Real Estate Article

Effective home selling in North America requires real estate know how, particularly when you make the decision to sell your home FSBO. Here are some key terms that you should know

A 1031 Exchange is a tax aspect of the Internal Revenue Code to allow a real estate investor who meets all the requirements to sell their property and defer paying taxes on the gain. By completing an exchange, the owner can dispose of their investment property, use all of the equity to acquire replacement investment property, defer the capital gain tax that would ordinarily be paid, and leverage all of their equity into the replacement property.
 
A Breach Of Contract occurs when a party is in violation of a direct obligation or failure to perform provisions in the contract agreement. In the world of real estate, a contract breach occurs most often in two ways 1 A failure to perform in the property listing agreement between the broker and the seller. 2 A violation of terms in the sales contract between the buyer and the seller.

Is island life for you? Or is having an island getaway for you? Both questions would entail completely different lists of pros and cons. For investment purposes, island homes tend to hold their value, as land is obviously at a premium on an island!

The population of USA has access to many islands, in the Atlantic, the Caribbean, the US Virgin Islands and in the Pacific. If you are planning to buy a second home on an island, you will not need to do the same soul-searching that would be required for a permanent move.

Many families have bought an island cabin as a group purchase, and the weekends and vacations are allotted on a casual 'time share' basis within the family. It is shared in turn for weekend getaways where the children can roam free on weekends and vacations and every now and again they will all plan to show up together! It is a great idea for promoting family unity. It also keeps costs down, as boats, fishing rods, repairs etc can be shared.

The new millennium has not been good to stocks, bonds, mutual funds and other financial investments.  Most investors have found that the best performing asset in their portfolio is their home.  Real estate has been a safe haven for investors with appreciation far outpacing other investments.  With the security and growing values of residential real estate, a growing number of home owners are now investing in a second home.  

There are a wide variety of reasons why people built or buy second homes.  City dwellers may want a home in the country for weekends and holidays.  Northern may want a home in the sun where they can golf year round; Southerners may want a home in the mountains close to a ski resort.  A large number of Baby Boomers are eyeing retirement and are building second homes anticipating it will become their main residence. 

Everyone has a property investment story, and in Western Canada the stories often have a pretty strong Whistler element.  Whistler has in the past offered spectacular payoffs for property investors.   You could in 1980 have bought a prime waterfront property on the lake in Whistler for $10,000.   Today the land alone would command $2m upwards, and other plots of land can sell for $3-4m.   Add a house and you could be looking at up to $20m (the ?ludicrous - price being asked for the Couloir? a ski-in, ski-out location on Whistler Mountain).  Prices have at least doubled in the last 5 years.  Talk to realtors in Whistler and you will invariably be told that there is still considerable upside.   Is there any mileage in buying in at these prices?

One of the biggest mistakes people make when selling a house, is not understanding real estate value. It doesn't matter at all what you think your home is worth. The value of your home, and any improvements you made, is determined by buyers. What you enjoyed about your house is irrelevant when it's time to sell it. Think in terms of what other people want, and use some of the following tips.