This may be a financing option for a new small business

For every new business owner it is very hard to stay financially liquid because you often do not have the money to make upfront investments for a project and your customer is not willing to give you the money for his/her order before you deliver.

What should you as the small business owner do now? Let go and look for a customer who is willing to pay you upfront or contact one of the cash in advance financing companies?

To get your foot in the door and your business growing you may have only the option to go to these short term financing companies. The normal loan process will take too much time and at the end you often get the news from the lender that you are not qualified for a normal loan because your business is too young, has not yet filed tax returns, has not stable cash flow or your loan amount is too small.

The cash in advance financing companies are in such situation probably your only option. These companies are taking even small amounts like $1,000 and up without big paperwork requirements. They offer you such loans in exchange for invoices to your customer.

The time period for the repay of these small loans is generally 12 weeks and the fees are not cheap but acceptable. When you repay your loan quickly, the remaining charged fees are often reduced or forgiven.

Want to know more about this financing option? You can reach us at info@florida-informations.com

Do not forget the real estate deductions in your tax return filings

There are not only tax deductions for the new home owners but also for the existing home owners as well as foreign nationals. Which kind of tax deductions you will get depends on your  personal situation and on your resident status.

As an US citizens you can deduct from your annual income the mortgage interests and the mortgage insurance costs as well as the local real estate property. These tax reliefs are not to underestimate and you will get a tax return quickly from the government when you have timely filed your taxes before April 15 deadline. These tax refunds are certainly welcomed by everybody and sweetens the monthly tax payments that come with the pay check.

The before mentioned tax reliefs do not apply for foreign nationals when they do not earn income that is taxable in the US. However, for the foreign nationals there is a tax deduction available when they sell their home to buy a bigger one or liquidate their assets.

The seller, in this case the foreign national has to pay FIRPTA – tax on the capital gain that he/she makes in the sale process. But this owed FIRPTA tax amount can be reduced by the improvement costs that were done in the property and the legal costs that are related to the real estate transaction.

When you want to get your FIRPTA taxes back completely or partial you as the foreign national seller have to file income taxes too in the following year after the sale of your home.

This information is only a quick and partial overview and you as the taxpayer should discuss your individual tax situation with a tax professional.

For questions about how to get your tax paperwork started please contact us at andrea@florida-informations.com

Vacation home purchases are the today’s market trend

Market studies show that the investment trend in the real estate has shifted from investment properties to vacation and second homes. This trend is not only popular in the super rich population but also in the ordinary middle class. The market share of these transactions is 21 % of all transactions and exceed the market share of the investment home purchases that have only 19 % portion of the real estate transactions.

The vacation home purchaser often buy their property in an average distance of 200 miles from their primary residence. The most preferred location for this type of retreat homes are with over 40 % beach areas while the country side homes are only 19 % and the homes in the mountains are only 17 % of the transactions.

Based on the strong economy the buyers are using mortgage for their vacation home purchase but the mortgages for these home are below 70 % of the loan ratio.  

You want to know more about this actual market trend? Our email address is andrea@florida-informations.com

Spring trends in the housing market

Normally the housing marketing is more active in spring and that is not different this year. The market is a seller market with only 4.6 months of inventory on the market and this low inventory has the consequence that the home prices are surging.

The rising home prices are good news for the sellers but not for the investors who are looking for cheap homes that they can flip or rent. Therefore the investor numbers are declining and the normal home buyers have a greater chance to get their new home.

The rising price are also not an important thing for the buyers because it makes it harder to buy a new home even when the mortgage rates are still as low as 3.7 % for a 30 year mortgage. They have to qualify for their home loan. 

The most positive news for home buyers is the return of the Freddie Mac mortgage with only 3 % downpayment. This specific mortgage was not available for nearly 5 years.  

