real estate

What Can You Expect From a Luxury Condominium?

August 24, 2020 By Susan Paige Leave a Comment

From bungalows to lofts, you have a lot of different options available to you for a residence. If you’ve explored some options but never before considered a luxury condominium, then you might be missing out on a great opportunity. Luxury condos, such as Coastline Residences, offer you a high quality of life both inside and outside the home, giving you the chance to indulge in the finer things while also making a cozy nest for yourself.

What is a Luxury Condominium?

Like any other condo, a luxury condominium is one home (which can be small or large) within a complex of other similar units. What makes it luxury is the amenities within the condominium itself as well as the amenities in the larger building, complex, or housing community.

What Features Make It Luxury?

There isn’t a “standard” set of amenities that makes a condominium rank as “luxury”. However, you’re looking at a high quality of living in these places. Some of the types of things you can expect in a luxury condo include:

Stylish interior and exterior decor; these homes often have marble countertops, remote-controlled drapes, expensive flooring and other key details that make you feel like you’re truly living somewhere special.
Engaging, entertaining, enjoyable amenities; the building or complex often has rooftop dining, a well-equipped gym, pools and hot tubs and saunas, and other similar amenities.
Location; more often than not, luxury condominiums are located in beautiful, comfortable, affluent areas. For example, Coastline Residences has seaside views and is located close to terrific schools.

Picture some of the best hotels that you’ve ever stayed in. Convert that experience to a condo that you own and you get a sense of what a luxury condominium has to offer.

Luxury Condo Case Study: Coastline Residences

Coastline Residences in Singapore is a terrific example of what you can expect from a luxury condominium.

Housing Options

There are more than 140 condos available at this location. If you truly want to live in the lap of luxury, then you can purchase the five-bedroom penthouse. However, the other units – which range from 1-3 bedrooms each – are also luxurious.

The condos are outfitted inside and out with expensive materials. More than their price, pay attention to their beauty, which extends down to the smallest detail. If you want to live in a beautiful space that you don’t have to build yourself from start to finish, a luxury condo is a great option.

In addition to the indoor decor, this condo complex prides itself on eye-catching architecture and landscaping.

The Facilities and Amenities

When you live in a luxury condo, you don’t just enjoy what’s inside your home. You also get to partake of all of the amenities offered for a luxury lifestyle. At Coastline Residences, those amenities include:

Multiple areas for fitness including a gym and a yoga lawn
Several pools including one for workouts and one for children but most importantly a rooftop pool
Serene garden areas for meditation or relaxation
Community rooms that you can rent out for parties and events
Various pavilions for lounging and dining

Again, picture your favorite luxury hotel. Now imagine that you live there. You can. That’s what a luxury condominium is all about.

Use These Tips to Pass Your House to Your Heirs Tax-Free

July 29, 2020 By Kathryn Vercillo Leave a Comment

You would like to pass a house tax-free to your heirs. After all, you want to give them a gift, not the burden of taxes. But how do you do that? Here are some key tips:

Tips to Pass a House Tax-Free Through a Will

When you do your estate planning, you can make a plan to pass your house tax-free to any heir(s) that you would like. For most people, this is the best way to make sure that you’re passing along the home with the least cost to anyone.

The most important thing is to consider the total value of your entire estate (not just your home). If the value is over $11.58 million (this is called the unified federal estate gift and estate tax exemption amount; the amount is as of 2020), then you’ll have estate taxes. If it’s under that amount, you won’t have taxes. Therefore, you can pass a house tax-free through a will if your assets are below that amount. Note this amount is federal; check with your state about local maximums to make sure that your heirs won’t owe any state taxes on the inheritance.

Things to consider:

Make sure you, and your heirs, understand the capital gains taxes that your heirs may have to pay when they sell the property. The great thing about using a will to pass a house tax-free is that it generally gives you the best option as far as this goes.
If you owe any money to Medicaid upon your death, they can place a lien on your property, which can impact your heirs

Use an Irrevocable Trust

If you do have an estate that exceeds the $11.58 million amount then you might want to consider putting the house into an irrevocable trust instead of simply including it in the estate will. Specifically, you might want to look into a qualified personal residence trust.

Once you pass away, the house will go to the heir(s) you’ve designated with the trust. However, if you sell the house, the money goes into the trust; it can’t be cashed out should circumstances change. (Hence, the term “irrevocable.) So, this is not a move to take lightly but it’s something to consider if you have a high-value estate and want to pass a house tax-free to your children or other heirs.

