BLAIR homes AND acreages FOR SALE. Search Right NOW There IS a Difference... WC Real Estate does not charge flat fees of $225-$995! There IS a difference at WC Real Estate, we SELL everything! Call our WC Realtors on Duty today.... Washington County: (402) 426-2600 Dodge County: (402) 727-8111 Douglas County: (402) 913-1000 Burt County: (402) 374-2527 www.wcforsale.com
65 acres FOR SALE - Prime Commercial lots in BLAIR, Nebraska next to Walmart, Woodhouse Ford, Caseys General Store, Cargill Office, Scooters Coffee, Anytime Fitness and Jimmy Johns. Buy ALL or will sell individually. Call Mary Alice Johnson (402) 533-3807 for more details. or go to our listing details page... Commercial Land For Sale in Blair, Nebraska
The Do's And Don'ts Of Tapping Your Rising Home Equity If you bought a home recently, it may already have increased in value. Equity growth goes hand-in-hand with pride of ownership (and fun stuff like tax breaks) when it comes to homebuyer goals, so say a big, "Yay!" "Nearly 91,000 homeowners regained equity in the first quarter of 2017, according to real estate data firm CoreLogic's latest housing report, said Realtor.com. "Since the end of the most recent housing crisis, 9 million owners in total have regained equity, the report notes. About 63 percent of all homeowners have seen their equity increase since the first quarter of 2016, with the average owner gaining about $13,400 between then and the first quarter of 2017." According to Frank Martell, president and CEO of CoreLogic, that's the "largest increase since mid-2014." But, before you go making plans for all that equity, either by doing a cash-out refinance (if possible and prudent) or getting a home equity loan, take a pause. That money may be best left right where it is. If you still want to tap that equity, here are some of best - and worst - ways to use it. Home renovations When your home has equity, it can be tempting to use it for home renovations, which, presumably, will further raise your home value - or at least make your home prettier or more functional. Knowing which renovations pay you back is key to making smart choices. Review Remodeling magazine's Cost vs. Value Report, which "compares average cost for 29 popular remodeling projects with the value those projects retain at resale in 99 U.S. markets." You can then take your research further, viewing data for your regional area. This will help you decide if that $50,000 kitchen is a good investment, or if that attic renovation you were considering will be a bust from an ROI standpoint. A new car That fancy new car is calling your name, right? Does it make sense to use some of your home equity to finance or buy it outright? Ask yourself this: Is this a car you can't afford without using your home equity? Can you afford to pay the difference in your current monthly payment and what will be your new payment - plus the monthly cost of the car? "During the housing bubble, consumers used home equity borrowing to pay for everything from boats and gambling junkets (clearly bad) to cars and kitchen renovations (not so bad), said Interest.com. "The problems these homeowners experienced during the financial crisis and recession taught us that even some ‘not so bad' spending should be scratched from our list of acceptable uses. So, while we used to say that financing a car with a HELOC was OK, we no longer believe that. Besides, auto loans are now one of the few types of consumer loans that are cheaper than home equity loans or lines of credit." Additions Adding on to a home can be a great way to make it more livable, especially if the space is inadequate for your family. The Cost vs. Value Report can be useful here, too. You might be surprised to learn that a midrange bathroom addition typically only pays back an average of 53.9%. But, if you bought an older home that only has one bathroom, adding another could have a much higher ROI that makes the addition worth it. When it comes to larger undertakings, "Studies show that nearly all of the cost of a mid-range two-story addition may be recovered at the time of sale," said The Spruce. "The key here is ‘may be recovered,' as there is no predicting the real estate market years in advance. While this might seem like a ‘no-brainer,' it needs to be mentioned. More space means higher heating and cooling costs, more windows to wash and gutters to clean, increased property taxes, and more house to clean. Even though additions offer the potential for higher cost-value ratios than other renovation projects, you still may not recover the full cost of the addition when you actually sell." Vacation That European cruise or trip to Machu Picchu sounds like a great idea, especially because you've got some cash to pay for it with the rising equity in your home. But consider this: You may be paying back the money you spend on that vacation long after you return home. "The first mistake is using your home equity line of credit to live above your means," said Fidelity. "That can be paying for a vacation, using it to support going out to eat, buying luxury goods, or more generally, spending what you don't have. This risk is very similar to the risk of running up too much credit card debt, except that making this mistake with your home equity line of credit affects more than just your credit rating: It puts your home at risk." More real estate Leveraging one property for another is a tricky proposition. Whether you're thinking about flipping a house for the first time or already have some experience under your belt, you'll want to weigh the pros and cons - and costs - involved in buying and owning two properties. "Unlocking some of your home's value to pay for a second home has its advantages - but it has some big drawbacks too," Greg McBride, a senior financial analyst for Bankrate.com, told CNN Money. "Lenders tend to give more favorable terms to those who tap their home's equity to pay for a second home because they have more skin in the game. Buyers who take out a separate mortgage on a second home are more likely to stop making payments if they run into financial trouble and