What Is A Condominium?
Condominium communities have increasingly become the preferred lifestyle for Americans of all ages, affording the same tax advantages of single family home ownership while offering recreational amenities usually not found with the typical single family home and relieving condo owners of many of the choirs associated with home ownership.
A Condominium “unit” is real property. The Purchaser of a condominium receives a recordable deed just as if he or she were buying a single family home or parcel of land. A condominium can be purchased for cash or with a mortgage. Conventional financing with standard bank closing costs is readily available and there is no board interview required as is the case with a co-operative.
The condominium owner actually owns the interior space of his/her home from ceiling to floor and wall to wall, but not the exterior of the unit or the land under it. The exteriors of the homes, and the land and any facilities (e.g. clubhouse, swimming pool, tennis courts, etc.) are “common elements” or “common areas” and each condo owner has an “undivided percentage interest” in such areas.
Each unit is separately taxed and each buyer is responsible for his/her own real estate taxes and utility bills. In addition, there is a separate monthly fee, called a common charge or maintenance fee, usually based on the size of the unit and is used to run and maintain the condominium community.
The condominium is governed by a homeowner elected board of managers or directors who administer its affairs and enforce its by-laws and rules and regulations.
Finally, the term “condominium” does not refer to a specific form of construction but instead to a unique method of ownership which dates back to the Roman empire. A condominium community may offer either single-level Ranch-Style residences (simplexes) or Townhouse style (duplex or multi-level) homes, or both styles in the same community
Condominiums are sold with benefit of an Offering Plan or Prospectus which the Builder/Sponsor’s Attorney files with the Attorney General’s Office at The Department of Law. Once the Attorney General’s Office reviews the Offering Plan for compliance with the required disclosures and information about the community, it is accepted for filing which permits sales to commence.
Financial Advantages Of Home Ownership
1. Purchasing A New Home or Condominium Can LOWER one’s Federal Tax Payments
A. Deductibility of Interest. Interest paid on a primary residence and a second or third vacation home is tax deductible. The majority of the housing payment of the first seven years is interest! Result? Large deductions and genuine savings in tax payments.
B. Deductibility of Property Taxes and PMI (Private Mortgage Insurance). A very large portion of the housing payment is written off.
2. Qualifying for Long Form Tax Reporting
The Federal Government gives everyone a standard tax deduction. When a home purchaser itemizes tax deductions and they exceed the standard deduction, they can enter the world of long form reporting which may provide for additional tax deductions such as a write off for business expenses, charitable contributions, educational investments, or job training and education.
3. Home Office Deductions
When home owners meet stated guidelines for partial or full time use of a home office and document that use, they can deduct a prorated portion of their housing expense, depreciation and operating expense.
4. Capital Gains Benefits
If a husband and wife have lived in a primary residence for two of the last five years, they may exclude up to $500,000 in capital gains profits ($250,000 for a single owner).
5. Moving Expenses
A. When new home purchasers are moving more than 50 miles from their present location, moving expenses may be deductible.
Plus: Interest Rates are at Historic Lows enabling more people to experience the pride and enjoyment of home ownership.
Note: If you generally receive a tax refund at the end of the year, you can instruct your employer to increase your exemptions (by increasing the W-4 exemptions) so that you can take home more of your monthly compensation (up to $600 more per month). In effect, you can vote yourself a raise so that you can more easily afford a higher monthly home payment.
Reasons To Buy New Construction
Condominium communities have increasingly become the preferred lifestyle for Americans of all ages, affording the same tax advantages of single family home ownership while offering recreational amenities usually not found with the typical single family home and relieving condo owners of many of the choirs associated with home ownership.
A Condominium “unit” is real property. The Purchaser of a condominium receives a recordable deed just as if he or she were buying a single family home or parcel of land. A condominium can be purchased for cash or with a mortgage. Conventional financing with standard bank closing costs is readily available and there is no board interview required as is the case with a co-operative.
The condominium owner actually owns the interior space of his/her home from ceiling to floor and wall to wall, but not the exterior of the unit or the land under it. The exteriors of the homes, and the land and any facilities (e.g. clubhouse, swimming pool, tennis courts, etc.) are “common elements” or “common areas” and each condo owner has an “undivided percentage interest” in such areas.
Each unit is separately taxed and each buyer is responsible for his/her own real estate taxes and utility bills. In addition, there is a separate monthly fee, called a common charge or maintenance fee, usually based on the size of the unit and is used to run and maintain the condominium community.
The condominium is governed by a homeowner elected board of managers or directors who administer its affairs and enforce its by-laws and rules and regulations.
Finally, the term “condominium” does not refer to a specific form of construction but instead to a unique method of ownership which dates back to the Roman empire. A condominium community may offer either single-level Ranch-Style residences (simplexes) or Townhouse style (duplex or multi-level) homes, or both styles in the same community
Condominiums are sold with benefit of an Offering Plan or Prospectus which the Builder/Sponsor’s Attorney files with the Attorney General’s Office at The Department of Law. Once the Attorney General’s Office reviews the Offering Plan for compliance with the required disclosures and information about the community, it is accepted for filing which permits sales to commence.
Financial Advantages Of Home Ownership
1. Purchasing A New Home or Condominium Can LOWER one’s Federal Tax Payments
A. Deductibility of Interest. Interest paid on a primary residence and a second or third vacation home is tax deductible. The majority of the housing payment of the first seven years is interest! Result? Large deductions and genuine savings in tax payments.
B. Deductibility of Property Taxes and PMI (Private Mortgage Insurance). A very large portion of the housing payment is written off.
2. Qualifying for Long Form Tax Reporting
The Federal Government gives everyone a standard tax deduction. When a home purchaser itemizes tax deductions and they exceed the standard deduction, they can enter the world of long form reporting which may provide for additional tax deductions such as a write off for business expenses, charitable contributions, educational investments, or job training and education.
3. Home Office Deductions
When home owners meet stated guidelines for partial or full time use of a home office and document that use, they can deduct a prorated portion of their housing expense, depreciation and operating expense.
4. Capital Gains Benefits
If a husband and wife have lived in a primary residence for two of the last five years, they may exclude up to $500,000 in capital gains profits ($250,000 for a single owner).
5. Moving Expenses
A. When new home purchasers are moving more than 50 miles from their present location, moving expenses may be deductible.
Plus: Interest Rates are at Historic Lows enabling more people to experience the pride and enjoyment of home ownership.
Note: If you generally receive a tax refund at the end of the year, you can instruct your employer to increase your exemptions (by increasing the W-4 exemptions) so that you can take home more of your monthly compensation (up to $600 more per month). In effect, you can vote yourself a raise so that you can more easily afford a higher monthly home payment.
Reasons To Buy New Construction
- New Homes and Condominiums are better designed with rooms and space utilization and traffic flow that reflect the way people live today.
- New Homes and Condominiums are lighter, brighter and more comfortable providing an enhanced living experience.
- New Construction includes state of the art mechanical systems and appliances with warrantees that save homeowners substantial aggravation, time and money.
- New Construction typically involves Builder warrantees further saving buyers time, money and grief.
- Buyers can choose the finishes they want to reflect their individual and unique tastes and lifestyle.
- Modern Kitchens and Baths enhance the enjoyment and psychological benefits of ownership.
- New construction is far more energy efficient and provide buyers with substantial financial savings over the term of their ownership.
- New construction is “tech current” and ready for the information age.
- New construction provides greater appreciation then “used” homes.
- New construction tends to be placed in those communities which provide better living environments,