szabogroup, Author at Scottsdale Real Estate Team / Arizona Luxury Homes

Protect Your Property through Living Trusts Part 1/2 by Joe Szabo, Scottsdale Real Estate Team

March 21, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team This is Part 1 of 2 of our Protecting Your Property through Living Trusts. There are many different kinds of trusts, but Living Trusts all have these characteristics in common: It contains property. It owns the property, but the principal and/or income may be disbursed to others. The person who holds legal title to the property is called the trustee. The person who receives the benefit of the property is called the beneficiary. The person who creates the trust is the trustor. The person who places the property inside the trust is called the settlor (the trustor and settlor are almost always the same person). A properly drafted trust will specify the benefits the beneficiary is to receive and the procedures that the trustee must follow. Although there are three titles associated with a trust (trustee, beneficiary, and trustor/settlor), one person can have two or even all three titles, though a trust may lose many of its income tax and lawsuit protection advantages when the same person is both trustee and beneficiary. Generally speaking, living trusts won’t protect your assets from lawsuits or liens. People usually establish living trusts for the following reasons: Probate can be avoided on the assets held in the trust. Bypass and marital trust tax provisions ensure that assets held in the trust for a spouse or child will eventually pass to other heirs, saving estate taxes. It’s revocable, meaning it can be changed any time. It can appoint competent people to manage your affairs during your life or after your death. It can afford some liability protection to its assets. Irrevocable trusts can avoid probate and provide income and estate tax advantages.Unlike a will, it’s a private document and can’t be inspected by the public. It goes in to effect immediately, unlike testamentary trusts, which are only activated after death. Property can be added or subtracted any time. It’s not under the supervision of any court, unlike testamentary trusts. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent or a Trust Attorney. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Listings.

Dangers of Joint Ownership by Joe Szabo, Scottsdale Real Estate Team

March 18, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team Joint tenancy is the most frequent form of ownership of stocks, bonds, real estate, and bank accounts in the U.S. Many financial advisors recommend joint tenancy because it avoids probate. There are times when joint ownership may be appropriate. For instance, an adult child may hold joint ownership of an aging parent’s checking account to assist him or her in paying bills. Joint ownership also presents more potential trouble than any other legal status in estate planning, however. Most people don’t realize that joint ownership almost always supersedes the stipulations of a will. Improper use of joint ownership can result in the following: Make the jointly held assets vulnerable to suits and judgments against any one of the joint owners. Make it much easier for any one of the joint owners to take all the jointly held assets without permission of the other joint owners. Make a will legally ineffective. Increase estate taxes at the death of the surviving joint owner. Review all the assets you currently hold in joint tenancy. If you sense that any of them may present a potential problem, consider changing joint tenancy to another form of ownership, such as individual ownership, trust, or limited partnership. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent or a Real Estate Attorney. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Listings.

Tax Benefits of Home Ownership by Joe Szabo, Scottsdale Real Estate Team

March 14, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team If you’ve lived in your home for two years, you can take a tax-free gain of $250K for a single filer and $500K for married (filing jointly). You just have to have used the property as your principal residence for two of the past five years. You can even rent your house out for most of that period and still qualify for the full gain! If you’ve lived in your home for less than two years, you can still take a “reduced exclusion amount” (pro-rated from the full amount according to how long you’ve lived there) if you’re “forced” to move because of “unforeseen circumstances” – which can simply mean that you’ve started (or ended) a home-based business. If you’ve lived in your home more than two years, you can always re-finance it to remove the value. If the current market interest rates are higher than your existing loan, for instance, get a home equity loan instead. Once your gain approaches $250K if you’re single (or $500K if married), it’s time to move. If you decide to rent out a room in your house, you’ve created a home business from which you can deduct relevant expenses against the rental income, as well as the depreciation of the space. And when you sell the house, you can exclude the gain on the pro-rated portion. If your income grows so high that you begin to lose itemized deductions, you can always move the mortgage interest deduction off Schedule A by using the home office deduction, which allows you to deduct a pro-rated portion of the mortgage interest and property tax on a separate schedule. If you wish to take out a home equity loan that’s fully deductible, simply demonstrate that the additional debt above the amount allowable was used for business or investment purposes – such as buying in to an apartment building. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Listings, Tax Benefits Home Ownership

