Buy A Home and Save on Taxes

Did you know that borrowing to pay for one is a taxpayer's dream? Home mortgage interest is deductible on your income taxes if you itemize. You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home. You can also deduct the interest on up to $100,000 of home equity debt, even if you don't use the money for home improvements. Real estate taxes are deductible as well. With the availability of these tax deductions, you should consider whether borrowing on a home is right for you.

What could the home mortgage deduction mean to you? What follows are some examples of the potential tax savings for several scenarios.

---

Example 1

Steve rents a home at a cost of $1,200.00 per month. He is single with no children and takes the standard deduction on his income taxes. His adjusted gross income is $128,000. He has $3,500 in state income tax withheld from his paychecks throughout the year, but doesn't qualify for any other itemized deductions. Steve's federal income tax liability for 2010 will look something like this:

Adjusted gross income $128,000
less standard deduction, Single $4,400
less personal exemption $2,800
Taxable income $120,800
Steve's 2010 federal income tax $32,129

However, if Steve purchases a home with a monthly mortgage payment of $1,200, his tax liability is lowered. At the end of the year Steve will receive a form 1098 from his mortgage company that shows how much of his mortgage payments for the year went to mortgage interest. Steve's 1098 for the year 2010 shows that he paid $11,400 in mortgage interest. Steve also paid $1,500 in real estate taxes on his home in 2010. Steve's federal income tax liability for 2010 will look something like this:

Adjusted gross income $128,000
less itemized deduction for state income taxes $3,500
less itemized deduction for real estate taxes $1,500
less itemized deduction for mortgage interest $11,400
less personal exemption $2,800
Taxable income $108,800
Steve's 2010 federal income tax $28,409

In this example Steve saves $3,720 in federal income taxes. In addition, his monthly housing cost stays the same and he owns his home, rather than renting. Good deal, Steve!

---

Example 2

Suppose there is another guy named Steve who is married and has two kids ages 16 and 19. This Steve has owned his home for a number of years. In fact, he has paid down his mortgage so much that his Form 1098 shows only $3,000 in mortgage interest paid in the year 2010. Steve's wife earns no income and they file their taxes married filing jointly. Steve's federal income tax liability for 2010 will look something like this:

Adjusted gross income $128,000
less itemized deduction for state income taxes $3,500
less itemized deduction for real estate taxes $1,500
less itemized deduction for mortgage interest $3,000
less personal exemptions for Steve, wife, and 2 kids $11,200
Taxable income $108,800
Steve's 2010 federal income tax $24,849

Steve is still itemizing because his deductions exceed the standard deduction, but just barely. The standard deduction for married filing jointly is $7,350 and the total of Steve's itemized deductions are $8,000. This saves Steve about $200 on his federal income tax in 2010.
Suppose that Steve and his wife decided to fix up their home a little bit in 2010. They also want to buy a new car, take a family vacation, and pay for their oldest child's college tuition. They've been saving for years and they could take $100,000 out of a mutual fund to pay for it all. But the mutual fund is earning an average of 10% interest a year so they decide to get a home equity loan for $100,000 at an interest rate of 8% instead. They are already ahead by borrowing for less than their money is earning, but look at what the $100,000 home equity loan does to their tax bill. Steve receives a Form 1098 that shows he paid $7,800 in interest on his home equity loan. Steve's federal income tax liability for 2010 will look something like this:

Adjusted gross income $128,000
less itemized deduction for state income taxes $3,500
less itemized deduction for real estate taxes $1,500
less itemized deduction for mortgage interest $3,000
less itemized deduction for home equity interest $7,800
less personal exemptions for Steve, wife, and 2 kids $11,200
Taxable income $101,000
Steve's 2010 federal income tax $22,580

Steve saves $2,269 on his federal income taxes by taking out a home equity loan!

---

Example 3

Suppose there is a third Steve out there. This Steve is single with no children and is paying the mortgage on the home he purchased a few years ago. Steve has been saving up and this year he fulfills his dream of purchasing a vacation home. It's not much, just a cabin in the woods, but it has a bedroom, bath, and kitchen. Here is what Steve's second home does to his tax liability for 2010:

Adjusted gross income $128,000
Less itemized deduction for state income taxes $3,500
Less itemized deduction for real estate taxes on 1st home $1,500
Less itemized deduction for mortgage interest on 1st home $7,800
Less itemized deduction for real estate taxes on 2nd home $1,100
Less itemized deduction for mortgage interest on 2nd home $10,200
Less personal exemption for Steve $2,800
Taxable income $101,100
Steve's 2010 federal income tax $26,022

The $1,100 Steve pays for real estate taxes on his 2nd home and the $10,200 he pays for mortgage interest on his 2nd home save Steve approximately $3,500 on his federal income taxes in 2010. Steve is so slick, fulfilling his dream of owning a 2nd home and saving money on his taxes!

Is it Better to Buy or Rent in NYC?

I was doing some research and came across a very useful article in The New York Times.

