal and out there in every state waiting for you.
Did you know that over 250 000 seized Real Estates by government and other institutions in the United States are constantly available for auctions all over the states?
Did you also know that every month thousands more Real Estates are repossessed for public auctions by Governments, banks, organizations and institutions, and that ordinary folks like you are taking advantage of this very hot but obscure market to own their own dream homes?
Shouldn’t it also interest you to know that some people with entrepreneurial spirits have even gone into Real Estate business on shoe string budgets through Real Estate auctions, buying ridiculously cheap and selling at market value?
The seized Real Estates auctions are very unique with all transactions being very transparent, conducted in the open where you can clearly see that each item is won by the highest bidder. “Highest” in all cases being just 90% off market value.
Like several other opportunities out there, the Real Estate auctions are being enjoyed only by those who know and are taking advantage of their knowledge. You too should take a look at the Real Estate auctions and see how you can easily fulfill your dream of owning your own Real Estate, or even start your own Real Estate business.
By: Charles Neshah
Posted in Real Estate | Tags: Banks, Budgets, Dark Tunnel, Desire, Dream Home, Dream Homes, Entrepreneurial Spirits, Estate Business, Governments, Highest Bidder, Hot, Institutions, Lottery, Own Real Estate, Pen And Paper, Public Auctions, Real Estate Auctions, Real Estates, Rents, Shoe String | No Comments »
California Property Taxes and Prop 13
When somebody inherits a home via a will, trust, intestacy or by gift, it is not necessarily true that the value of the home will be re-assessed for property tax purposes. This can be especially important to a beneficiary who inherited a home from his parents or grandparents since they probably had a low base year value of their home. For example, if Bobby Beneficiary inherited a home, currently valued at $1 million dollars, from his late parents who had purchased the home for $50,000 decades ago, he would not be liable to pay property taxes on the assessed value of $1 million dollars but rather on $50,000, plus annual adjustments. (See Example 4).
Of note, Proposition 13 caps the levying rate for property taxes in California at 1%. Cal Const art XIIIA, 1.
The following are examples of situations in which the transfer will not result in a “change in ownership” and thereby avoid the dreaded re-assessment for property tax purposes.
1. Transfers in which proportional ownership interests remain the same before and after transfer
For example, Husband and Wife own a rental home in joint tenancy (50/50 split) and transfer it to a limited liability company in which they have same membership interest (50/50 split). Rev & T C 62(a).
2. Transfers to revocable trusts
For example, Husband and Wife execute a revocable (living) trust and transfer the home they live in into the trust by transferring title from themselves to the trust by naming the trustee of their revocable trust as owner. Rev & T C 62(d).
3. Interspousal transfers
For example, Husband and Wife own their home in joint tenancy, Husband dies and Wife inherits the other half of the house. Rev & T C 63.
4. Parent-child (or grandparent-grandchild) transfer
For example, in the case of a Parent-Child transfer, Husband and Wife own a home and have one child, Son. Husband and Wife pass away and Son inherits the home. Furthermore, in the case of a Grandparent-Grandchild transfer, Grandparent is only survived by a Grandchild, that is no child of the Grandparent outlives the Grandparent. Rev & T C 62.
5. Persons over age 55 or who are severely and permanently disabled may transfer the base-year value of a residence to a replacement dwelling in the same county, or in another county if the board of supervisors of that county adopts an ordinance granting base-year-value relief to replacement dwellings when the original dwelling was located in another county
As of this writing, seven counties (Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura) have ordinances granting base-year-value relief to replacement dwellings when the original dwelling was located in another county per Rev & T C 68-69.5. For example, Person purchases a home in San Jose (Santa Clara County) and upon reaching the age of 55 sells their home in San Jose in order to purchase a home in Redwood City (San Mateo County) so they can be closer to their family.
By: Shahram Miri
Posted in Legal | Tags: 1 Million Dollars, Beneficiary, C 62, California Property Taxes, Caps, Const, Grandparents, Husband And Wife, Joint Tenancy, Limited Liability Company, Membership Interest, Ownership Interests, Prop 13, Property Tax Purposes, Property Taxes In California, Proposition 13, Revocable Living Trust, Revocable Trust, Trustee, Trusts | No Comments »
What Does Flipping Houses Mean?
Starting your career as a real estate investor who flips should begin with the practical answers to what does flipping houses mean? Flipping houses consists of purchasing a home at below market price and quickly selling that home at market value. It’s just value purchasing – getting more for your money. That’s a very vague definition because there are several ways to flip a home.
Many investors flip properties and never take title to the home and some never really own the property because of the swift negotiations. They never go though the closing or settlement process, never go through the financing and many never even use their own money. But no matter what the timing is for this transaction all home flippers have one thing in common; buying low and selling high to make a nice profit.
