New Year’s Checklist for First-Time Buyers

trulia.com

Get all your ducks in a row so that you’re ready to make a winning offer on the home of your dreams.

Making a resolution to take the leap from renter to buyer? If so, you need to know a few things to make sure this New Year’s resolution succeeds (unlike “finally start exercising” — which we won’t even talk about).

Here’s your step-by-step guide to getting all your ducks in a row so that you’re ready to make a winning offer on the home of your dreams.

Step 1: Make sure you’re (really) ready Homeownership is a big commitment.

Before you leap, make sure you can answer “yes” to the following questions: Is your job stable? Do you see yourself living in this town for the next five to 10 years? Are you prepared for all the extra work that comes with homeownership, such as repairs and maintenance, yardwork, pest control, and attending HOA meetings?

Step 2: Create a list of “musts”

Homebuying is like dating: If you’re expecting absolute perfection, you’ll be disappointed. Few people find a home that’s 100 percent ideal. It’s important to know which issues you’re willing to compromise on and which are deal breakers. Maybe you’re willing to buy a fixer-upper if it’s in a great location. Maybe square footage matters most to you, and location is secondary. Maybe you’re willing to get a home that requires a major makeover as long as the “bones” underneath are solid. Check out different neighborhoods, home styles, and listings online to get a feel for what’s most important to you.

Step 3: Figure out what you can afford

Your mortgage payments aren’t the only cost you’ll need to consider. First, you’ll need a down payment. Ideally, you’ll want to put down at least 20 percent of a home’s purchase price to avoid paying private mortgage insurance (PMI), an additional charge tacked onto your mortgage payment. You’ll also want to make sure you’re financially secure enough to handle any maintenance or repair costs that can (and will) crop up. If the plumbing bursts or the roof needs replacing in a few years, do you have enough of an emergency fund on hand to cover it? As a rule of thumb, you should set aside 1 percent of the purchase price of the home, each year, in your “house emergency fund.” That’s $83 per month for every $100,000 of home value.

Step 4: Gather documents

The loan approval process is a test of how much paperwork you’re willing to endure. It’s time to spend a weekend organizing your files. Collect your proof of employment, such as pay stubs and copies of the past two years of W2 forms (or 1040 tax returns if you’re self-employed). Print out bank and investment account statements from the past 30 days, canceled checks from the past 12 months showing that you’ve paid rent on time, and contact information for your landlords for the past two years.

Step 5: Get prequalified or preapproved

You don’t want to lose out on your dream home because you haven’t gotten pre-approved for a mortgage. (It’s happened.) Before you visit a single house, gather that documentation from Step 3 and get prequalified for a loan. The prequalification process is relatively quick and easy — you’ll simply provide information about your income and debts. Many sellers won’t even consider a bid unless you’re prequalified for a loan. For extra credit, take the next step and obtain a preapproval letter. This step is more time-intensive and requires a through credit and background check, but it can make you a stronger candidate in a seller’s eyes.

Step 6: Assemble your support team

You’re new to the homebuying game, so you’ll need the right people on your side to help you navigate it. Find a real estate agent you trust and communicate well with, and don’t hesitate to enlist a friend or family member for a second opinion.

 - See more at: http://www.trulia.com/blog/new-years-checklist-first-time-buyers/#sthash.vnntPsTK.dpuf

Senate Finance Tax Reform Proposal Brings Hope to the Expat Community

theyucatantimes.com

Many members of the Expat Community Worldwide believe the U.S. needs to rethink its taxation rules for nonresident U.S. citizens.

Last week’s report on tax reform from the Republican staff of the U.S. Senate Committee on Finance has caused a flutter in the global expat community.

Page 282 contained these words: “The United States is the only industrialized country in the world that imposes citizenship-based taxation. In other words, the United States taxes its citizens on their worldwide income even if the citizen resides outside the United States and has no connection to the United States other than citizenship.”

And these: “The United States needs to rethink its taxing rules for nonresident U.S. citizens.” A footnote cited a proposal from the organization American Citizens Abroad that has gained traction among many American expats frustrated with their tax status.

Intriguingly, the Senate report calls for creation of a test “to determine at what point a U.S. citizen is considered a nonresident of the United States and then at what point the U.S. citizen is considered to be a resident again.”

