Honolulu Real Estate: The Coconut Wireless

Whether you're an owner now or expect to be one in the future, it is important to be familiar with the federal tax laws that affect homeownership.   Since personal income tax was enacted in 1913 with the 16 th amendment, homes have had preferential treatment. The mortgage interest deduction is based on up to $750,000 of acquisition debt used to buy, build or improve a principal residence.   In addition to the interest, the property taxes are deductible, limited to the new $10,000 limit on the aggregate of state and local taxes (SALT).   The taxpayer may also deduct interest and property taxes subject to limits on a second home. Homeowners can decide each year whether to take itemized personal deductions or the allowable standard deduction which was significantly increased under the Tax Cuts and Jobs Act of 2017. Single taxpayers may exclude up to $250,000 of capital gain on the sale of their home and up to $500,000 if married filing jointly.   They must have o...

June and July are the busiest home sale months of the year. When inventory is in short supply and you may be competing with other offers, it is important to show the seller you're serious. Make your offer look as good as possible because you may not get the chance to make or accept a counter-offer. Put yourself in the seller's shoes.   Your home has just gone on the market.   There is lots of activity and suddenly, there is more than one offer to purchase.   The seller's first consideration may be to accept the highest offer but there are many other things to consider like closing dates, closing costs, possible repairs, contingencies and of course, the ability of the borrower to get a loan. Offer a fair price for the property in your initial purchase agreement.   It shows sincerity and good faith that you're actually trying to purchase the home and not trying to take advantage of the seller.   The old adage that you can always go up later may never happen if...

You've been planning this trip for some time and almost every detail has been considered...or has it?   Have you thought about how to protect your home while you're out of town?   What's going to make sure that everything you left is still there in you return? Nothing could ruin a trip more than coming back to find out your home has been burglarized or worse.   It makes sense to spend a little time before you leave on making sure your home is as safe and sound as it can be. There are a host of devices to use across the Internet including camera door bells, video cameras, door locks, garage door openers, light and thermostat controls.   You can monitor your home whenever you have an Internet connection.   The question is whether you want the distraction from your trip. Consider these low-tech suggestions along with your other normal efforts: Tell your neighbors you'll be out of town and to be aware of any unusual activity. Notify your alarm c...

IRS has provisions for homeowners regarding the sale of a principal residence that allows for temporarily renting the home without losing the ability to exclude the gain if the home is sold under the correct conditions. The rules for the exclusion of gain on the sale of a principal residence are: Up to $250,000 of gain may be excluded for single taxpayers and up to $500,000 for married taxpayers filing jointly. Ownership and Use must have been a principal residence for two of the five years preceding the date of sale (closing date).   This allows for a temporary rental for up to three years maximum. Either spouse may meet the ownership test. Both spouses must meet the use test. No exclusion has been used in the previous 24-month period. Let's pretend that a person had owned a home from more than two years.   This person married and moved into their new spouse's home two years, six months ago.   That person decided to sell the home and...

For people who have experienced a distressed sale of a home and gotten their finances and credit back in shape, there can still be an unanswered question of "How long do we have to wait to qualify for another mortgage."   The loan types for the new loan will differ in amounts of time based on the event.   The different lending authorities, VA, FHA, Fannie Mae (FNMA) and Freddie Mac (FHLMC), establish their own waiting periods.   A borrower may be eligible to qualify for one type of mortgage before another type, even though during this waiting period, that the person was current on all payments and maintained a history of good credit. The following chart indicates how long a person might have to wait. A recommended lender can give you specific information regarding your individual situation and can make suggestions that will improve your ability to qualify for a mortgage.   This process should be started before looking at homes because of the time constraints ...

According to the 2018 Profile of Buyers and Sellers, 52% of buyers want help to find the right home to purchase.   Physically locating the home is certainly part of what buyers want from their agent but finding the right home at the right price and terms is also crucial. 87% of buyers purchased their home through a real estate agent or broker.   Slightly more than half of buyers were referred to their real estate professional by/or is a friend or relative or had used the agent previously to buy or sell a home. There are tech tools that can be used together with the expertise and experience of your real estate professional to make the home buying process efficient and effective. Listing Alert ... while this service is called by other names, the buyer identifies the specifics about the home they want, and it will notify them directly when a new listing comes on the market that matches their needs. Real estate smartphone apps ... imagine driving a neighborhood, seeing a...

Heating and air-conditioning are frequently referred to as the "comfort systems."   If one has gone out in the dead of winter or the heat of summer, lack of comfort becomes a primary concern.   Regular maintenance with a HVAC checklist is something that homeowners can do themselves to ensure that the units operate properly. Periodically Change your filter every 90 days; every 30 days if you have shedding pets.   Maintain at least two feet of clearance around outdoor air conditioning units and heat pumps. Don't allow leaves, grass clippings, lint or other things to block circulation of coils. Inspect insulation on refrigerant lines leading into house monthly and replace if missing or damaged. Annually, in spring Confirm that outdoor air conditioning units and heat pumps are on level pads. Pour bleach in the air conditioner's condensation drain to clear mold and algae which can cause a clog. Avoid closing more than 2...