default. To offset the increased risk, banks charge higher rates and require larger down payments of these borrowers. The costs of borrowing, especially on home equity loans, can be lower as well, since these loans don't involve paying for title searches or insurance and other transactional costs of new mortgages." Now for the negatives: "By tapping your home's equity you'll be increasing your monthly mortgage payments and increasing the risk of losing your primary home to foreclosure. Also, by buying another home you're tying up a lot of your money into one type of asset. You're putting a lot of eggs in the real estate basket." College With the cost of college continuing to rise and mortgage rates reaming near historic lows, homeowners are increasingly looking to their home equity to offset some of the costs of education. Here's why it may be a good idea: "With a home equity loan or a home equity line of credit, the two biggest positives are that home equity loans may be cheaper than other loans, plus the interest paid on a home equity loan is tax deductible," said HSH.com.The most important downside: You're using your home as collateral. And then there's this: "These loans don't typically offer flexibility during periods of financial hardship," they said. "But those who borrow with federal student loans can readily obtain loan deferments, forbearance, and sometimes even loan forgiveness." Wondering What Your Property Is Worth? -- Let WC show you. There IS a difference at WC Real Estate, Call our WC Realtors on Duty today.... Washington County: (402) 426-2600 Dodge County: (402) 727-8111 Burt County: (402) 374-2527 Douglas County: (402) 913-1000 Coming Soon: West Central Iowa
[optima_express_map_search height="1000" address="1600 lincoln street, blair, ne 68008" zoom="10"]
SOLD $8200/acre ~ 81 Acre Farmland in Washington County, Nebraska. Highly productive farm tract with good county road access.
Congress is currently talking tax reform. Two very important real estate benefits are on the so-called "chopping block", either to be completely eliminated or significantly curtailed. It is doubtful that the home owner exclusion of up to $500,000 (or $250,000 if you file a single tax return) of profit will be impacted; there are too many homeowner voters who will forcefully object. But investors do not have the same strong lobbyist who can make the case for preserving the "like kind" exchange. So if you have an investment property, now might be the time to consider doing an exchange. Residential homeowners have a number of tax benefits, the most important of which is the exclusion of up to $500,000 (or $250,000 if you file a single tax return) profit made on the sale of your principal residence. But real estate investors -- large and small -- still have to pay capital gains tax when they sell their investments. And since most investors depreciated their properties over a number of years, the capital gains tax can be quite large. There is a way of deferring payment of this tax, and it is known as a Like-Kind Exchange under Section 1031 of the Internal Revenue Code. In my opinion, these exchange provisions are still an important tool for any real estate investor. The exchange process is not a "tax free" device, although people refer to it as a "tax-free exchange." It is also called a "Starker exchange" or a "deferred exchange." It will not relieve you from the ultimate obligation to pay the capital gains tax. It will, however, allow you to defer paying that tax until you sell your last investment property -- or you die. The rules are complex, but here is a general overview of the process. Section 1031 permits a delay (non-recognition) of gain only if the following conditions are met: First, the property transferred (called by the IRS the "relinquished property") and the exchange property ("replacement property") must be "property held for productive use in trade, in business or for investment." Neither property in this exchange can be your principal residence, unless you have abandoned it as your personal house. Second, there must be an exchange; the IRS wants to ensure that a transaction called an exchange is not really a sale and a subsequent purchase. Third, the replacement property must be of "like kind." The courts have given a very broad definition to this concept. As a general rule, all real estate is considered "like kind" with all other real estate. Thus, a condominium unit can be swapped for an office building, a single family home for raw land, or a farm for commercial or industrial property. Once you meet these tests, it is important that you determine the tax consequences. If you do a like-kind exchange, your profit will be deferred until you sell the replacement property. However, it must be noted that the cost basis of the new property in most cases will be the basis of the old property. Discuss this with your accountant to determine whether the savings by using the like-kind exchange will make up for the lower cost basis on your new property. And discuss also whether you might be better off selling the property, biting the bullet and paying the tax, but not have to be a landlord again. The traditional, classic exchange (A and B swap properties) rarely works. Not everyone is able to find replacement property before they sell their own property. In a case involving a man named Mr. Starker, the court held that the exchange does not have to be simultaneous. Congress did not like this open-ended interpretation, and in 1984, two major limitations were imposed on the Starker (non-simultaneous) exchange. First, the replacement property must be identified before the 45th day after the day on which the original (relinquished) property is transferred. Second, the replacement property must be purchased no later than 180 days after the taxpayer transfers his original property, or the due date (with any extension) of the taxpayer's return of the tax imposed for the year in which the transfer is made. These are very important time limitations, which should be noted on your calendar when you first enter into a 1031 exchange. In 1989, Congress