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Hollywood Hills Disclosure Rule
Tell All is definitely the rule for anyone who is selling Hollywood Hills real estate in today’s market. Let the Buyer Beware can easily come back and bite you in a delicate spot—your pocketbook.
Today, those selling a home or any Hollywood Hills are expected to disclose all known material defects that are not readily apparent to the buyer. A Material Defect is usually a physical condition that would affect a buyer’s decision to purchase the home or what price to pay for the home. A leaky roof is definitely a Material Defect. If a Hollywood Hills seller tries to disguise the leak by painting the interior ceiling and walls without fixing the leak, the truth will come out the next time it rains. Chances are the first call the buyer makes will be to his attorney.
Guidelines for Buying Hollywood Hills
Whether you are a seasoned veteran of real estate transactions or a first time buyer, my advice is the same: Know the Market, Know Yourself and Rely on Experts to give you the whole picture of what you are buying.
Know the Hollywood Hills Market. Another way of stating this is Research, Research, Research. Of course the Internet is a great way to give an overview of Hollywood Hills homes or homes in any given area but may not be enough, especially if you are looking to buy a home some distance from where you currently live. If you are looking to buy locally you can drive the neighborhoods that you are focusing on to get an idea if there are any problems you need to be aware of. Does part of the development back up to a busy highway? If so and if you want to avoid looking at homes in that area, know what streets are involved so you can recognize listings that may be involved.
Building Hollywood Hills Home Equity
As a Hollywood Hills homeowner you have the right to pay more towards the principle loan amount each month. Let’s say your monthly payment is $700.00 a month and $100.00 a month is being applied to the principle. If you choose to pay $900.00 instead of $700.00, the $200.00 overage will be applied entirely to the principle. Thus, instead of gaining $1,200.00 a year in Hollywood Hills home equity, you gain $3,600.00.
The only factor being considered here is Home Equity. In individual cases it may be wiser to invest than to pre-pay your home loan. It also may be wiser to pay off high-interest, non-deductible loans before considering your Hollywood Hills home equity building options. Your financial advisor is the one to consult for these matters. If you would like up-to-the-minute information about Hollywood Hills home appreciation values in your area, please call or E-mail me today.
Rent or Buy Hollywood Hills
In the early years of your Hollywood Hills mortgage, nearly all of every monthly payment is interest. This means you are only paying off a tiny bit of the loan principal, but it is good news in terms of tax savings.
The monthly payment for a $100,000, 30-year, 8% mortgage on your Hollywood Hills would be about $734. In the first year of your mortgage, $7,970 of your $8,805 payment or 91% would be deductible as mortgage interest. Even in the tenth year, almost 81% of your payments would be deductible. What this is worth to you depends on your tax bracket but this tax savings built into the home-buying equation is why you can afford to make higher mortgage payments than your current rent payments without squeezing your budget. There is no similar tax subsidy for renters.
What Makes Hollywood Hills Sell?
The Condition affects its salability and possibly price. Hollywood Hills that is in move-in condition will usually sell for a higher price than a home that suffers from deferred maintenance.
The Home’s Accessibility refers to just that. Is the Hollywood Hills accessible to shopping and local transportation? For some this would be a necessity and for others, the more remote the better.
Marketing Exposure refers to how Hollywood Hills is advertised. Today the Internet is a fantastic way to market a home but it is still true that the best service a listing agent can do for sellers is to promote the home heavily with local brokers and agents. The Internet and other advertising certainly help, but it is still true that in most cases it is the agent that sells the home by making sure the right buyers know about it.
Hollywood Hills DEDUCTIONS
One of the advantages of home ownership is that while most other types of interest are not tax deductible, the interest you pay on your Hollywood Hills loan is deductible on your Federal and State income tax. This fact alone gives homeowners a distinct advantage over renters.
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