Lake of the Ozarks Condominiums

Wow, summer sales were as hot as the weather! 

Combined, there was a very nice increase in the number of units sold from 173 to 182.  Not a huge gain, but a gain.  Given the tighter money, the paranoia, bad press and fear being put out to buyers,  this is really a nice surprise. 

Even more impressive is the dollar volume sold.  

So even larger gains were made in volume sold from $31,534,000 in 2006 to $35,845,000 in 2007. 

RE/MAX Lake of the Ozarks

Commissions paid out to RE/MAX Lake of the Ozarks agents in August saw an increase of 40% over the same month last year, bringing the amount of commission paid year to date to the exact level they were in 2006 (within one tenth of a point), a recording setting year for sales!  Dollar volume through the month of August shows that RE/MAX Lake of the Ozarks has already closed over 215 million in sales, and had over 855 closing sides! 

The idea that the market is slow is dead wrong, and after a super hot August, the fall buying season looks like it will be very busy indeed.  Now is a great time to sell, and if you are considering selling, call the experts at 573-302-2320. 

Lake of the Ozarks Condo

Should I use No Down Payment to Buy?

This option has changed from a tool of low income buyers that simply lacked any cash to put down on a purchase to a very smart investment vehicle for the disciplined investor.  One of the main factors involved in this is the likelihood that you will not own your condominium for a very long term, as most Lake of the Ozark Condos “turn over” every 3.5 years on average (this is my estimation).   

The main idea at work here is that you will be able to take the money saved and will consistently invest it instead in things such as stocks or mutual funds or something similar. You can do this by taking the money you would have otherwise used as down payment and invest those same funds somewhere else, provided you put your money to work, and don’t spend it frivolously. I agree with the concept, and these concepts should most definitely be explored.  Right now, there is a serious backlash against no money down and interest only options, and for good reason.   Many loan officers put people that never should have been in these plans into their primary homes and used the lower payments to qualify buyers for more than they could afford. 

What I am suggesting is that you consider all options when looking at purchasing a Lake of the Ozarks Condominium.  Using your mortgage as a financial planning tool is a good thing, but is not for everybody by any stretch.  I’ll be glad to help you with any questions you have about your condominium purchase at the Lake of the Ozarks.    

Buy a Lake of the Ozarks Condominium

This is the first time in many years that the average ask to sell ratio for condos has falled under 100%.  While resale units are in the 95% to 98%, new construction has always kept this number over 100%, because the asking price of a new unit often does not include boat docks, upgrades, allowances, etc.  This number dipped below 100% for the first time in late June, and this means that now really is the best time to buy a Lake Condo, and now more than ever you need a great agent that can advise you on how not to leave money on the table when purchasing Call John Garrett today at 573-302-2320 for more market information. 

1031 Exchange rules

When is 180 days not really 180 days?  Read the rules carefully, and you’ll see where your deadline could come up faster than you expected. 

Closing on all replacement property must be completed by the earlier of:

(a) 180 days (the date set out above) following the transfer of your relinquished property; or:

(b) The due date for your federal income tax return (including extensions) for the year in which your property was relinquished (or in the event of multiple exchanged properties, for the year in which the first such property was relinquished).

If your relinquished property was transferred before October 17 (in years which are not Leap Years), the 180-day period would end before the due date of your tax return, April 15.

If your relinquished property was transferred after October 17 but before the end of the year, your income tax return would be due April 15. This would be the deadline for receiving all replacement property, even though it is less than 180 days. If you want to have the full 180 days, you must request an automatic extension of time to file your return. Consult your accountant in ample time to have a request for extension filed on your behalf. It must be filed to receive the full 180 days.

If your exchange is in the form of an entity such as a partnership or corporation, it is important to know the due date for tax returns for that entity, so an extension can be requested if necessary.

Be careful with these dates, and feel free to download the checklist below as a helpful reminder of what needs to be done to complete a 1031 exchange.  Call John Garrett for more details or with your questions 573-302-2320.