How Much Can I Spend on a House by Joe Szabo, Scottsdale Real Estate Team

March 11, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team You dream about owning a home and you think you know how much you want to spend, but this isn’t just buying new clothes and wondering if you can afford it. This is an investment, and a long-term monthly commitment. Many people who rent consider what they pay for their apartment as what they can afford. Actually with the tax benefits that accompany owning a home a person can typically afford about 25% to 33% more than their rent. In speaking to a real estate professional like Joe Szabo and the Scottsdale Real Estate Team, they can help you figure out how much you can spend on your home and introduce you to a mortgage expert who can tell you exactly how much you can afford. Other tax benefits are being able to write off any points charged as part of originating your loan (a point is 1% of the purchase price) as well as many other fee associated with closing. Other items to consider are any long-term debts you may have and your overall lifestyle. Do you like to take a couple of big trips a year? Do you have a gym membership or like to lease an expensive car? A lender is going to approve you for the maximum amount you can afford. It doesn’t mean you have to buy a home in that price range. Many homebuyers prefer to purchase a home they will comfortable in and not have any trouble making the monthly payments while maintaining their personal The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Easy Care Desert Landscapes by Joe Szabo, Scottsdale Real Estate Team

March 7, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team When landscapes are unkempt, straggly or overgrown, the homeowner and the guests are often uncomfortable. Most certainly the neighbors are. Patio furniture, pools and artificial lawns appear less than romantic when covered with sand or dust. Wonderful One way to keep up with the maintenance is to plan and install a garden that is easy to take care of, has automatic irrigation, large areas of paving, concrete or stone and has tough desert plants that look good all year round. If you love to water, love the dramatic change of plants during the seasons and have an excellent green thumb, then a low maintenance desert garden or yard is not for you. It is helpful when planning a yard or garden to make a list of what you love to do and what is a boring chore for you. The exercise is to help you create a garden that enhances the things you love to do while minimizing those tasks you hate – whether they be watering, pruning, trimming, raking or sweeping. Plants that are well suited to your climate and excelling soil are two conditions that essentially need to be met to get your garden or yard off to a good start. This can be a challenge for homeowners when moving from a seasonal northern climate to a desert landscape. Mulching and choosing drought tolerant plants are one was to reduce the need for weeding and watering. If you don’t like sweeping or raking, then chose carefully the plants and avoid those who drop leaves, flowers, fruits, nuts and seeds. This can also keep gardener costs down. Unless you can easily pay for a service or enjoy pruning and cutting, choose plants that are slow growing and will not overgrow the space you have allocated to them. This is vitally important near walkways, doorway and entryways. Another helpful tip is to group plants with similar needs. Assign an area of water loving plants and fill the rest with drought tolerant species. Allocate space for those plants that grow abundantly and thus reduce the need for pruning or cutting back. A careful plan of your garden and yard at the beginning can lead to many wonderful and carefree years of enjoyment in the future. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Creating Family Friendly Back Yards by Joe Szabo, Scottsdale Real Estate Team

