Lake of the Ozarks – Tax Benefits of Second Home Ownership

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of second home-ownership and makes Lake of the Ozarks real estate an attractive investment that can be enjoyed by friends and family.  Here’s how it works.

You Purchase:

You have a loan of $150,000 for 30 years, at 7 percent (yes, they are much lower than this right now, but they won’t stay that way forever).  Your payment would be $997.95 per month.  The first payment is made, $122.75 goes to pay down the principal amount of the loan, and $875 is interest paid for that month.   You are allowed to deduct the interest portion of the payment (for this example we will keep the amount of interest paid at $875 for 12 months).

$10,500 = Mortgage interest paid
$  1,200 = Annual property tax
______

$11,700 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 33 percent tax rate: 11,700 x 0.33 = $3,861

$3,861 = Amount you have lowered your federal income tax (at 33 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

Call John Garrett with any questions about Lake of the Ozark real estate.  573-480-6420.

That is higher than the average sale at REMAX Lake of the Ozarks.  For Information on The Villages, Porto Cima, or and other Luxury homes at the Lake of the Ozarks, call the Luxury Experts.

John Garrett, Broker Sales Prudential Lake Ozark Realty. 573-480-6420

My new real estate company is called Lake Real Estate Pros.   Maybe I took the Warren Buffet quote that everyone loves nowdays that says ““… be fearful when others are greedy and to be greedy only when others are fearful” a bit too seriously.   After 10 year at RE/MAX Lake of the Ozarks, it was time to make this move.   Lake Real Estate Pros is located across from JB Hooks on Bagnell Dam Blvd.   The address is 2221 Bagnell Dam Blvd Ste 400, Lake Ozark MO 655049.  John Garrett can be reached at 573-480-6420.

Search Lake of the Ozarks Property

The Lake of the Ozarks real estate market is blessed to not have the problems on the scale that many areas do.   This list is not widely know to agents, I know to check it on occasion, but it is a cumbersome process.   

http://www.justice.gov/dea/seizures/missouri_pg1.html

From the DEA, these are the homes listed as meth houses.  They could have been cleaned up, torn down, not cleaned up correctly, but at least we know where they are.  BTW, these can be great deals for investors to buy and properly clean up as rentals, it just must be (and should be) disclosed that the home was formerly a meth house.   This disclosure is forever from what I have been told. 

http://methlabhomes.com/

Toad Cove

The entire property at Toad Cove including the 116 room luxury hotel has been turned over to a management company (i.e. bankruptcy for the developer) and will remain open and operated for the bank.   Several banks were participating, but Valley View Bank was the lead lender on the project.  

The concept of the full service “condo-tel”  was probably a bit premature for this market, it’s hard to justify paying $350,000 for a fancy hotel suite when our local MLS is loaded with very nice 3 and 4 bedroom condos that are twice the size for much less.  Add to this low demand the severe lending restrictions on “condo-tels” and this was inevitable.   There was nothing wrong with the product, it was promised to be first class and it was.  Timing, as they say, is everything.

Gasconade River farm for sale

This farm is one of the nicest I’ve ever seen in this State, and I’ve been doing this for 15 years!  Great Ozarks topography, springs, rocks, bluffs, it is all here in one package at a great price. Yes, the 250 foot bluff in the background is on this property and would make an incredible homesite. Two hours out of South St Louis, two miles off I-44, the access is great. 300 acres for less than $2000 an acre! Not a typo, just a hot,hot,hot deal. Call John Garrett, we know this won’t be around for long. 573-302-2320

Gasconade River Farm

Gasconade River

I just saw a national stat that 20% of all sales in 2008 were foreclosures.  Yes, we are seeing an increase at the Lake of the Ozarks, but for the year 2008, only .008 of residential sales were listed as  a foreclosure. 

CURRENT UPDATE 2012:  In 2011, there were 274  foreclosure sales.  In 2010, there were 382 foreclosures sold.  That’s a big decrease.  Like a 28% decrease.   If you are a buyer, this means you are missing the best time to nab a foreclosure buy.  Here are the current foreclosure deals at the Lake of the Ozarks.

Everyone is looking for a deal, and choosing the right buyer’s agent to work with is crucial and critical.  I like to say that “I can deliver certainty of outcome.”  You will be certain that you didn’t overpay for property and you will feel comfortable with your deal.  I sell enough real estate that no one deal is going to make or break me, so you won’t feel pressure from me to go ahead and buy a deal that you are not 100% convinced is right for you. 

If you would like to interview me to see if we might be able to work together, call 573-480-6420 or e-mail me.   

The Lake of the Ozarks real estate market can be very challenging for buyers.  You need an experienced and qualified agent like John Garrett to help you make the right choice. 

There are things a real estate agent, by law, CANNOT tell you when you are buying a home unless you have a signed buyers agency agreement. Things like:

How much you should offer on a home?

What price the seller will accept?

What terms are in your favor?

Why the seller is moving?

How long the property has been on the market?

Is this property a short sale or foreclosure?

Purchasing real estate is a complex transaction and in most cases the seller will be represented by an agent. Even if you are looking at new construction, a buyer broker costs you nothing yet has a lot to offer. Here’s a great article on how to interview a Lake of the Ozarks Buyer’s Agent.

Research by the NATIONAL ASSOCIATION OF REALTORS has shown that when a buyer’s representative is used, the prospective buyer found a home faster than consumers who did not use a buyer’s representative. At the Lake of the Ozarks, given our very large geographical area, the need for a buyer’s agent is even greater. In many cases, I, as a buyer broker can help you save money by showing you “Sold Comps” helping you to make a more informed initial offer on the property.  As your buyer broker my services include:

Evaluating your specific needs and wants, locating properties that fit those specifications.

Utilizing technology to your advantage to make sure it makes your buying process easier, not more confusing!

Coordinating showings – accompanying you on the showings, or previewing properties on your behalf.

Researching the selected properties to identify any problems or issues to help the buyer make an informed decision. Many Lake Areas have no planning and zoning, and my local real estate knowledge is invaluable.

Advising you on structuring an appropriate offer to purchase.

Negotiating the fairest purchase price on the most favorable terms that the market will permit on your behalf.

Helping secure appropriate financing for the selected property.

Providing you with a list of potential qualified vendors (e.g. appraiser, surveyor, inspectors, movers, attorneys, carpenters, etc.) if these services are needed.

Answering your questions, and getting answers for you. I always keep the lines of communication open with my clients.

Most importantly, the ability and willing to LISTEN TO YOUR NEEDS AND WANTS and find the best fit for you.

Clearly, by working with a buyer broker you receive a great deal of valuable services at no charge. At the end of the day, my job as your broker is to deliver results and you can take comfort in knowing that my interest are 100% aligned with yours. Since the seller is paying the commission, the worst agents cost you the same as the best, or so it might appear! Don’t make the wrong choice, because the bad or less experienced agent can cost you with their mistakes that hit your pocketbook, consume your time, add hassle and stress to your life. You have enough to worry, make sure your real estate purchase at the Lake is not one of them. Contact me today and you’ll quickly see the value I add to every transaction that I sign my name to.

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