Is it typical for apartment owners to not rent to people over a certain income?
I just called an apartment complex and asked about their prices (which by the way, were a little more than I wanted to spend) and they told me that we were overqualified. I would think that their main focus would be people who make too little. True, I will be looking to buy a house in the next 3-5 years but the lease is only 1 year. Wouldn't we be a better candidate because we are more likely to pay our bill? What's the deal with this? Is this a typical practice and why would they reject someone who is more capable of paying the bill? I don't want to rent something expensive and honestly, I was uncomfortable with their price already but I would have pushed our budget for it. I've always worried about being denied for making too little but never too much. Why do they do that?
What's it like to buy and renovate a property in a foreign country?
In my opinion, it varies wildly. The three issues that I see are a) the ability for foreign nationals to purchase property varies with the country (for instance, Who can buy property in Turkey? Who cannot buy real estate in Turkey - Property Turkey), b) the infrastructure to supply materials for renovation vary (I've never seen a Home Depot in Costa Rica) and c) the work ethic and culture will affect how (and how well) the work is done (a recent article on Slate talks about how France in deeply concerned with the care of workers, not so much for consumers). Unquestionably, not speaking the language will make communication with contractors & workers more difficult.
When purchasing a property needing renovation, can those costs be added into the initial mortgage (e.g. the price is $100k, reno is $30k, and comps in the area are $150k; could I finance the full $130k or $150k)?
Yes, but for my answer it is only for investment properties. It is called a “Hard Money” loan.Google Hard Money lenders in your area.Typically hard money lenders will loan up to 70–75% of the after repairs value of a property.After renovations you either sell it, pay off the loan and keep the profits; or get long term financing and rent the property out.If it is a property you want to live in, check into acquisition & construction loans. I am not as familiar with those though.
I need some insight on Seller financing terms on vacant lot in CA?
I have a buyer going through this real estate investor guy & excited to buy my vacant lot in mobile tract area at asking price $10,000. We were open to accepting all cash or down payment and offer seller financing. Only thing if they got a loan they required a perculation (soil test) and asked if we would pay for it. So we said forget it. That should paid by buyer. We opted for seller financing because we own it free & clear. Buyer conceyed They want to pay me $700 a month for 10 months with $3,000 down which is in escrow account already. What sounds fishy to me is the promissory note terms. They said they would record the buyers name through the title company or something like that as if they would be owner while making payments to me.. Is there something weird about this deal?? I say they can not be owners until balance of $7,000 is completely paid in full. Then we would be obgligated per the notoarized note to allow any type of recording to happen along with giving them the deed or note however you call it. RIGHT? The investor found a buyer in 1 week.
Are personal loans taken as tax exemptions?
Yes, personal loans can be taken for tax exemptions; however, it’s only under certain conditions. The purpose of the personal loan will decide if you can get tax exemptions. Usually, you can avail tax benefits if you utilize the funds for purposes like home buying, construction or repairs, education purpose or invest in any form of businesses. And if you opt to buy an asset like jewellery, shares, etc. you won't be able to avail tax benefits on the personal loans.Let's understand in details how you can avail tax benefits for the following purposes:· If you're taking personal loans to fund education for yourself, your spouse, sibling or child you can avail tax benefits, as per section 80E of the Income Tax Act, 1961.· Buying a home, construction or repairing it: As per section 24 (B) of the Income Tax Act, 1961 the government will allow you to get a tax rebate for any form of loan availed to buy or repair residential properties. If you can prove that you’ve used the loan for buying your dream home, constructing or repairing you will claim the tax deduction on the interest rate paid for the loan. For self-employed, you can avail tax benefits up to Rs 2, 00, 000 on the interest amount. If you rent the property, you can claim the entire amount of interest rate paid on a home loan towards tax benefits. And interest rates paid on the home improvement/renovation loan can also give you tax rebate up to Rs 30,000· If you avail the loan for business purpose you can get tax exemption. The interest paid for the loan will be considered as an expense and you can avail the tax benefits.In order to claim a tax deduction, it’s advisable to you keep all the documents handy as proof that the loan amount is utilized for the relevant purpose. Preserve all your bills related to purchases like books, study materials for educational purposes and repairs, reconstructions, repairs, labours, etc. for home buying and business purpose to claim the tax deductions.If utilized in a proper manner, personal loans can prove the best tax saving tools and meet your urgent financial needs as well.
Can I use a mortgage/home loan to renovate a house when buying a home?
You can definitely renovate your home while purchasing your house. While buying a house, you will apply for a home loan. Lender will approve a loan up to 85% of your home value. So, with this amount you can only purchase a home. If you want to renovate your house, you have to take another loan along with the home loan. When you want to refinance your home loan, you can ask your lender for a top-up loan. A top-up loan is a loan that functions like an extension of your current home loan, i.e., you can sink it into the same property. But to start with, you’ll need a home loan.A top-up loan comes with a long tenure for an easy repayment schedule. This also means that you will have to shell out lower EMIs due to the extended duration of the loan. You can even avail of tax benefits if the loan is used to renovate your current home. While most people rush toward a personal loan when they need immediate finance, a top-up loan on your home loan works out better for you since the interest rates are lower. Additionally, you can get up to 70% of the value of your house when you opt for a top-up loan, which you can use to renovate your house.
What are the deductions under section 24 of income tax?
Section 24: Deduction of home loan interest repayment under section 24 of the Income Tax Act.Head: Income from House PropertyDeductions available:Standard Deduction: This is an exemption allowed to every taxpayer, where a sum equal to 30% of the net annual value does not come under the tax limit. This is not applicable if you are occupying the only house you own.Interest on loan: If you have taken a home loan for purchase, construction or renovation of the house, whatever interest you pay on the principal amount of the loan is exempted from tax payment.Interest repayment component is eligible for a deduction from your taxable income.Self-Occupied Property: Deduction amount for self-occupied house property is Rs. 2,00,000 and can be either claimed by a single owner or joint owners up to Rs. 2,00,000 each.Rented Property: In case you have rented out your house property then you can get an unlimited deduction without any limit of Rs. 2,00,000.There is no deduction for any brokerage or commission for arranging the loan or tenant.You have to buy or complete construction of the house within 3 years of taking the loan for you to be able to claim maximum deduction on the loan interest amount. If the construction or purchase is not complete within 3 years, you will be able to claim only Rs. 30,000 instead of Rs. 2 lakhs.P.S- You can read the other benefit here