Flipping houses is one of the best real estate ventures an investor could begin. Buying and selling homes is a quick way to earn money. Done several times and flipping homes can make you rich. When it’s done as a career flipping homes creates steady cash flow.
Flipping homes is usually accomplished in a few months and you can have several deals going at the same time.
You can create an option to buy a property without the actual obligation to go thorough with the purchase. You can ask the property owner to lease the property to you as a tenant with the option of you purchasing the property within a given amount of time, usually within 6 months. The contract would also state that you have the option to sell the home to anyone. If the home is selling for $100,000 then you find a buyer and sell your option for $125,000. You’ve just profited $25,000 and the seller still gets his home sold at the price asked.
Many investors flip foreclosures. Purchase below market from a bank or at an auction and sell at a higher price. The profit potential is dependant upon the economy but foreclosures are always bought below market value.
Then again, you can always do your research and find that diamond in the rough. This all depends upon finding a home that is selling below market value that you know is much more valuable.
So finally, what house flipping means is simply to purchase low and sell high to make a profit.
By: Alex Nghiem
Posted in Real Estate | Tags: Amount Of Time, Auction, Best Real Estate, Economy, Flippers, Flipping Homes, Flipping Houses, Foreclosures, Investors, Negotiations, Nice Houses, Obligation, Property Owner, Purchasing A Home, Real Estate Investor, Several Times, Several Ways, Starting Your Career, Steady Cash Flow, Vague Definition | No Comments »
Port Orange Neighborhood Association
In my opinion, the main focus of every association is to protect the investment of each individual Port Orange homeowner. Now, there are a few association members in the area that take their roles in the association a little too far, but the majority are handled very professionally. The first thing a buyer should do is contact the neighborhood president or manager. He or she should be available by phone. Don’t hesitate to call him/her and ask any specific questions about the neighborhood and the governing rules.
Some Popular Port Orange homeowners restrictions include:
Pet Restrictions – The association may limit the size, type, and number of pets per household in the community. They may not allow clotheslines. Restrictions on flags are possible. Fences will have a height limit, and there may be restrictions on the type of fence too. Commercial vehicles are usually not allowed to be parked on the driveway. Home businesses may not be allowed. Some don’t allow the garage door to be left open Many do not allow boats to be parked in the front yard or on the driveway.
The most important step is to read the association documents. The package may be lengthy, but it is worth your time. I would also suggest talking with a few residents in the neighborhood to see how they feel about the association.
Don’t worry, there are many homes available in Port Orange that allow more flexibility. Contact Kevin for a list of Port Orange homes with or without neighborhood associations.
By: Kevin Kling
Posted in Real Estate | Tags: Association Documents, Association Members, Boats, Clotheslines, Commercial Vehicles, Contact Manager, Fence, Fences, Flags, Flexibility, Front Yard, Garage Door, Home Businesses, Household, Kevin Kling, Neighborhood Association, Neighborhood Associations, Pet Restrictions, Pets, Port Orange | No Comments »
Second Mortgages – Common Home Equity Questions
According to Barry Donovan, a financial consultant and writer for Nationwide, “One of the most powerful cash vehicles driving our economy is the new and improved home equity loan.” If you haven’t put the equity in your home to work for you yet, you probably have a few questions about taking out a 2nd mortgage.
How do I get a second mortgage?
Just like any other reputable mortgage product, tapping into the equity on your house will involve your credit score, your income, and other consumer debt. The value of your home will also factor into the equation. Of course, you will have a more challenging time qualifying if you have bad credit or heavy debt.
How big of an equity loan can I get?
The availability of equity will be based on the loan to value ratio, which is the value of the loan against the fair market value of your home. So a loan of $80,000 on a $100,000 home has a loan to value ratio of 80 percent, which is the standard ratio. Only a select few lenders offer 125% second mortgages. This is a second mortgage that allows you to exceed the value of your property.
Can I get a 2nd Mortgage without having to refinance my 1st mortgage?
Although refinancing your home to cash out on the equity is still an option, it is no longer a necessity in getting a second mortgage. Banks will consider your combined loan to value ratio is lending you money against your equity without you necessarily needing to refinance.
What’s the difference between an equity line of credit and home equity loans?
A home equity line of credit is a revolving account based on the amount of equity available in your home. They have lower interest than credit cards and lower payments, but have a variable interest rate. Home equity loans are set at a fixed interest rate, but are not revolving accounts like the credit lines. The principal and interest do not change.
What are the benefits to a 2nd mortgage?
There are many benefits to a 2nd mortgage. Equity credit lines can be used for expenses rather than a credit card. Using a credit line in this manner will give you a much better interest rate. A home equity loan can be used for debt consolidation at a lower interest rate giving you overall savings on the interest as well as monthly savings. And of course, second mortgages can be used for home improvement and the interest on these loans is normally a tax deduction.