Most of you know that renting is very common in NYC what many people don't know is that this is a great time to buy. Mortgage rates ares still very low and you can still lock in a 30 year mortgage at 4.75%.

If you are thinking about renting for more than a couple of years you should strongly consider buying.

Buying vs. Renting Calculator link

Home Selling Tips

Selling your home is a big decision and finding the right agent can be the key to your success. Here are a few helpful tips in preparing your home for market.

1. Find the Right Agent

Interview several agents before you decide who will help you sell your home. Pick an agent who knows your area, has a firm grasp on the market, has proven marketing strategies and someone who you trust. Your agent is going to help you price your house in the current market, so their knowledge and research of the area and sales is crucial. The goal is for buyers to find your house so your agent should be actively marketing your properties via web, print and social networking. You should also hire an agent that you feel comfortable with and can communicate with.

2. Prepare Your Home for Market

Your agent may be able to suggest specific repairs that you should make before you put your house on the market. Some other things that can be helpful are; repainting, touch up work, deep cleaning of carpets and floors, washing your windows, de-cluttering your home.

3. Make the Most of the First Impression

You only get one chance to make a first impression… make it count. When you have a showing prepare your home for those potential new owners of your home. If you have a townhouse the first thing to be mindful of is what does your house look like from the outside? Is the front of the house clean, is your yard and/or deck area is in disarray, if you have stuff laying around then buyers will believe that the inside will be much of the same. De-clutter your home, make sure it is clean and tidy and be mindful of your pets. Odors can also be a major sticking point with buyers. If you smoke, I suggest doing so outside. If you have a cat, make sure the litter box is clean. I have had buyers walk away from a home they really loved because of offensive odors. Consider baking cookies to give your house a cozy and homey feeling.

4. Be Patient

Don’t be discouraged if you don’t have waves and waves of buyers through your property in the first day or even the first few weeks. Just like you, buyers have busy schedules and have to make time to look at property. We are also in the midst of a buyers market and buyers have many properties to choose from. Make your property stand out.

5. Get Ready to Negotiate

In today’s market, buyers will expect you to negotiate. When pricing your home, make sure you leave a bit of room for negotiation. If you get an offer that you think is too low or insulting, take the emotion out of it and understand that this is part of selling. You have someone who likes your property enough to make an offer, now is your chance to work with them and see if there is a price that everyone can be happy with. As the seller you are trying to get the most money possible out of your house and the buyer is trying to spend the least amount of money on your house. The goal is that you and the buyer can find some middle ground on the terms and amount of the offer.

6. Contract Period

It may seem that once you are under contract with a buyer that not much is going on. I can understand how it might appear that way to a seller. However, the buyer is very busy. The contract period is the buyers’ due diligence period and their opportunity to determine that your property is the right property for them. Some seller’s find the inspection period particularly stressful as it can be a renegotiation process in the contract. The buyer will most likely hire a professional home inspector to inspect all elements of the home. Your buyer then may decide to object to the condition of some of those items. Say for instance the water heater needs to be replaced and the buyer asks that this is done before closing. As the seller your three options are to say yes, to say no or to give some sort of compromise. You are not required to fix any of the items the buyer requests, however, the buyer also doesn’t have to purchase the house if you say no to their requests. This is the most common time for a contract to fall apart. However, if the buyer wants to buy and the seller want to sell the parties will most likely find common ground solution.

7. Ask Questions

Your agent is there to assist you through the selling process. Call them anytime if you are unsure about things or have any questions. You are not expected to be a real estate expert, so speak up if you don’t understand the process.

Tips for Renters!!!

Midtown Prices Plummet.With prices holding steady throughout much of the city this month, the best discount is in Midtown East doorman one-bedroom units which fell 9.10% to $3,253.

UES Offers Service and Space. Prospective tenants looking for service and space should head uptown to the Upper East Side where doorman one and two-bedroom rents are down again this month by 7.53% and 9.89% respectively. These are the lowest prices we’ve seen on these units in over twelve months.

Buddy Up. As studio inventory tightens across Manhattan, solo renters should consider pairing up and taking advantage of some of the discounts in larger format apartments. The Upper East Side, Upper West Side and Lower East Side still have some two-bedroom bargains to be found.

About me - NYC Realtor

Buying, renting or selling real estate property can be an exhilarating adventure or a nightmare of epic proportions. Make sure it's the former by choosing a real estate broker who knows the best locations to buy in Manhattan as well as how to market the best features of any property from one-bedroom flats to 1 million plus penthouses. As a former real estate investor, I had to learn the hard way that buying, renting and selling real estate can be a challenging process if you don't have a truly dedicated real estate broker on your side. It is because of that experience that I have committed to provide my clients with unsurpassable service, dedication to their needs, and a thorough education on the intricate workings of real estate.

Why would you want to pay a commission to a real estate broker who doesn't make moving your property a priority? The answer is you wouldn't. I treat every client with the utmost respect, and their properties as though they are my own. I'll use my love of New York City, engaging personality, and sharply honed negotiating skills to move your property within the timeframe you desire and for the best price as well.