A strong storm front passes over the U.S. Capitol (Photo By Bill Clark/CQ Roll Call)

Longtime watchers of expat-tax policy have taken heart at this official recognition of an issue that, they argue, penalizes the earnings, investments and savings of Americans who have little to no relationship with the U.S. as well as those living in countries where they aren’t protected from double taxation.

That the report comes just weeks before the GOP takes control of both houses of Congress has provided an added dollop of optimism to those who think the Republicans are more likely than Democrats to change tax law. But legislative and political wheels grind slowly, and cooler heads are warning that much number-crunching and politicking must occur before this concept comes close to becoming a reality.

All in all, the report addresses a major issue for many Americans living overseas, whether they plan to return to the U.S. after a short time or have chosen to spend their entire lives outside the U.S.

Source: http://blogs.wsj.com/

Buying Overseas Vacation Homes

By: Sacha Tarkovsky

streetdirectory.com

If you have already have an idea of where you will buy your vacation home overseas or you are just deciding where you should, the tips below will help smooth the buying process. You vacation home overseas can provide you with a holiday home, valuable rental income and also an appreciating asset that could make you wealthy so lets look at how to buy your perfect vacation home. 1) Research Your Location Before Buying You need to do research and this means visiting and getting a feel for the area you wish to buy your vacation home in and find out exactly what its like to be there. Once you have done this you need to research the following in relation to your real estate purchase 1. foreign ownership of real estate rules, 2. property taxes, 3. Stability of country and political considerations 4. Investment and rental potential 5. The overall quality of life you need to visit for a few days at least! 2) Get Assistance Finding a realtor able to assist with your search for the perfect vacation home could save you time, effort and money in the long run. Most realtors make commission from sales so keep this in mind when buying real estate in a country abroad be careful as many don't have to be licensed and anyone can call themselves a realtor but get a good one and its money well spent. A local agent will understand their property market in depth and will help you buy the vacation property that suits you and relieve you of a lot of work. 3) The Rate Of Exchange When buying overseas keep an eye on the exchange rates that can go for or against you. Exchange rates vary all the time and can have a significant impact on what you can afford 4) Legalities Legal considerations vary as do land registry systems. In many countries title deed transfers are not registered which can make it difficult to prove you won the property. Get a lawyer. Like a good realtor its money well spent. Legal matters are complicated in many countries so don't try and do it yourself - get an expert on your side. 5) Protecting & managing your home Have a local management company look after your home. They can ensure the property is safe and if you wish to rent your vacation home when you are not their they can advise. With your vacation home overseas it's a good idea to rent as properties left by themselves can be a temptation to squatters or thieves. Make you sure you have insurance and that your property is looked after. 6. Why Are you buying? If you have a favorite area for your vacation home overseas fair enough, if you are still looking you may want to pick a country where capital appreciation on your vacation home can make it a valuable asset. You get to enjoy your vacation home and make somec capital growth as well!

Mexico Soda Tax Makes Immediate Cut in Consumption

banderasnews.com

Nicole Magge - BeverageManager.net
May 28, 2014

Mexico's tax on sugar sweetened drinks made an immediate impact on soft drink consumption in the country. In the first 3 months of 2014 manufacturers experienced a 4% decline in sales across the board.

The Mexican government introduced a groundbreaking tax on sugar-sweetened beverages in late 2013. The tax became law in January 2014, meaning that the period January-March this year is the first in which the results of the tax can be seen.

And the results are clear.

Mexicans drink 163 liters of sweetened drinks a year - the highest consumption in the world and 40 percent more than Americans - the equivalent to 40.75 liters by every person, every three months.

But in the first three months of 2014 that total fell by 1.65 liters, a 4 percent decline.

Across the board individual drinks companies reported falls in sales of between 3.6 percent and 4.4 percent. The finance director of Coca-Cola Femsa – the biggest Coca-Cola bottler outside the United States – told analysts in a conference call it too, had experienced a 4.4 percent fall in business.

The new soft drinks tax had been set at 1 Mexican peso per liter and health advocates believed that it would reduce annual consumption by 12 percent. With only three months sales in, it remains to be seen whether that target will be reached.

It may also be that after consumers’ initial surprise at the price increase and the attendant media attention has worn off, consumption might stabilize at a 4 percent decline – or go back up to where it was before.

Mexico’s tax was introduced in response to the country’s crisis of obesity and diabetes – 32.8 percent of the population is obese, making it the fattest country in the world.

This biggest-ever real-life test of whether "sugar taxes" can work will continue be the object of worldwide fascination.