Tips to Pass a House Tax-Free As a Gift

You can gift a house to your children. Don’t you have to pay taxes on that? Not necessarily. If the value of your home is less than the $11.58 million mentioned above, then you probably won’t have to pay taxes on it nor do your children. You do, however, have to file a gift tax form when you do your annual taxes. As long as the value is below that amount, it should just be a matter of filing the piece of paper but not paying any fees.

Review the total value of your estate and your home.
File a gift tax form with the IRS in the year that you gift the home (unless the home is worth less than $15,000)
Offset the total amount of the gift by first using your annual gift-tax exclusion ($15000); note that this is per donee and per donor (so if you and your spouse jointly own the property and you gift it to multiple children then you can increase the exclusion amount accordingly.)
Again, make sure you and your heirs are both aware of the capital tax gains. If your child eventually plans to sell the home, they may pay more if you gift them the house than if you will it to them.
Do not apply for Medicaid within five years of gifting your home to your child. The details on this depend on exactly what your assets are worth but generally speaking there’s a transfer penalty if you gift assets just before applying for Medicaid.

Can You Sell the House and Gift the Money?

Some people really want to pass on their home to their children. And some children really want their childhood homes. But in many instances, it’s more about the money/value than about the home itself. If that’s the case in your family, then you might think about selling the house.

You can sell the home at current market value then gift that money to your child. You can gift it in a will or trust or give it to them directly.
Gift up to $5.49 million to one person are allowed without having to pay taxes on it. You will still need to file the aforementioned gift tax form with the IRS.
Another option is to sell the home to your child at a very low price. The plus side is that they get the house, then they can sell it themselves at a higher value when the time is right for them to do so. The downside is that they may have to pay higher taxes when they do.

Can You Sell The House to Your Child for $1?

This was a common practice for awhile. You technically sell the house, so it’s not a gift. However, this isn’t something that flies anymore, legally speaking. Of course, you could sell the house to your child for $1 if you wanted. But the rest of the value of the house is considered a gift. Therefore, the gift tax rules are still relevant. Moreover, if your child sells the house, they have to report that entire difference as a gain, which impacts taxes.

If you want to sell your house to your child, your best bet as far as taxes go is to sell it to them with a small down payment as a seller-financed sale. You’ll carry the note for the balance. Your adult child will make affordable payments. You can even offset what they pay you by gifting them up to $15,000 per year (which is low enough to not qualify for that gift tax.) Since you’ve sold the home, it’s no longer part of your estate, so you don’t have to worry about that come tax time.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. If you want to be able to customize your blog on your own domain and need hosting service, we recommend trying BlueHost. They offer powerful hosting services for $3.95/month!

Here Are 3 Of The Best States For Military Retirees

June 26, 2020 By Tamila McDonald Leave a Comment

best states for military retirees

When your military career comes to a close, you are often faced with a tough decision. Military retirees can essentially move to any state in the nation, allowing them to set up their post-military life. Deciding where to go is a challenge for many, especially since every state offers something different. If you are trying to figure out the best states for military retirees and whether one, in particular, is right for you, here’s what you need to know.

Understanding Military Retirement

Military retirement isn’t always the same as a traditional retirement. Active duty personnel can be eligible after 20 years of service. Suggesting that a person signed up for the military at age 18, they could qualify for retirement when they are 38 years old.

That means many military retirees aren’t necessarily leaving the workforce. When they decide where to retire, they usually factor in job prospects, as many will continue working full-time, potentially for the next two to three decades.

However, you aren’t required to retire from the military after 20 years of service. A person could remain in the military until they reach the mandatory retirement age of 62, in most cases, creating an opportunity for over 40 years of service.

There can also be other forms of military retirement to consider, as well. For example, a person may end up medically retired before the 20-year mark. Depending on the reason for the retirement, whether they choose to pursue additional work opportunities after separating from service could vary.

Choosing Where to Head After Retiring from the Military

Which states are best for military retirees isn’t universal. Each of the situations above could lead to different needs, altering where they may be best off.

Additionally, there are also other factors to consider. Some retirees would rather be near friends and family or in a particular region. If this preference is important, it needs to be part of the decision-making process.

Ultimately, military retirees need to examine the pros and cons of different options. That way, they can choose a destination that will serve them well for the years, if not decades, to come.

