second home

Featured Listing – 8 Tuckerville Pkwy, Ludlow, VT 05149 (MLS # 4511477)

Below is one of my current real estate listings in Ludlow Vermont. 2 bedroom home located in a quiet part of Ludlow. With it’s added Den and two out buildings, there is lots of privacy!

Price reduced by $5,000!

 [idx-listing mlsnumber=”4511477″ showall=”true”]

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Irene Gaffigan - Southern VT Real Estate

If you are considering listing your home for sale or buying real estate in Southern Vermont, please give me a call at 802-353-1983, visit my website: isellvermontrealestate.com or email me at [email protected]

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Irene Gaffigan
Broker, CRS, e-PRO
36 VT Route 30
Bondville, VT 05340
Direct: 802-353-1983
Toll Free: 800-659-1819
Fax: 802-779-0152

Featured Listing – 712 Wheeler Rd, Windham, VT 05359 (MLS # 4507850)

Below is one of my current real estate listings in Ludlow Vermont. 2 full bath home with open floor plan. lovingly cared for by the original owners. The house has been only used about 35 times per year in 28 years…

 [idx-listing mlsnumber=”4507850″ showall=”true”]

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Irene Gaffigan - Southern VT Real Estate

If you are considering listing your home for sale or buying real estate in Southern Vermont, please give me a call at 802-353-1983, visit my website: isellvermontrealestate.com or email me at [email protected]

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Irene Gaffigan
Broker, CRS, e-PRO
36 VT Route 30
Bondville, VT 05340
Direct: 802-353-1983
Toll Free: 800-659-1819
Fax: 802-779-0152

Featured Listing – 339 Fox Lane, Ludlow, VT 05149 (MLS # 4409774)

Below is one of my current real estate listings in Ludlow VermontOnly minutes to Okemo and Jackson Gore!

Price reduced by $20,900

 [idx-listing mlsnumber=”4409774″ showall=”true”]

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Irene Gaffigan - Southern VT Real Estate

If you are considering listing your home for sale or buying real estate in Southern Vermont, please give me a call at 802-353-1983, visit my website: isellvermontrealestate.com or email me at [email protected]

———————-

Irene Gaffigan
Broker, CRS, e-PRO
36 VT Route 30
Bondville, VT 05340
Direct: 802-353-1983
Toll Free: 800-659-1819
Fax: 802-779-0152

Featured Listing – 50 Clarendon Ave Ave, Unit 2, West Rutland, VT 05777 (MLS # 4466775)

Below is one of my current real estate listings in Rutland Vermont.
First time a unit has come on the market since 2006!

Charming 2 bedroom Victorian building restored in 2005 and converted into condo units! This convenient first floor condo is beautiful and well maintained. Gorgeous hardwood floors 12 foot ceilings with French glass doors. Custom draperies included. marble fireplace mantle. Huge closets. Bright and pleasant with a rear deck to large yard area good parking and lovely gardens. The building is very well maintained, and is a great place to live! Hurry, this will not last!

 [idx-listing mlsnumber=”4466775″ showall=”true”]

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Irene Gaffigan - Southern VT Real Estate

If you are considering listing your home for sale or buying real estate in Southern Vermont, please give me a call at 802-353-1983, visit my website: isellvermontrealestate.com or email me at [email protected]

———————-

Irene Gaffigan
Broker, CRS, e-PRO
36 VT Route 30
Bondville, VT 05340
Direct: 802-353-1983
Toll Free: 800-659-1819
Fax: 802-779-0152

Featured Listing – 6 Pine Brook Ln, Unit C1, Springfield, VT 05150 (MLS # 4467458)

Below is one of my current real estate listings in Springfield Vermont. Many updates including engineered floors downstairs, new carpeting upstairs, tiled kitchen and baths, new appliances and custom window treatments. Read more below…

 [idx-listing mlsnumber=”4467458″ showall=”true”]

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Irene Gaffigan - Southern VT Real Estate

If you are considering listing your home for sale or buying real estate in Southern Vermont, please give me a call at 802-353-1983, visit my website: isellvermontrealestate.com or email me at [email protected]

———————-

Irene Gaffigan
Broker, CRS, e-PRO
36 VT Route 30
Bondville, VT 05340
Direct: 802-353-1983
Toll Free: 800-659-1819
Fax: 802-779-0152

Okemo Mountain Second Home Tax Breaks

Okemo Mountain Second Home Tax Breaks

If you are in the market for a second home, congratulations! Not only is Okemo Mountain a great place to ski and relax, you also can garner some tax benefits. Here are some tax breaks as spelled out by Kiplinger.com:

Mortgage interest. If you use the place as a second home — rather than renting it out as a business property — interest on the mortgage is deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes and used to acquire or improve the properties. (That’s a total of $1.1 million of debt, not $1.1 million on each home.) The rules that apply if you rent the place out are discussed later.

