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30a OCTOBER NEWSLETTER, 2015

This October Newsletter, 2015, will update your on the latest information regarding real estate and events happening on 30A.  There are some new things happening in the finance and lending world relating to the purchase of second homes and residential vacant land.

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October 2015 Newsletter

If you have any questions about the information found in the October Newsletter, please give me a call to discuss further.

If you are looking to purchase or sell property, please give me a call for your free market analysis.

Linda Campbell
Sales Associate
850-830-3173 (c)
linda@lindasales30a.com
www.lindasales30a.com

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BIG CHANGES – NEW MORTGAGE DISCLOSURE FORMS

New Mortgage Disclosure Forms – How will these new forms impact you and your future closings on residential purchases?

TIME LINE is the major key for this new Federal Law changes occurring to all customer closings financed with a mortgage.  Both Residential Investment properties and Residential vacant land purchases will have to comply with this new consumer law.   Beginning October 3, 2015, all customer mortgage applications are required to meet the new Loan Estimate and Closing Disclosure law.  This is very important to both Buyers and Sellers as closings could be delayed due to the new disclosure waiting periods.  Effective – On all Mortgage Applications taken on or after 10/03/15.  (All applications completed prior to the 10/03/15 date will continue to be closed under the old regulations).  The Mortgage Providers will be the driving force to insure compliance with these closing changes.  Therefore, it will be very important to discuss these new regulations with your mortgage provide so that you have a clear understanding of how this will effect you to ensure timely and accurately closing.  Your Mortgage provider will be a tremendous resource in answering questions regarding the new laws that are now in effect.

Here’s a “time line” of how the schedules will work:

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If you have any questions regarding the new Consumer Federal Guidelines, please contact BB&T, Jean Jackson Crews 850-865-5326, NMLS#595305 or your favorite Mortgage Lender.

If you are looking to purchase or sell property, please give me a call for your free market analysis.

Linda Campbell
Sales Associate
850-830-3173 (c)
linda@lindasales30a.com
www.lindasales30a.com

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30a Investment Property using a 1031 Exchange

Looking For 30a Investment Properties With A 1031 Like-Kind Exchange?

The Fall is the most beautiful time of the year at the Beach. It is also the time where many of us begin thinking about year end tax planning. Maybe it’s the right time to consider selling one or more of your investment properties and purchasing a property on 30a or elsewhere on the Emerald Coast? If that scenario fits your long-term business plan, then you should be aware of the benefits created by the IRS 1031 like-kind exchange. If a Real Estate investor sells appreciated property they pay tax. However, property that qualifies for preferential tax treatment under Internal Revenue Code Section 1031 is treated quite differently. IRC 1031 states:

“No gain or loss shall be recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of  “like-kind.”

Simply put, an investor using IRC Section 1031 can exchange raw land for a rental home, an apartment complex for a shopping center, or rental houses for an office building. The use of the property is a key factor in determining the tax treatment.

Here are a few important points to remember regarding the 1031 Exchange. In order to qualify with the IRS guidelines:

  1. The replacement property(s) must be of equal or greater value than the one being exchanged.
  2. One has 45 days from the date that the original investment property(s) was closed to “Identify” the replacement property(s). A Qualified Intermediary will provide an identification form to list all pertinent information about the replacement properties, which will be kept on file. This Identification process encourages the use of a Qualified Intermediary, deeming it a “safe harbor”. A “safe harbor” is a term, which defines acceptable guidelines so a transaction will be regarded defensible. With a few exceptions, the following are considered disqualified intermediaries: a close family member or a controlled corporation, partnership, or trust; persons considered to be agents of the investor such as their employee, attorney, accountant, investment banker or broker, or their real estate agent or broker.
  3. The Replacement property purchase must be closed within 180 days from the date the original property being exchanged was closed.

As always, I strongly advise anyone considering utilizing a 1031 Exchange to discuss the matter with their tax advisor and/or attorney!

In closing, Linda and I would be honored to earn your business. We encourage you to begin the “Identification” process prior to the closing of your property being exchanged. We recommend that at least 3 replacement properties be identified early on. This will give you several options from which to choose should problems arise. We can also assist you with the engagement of a Qualified Intermediary to assist in finalizing your exchange. Please contact us for more information.

 

Chip Peay
Sales Associate
Homes on 30a
615-804-8071
chippeay@gmail.com