The Anna Maria Island Sun Newspaper


Vol. 16 No. 36 - July 6, 2016

REAL ESTATE

Freedom and owning a home

 

It's summer, its hot, termites have discovered your deck, the palms need to be topped and your air conditioner is blowing out hot air. By now you're wondering, "Why do I own a home?" Well, I'm here to tell you the benefits for both your lifestyle, your bank account and the freedom to enjoy the American dream, which we just celebrated.

Cultural thinkers have always told us that owning a home is associated with less crime, better health, better education and generally more of a social and neighborly population. In addition owning your home has always been the best way to accumulate wealth for the average person, since even if your home doesn't appreciate during the time you own it, which it historically does, paying down a mortgage is a forced savings.

Most everyone who has a home mortgage knows they can deduct the interest on that mortgage up to $1 million dollars for a joint filing and $500,000 for a single filing. This deduction is eligible for both first and second homes. But many homeowners don't fully understand the capital gains laws as it relates to selling your home.

Capital gains regulations are very favorable for most homeowners and few wind up owing any capital gains with the exception of very high end properties in very high priced areas. Married couples filing jointly can exclude as much as $500,000 of the gain on the sale of their primary residence and singles can exclude up to $250,000. This exclusion is applicable on your primary residence, and you must have owned and used it for at least two of the five years before the sale date, but they do not have to be consecutive. You could qualify for an exception to the two-year rule if it involves special circumstances related to your job or unforeseeable events. The other good news is that this is not a one- time exclusion. Homeowners will benefit from the capital gains regulation every time they sell their property as long as it meets the IRS's criteria.

Another nice little benefit of owning a home happens right here in Florida. It's called the Save Our Home Amendment and applies to full time homesteaded residents. Homesteaded residents benefit from a $25,000 exemption of the assessed value of the property as well as a 3 percent maximum cap on any annual valuation increase of homesteaded properties. Basically, this means that your property taxes go up very little during the course of the time you own your home, regardless of how much your home has increased in value.

But there's more; you also will benefit from something called portability, which translates to the ability to transfer the Save Our Homes cap (the difference between your market value and the assessed value) from an existing homestead to a new homestead. There is a mathematical calculation for this, and you do need to complete a form to apply, all of which can be confusing, however, it is applicable each time you move. The portability provision came into effect in January of 2008 and really helps homeowners who want to sell and move up to more expensive homes while still retaining much of the benefit of the cap on property taxes they enjoyed on their previous home. This rule did help the real estate market since it encouraged homeowners to move on freeing up properties to be placed on the market and creating activity.

A few days ago we celebrated Independence Day. One of our basic freedoms is the freedom to live anywhere in the country, and home ownership may be the ultimate freedom of all. Happy belated Independence Day!

Real Estate Transactions
Real estate transfers of January-February 2016

Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

2016-04-14 549,000 500,000 318 Hardin Ave 1550 2 Br/2 Ba SFR
2016-04-01 615,000 670,000 502 N Shore Dr 1306 2 Br/2 Ba SFR
2016-04-15 829,000 790,000 512 Magnolia Ave 1742 3 Br/2 Ba SFR
2016-04-21 899,900 873,000 520 South Dr 2207 5 Br/5 Ba SFR
2016-04-01 949,000 900,000 612 Fern St Dr 1472 3 Br/2 Ba SFR
2016-04-01 1,395,000 1,175,000 871 North Shore Dr 2546 50x150 5 Br/4 Ba SFR
2016-04-13 1,299,000 1,203,500 810 N Shore Dr 2896 90x100 5 Br/3 Ba SFR
2016-04-22 1,595000 1,550,000 117 Park Ave 2120 3 Br/3.5 Ba SFR
2016-04-19 1,700,000 1,600,000 802 Jacaranda 2742 3 Br/3.5 Ba SFR
2016-04-18 399,000 329,500 75 Jacaranda Rd 50x100 Lot

Bradenton Beach

2016-04-08 575,000 475,000 113 8th St S 1008 50x100 2 Br/1.5 Ba SFR
2016-04-08 249,000 230,000 308 2nd St N #201 522 1 Br/1 Ba Condo
2016-04-22 625,000 625,000 1457 Gulf Dr N #1457 1524 3 Br/2.5 Ba Condo

Cortez

2016-04-22 1,289,000 1,048,500 12413 Baypointe Ter 3198 3 Br/2.5 Ba SFR
2016-04-29 1,388000 1,350,000 12403HarbourLand Dr 5659 5 Br/3.5 Ba SFR
2016-04-28 599,900 585,000 4004 128th St W #902 2600 3 Br/3 Ba Condo
2016-04-29 209,000 209,000 12619 Safe HarbourDr 76x116 Lot
2016-04-04 319,950 295,000 12405 Baypointe Ter 81x190 Lot

Holmes Beach

2016-04-29 189,900 190,500 427 62nd St 688 1 Br/1 Ba SFR
2016-04-15 459,000 420,000 7402 Palm Dr 1518 3 Br/2 Ba SFR
2016-04-15 540,000 540,000 607 Dundee Ln 2191 3 Br/3 Ba SFR
2016-04-13 599,000 550,000 3018 Gulf Dr 3300 6 Br/3 Ba SFR
2016-04-15 599,900 575,000 506 Key Royale Dr 1712 86x112 3 Br/2.5 Ba SFR
2016-04-18 629,000 620,000 410 79th St 1814 3 Br/2 Ba SFR
2016-04-29 699,000 684,000 309a 59th St #A 2083 3 Br/2 Ba SFR
2016-04-27 785,000 718,186 202 64th St #A & B 1580 67x100 3 Br/3 Ba SFR
2016-04-15 762,255 762,255 204 55th St 1677 3 Br/2 Ba SFR
2016-04-08 1,298,000 1,200,000 8021 Marina Isles Ln 2828 4 Br/2.5 Ba SFR
2016-04-29 1,475,000 1,360,000 203 69th St #B 2546 6 Br/4.5 Ba SFR
2016-04-08 1,495,000 1,400,000 114 48th St 2366 50x100 4 Br/3 Ba SFR
2016-04-25 1,699,000 1,550,000 210 75th St 2563 4 Br/ 4.5Ba SFR
2016-04-20 285,000 285,000 600 Manatee Ave #117 1187 2 Br/2 Ba
2016-04-08 325,000 315,000 3301 Gulf Dr #6 700 2 Br1/Ba Condo
2016-04-05 329,000 325,000 600 Manatee Ave #233 1179 2 Br/2 Ba Condo
2016-04-04 340,000 336,500 600 Manatee Ave #145 1179 2 Br/2 Ba Condo
2016-04-14 475,000 450,000 7106 Marina Dr 850 111x75 2 Br/2 Ba Condo
2016-04-01 549,000 520,000 5608 Gulf Dr #114 1092 2 Br/2 Ba Condo
2016-04-15 599,000 599,000 6006 Gulf Dr #115-215 1356 2 Br/2.5 Ba Condo
2016-04-04 840,000 825,000 7000 Gulf Dr #101 1212 2 Br/2 Ba Condo
2016-04-27 785,000 718,186 202 64th St #A & B 1580 67x100 Duplex
2016-04-08 286,000 286,000 205 71st St #B HB 886 2 Br/1Ba Half Duplex
2016-04-13 599,000 550,000 3018 Gulf Dr 3300 50x150 Multi
2016-04-08 175,000 160,000 3017 Avenue C Lot8 50x100 Lot
2016-04-01 450,000 410,000 8009 Marina Isles Ln 113x108 Lot

 

Source: Mid Florida Multiple Listing Service


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