Jamie Dee Frontiero - Coldwell Banker Residential Brokerage



Posted by Jamie Dee Frontiero on 3/17/2019

Buying a home is one of the biggest and most useful investments that youíll make in your lifetime. One thing you should understand when you're making big improvements to a home or doing any kind of high return renovations is that of the Capital Gains Tax. This tax can take away from the return on your investment, especially under the right circumstances. Even with minimal improvements to a home, if an area has seen an upswing in popularity, you could end up paying the price when you go to sell. 


Taxpayer Relief Act


The Taxpayer Relief Act of 1997 can help many people to hang on to the returns they see from the sale of their home. 


Previously, homeowners could qualify for a one-time tax exemption of up to $125,000 on the sale of a home. They also could combine the earnings in on the purchase of another home. Currently, there are a few ways that you can save on the Capital Gains Tax thanks to the TRA. 


House Flippers And Homeowners Arenít Equal


Not all home sales receive an equal tax treatment. If you are flipping houses, youíre out of luck when it comes to receiving profit-friendly tax breaks. You need to have lived in a home as your primary residence for two out of five years of owning a home in order to qualify for tax breaks. If this isnít the case, youíll end up paying a Capital Gains Tax on the sale of the property. If youíre a professional house flipper, your homes are considered inventory and taxed as income. The tax on this can vary from 15% to 20%, depending upon the tax bracket you fall into.



The Type Of Property Matters When It Comes To Taxes


Whether the property is a primary place of residence, a vacation home, or a rental property, the gains are all taxed differently. If you own a second home that youíre interested in selling, itís not treated the same as a primary residence for tax purposes. Youíll be taxed based on the amount of time that you owned the property, or the amount of time that the property was used as a second home. The taxes are based on a prorated amount of time.


The Price Of The Home Doesnít Matter


You may think that higher priced homes are taxed more heavily than less expensive homes. This would be the case when it comes to property taxes, but it isnít so when weíre talking about Capital Gains Taxes. These taxes are based on how much profit is made from the sale of the home. If a loss was taken, or the homeowner ďbroke even,Ē they may not owe as many taxes. A smaller home that had significant improvements made could be taxed a bit more than a home that was sold at a higher price with fewer upgrades.





Posted by Jamie Dee Frontiero on 3/15/2019

This Condo in Newburyport, MA recently sold for $339,000. This Garden style home was sold by Jamie Dee Frontiero - Coldwell Banker Residential Brokerage.


6 Woodman Way, Newburyport, MA 01950

Condo

$345,000
Price
$339,000
Sale Price

4
Rooms
2
Beds
2/1
Full/Half Baths
Immaculate unit on the top floor of Maritime Landing! Open floor plan, gleaming hardwood floors, Breakfast bar and dining nook off the well appointed kitchen. Light filled living room opens to a private balcony and lovely views. 1-2 Bedrooms depending on your desired use of space. In unit laundry. In addition, the unit comes with 1 under heated garage space with storage area. There is a beautifully appointed Club room, a media and game room, and well equipped exercise room. All in the perfect location for commuting, close to Rt.95, and points north and south, shopping just minutes away and close to downtown Newburyport and Plum Island. Professionally managed.

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Tags: Newburyport   Real Estate   Condo   01950  
Categories: Sold Homes  


Posted by Jamie Dee Frontiero on 3/10/2019

Hardwoods, tile, and finished concrete make beautiful floor finishes, but to pull your look together, you want texture and the warmth a vintage rug brings. When buying a vintage carpet, here are a few things to which you should pay attention.

Know where it goes

Depending on where the placement, a rug can take a great deal of abuse from foot traffic, pets, moving furniture and the like. If your carpet goes in a high traffic area, look for a sturdy rug to withstand it. On the other hand, if a decorative piece is what you need, don't be afraid of a vintage carpet that shows a little wear.

Know what to look for

In general, pay attention to these areas:

Fraying: Handmade, woven rugs might unravel when frayed edges and loose fringes catch or pull. Look for tight binding. Avoid loose fringes or hems and make sure the backing remains attached.

Knots: Depending on its style, technique, origin, and age, the knots in vintage rugs might range from far-apart and loose to close and tight. In general, the tighter the knot, and the closer together or more knots per square inch, the higher grade and quality the rug. Look on the backside to see the knotting. If knots appear too loose or knap is missing, the carpet may not withstand a high traffic area or the rigors of a vacuum cleaner.

Vintage rugs typically show wear and imperfections unless it came from years of protective storage. Uneven piling, worn patches, discoloration, and even slight stains add to the vintage charm and reveal its storied past.

Know how to care for it

That antique blend of dust and years of household odors might seem more apparent when you get your vintage purchase home. Before you do anything else, air your rug out of doors to get rid of most of the musty odor. Gently beat your rug with a rug beater or broom to remove surface dust.