Property taxes. You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

If you rent the home. Lots of second-home buyers rent their property part of the year to get others to help pay the bills. Very different tax rules apply depending on the breakdown between personal and rental use.

If you rent the place out for 14 or fewer days during the year, you can pocket the cash tax-free. Even if you’re charging $5,000 a week, the IRS doesn’t want to hear about it. The house is considered a personal residence, so you deduct mortgage interest and property taxes just as you do for your principal home.

Rent for more than 14 days, though, and you must report all rental income. You also get to deduct rental expenses, and that gets complicated because you need to allocate costs between the time the property is used for personal purposes and the time it is rented.

If you and your family use a beach house for 30 days during the year and it’s rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too. And you could claim depreciation deductions based on 80% of the value of the house. If a house is worth $200,000 (not counting the value of the land) and you’re depreciating 80%, a full year’s depreciation deduction would be $5,800.

You can always deduct expenses up to the level of rental income you report. But what if costs exceed what you take in? Whether a loss can shelter other income depends on two things: how much you use the property yourself and how high your income is.

If you use the place more than 14 days, or more than 10% of the number of days it is rented — whichever is more — it is considered a personal residence and the loss can’t be deducted. (But because it is a personal residence, the interest that doesn’t count as a rental expense — 20% in our example — can be deducted as a personal expense.)

If you limit personal use to 14 days or 10%, the vacation home is considered a business and up to $25,000 in losses might be deductible each year. That’s why lots of vacation homeowners hold down leisure use and spend lots of time “maintaining” the property. Fix-up days don’t count as personal use. The tax savings from the loss (up to $7,000 a year if you’re in the 28% tax bracket) help pay for the vacation home. Unfortunately, holding down personal use means forfeiting the write-off for the portion of mortgage interest that fails to qualify as either a rental or personal-residence expense.

We say such losses might be deductible because real estate losses are considered “passive losses” by the tax law. And, passive losses are generally not deductible. But, there’s an exception that might protect you. If your adjusted gross income (AGI) is less than $100,000, up to $25,000 of such losses can be deducted each year to offset income such as your salary. (AGI is basically income before subtracting your exemptions and deductions.) As income rises between $100,000 and $150,000, however, that $25,000 allowance disappears. Passive losses you can’t deduct can be stored up and used to offset taxable profit when you ultimately sell the vacation house.

Tax-free profit.Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it you principal residence before you sell. That’s not as wacky as it might sound.

Some retirees, for example, are selling the big family home and moving full time into what had been their vacation home. Once you live in that home for two years, up to $500,000 of profit can be tax free. (Any profit attributable to depreciation while you rented the place, though, would be taxable. Depreciation reduces your tax basis in the property and therefore increases profit dollar for dollar.)

But Congress is clamping down on this break for taxpayers who convert a second home into a principal residence after 2008. A portion of the gain on a subsequent sale of the home will be ineligible for the home-sale exclusion of up to $500,000, even if the seller meets the two-year ownership and use tests. The portion of the profit that’s subject to tax is based on the ratio of the time after 2008 when the house was a second home or a rental unit to the total time you owned it.

So if you have owned a vacation home for 18 years and make it your main residence in 2011 for two years before selling it, only 10% of the gain (two years of non-qualified second home use divided by 20 years of total ownership) is taxed. The rest qualifies for the exclusion of up to $500,000.

Learn more about Okemo Mountain second homes by visiting ISellVermontRealEstate.com or give me a call for more personal service.

Search all Okemo Mountain second homes for sale.

Top 10 Events Impacting Ludlow Real Estate In 2008

Top 10 Events Impacting Ludlow Real Estate In 2008

As part of the annual Swanepoel TRENDS Report that is published every year during the first week of February, the research team wraps their four month study of the real estate industry by announcing the top 10 Newsmakers, Events and Trendsetters for the year.

The second list to be released is the top 10 events that during 2008 had the largest impact and influence on the real estate brokerage industry. Events are defined as those occurrences that transpired during the previous calendar year (2008) that made headlines and captured the attention of the real estate industry.  The selection of these events was based upon their potential future impact on the industry rather than only their 2008 impact.

The Top 10 Events impacting Ludlow Real Estate for 2008 are:

1.     The Bailout: September 17th

Most notably the one single event of the year was the announcement of the “Silver Bullet” designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks.  Depending upon how effectively the Emergency Economic Stabilization Act’s $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.

2.     The Presidential Election

In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to elect an African American, Barak Obama as president.  The “I have a dream” has taken a huge step toward fulfillment.  However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.

3.     In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others

Barely one year ago in 2007 these companies were not only household names but were considered financial giants.  In one short year they have become a factoid of history.  Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo.  2008 reminded us that nothing lasts forever and everything is replaceable.  