You want to get more market details? You can reach us at andrea@florida-informations.com

Buying a home and get financing – Changes at the beginning of August 2015

You are a frequent home buyer or a first time home, who is looking to purchase a home in the near future? Then you should keep in mind that there changes in the financing process in the coming summer. These change can impact you and your financing preparations.

After the financing crisis and hard to understand financing process with its costs and expenses along the way, the CFPB – that is the Consumer Financial Protection Bureau – is in the process developing a toolkit for home buyers in this matter. This toolkit will help you as the home buyer to understand the necessary steps in the process and the connected costs and expenses that come with the mortgage and the closing.

This toolkit will not only help the home buyers to understand the process better but also to find the best matching type of mortgage. It will also make it easier to understand the differences, requirements and benefits of the different mortgage types.

It is also intended that the mortgage industry use this toolkit with its customers. This toolkit will soon be available in English, Spanish and also for consumers with disabilities.

For more details to this topic please contact us at andrea@florida-informations.com   

Do you know the most affordable tax states in United States?

Everybody wants to save and that applies especially when it comes to taxes. In this field we are all the same and want to keep as much as possible in our own pockets. Everybody is working hard for their meat on the table  and the prices for the groceries, gas, restaurant and health are constantly rising while the wages do not increase at the same rate.

When you have job from 9 to 5 at a specific location, then you are bound to that working space. Also when you have your own business or tight family connection your living spot is defined by that circumstances with its state tax rates.

In case you are free to decide where to live and you are not tight to the job location, then you have the opportunity to reside in states where the tax rates are more favorable for you and your lifestyle.

In a study the states have been examined where the tax burden is the lowest and Florida was ranked on spot number 7 behind states like Alaska, Nevada and Tennessee to name only the top three.

Here is a little inside into the Florida tax rates. A Floridian pays

3.14 % of the income for sales taxes (this tax is calculated on all goods except food)

2.40 % of the income for property tax (only paid by home owners, tenant do not have this expense)

0.02 % of the income for income tax (this tax is the Federal income tax, Florida has no State income tax)

The total tax percentage is 5.56 % of your total income. That is a great number in comparison to many other countries in the world. 

Please keep in mind this is a statistic calculation to give you a hint about the taxes situation in Florida and it is not a tax advice.

For further questions you can contact us at info@florida-informations.com   

 

The life begins beyond 50

In the first half of life the focus is often on having a family and providing for spouse and children. Looking for the better job and earning a good income so that everyone in the family is happy. That is the normal life in many countries but as soon as you enter the second half of your life your daily life is different when you live in Germany or in the United States.

In Germany the people start their working life circle when they left school and got their education. They often stick to their profession for decades and they are not very interested to look for different alternatives in life. The life besides the work is mostly based on hobbies, sports, vacation and a little bit community involvement. They work until they can retire with the age of 65+ and they dream from their retirement and what they would do when they get there. When they get there they are often to exhausted to try new things and stick to what they already know. That is the normal German culture of life.

In the United States the people have a different expectancy of life. In their first part of life they are already very active in their jobs and additional education is big part of their life. They are always looking for better opportunities to make a little bit additional money for retirement. Their most important interest besides the work is their home, their neighborhood and their community where they often do volunteer work. But the most important difference in this way of life is that American people are more sliding into their retirement. They have already plans and they often start the realization for their retirement dreams beyond 50 or 55.

Based on a market study the plans of the retirees in the United States include for example to sell their homes but not for downsizing purposes. They often buy a bigger home so that their family – their children and grandchildren – can come for a visit and live with them during the holidays and vacation time. They slowdown in their work life und enjoy more the life balance. Friends and community work takes over the most important interest. They offer their live experience and knowledge often to community work and projects where they meet will many other folks from different ages and different cultures.

In Fort Lauderdale for example many elderly persons are spent their time as tour guides at historical side and explain the history of the city to tourists. Such services are very much appreciated by the municipalities and they add value not only to their lives of the retirees but also to the lives of others.

You want to know more about different cultures please ask us at
andrea@florida-informations.com