Recheck the rug for any loose knots and tighten them. Look for any frayed areas that you missed (or determined were minor) and tighten them by hand.

If your rugís odor persists, enlist the help of a professional rug cleaning service to have it dry cleaned.




Categories: Uncategorized  


Posted by Jamie Dee Frontiero on 3/3/2019

With school loans at an all-time high, and growing for each passing generation, many homeowners are ready to shoulder off any and all debt as quickly as possible. If youíre in this camp and looking to aggressively pay down debt there are a few options available when it comes to paying your mortgage off.

Seller concessions.

Also known as seller contributions, are where the seller agrees to pay a portion of the closing fees for the buyer. This can include title insurance, inspection fees, and processing fees. If the seller is looking to sell the house quickly they may consider agreeing to seller concessions.

Government options for loans.

Energy-efficient Mortgage (EEM) was created to help homeowners renovate to add environmentally friendly features to their home. So if youíre looking to install double-pane windows or update insulation this could be the loan for you.

Federal Housing Administration (FHA) loans offer lower closing costs, smaller down payments, and a fair interest rate.

U.S. Department of Agriculture (USDA) loans can be applied to homes in rural areas, regardless of if they are a part of a farm. You may qualify to apply for zero down payment and loan payments will be at a fixed rate.     

There are also many local programs offered at the state and city level. A quick Google search for loan options for your area should set you in the right direction!

Plan to Refinance

Down the road, you can refinance for a fifteen year home loan instead of thirty. Youíll pay off your loan in roughly half the time and save money on payments towards interest.

Throw It Everything Youíve Got

Youíll want to check with your lending company first as some have penalties for payments outside of the loan terms. However, if possible, making an extra payment either regularly or time to time will help cut down the overall time it takes to pay off your loan.

For example, you can make one extra mortgage payment each year or tighten up your day to day budget and apply what your savings towards your loan. Many homeowners get creative and take on side gigs to create the extra cash necessary to make additional payments.

If you donít have that room to flex you can also always apply any bonuses, tax refunds or windfalls that come your way. This also makes a bigger impact when paired with regularly scheduled extra payments.

Aggressive debt payoff strategies arenít for everyone. And thatís okay! However, if youíre looking to live a debt free life and enjoy your home knowing itís been paid in total these tactics are for you. With some strategy and creativity, you can find plenty of ways to make the process go quickly and smoothly.





Posted by Jamie Dee Frontiero on 2/24/2019

For many homeowners, your most significant financial asset is the home in which you live. Most assume, like previous generations, that their home will play a large part in their retirement plan. What part? That depends. You could sell your home, move into something smaller and use the excess to fund your retirement plans. If your home is paid off, you might plan to live in it until you die. Even if you don't have a plan, everyone has told you that buying a home is a great investment, so it should work out. Right? Not every home is the best bet for your retirement plans. Read to find out how your property stacks up.

Asset or Liability?

Most people think of their home as an asset. It certainly can be, but if youíre planning on selling it to fund your retirement, keep in mind youíll need somewhere else to live. If you have a free option, like staying with your kids, thatís great! 100% asset. If youíre going to re-invest a portion of it into a new smaller home, then its maybe 50% asset and 50% liability. That number varies depending on just how much you plan to spend, and realistically how much the market will bear. 

Equity vs. Home Value

Contrary to popular belief, your investment equity isnít always the same as the home value. If you share ownership with the bank, your actual investment is the home's current market value less what you owe your lender. With the additional fees and taxes, your take away could be substantially less than you thought. This can hurt you when the market no longer supports your previous home value. If your mortgage is higher than you can sell for, you'll end up just losing money.

Reverse Mortgage

Reverse mortgages often are advertised as a way to stay in your house and still have an income during your retirement years. However, much of the time you don't actually receive the entire equity of your home. Lastly, since you're essentially selling your home to your lender, you're giving up ownership of your home. That means your estate and heirs will either have to pay off the mortgage or give up the house. It's always wise to make sure your children or heirs understand that your home is no longer part of their inheritance. 

Location

If this is your forever home, location is the prime feature to consider. This is a double-edged sword though. Leave it too late, and you wonít be able to pay off the property in time for retirement, buy it too early, and your needs could change. The younger generations are prime for moving to new cities and even states, so even if they live nearby now, that could quickly change. You should consider how your body will react to severe or inclement weather (and your ability to handle the maintenance) as you get older. You could end up needing to make a last minute sale. If you can afford an investment property, an alternative is to get a vacation home in the area you want to retire. That way, you can sell your current home for the income and move into your paid-off vacation property in your retirement location. 

Ask your Realtor about the right homes for both your needs right now and those in the future.