3 of the Best States for Military Retirees

1. Virginia

One of the biggest reasons to choose Virginia is for federal jobs and defense-related contractor positions. With its proximity to Washington DC and numerous government and military installations, opportunities in those arenas are plentiful.

Additionally, the climate is relatively mild, and housing in certain cities is decently affordable. There’s also access to military bases for medical care as well as VA hospitals in many metro areas.

It’s important to note that Virginia does fully tax military retirement pay. However, if you’re looking for a state with exceptional job opportunities for those with military and defense experience, it’s worth keeping on the table. Plus, sales tax in Virginia is relatively low, helping to offset the presence of an income tax.

2. Florida

If you don’t want to pay state income tax on your military retirement pay, Florida is a great option. The state doesn’t have its own income tax, allowing you to keep more of your money in your pocket.

Florida also offers a great quality of life for those who would like to retire near beaches and in a warmer climate. Additionally, the healthcare services for veterans are fairly accessible. Along with VA facilities, there are numerous military bases throughout the state, giving retirees access to certain clinics and other on-base or on-post amenities.

Defense contractor and federal positions are also widely available in Florida. This creates career-oriented opportunities for those who aren’t leaving the workforce.

3. New Hampshire

When it comes to state income taxes, New Hampshire only levels one on dividend and interest. That means, by and large, your military retirement pay isn’t going to be taxed.

Additionally, the state has a surprisingly high number of defense contractor positions, something that may appeal to military retirees who aren’t leaving the workforce yet. The state doesn’t have a sales tax, either, which makes daily living more affordable.

Housing itself isn’t necessarily incredibly expensive in New Hampshire. However, the property tax rates are some of the highest in the nation. But, since there isn’t income or sales tax to contend with, that isn’t necessarily a major financial burden as it is offset by savings in taxation.

Ultimately, all three of the states above are top contenders for anyone retiring from the military. However, they each come with pros and cons. It’s wise to consider your unique needs and preferences as you make a decision. That way, you can head to a state that offers everything you require and is a place that you’ll enjoy long-term.

Can you think of any other states that are great for military retirees? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Skipping the Extra Bedroom Could Mean Having $500K More in Retirement

June 15, 2020 By Amanda Blankenship Leave a Comment

An extra bedroom has become a fairly common (and acceptable) waste of space in your home. According to Finder.com, there are 34 million more bedrooms in America than there are people. However, the habit of purchasing extra space for your home could seriously be costing your retirement savings.

How an Extra Bedroom is Killing Your Retirement

Typically, spare bedrooms are largely unoccupied. Sometimes they house a lightly-used home office or an extra bedroom for company when they come to town. In general, your spare room doesn’t get more than two weeks’ worth of use per year.

Here is a piece of advice: just buy a pullout couch for your guests and downsize. In metro areas, a four-bedroom house is about $100,000 more expensive than a three-bedroom (plus the interest on your mortgage).

Let’s get a little more specific. In Boston, for example, the median price for a four-bedroom house was $540,000, while a three-bedroom sat around $380,000. Assuming a 20% down payment and a 30-year fixed mortgage rate of 4%, that is a difference of over $600 per month.

Now you’re probably thinking, “what about in smaller cities?” Well, there is still potential for savings. In Las Vegas, four-bedroom homes are $80,000 more expensive. Chicago home buyers will save $100,000 opting for the smaller space.

Breaking Down the Potential Savings

If six figures in initial savings isn’t enough to motivate you to give up the spare room, don’t worry. As mentioned above, in a city like Boston, this could equate to $600 per month in savings. That amount of money could make it possible to live in a better area and still be within budget. It could go towards paying off debt and help you reach financial freedom earlier.

Best of all, it could add serious funds to your retirement. If you invest the extra $600 per month and earn 5% per year, you will have an additional $500,000 stowed away by the time you pay off your home. Boomers closer to retirement may not be excited about moving, but downsizing by one single room could offer six figures of added retirement security (or extra trips with your grandkids).

Younger families focused on giving their kids their own bedrooms may think downsizing isn’t for them either. Making your children share a room doesn’t make you a bad parent and it can give you the financial freedom to spend more money and time with them.

No matter how you look at it, Americans are wasting money on extra bedrooms in a big way. In some cases, it could cost them their retirement. Readers, would you consider giving up your spare room to help pump up your retirement savings?