4.     Facing Foreclosure Frenzy

As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008.  At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country’s homes in foreclosure.  RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.

5.   Home Prices Spiral Downward

The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 – 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.

6.     NAR – DOJ Settlement

Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November.  In the end, NAR’s longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement.  In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process.  Now it’s back to business.

7.     Brokers Go Bust

Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.

8.     Keeping It ShortFounded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment.  By using short text-based posts (affectionately named “tweets”), staying in touch has been given a whole new meaning.  

 

9.     ActiveRain Explodes Past 100,000 Members

As we discussed in last year’s report (Trend #1 – Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry.  With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors® at one time.  It goes without saying that ActiveRain has proven that social networking has made a home in real estate.

10.   NAR Celebrates 100 Years

In May 1908, 120 men gathered in Chicago with the goal to “unite the real estate men of America.” Today the National Association of REALTORS® (NAR) is America’s largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR’s centennial birthday.

How many of these events impacted you or were/are you aware of?

Learn more about Ludlow real estate by visiting ISellVermontRealEstate.com.

Search all Ludlow real estate and homes for sale.

Okemo Mountain Real Estate: Is Cobuying A Second Home for You?

Okemo Mountain Real Estate: Is Cobuying A Second Home for You? 

Craig Venezia is a nationally recognized expert on home mortgages, and the author of Buying a Second Home: Income, Getaway, or Retirement. Second-home ownership in Okemo Mountain is more popular than ever due to such factors as the shrinking American family, older and wealthier households, and new technologies for working from home. One out of every three homes purchased in the United States today is a second home.

If you dream of owning a second home, but realize it isn’t in your budget at the moment, cobuying an Okemo Mountain second home may be just what you need to make your dream a reality.

Listen to Craig Venezia’s podcast. It may help you decide if cobuying is right for you. 

Learn more about buying an Okemo Mountain second home by visiting ISellVermontRealEstate.com.

Search all Okemo Mountain second homes for sales.

Okemo Mountain Real Estate: Is Renting Your Vacation Home For You?

One of the biggest decision Ludlow and Okemo Mountain second-home buyers must decide is whether or not to rent their property when they are not using it. According to the U.S. Census Bureau, one-half of all second-home owners leave their home unoccupied for more than 330 days a year. The question becomes, will your vacation home be a financial burden or a financial cow with the rental income is can generate, thus paying for itself

Renting does have its pros and cons. Some owners don’t like the idea of ‘strangers’ in their home. Others don’t want the hassle of being a landlord, especially a long distance landlord. And then there is the decision to give up the prime vacation season for rental income. The flip side is renting your vacation home provides a stream of easy money.

EscapeHomes.com offers advice and tips when considering a Ludlow and Okemo Mountain vacation home purchase and deciding whether renting out that home is right for you:

Before You Buy
If you already know you will rent your vacation home, consider these questions as you look at properties:

Is there a rental market in the area?
What is the average rent that your neighbors receive?
If you are looking in a development, are there any by-laws which restrict your rental capabilities?
Is this a seasonal area or year-round location?

The answers to these questions will help you select a more lucrative property for your vacation home.

Rental Seasons
How do you decide when to rent your property and when to use it yourself? Since you are buying primarily for your own fun and enjoyment, you shouldn’t sacrifice this. If the home is in a one-season area, for example, summers at the Maine coast, then giving up that time of year for rental income defeats the purpose of having the home. In this case, you might look for a long-term (9-month) renter for the off-season, among the local population, while you use it in the summer. On the other hand, if you buy a winter ski condo or chalet, it is still highly rentable in the summer time for the mountaineering types. If you buy a property for weekend use, perhaps there are local people who need a Monday-Friday escape option. In short, if you balance your own needs with the market demands, you get both fun and money.

Practical Considerations
For successful renting, first find out the going rental market rate. Second, determine if you want to market it yourself, or use a rental agent. Self-marketing takes time, but often generates more qualified renters as you are not competing with all the other properties of an agent. Third, be sure to arrange for a property manager. This is different from a rental agency. The manager will take 10 to 20 percent of the rent, and free you up from cleaning, being on call for maintenance (especially important if you live far away), and dealing with the daily needs of the renters.

Make it Personal
By far, the most important factor in success is your personal investment in the process. This means your personal contact with your renters. From a simple welcome note and local maps to a thank-you note and on-going contact, your relationship creates a repeat flow of guests who not only love your second home as much as you do but also pay for the privilege of using it. What could be better?

If you are considering buying a Ludlow or Okemo Mountain vacation home, give us a call, 800-659-1819 #103. We are glad to provide you with the information you need to make a good buying and renting decision.

Think you want to rent out your Ludlow or Okemo vacation home, but don’t want to handle the day-to-day details yourself, we can recommend a reputable Property Manager.

Search all Ludlow and Okemo Mountain vacation homes for sale.