1031 Exchange rules

When is 180 days not really 180 days?  Read the rules carefully, and you’ll see where your deadline could come up faster than you expected. 

Closing on all replacement property must be completed by the earlier of:

(a) 180 days (the date set out above) following the transfer of your relinquished property; or:

(b) The due date for your federal income tax return (including extensions) for the year in which your property was relinquished (or in the event of multiple exchanged properties, for the year in which the first such property was relinquished).

If your relinquished property was transferred before October 17 (in years which are not Leap Years), the 180-day period would end before the due date of your tax return, April 15.

If your relinquished property was transferred after October 17 but before the end of the year, your income tax return would be due April 15. This would be the deadline for receiving all replacement property, even though it is less than 180 days. If you want to have the full 180 days, you must request an automatic extension of time to file your return. Consult your accountant in ample time to have a request for extension filed on your behalf. It must be filed to receive the full 180 days.

If your exchange is in the form of an entity such as a partnership or corporation, it is important to know the due date for tax returns for that entity, so an extension can be requested if necessary.

Be careful with these dates, and feel free to download the checklist below as a helpful reminder of what needs to be done to complete a 1031 exchange.  Call John Garrett for more details or with your questions 573-302-2320.

5 steps to a successful 1031 exchange

The 1031 Exchange Process

1) List your investment property for sale!  Call me for a QUALIFIED agent in your area.  The process will go nowhere until you get the property SOLD!

 
2) When you accept an offer, make sure your real estate agent knows that you wish to do a 1031 exchange.  Most contract have the provision built-in, but don’t assume yours automatically does. 

3) Open escrow and chose a qualified intermediary (QI). The QI will hold the proceeds of the sale until the purchase of a “like kind” replacement property, so you personally never receive monies from the closing.  That could void the 1031 exchange.  

4) As an exchanger, you now have 180 days to complete the 1031 exchange.
        a. The first 45 days after the close to identify replacement property(ies) You can choose multiple properties.
        b. 180 days to complete the exchange anmd close.

5) At the closing of the replacement property, the QI will transfer the proceeds and arrange for the transfer of the deed directly to you. 

Is it really this simple to avoid Capital Gains taxes on highly appreciated property (possibly up to 40% of the gain) and also avoid depreciation recapture?  The answer is yes, but you need to use an agent that is qualified and understands 1031 exchanges.   

Parkview Bay Condominium

Parkview Bay Condominiums in Osage Beach Missouri, provide a great location for Lake activity and for shopping, dining, and recreation.  The picture above is of Building Two, and shows one of the three pools.  You can also see the swim platform, and the PWC slips. 

The picture above is of Parkview Bay, Building One A, one of the newer buildings with an elevator and a few different features. 

When you are considering a purchase of a Condo at the Lake of the Ozarks, Parkview Bay is a project you should have a look at.  The fact you will never have any development across from you thanks to the State Park and the easy access from Hwy 54 are just two of the factors that make this a great buy.  You also have the Hammonds development Chateau Lake of the Ozarks right up the street, and a new Boulevard being built by the City of Osage Beach to the development. 

For more information about Parkview Bay, call John Garrett at 573-302-2320 anytime. 

Osage Beach Condominiums

No real surprise that RE/MAX Lake of the Ozarks is the number one company when it comes to selling Condos at the Lake, and our Osage Beach market share is a remarkable 25%! There are over 230 active real estate brokerages and over a thousand agents at the Lake, but why take a chance when making such a large investment?  A company with a 25% has the experience, the ability, and the specific knowledge it takes to make sure your transaction is handled properly. 

Lake of the Ozarks condos

The news is not nearly as bleak as many make it out to be, and RE/MAX Lake of the Ozarks is actually up on the number of condos we have sold.  However, you can see that this a buyers market right now, and with the absorption rate rising because there are so many condos on the market (over 1500), so if you have been waiting to buy a Lake Condo, now’s the time.