4 Ways to Avoid Filing for Personal Bankruptcy

June 10, 2020 By Susan Paige Leave a Comment

Debt is part and parcel of life to many people regardless of how much they earn per month. However, this can sometimes become too much to bear to a point where bankruptcy seems the only way out. Having to face the pressure from your creditors every day can push you towards that route. What’s more worrying is the fact that you can be a victim regardless of your previous financial strength.

The good news is that you can avoid falling into this trap. Bankruptcy doesn’t have to be the only solution to your financial problems. In addition, it will leave big wounds not only in your credit report, but also in the life of your spouse and family. Most financial experts rank it among the most significant life-altering events that could have a negative impact for a long time. So, before you get to a point where you need to call a personal bankruptcy lawyer, you can try out some of the tips in this article.

Sell Your Assets

Sometimes, you can be at the brink of bankruptcy, but still have assets worth a lot of cash. Keep in mind that being threatened with bankruptcy has nothing to do with your personality. It doesn’t mean you’ve made the worst financial choices because even the finest of people have also been victims before. Selling part of your property may salvage you in this time of need. The best way to deal with this issue is by assessing everything you own.

For example, do you have two vehicles in your garage? Well, if you don’t need the second one, then, sell it and use the proceeds to pay off part of the debt. You could also look through some of your electronics and other household appliances. These don’t have to generate a lot of money, but just enough to reduce the burden. In fact, it is a better option than being forced to surrender all your assets. Another thing you should note is that this is a temporary situation. You will be able to resume your normal life once you’ve tackled the problem at hand.

Restructure Your Mortgage Payment Plan

Are you still paying off your house? You can take advantage of this to stave off the threat of bankruptcy. One of the most common monthly or annual expenditures among many people is mortgage payment. If your current plan takes up a lot of your cash every month, you can consult your housing lender and device a new strategy. There are two ways you can make this situation beneficial.

The first option is to restructure the mortgage payment plan. Of course, this will depend on your agreement with the seller, but it should work out just fine. By stretching the installment period, you’ll have a lower monthly payment. This should ease your financial pressure and give you enough space to deal with most urgent debts. As you do so, remember that your mortgage might yield more interest and you’ll end up paying more money than your initial agreement.

If that doesn’t work for you, then, there is another way to go about it. Talk to your housing lender and see if they will accept a temporary refinancing of your mortgage plan. In other words, you’ll still be working under the initial contract, but with slight changes, at least for the first few months. This way, you’ll be able to work out your problems before they get out of hand. Whichever choice you take, it will be worth the struggle at the end of the day.

Get On A Strict Budget

The main reason why some people find themselves flirting with bankruptcy is because of poor budgeting. The fact that you have enough income to finance all your needs doesn’t mean you should spend all the money you have. One could have thousands of dollars at the start of the month, but end up borrowing more funds even before mid-month. Luckily, this is a habit that you can correct before it lands you into trouble.

The first step to doing so is by budgeting your money. If you plan for your income even before it lands in your wallet, you’ll be able to pay off some of the debt. Do not strategize in your head; write it down whether on a paper, in Excel, or any other budgeting software. The moment your monthly dues arrive at the bank, you might not have enough time to structure your budget because of excitement.

Increase Your Income

The most obvious of all points in this post is to generate more money. Many people overlook it and just depend on their one 8-to-5 job to cater to all of their needs. Well, that might work, but it is advisable to add something on top of it if possible. Remember, one reason why you are heading the bankruptcy route might be because you don’t generate enough money to serve all your monthly expenses.

The best part about this is that you might not need to look for a second job to earn more. Is it possible to work overtime at your workstation? If so, take advantage of it and gain as much as you can. Another option is to look for a part-time job that you can work for a few hours every evening. Anything that can generate a few dollars is a great idea at this point.

Increasing the monthly income is not for everyone. Perhaps, you are in a situation where you cannot re-adjust your daily routine. Well, if this is your story, then, you can ask for help from those around you. However, this doesn’t mean going for another loan as that could be tragic. If your family members and close friends can bail you out, do not hesitate to seek their assistance. A few extra dollars could do wonders for you.

Conclusion

Being threatened by bankruptcy is not something new. Contrary to popular belief, it doesn’t only get to those with poor financial habits. A lot of organized people may also find themselves at the edge due to a small mistake. As such, the way you got to this point doesn’t matter; what matters is how you are going to salvage yourself. It is not impossible to go back to your previous financial stability. All you need is a little extra effort and a good strategy to deal with the most demanding debts.