What are the costs involved in a 2nd mortgage loan?
Mortgage costs include credit reports, points, closing costs and sometimes appraisal fees. Frequently an appraisal won’t be necessary, but there may be other fees involved and you should be aware of which you will be expected to pay. You should also check to see if the loan has a pre-payment penalty and try to find a loan without one. If you have a variable rate, your payments may also change with the interest rate. You can check second mortgage rates on sites like Bankrate. There are many products available and a little bit of homework will help you find the one that’s right for you.
By: Rebecca Oconnor
Posted in Real Estate | Tags: Consumer Debt, Equity Credit Lines, Equity Line Of Credit, Financial Consultant, Fixed Interest, Home Equity Line, Home Equity Line Of Credit, Home Equity Loan, Home Equity Loans, Home Equity Questions, Mortgage Banks, Mortgage Equity, Mortgage Product, Principal And Interest, Rate Home Equity, Revolving Accounts, Second Mortgage, Second Mortgages, Value Ratio, Variable Interest Rate | No Comments »
Average Calgary Home Tax Drops 13 Percent, Per Newly Released Assessments
Approximately 66 percent of Calgary property owners saw a property tax reduction following the second decrease in assessed property values in as many years. A 13 percent decrease in value was seen for the average Calgary home as of July 1, 2009, the date which was used in the determine of taxes for 2010. Not included in the reduction is a tax increase of 4.79 percent that was approved last November by City Council. That increase will result in adding an average of $54 to property taxes.
A single-family home’s assessed value of $374,000 last July declined from $427,000 in July 2008. Condominium medium assessed values fell from $278,000 to $233,000 for the same period. City Assessor Stuart Dalgleish attributed the decrease to a weakening of the economy and a subsequently soft realty market. While a property tax decrease awaits some 70 percent of all homeowners, a 30 percent increase awaits the other 30 percent.
As with many provinces, Calgary’s home prices have experienced swings during the past couple of years. Soaring home values in 2008 and 2007 helped generate respective increases of 25 percent and 43 percent. However, the 2008 economic meltdown created a drop of four percent for that year that declined even more in 2009.
Eau Claire Community Association President Janet MacPhee said that lower assessed values are a mixed blessing, noting that no one is happy with high property taxes. She commented that cheaper home prices could help more people to purchase property in Eau Claire.
By: Alan B Zunec
Posted in Real Estate | Tags: Association President, Calgary Property, Condominium, Dalgleish, Eau Claire, Economic Meltdown, Economy, Home Values, July 1, Last November, Macphee, Mixed Blessing, Property Owners, Property Tax Reduction, Property Taxes, Property Values, Realty Market, Single Family, Swings | No Comments »
Sony KDL32L4000 Bravia – Review of the Sony 32 Inch Flat Panel HDTV
The 32 inches Sony KDL32L4000 Bravia is a LCD flat panel HDTV that is part of the Sony range of LCD TVs in the market at remarkable value. It boasts of the Bravia Engine technology and a wide range of sockets: twin HDMI ports for HDTV and Blu-ray, two SCART, component and S-Video inputs.
It can also be used as a monitor for a personal computer because of its standard PC Input that allows it to become a dual use device. With this range of inputs, this LCD TV model enables the user to have five ways of getting high definition entertainment experience.
The Sony KDL32L4000 Bravia has a wide viewing angle and quick panel response time. No matter where a viewer is sitting on the room, he can experience maximum video entertainment. Concerning design, the KDL32L4000 has a beautiful and glossy black color, accented with chrome. In fact, all of the L series has this design, making them a sight to behold even when turned off.
Because of its built-in HDTV compatibility, it can display sharper and more realistic images compared to regular television, so long as its source is high definition. It has the ability to render standard-resolution digital TV broadcasts with ease and show the full resolution of DVD video in wide-screen.
This unit has a 3:2 pull down feature giving it the ability to reduce artifacts occurring when motion pictures are being transferred to digital formats like DVD.
The Sony KDL32L4000 can be appropriate for small up to medium-sized apartments or condominium living rooms. Its wide aspect display can be very suitable for DVD movies that have been recorded in popular 16:9 format and high definition programming.
By: Alex Bradbury
Posted in Shopping And Product Reviews | Tags: Alex Bradbury, Definition Programming, Digital Tv Broadcasts, Dual Use, Engine Technology, Hdtv Compatibility, Hdtv Sony, Lcd Flat Panel, Lcd Tvs, Panel Response, Pc Input, Realistic Images, Remarkable Value, Scart Component, Sony 32, Sony Hdtv, Sony Tvs, Tv Model, Video Entertainment, Video Inputs | No Comments »