March 4, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team Family centered back yards and gardens have big shoes to fill! They need to be friendly, safe, and able to withstand the family dog, the trample of shows and the occasional football or soccer ball. Landscapes need to take into consideration the full range of activities outdoor in order to keep up with the needs of a busy family. This can be a big challenge in a desert landscape where the careful use of stone, succulents and prickly plants make it difficult for child play. Anything and everything should be considered when planning a family friendly yard. Swimming pools, spas, sport’s courts, built-in bar-be-ques, fire pits, gazebos, children’s play areas, slides, tennis courts, saunas, fruit and vegetable gardens, flower beds all need to be considered. In the 1950s, there was a boom of suburban neighborhoods which set off a crazy of creating an outdoor environment to be used by the whole family and their friends. Homeowners began to experiment with the use of plants, fences, arbors and other devices to control sun, wind, rain and snow that all impede the enjoyment of the outside. Privacy and the creation of through the use of plantings and structures have also become popular. When planning a family centered back yard, make a list of all possible activities that your family enjoys. Make a second list of conditions that need to be considered: cost, space, shade. Locate areas designed for outdoor cooking and eating close to the house. From your house, look out the available window to help you select appropriate play areas for children that are easily viewed from a kitchen or living room if possible. Simple is sometimes better with a large family full of activity and pets. A large green lawn is a perfect canvas for many types of play and can stand up to some pretty tough use especially with the artificial green lawns that are an investment that pays off for years to come. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Buying a Rent-Producing Home by Joe Szabo, Scottsdale Real Estate Team

February 28, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team You are renting an apartment and really want a home, but you know you can’t afford what you want. You might be getting married soon or planning to live together. You also know that every month you pay your rent is money down the drain. The only way to build equity is to buy something. One solution is to purchase a lesser home in your price range and rent it with the idea of holding the property for a few years until it you build up equity through the payments you make and appreciation. If you find the right property, the rental money you receive should cover the payments and other expenses. Be sure and consider the maintenance on the property. Just like you call the manager for that leaking toilet, your renters will be calling you and expect the repairs. Often affordable rental properties are older and require more up keep and repairs. Make sure you find a happy medium between a cheap property and repair nightmare. There are tax ramifications to consider as well. As a homeowner that occupies the house you are allowed certain capital gains tax exclusions when you sell your property. With the sale of a rental property there are no exclusions. Any profit you see will be taxed at the capital gains rate unless you put the money back into another rental property. Rental property is considered a business and the IRS does not allow the exclusion if you sell the rental property (business) and put it all into a home for yourself (personal). Another strategy is to buy a duplex or triplex and live in one of the units. Many lenders will consider the potential rental income in qualifying you for a loan. This may allow you to speed up your plan and move in to a nicer place right away. There are many homes with a guest suite or mother-in-law suite. Buying a home with this feature could allow you to qualify for a little higher mortgage payment if you prove to the lender the suite will be rented. These suites are often in a separate part of the house, have their own bathroom, small living area and sometime their own entrance. Always check with zoning laws pertaining to single family versus multi family when considering this strategy. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Buying a Home with a Family Member or Partner by Joe Szabo, Scottsdale Real Estate Team

February 25, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team When the home of your dreams is out of your price range, why not buy it with someone else and share the equity. Perhaps you are considering buying with a partner, a family member or someone who wants to share the investment in a home in Scottsdale, Arizona. The term for co-ownership is called ‘Equity Sharing’. This is when two or more non-married people invest in a house. Sometimes one of the people does not live in the house and merely uses the property as an investment and/or to help out the other person. Sometimes both people are equally sharing the mortgage and up keep as well as living together. Whatever the situation you will want an ‘Equity Sharing’ or ‘Partnership Agreement’. This will determine who will pay for each item from the down payment to on going repairs and upkeep the co-ownership. There are also tax benefits to coordinate. The IRS will frown on both of you writing off all the interest on your mortgage. You will need to decide how you want the title to be held, (see article called “How to Hold Title”) and what to do when one partner wants out of the property, or worse yet, dies. There are many rules already in place for spouses, but a partnership agreement is akin to a business contract and everything is negotiable. This is where the help of a seasoned professional like Joe Szabo and the Scottsdale Real Estate can advise you and point you to a legal professional with experience in these situations. One benefit to co-ownership is that both incomes and joint cash for a down payment can be considered in getting your loan. Make sure you have discussed at length the future possibility of one of you getting married and wanting to live in the house. Try to think of as many scenarios as possible and have as many clauses to you agreement as you need. A good real estate attorney can help you through this process. With careful planning shared equity could give you both more home than you could individually afford and be building equity for your futures and your Scottsdale home. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Contingent Sale Offers in Home Buying by Joe Szabo, Scottsdale Real Estate Team