If you're dreaming of buying a home in Manhattan, I can help you make that dream a reality. I have explored every corner of this city and yet still discover amazing new restaurants, shops and galleries almost every day. Whether you know exactly what you want or are still exploring your options, I'm happy to share with you everything I know about this beautiful metropolis including the best locations in which to buy and where to find the tastiest Russian cuisine (or even a to-die-for deli sandwich).

Manhattan residents are a unique breed. We're urban yet sophisticated, resourceful yet lovers of luxury, diverse and cultural, yet share a strong bond with our fellow Manhattanites. Though born and raised in St. Petersburg, Russia, I've lived in New York for 22 years and within Manhattan proper for 12. If you have property to rent or sell, I know how reach the millions of people who dream of moving here.

With a BFA in graphic design, MS in web development, and four years at the Fashion Institute of Technology learning advertising and graphic arts, I am an expert in recognizing and communicating the beauty inherent in Manhattan properties. As an accomplished photographer, I can take captivating photographs of your property and turn them into breathtaking marketing materials that will make your real estate investment stand out from all the rest.

Experts are predicting an upswing in the New York real estate market, making now a fantastic time to take that first step towards selling or renting your property or buying a home or investment property in the city. I'd love to speak with you about how my unique expertise, commitment, and love of real estate can facilitate your transaction. Let's get started now! 

Yana Ivanov
The Real Estate Group NY
115 E 23rd St., 2nd Floor
New York, NY 10010
Email: yivanov@tregny.com

Best Flower Arrangements in NYC

If you ever want to order flowers for that special someone in your life I highly recommend you use Starbright Floral Design. Their arrangements are simply amazing, I happen to have a wonderful boyfriend who sends me flowers just because he wants to make me smile and these floral arrangements always do the job. They definitely have the WOW factor.

1600 Broadway

Just imagine living on Times Square. "On the Square", 1600 Broadway offers this opportunity. "On the Square" is located in the heart of New York City. Offering studio, one, two and three bedroom residences, 1600 Broadway On the Square redefines city living at its best.

The entrance to your new home on Broadway, between 48th and 49th Streets, leads you into a spacious and welcoming lobby, finished with quartered teak and a twenty-foot high curved wall. The full-service concierge desk is staffed around the clock for your convenience and peace of mind.

"Club On The Square" comprises the entire fourth floor of 1600 Broadway. Enjoy the many world-class amenities offered at Club On The Square, including an entertainment lounge with billiards, putting green, virtual golf, fitness center and full-equipped conference center.

The fourth-floor outdoor terrace offers breathtaking views of the Times Square cityscape from its rolling landscaped plaza with sprawling lawn and trees. This is one-of-a-kind environment which adds a new dimension to your life.

The rooftop Observatory at 1600 Broadway provides front-row seats both to dramatic Times Square cityscape views and inspiring sunsets beyond the city skyline. Watch the city move from lounge chairs on the lawn, stargaze, or sunbathe, and take an outdoor shower on the expansive rooftop observatory deck.

Fraunces Tavern House Museum

Fraunces Tavern Museum is a survivor of the early days of New York City. It was built in 1719 as an elegant residence for the merchant Stephan Delancey and his family. In 1762, the home was purchased by tavern-keeper Samuel Fraunces, who turned it into one of the most popular taverns of the day. Though it is best known as the site where Washington gave his farewell address to the officers of the Continental Army, in 1783, the tavern also played a significant role in pre-Revolutionary activities. After the war, when New York was the nation’s first capital, the tavern was rented to the new government to house the offices of the Departments of War, Treasury and Foreign Affairs.

In 1904, the Sons of the Revolution in the State of New York purchased the tavern and hired preservation architect William Mersereau to return the building to its colonial appearance. Fraunces Tavern® Museum opened to the public in 1907. Today, the museum complex includes four 19th century buildings in addition to the 18th century Fraunces Tavern building.

Fraunces Tavern® Museum’s mission is to educate the public about New York City history as it relates to Colonial America, the Revolutionary War, and the Early Republic. This mission is fulfilled through the preservation and interpretation of the Museum’s landmarked 1719 building along with varied exhibitions of art and artifacts as they relate to the historic site.

Edward Mooney House

At the corner of Bowery and Pell, stands the oldest townhouse in Manhattan which was built in 1785 by Edward Mooney, a wealthy merchant in wholesale mean and a racehorse breeder.

The side of the building facing Pell Street is gabled and has a round-headed central window flanked by quarter-round shaped windows. This forecast the Federal style in New York, while the building’s front looked back to the Georgian style preferred by the departing British. The building still contains its original hand-hewn timbers. 

It became a tavern in the 1820's, a store and hotel in the early 20th century, then a pool parlor, a restaurant and a Chinese club, a bank, and it has been recently restored to its original condition and is a rental building.