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Hawaii Real Estate Blog

Blog of all what is great about Hawaii, the Big Island including Real Estate, News and Events.

Real Estate Sales has always been and always will be about building relationships. From coffee hours to cocktail parties one thing is always constant and that is people getting together and getting to know one another. Traditionally this has been done face to face and in the form of direct verbal communication or one on one emails and meetings. These days social media has created multiple ways on several platforms to build rapport and create not only friendships but solidify business deals.

Coldwell Banker represents over 100 years of innovation and being a leader in social media is a natural step for them!

Click here to view their Real Estate Professional's Guide to Communicating with Social Media.

The Legal Definition of a 1031 Exchange

Section 1031 of the Internal Revenue Code relates to the disposition of property that is held for use in productive trade or business or held for investment. If performed properly, code section 1031 provides an exception to the rule requiring recognition of gain upon the sale or exchange of property. In other words, if the requirements of a valid 1031 exchange are met, capital gain recognition can be deferred until the taxpayer chooses to recognize it. The current Federal tax rate (maximum) on long term capital gains is 28%, plus any applicable state taxes. Long term capital gains are not taxed as ordinary income. For an exchange to be 100% tax deferred, the Exchanger must acquire replacement property that is of equal or greater value and spend all of the net proceeds from the relinquished property. Many specific requirements must be satisfied in order to complete the exchange properly. With the recent IRS Regulations in place, an experienced qualified Broker, Intermediary and Escrow/title Officer, can accomplish an exchange with ease

Let us start with the basic definition:

"In finance, a capital gain is profit that results from the appreciation of a capital asset from its purchase price. If the price of the capital asset has declined instead of appreciated, this is called a capital loss. Capital gains occur in both real assets, such as property, as well as financial assets, such as stocks or bonds."
After years of uncertainty, the IRS has now delivered the answers to questions that have bedeviled home sellers, Realtors® and professional tax advisers. The IRS clarified its rules on capital gains exclusions for profits on home sales.

The largest category of people affected are those who sell their homes prior to the standard two-year holding period required for the maximum capital gains exclusions of $250,000 (single filers) and $500,000 (married, joint filers). The standard rules allow sellers to exclude up to those maximum amounts of sale profits provided they have owned and used their property as a principal residence for an aggregate two out of the five years preceding the sale. Any profits beyond the exclusion amounts are taxed at capital gains rates.

Where have the first three months of 2013 gone?  It seems like only yesterday that many of us were welcoming in the New Year with friends and family.  But it’s not a dream and we are truly in April with so many signs that the East Hawaii housing market has begun to see better days.

2013 Statistics – as of March 31, 2013

Puna

2012

2013

% increase/decrease (YOY)

Residential - # transactions

105

102

- 3%

Residential – median sales price

$ 139,000

$ 139,500

0.36%

Vacant land - # of transactions

133

180

+ 35.84%

Vacant land – median sales price

$ 20,000

$ 20,000

0.00%

 

 

 

 

South Hilo

 

 

 

Residential - # transactions

49

53

+ 8.16%

Residential – median sales price

$ 235,000

$ 290,000

+ 23.40%

Vacant land - # of transactions

15

18

+ 20%

Vacant land – median sales price

$ 229,000

$ 157,405

- 31.41%

East Hawaii shows mixed results as the 1st quarter of 2011 came to a close.  The median price in many cases shows a decrease as compared to 2010 for the same period, with the exception of South Hilo which showed a gain of 5.56% for residential property.   However, a very promising sign is that the number of sales is showing an increase over 2010 in most areas with the exception being residential property in Puna.

Coldwell Banker Day-Lum Properties has been a rock and major presence in East Hawaii Real Estate since 1984.  Built on a tradition of honesty and integrity, they have continually gone the extra mile in providing exceptional service to the residents of the Big Island.  As a franchise of Coldwell Banker, Coldwell Banker Day-Lum Properties is able to tap into the marketing and technological innovations that provide both sellers and buyers thus enabling consumers to get information and resources with greater ease via the internet.