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Did you know…Right Time to Buy or Sell Your Home can save you thousands?

Many of us are very busy daily with work, family, friends, church, serving, activities and events that we forget to review our investment status. There are many laws and regulations that can benefit homeowners, but majority of people are not aware of them. Different market, economy, geographical location, lifestyle changes, career environment, financial status all play a part of factors to determine when to do what in order to best leverage out your financial gain.

Did you know that each person has up to $250,000 owner occupied equity gain tax free? For example, if you have purchased a home at $300,000 and today is worth $700,000 and you have occupied the property for your own usage within the last 2 years out of 5, you may be eligible for a $250,000 per person tax free when you sell for a profit! That means the average people would have to work at least 5 years to have a net of $250,000!

If you are married, you have up to $500,000 tax free gain for the same criteria. If you have exceeded that maximum allowable equity gain, you will be subjected to tax. For example, if you have purchased the property at $200,000 and today is worth $900,000. As an owner-occupied single person given $250,000 tax free gain, you will need to pay tax on the remaining $450,000 gain, which is very hefty. However, if we had planned this out a few years before on all of your properties, we can sell right above your maximum allowable tax free equity gain, purchase another home for you to live in and start accumulating the equity again to leverage out your tax free equity.

There are many more benefits that may benefit each person or family based on lifestyle, needs and goal. Most successful people in the U.S. invest into real estate because they can work years less by knowing how to leverage real estate laws. Real Estate is my passion and I enjoy helping people plan for the long term in order to best leverage and utilize their wealth by working smarter and understanding the tax laws.

Real estate is not just a career that I enjoy, but also my passion and investment. I have used my real estate knowledge to help many others already; contact me so I can also help you!  Please feel free to visit my Testimony page and see how many people I have already helped and continue to help!

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Why Am I Required to Have a Condo Insurance H06 Policy?

Buying a condo is different from buying a standalone home. Especially when it comes to insurance coverage. Buying a condo means you are becoming a partner with other owners. Plus, the common areas are insured by one or more master insurance policies. Most condo master policies do not cover the interior of the condo. Tiis is why condo “walls in” policies, also known as an H06 policy, exist. In the event of damage or a loss to the condo interior, this form of condo insurance covers the unit owner. A key point to remember when a mortgage is involved, the lender requires a certain level of H06 policy coverage.

What is an H06 Policy?

Master condo policies cover the buildings, common grounds, and even liability in case someone is hurt on the premises. But, many master policies stop their coverage at the interior walls of each condo unit. That means the unit owner is on their own when it comes to the interior and its contents. That is where an H06 policy steps in. An H06 or walls in policy is purchased by the unit owner through an insurance agency and for the most part, the owner decides on the level of coverage. One area of importance to remember is that these condo policies may not cover all perils. For instance, coverage for other areas such as flood or wind/hail damage may require an additional policy or riders.

Does the Condo Master Insurance Policy Ever Cover the Interior?

Yes, but this is not common. When considering a condo purchase, it is key to get a copy of the master policies. Plus, make sure to have a thorough discussion with the master policy insurance agent. It is key for a potential condo owner to understand the coverages and exclusions. At this time, it will be known if the master policy covers the condo interior and the unit owner’s personal contents. Keep in mind that if the master policy does cover the walls in, pay attention to the policy deductible. It may be a very large deductible. In this case, ask your insurance agent if supplemental coverage is allowed.

How Much H06 Coverage Does My Mortgage Lender Require?

If a buyer pays cash for the condo, then the unit owner may choose any coverage they choose. Even waive the policy altogether. Yet when a mortgage is involved, there are lender requirements. As a general rule of thumb, lenders will require coverage equal to 20% of the condo unit value. For instance if the condo is purchased for $200,000, the H06 condo policy must have at least $50,000 coverage. Furthermore, if your mortgage requires escrows for taxes and insurance, this insurance will be in the escrows. The master policy is typically included in a unit owner’s HOA dues. Although, condominium complexes with only a few units may handle this differently.
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A Day in Life

Last Wednesday, a passenger in a taxi heading for Stafford station leaned over to ask the driver a question and gently tapped him on the shoulder to get his attention. The driver screamed, lost control of the cab, nearly hit a bus, drove up over the curb and stopped just inches from a large plate glass window. For a few moments, everything was silent in the cab. Then the shaking driver said “Are you OK?  I’m so sorry, but you scared the daylights out of me.” The badly shaken passenger apologized to the driver and said, “I didn’t realize that a mere tap on the shoulder would startle someone so badly.” The driver replied, “No, no, I’m the one who is sorry. It’s entirely my fault. Today is my very first day driving a cab. I’ve been driving a hearse for 25 years.” ~ A reported true story from Manchester Evening Times