added two additional technical restrictions. First, property in the United States cannot be exchanged for property outside the United States. Second, if property received in a like-kind exchange between related persons is disposed of within two years after the date of the last transfer, the original exchange will not qualify for non-recognition of gain. In May of 1991, the Internal Revenue Service adopted final regulations which clarified many of the issues. This column cannot analyze all of these regulations. The following, however, will highlight some of the major issues: 1. Identification of the replacement property within 45 days. According to the IRS, the taxpayer may identify more than one property as replacement property. However, the maximum number of replacement properties that the taxpayer may identify is either three properties of any fair market value, or any larger number as long as their aggregate fair market value does not exceed 200% of the aggregate fair market value of all of the relinquished properties. Furthermore, the replacement property or properties must be unambiguously described in a written document. According to the IRS, real property must be described by a legal description, street address or distinguishable name (e.g., The Camelot Apartment Building)." 2. Who is the neutral party? Conceptually, the relinquished property is sold, and the sales proceeds are held in escrow by a neutral party, until the replacement property is obtained. Generally, an intermediary or escrow agent is involved in the transaction. In order to make absolutely sure the taxpayer does not have control or access to these funds during this interim period, the IRS requires that this agent cannot be the taxpayer or a related party. The holder of the escrow account can be an attorney or a broker engaged primarily to facilitate the exchange. 3. Interest on the exchange proceeds. One of the underlying concepts of a successful 1031 exchange is the absolute requirement that not one penny of the sales proceeds be available to the seller of the relinquished property under any circumstances unless the transactions do not take place. Generally, the sales proceeds are placed in escrow with a neutral third party. Since these proceeds may not be used for the purchase of the replacement property for up to 180 days, the amount of interest earned can be significant -- or at least it used to be until banks starting paying pennies on our savings accounts. Surprisingly, the Internal Revenue Service permitted the taxpayer to earn interest -- referred to as "growth factor" -- on these escrowed funds. Any such interest to the taxpayer has to be reported as earned income. Once the replacement property is obtained by the exchanger, the interest can either be used for the purchase of that property, or paid directly to the exchanger. The rules are quite complex, and you must seek both legal and tax accounting advice before you enter into any like-kind exchange transaction.
Your farmland leases and the importance of September 1st in Nebraska and Iowa…
As we approach September 1st: There is evidence that in Nebraska and Iowa, most farm leases are oral year-to-year leases. This is important because Nebraska law governs how to terminate such leases and September 1 is a critical day should a landowner wish to terminate an oral lease. First, the law: The Nebraska Supreme Court has ruled that a farm lease begins on March 1 for oral year-to-year leases. To terminate an oral year-to-year lease, however, the Court has ruled that six months notice must be given prior to March 1. In other words, to terminate an oral year-to-year lease, a notice to quit must be received by the tenant prior to September 1 of the preceding year. Second, some examples: Example 1: The landowner as an oral year-to-year tenant. Landowner decides she wants to terminate her lease with Tenant because she wants her nephew to rent the land beginning March 1, 2016. Landowner sends a letter to Tenant and Tenant receives it October 30, 2015. Is the lease terminated so the nephew may rent it on March 1, 2016? No, the lease is not terminated because an oral year-to-year lease requires a tenant to receive notice by September 1, 2015. Here, Tenant received notice from Landowner on October 30, 2015. This means that Tenant may lease the farm land until December 28th, 2017. Example 2: Same facts as above except now, Landowner sends a notice to quit to Tenant, which Tenant receives on August 30, 2015. Is this lease terminated so the nephew may rent it on March 1, 2016? Yes, the lease will terminate as of February 28, 2016. Keep in mind the lease between Landowner and Tenant continues through February 28, 2016 but the Tenant has received a proper six months notice of termination, which is required under Nebraska law. Third, some gotchas: The above represent the default rules in Nebraska for termination of unwritten year-to-year leases. The landowner and tenant can come to a mutual, voluntary agreement to modify the default rules. Thus, if both the landowner and tenant agree, an unwritten year-to-year lease may end in June with 30 days notice. The key is that there must be a mutual, voluntary agreement to do so. If a landowner is terminating an unwritten year-to-year lease, it is advisable to do so with a letter and not in-person. Additionally, it is best to send the notice to quit with time to spare from the September 1 deadline, as the tenant must receive the notice by September 1; it is not relevant when the landlord sends the notice. Moreover, the above rules do not apply to written leases. To terminate a written lease, the landowner and tenant must merely review what the lease states about termination and follow the lease provisions. If you need clarification or just want to ask about dates and deadlines, you are welcome to contact us. We’re happy to help farmers and ranchers. Call one of our WC farm agents… Kevin Kermeen – cell direct (402) 657-9656 (Licensed broker in Iowa and Nebraska) Russ Nelsen – cell direct (402) 533-3960 (Licensed in Nebraska) Tim Kaup – cell direct (402) 720-6470 (Licensed in Nebraska)