Tag Archives: Real Estate Agent Massachusetts

Should You Rent Your Condo?

26 Jul

Metro®Boston, Publication Date: July 20, 2011
Expanded Content

By Attorney George Warshaw

Consider, for a moment, a significant asset that you already own; one that could generate a stream of revenue well into the future – your condo. 

Rather than sell your condo to buy a new home, would you rent it instead? There are numerous possible benefits. 

The key is to get your interest rate as low as possible today while you are still living in the condominium. By doing so, you place yourself in the best position to generate future “positive cash flow”; one that will allow the rent to cover your mortgage, taxes and condo fees.

With interest rates at distress levels, now is the perfect moment to plan for the future. As an owner-occupant your rate will be lower than what would otherwise be available after you move.

Given the vagaries of the stock and bond markets, the prospective lack of a sufficient future social security payment – at an age when you might actually enjoy it, real estate is a reliable extra revenue source.

If you decide to rent your condo rather than sell it, keep one important thing in mind: if you plan to refinance shortly before you move and rent, the standard Fannie Mae mortgage form used with owner-occupied loans requires the homeowner to live in the condo for 12 months after signing.  Make your plans well in advance.

So be a smart condo owner – plan now for the future, and get the benefit of rents paying your mortgage. 

© 2011 George Warshaw. All rights reserved.

__________

George Warshaw is a real estate attorney and legal author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship. Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Advertisement

Tags: , , , , , ,

Getting Older – The New American Dream

30 Jun

Metro®Boston, Publication Date: June 29, 2011

By Attorney George Warshaw

The economy has changed the way older homeowners view their future.

Many are selling their long-time residence and renting rather than buying a
replacement home. No more mowing the lawn, paying a mortgage and maintaining an aging house. Sell the house, bank the money.

The second home market in a prolonged down economy is usually the first to collapse and the first to present opportunities. Among those who rent their primary residence, many are taking advantage of the depressed market to buy a vacation house.

I spoke about this recently with Jennifer Knight, a REMAX buyer’s broker on Martha’s Vineyard (jennifer@jennifersrealestate.com, (508) 221-2615).

“Tastes and needs have changed. Many who have sold their primary homes still need a place where they can entertain; where friends, children and family can be together, especially in an environment where there is a great deal of life, enjoyment and energy.

“But now they’re buying with cash flow in mind. They’re buying and then renting their Vineyard house for a month or two in the summer. The income from the vacation home rental covers the taxes and possibly operating costs, and they still get to host their family and friends.”

What’s happening on Martha’s Vineyard is not unique as people strive to find a balance between the life style they want or need, and the means to support it.

The prolonged so-called “jobless recovery” has caused many to change their approach to getting older and restructure their personal financial game plan. No one any longer believes that social security will be there for you when you retire.

It’s not simply a matter of the continual rise in the age when you are eligible to receive benefits – obviously they hope you are dead before the government has to pay; rather, the government has “borrowed” most of the money for its day-to-day operating expenses.

The recent debt ceiling crisis revealed that the government raided social security as a loan to be repaid in the future. Now the government needs to raise the debt ceiling to be able to borrow more money to pay its bills and repay social security.

Hmmmm! Perhaps they should consult a financial planner or better yet, I’m sure Bernie Madoff could give them some advice. At least he has experience!

© 2011 George Warshaw. All rights reserved.

__________

George Warshaw is a real estate attorney and legal author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship. Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Tags: , , , , , , , ,

How Homeowners Make Money Installing Solar Energy

15 Jun

 Metro®Boston, Publication Date: June 15, 2011
Expanded content

By Attorney George Warshaw

In addition to possibly having zero energy costs, there are a number of surprising ways a property owner in Massachusetts makes money by installing solar energy panels – including one way that generates a yearly check!

Tax Credits. Tax credits reduce your income tax. Current IRS rules permit a homeowner to claim a credit of 30% (no max amount) of the cost of purchase and installation of solar energy. Massachusetts provides a similar credit of 15% ($1,000 max) on state income tax.

Cash Rebates. Many towns have a program in which the homeowner receives a cash incentive for installing solar. Concord Municipal Lighting Company, for example, will rebate a buyer at the Riverwalk Condominiums in Concord up to $3,125 depending on the size of the system.

Yearly Income. Massachusetts, like some states, requires the power company generate a minimum percentage of its electrical power to end-users from certain renewable energy sources, such as solar. 

Right now, the power companies can’t generate enough solar power. They make up this deficiency by counting the energy generated by property owners who have installed solar.  The utility companies don’t, however, get to count it for free. They have to buy it each year – from you!

Here’s how. 

A property owner receives one (1) Solar Renewable Energy Certificate (a “SREC”) for each 1,000 kilowatt hours of solar generated power. Generate 10,000 kilowatt hours, get 10 certificates.

According to Steve Weikal (617-596-2777, steve@concordriverwalk.com), solar panels on new condos at Concord Riverwalk  by local solar integrator SunBug Solar (www.sunbugsolar.com) generate between 3 and 6 SRECs, a year, depending on the number of panels installed.

 The power companies compete for these certificates through an auction process. In the most recent auctions, Massachusetts  SRECs have been selling at over $500 each. If you acquired 3-6 certificates through your ordinary use, you would have received between $1,500 to $3,000, less brokerage commissions.

To sell your SRECs, you contact a SREC broker (they’re all over the web). SREC brokers function a lot like Fidelity or Schwab. Instead of selling your stock in Ford or GM, sign up online with a SREC broker and they take it from there.

Buy a solar-powered home, and put money in your pocket! ©2011 George Warshaw. All Rights Reserved.

References

Federal tax credit, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1

Massachusetts tax credit, http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MA06F&re=1&ee=1

Other Massachusetts tax/credit/rebate programs see http://www.dsireusa.org and search for Massachusetts.

See also http://www.srectrade.com/background.php on selling SRECs.

__________

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Tags: , , , , , , ,

NetZero Solar Living – Imagine Having No Utility Costs

8 Jun

Metro®Boston, Publication Date: June 8, 2011

By Attorney George Warshaw

Is it possible to live for free, where the cost of heating, air conditioning and the power to run every appliance is generated by the home?

“Net Zero” refers to an energy sufficient structure in which the annual energy cost to operate the house or condo is produced by the home’s own mini power plant.

With a solar home, NetZero is reached by “banking” excess electricity generated by the solar panels with the electric company as a credit. The credit pays for electricity drawn from the power company in periods of intensive usage.

To reach NetZero efficiency, the amount of energy you bank annually approximately equals the amount you draw.

I toured a 13 unit NetZero condo project under construction in Concord, Massachusetts – the “Concord Riverwalk.” Each condominium is built as a self-contained cottage style structure with its own solar power plant. Owners share gardens, walkways, garage parking and other common areas.

Each house generates energy through solar panels installed on the south side of the roof, and saves energy through “green” construction techniques that eliminate air infiltration and seepage, i.e. energy loss.

Contact Steve Weikal (617-596-2777, steve@concordriverwalk.com) for more info.

Next week, the economics of solar – get cash back and credits from a number of sources.

© 2011 George Warshaw. All rights reserved.

__________

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship. Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Tags: , , , , , , ,