February 21, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team Joe Szabo and Scottsdale Real Estate Team Real Estate have seen Sellers completely reject contingent sale offers. However, some Buyers find that a few Sellers are receptive to offers that are made contingent on the sale of another property. The market has changed drastically in the past few years and so for that reason and many more you need to make sure you chose a professional with a strong successful track record in different markets. Sellers tend to reject contingent sale offers because they are often more risky then offers that aren’t dependent on another home selling. The worst scenario is that the Buyer will price their home too high and it will not sell at all. This would, in turn, have been a monumental waste of time for the Seller and leave them back at square one, trying to find a Buyer while there home has been off the market all the while. There is even less room for contingent sale offers in a Seller’s market, because while the demand for listings outstrips supply, Sellers have no trouble finding non-contingent Buyers to negotiate with. Of course if the market has slowed, Sellers have much less room to be so choosy, and are more likely to accept a contingent Buyer. Also, if the highest offer has come from a contingent Buyer, the Seller will often accept this higher risk for the higher price. With a contingent sale offer, if the Buyers’ home does not sell, they are not obliged to buy the other home. However, if the contract includes a release clause, the Buyer may risk loosing the home to another Buyer if their current home doesn’t sell in time. A release clause means that the Seller can continue to market their home until the Buyer removes their sale contingency from the contract. Suppose you are buying a home in Scottsdale, Arizona, and the Seller decides to accept another offer; if there is a release clause, the Seller will notify you to remove your contingency within a certain amount of time (generally 72 hours), or you will have to withdraw, and the home will go to the other Buyers. This is one of the drawbacks of contingent sale buying, and often the Buyer will sell their home at a lower price then they might have gotten in order to keep from loosing the other house. It is also in the Sellers best interests to make sure that contingent sale Buyers price their home reasonably, and therefore make the deal a bit more certain. We understand here at Joe Szabo and Scottsdale Real Estate Team that home buying and selling can be a very difficult process, and invite you to contact us if you have any questions or would like further information. We are excited for those taking the first steps in real estate investment, and would like to help you through the process. After all, we are the real estate experts when it comes to the buying and selling of homes in Scottsdale, Arizona. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

Interviewing the Real Estate Agent Part 2 of 2 by Joe Szabo, Scottsdale Real Estate Team

February 20, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team At Joe Szabo and Scottsdale Real Estate Team, we know how important it is to find an Arizona Real Estate specialist that can handle the transaction from beginning to end. When buying and/or selling a home ask your specialist if they will review the closing procedure and costs with you and provide you with recommendations of lenders, mortgage brokers, inspectors, insurance agents, title agents, real estate attorneys, movers, etc. Does the specialist belong to the multiple listing service (MLS) and/or home shopping service for the area you want to look into? And can they qualify you for a loan or introduce you to someone who can? A seasoned professional like Joe Szabo and the Scottsdale Real Estate Team can assure you the best possible recommendations with participants who have a solid proven track record of successful transactions. Knowing exactly what your housing needs are and what your life style is like is essential when matching you up with potential prospects. When interviewing you, regarding your housing needs and wants, the real estate specialist should be listening attentively to your responses. It is important that you are feeling heard and taken care of during this process. When discussing agency relationships with you, does the real estate specialist work with you in a relationship that you find acceptable? Do they return your call promptly? And most importantly do they answer your real estate questions in a manner that you understand? How is their schedule? Do they have any conflicts that will interfere with your home hunt? Whether buying or selling Scottsdale Real Estate for the first time, or one of many times, you deserve a real estate specialist who, in addition to knowing the areas you’re interested in, can show you homes that fit your needs, provide you with a list of properties that he or she is showing you, and guide you knowledgeably through the entire transaction. At Joe Szabo and Scottsdale Real Estate Team, we can help you find the real estate specialist in La Jolla best suited for your buying and selling needs. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.

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