Homeowner Tax Benefits

There are many reasons for wanting to have a home of your own like a place to raise your family, share with friends and feel safe and secure.  While investment opportunities rank high for most people based on the fact that homeowners’ net worth is over forty times higher than that of renters, so do the tax benefits that reduce tax liability.

• Taxpayers who have owned and used a home for at least two out of the last five years, can exclude a maximum of $250,000 of gain as a single taxpayer and up to $500,000 of gain for married taxpayers filing jointly.
• If the gain on a principal residence exceeds the allowed exclusion, the balance is taxed at the lower long-term capital gains rate rather than the marginal tax rate of the homeowner.
• Homeowners can deduct the interest paid on up to $1,000,000 of acquisition debt used to buy, build or improve their first or second home.  They may also deduct the interest on up to $100,000 over acquisition debt that is a recorded lien on their first or second home.
• IRS will allow taxpayers to decide each year whether to take the higher of the itemized deductions or the standard deduction.
• Points paid on new loans for home purchases are considered interest and can be deducted in the year paid. On the other hand, points paid for refinancing a home must be amortized over the life of the mortgage.

For more information, talk to your tax professional and see IRS publication 523 and IRS Publication 936.

ICE Can Save Lives

Everyone knows that ice can make a drink cool or reduce swelling, but if you put it on your cell phone, it might just save your life.

The concept is simple.  Make a contact record in your address book with the name “ICE”, which stands for In Case of Emergency.  In the note section of the record, you would list your name, blood type and medical conditions along with prescriptions and physicians.  You’d also list the people and their phone numbers that can be contacted in case of an emergency.

Several years ago, a British first responder came up with the idea when his emergency unit responded to a call where the victim was unable to communicate due to illness or trauma.  The victim’s wallet didn’t indicate specific persons to be notified in an emergency.  The fireman went through his cell phone to try to identify a relative and wasn’t successful.

That’s when he came up with the idea of a universal entry into the address book for ICE where the necessary parties and special information could be kept.  The story received a considerable amount of publicity and spread across the pond to the United States and into many other countries.

While it isn’t recognized everywhere, it is becoming increasingly more popular.  Even if emergency technicians didn’t find it, the slight possibility that they would find it and it would make a difference would justify the few minutes it will take to create it.  Click here to download a card to carry in your wallet or purse.

Don't Consider Appreciation or Tax Savings

Appreciation and tax savings are legitimate contributors to an overall rate of return on rental real estate but what if you didn’t consider them at all.  If you only looked at one or two, very conservative measurements, you might decide to invest especially knowing that there are more benefits that will accrue to your investment.

If we bought a property for cash, collected the rent and paid the expenses, the amount left would be called Net Operating Income.  In the example below, if would generate $7,200 a year which would be a 7.02% cash on cash rate of return which is considerably higher than the current 10 year treasury rate of around 2.3%.

If we place a mortgage on that property, the rate of return actually increases due to leverage.  After the principal and interest are paid, the net operating income obviously decreases but the cash on cash rate of return increases to 9.10% because the borrowed funds means less cash invested.

Another contribution to the investment’s rate of return occurs with the mortgage due to amortization: the principal reduces with each payment made which increase the investor’s equity.  In this example, the equity build-up divided by the initial investment yields a 5.25% rate of return in the first year.

Single family homes for rental purposes offer the investor high loan-to-value mortgages at fixed interest rates for long terms on appreciating assets with tax benefits, reasonable control and an opportunity to earn higher than normal rates of return.  Call if you'd like to talk about what kind of rental opportunities are available.

Being a Good Neighbor

A good neighbor might be characterized as someone who’ll look after your home when you’re out of town by picking up your mail and watering your plants.  You’d most likely reciprocate for anyone who’d be so generous toward you.

In some cases, you might only be able to name one or two of your neighbors who would step up to that level of service.   Wouldn’t it be nice if more people on your street would be happy to make that offer?

The solution may just start with being a better neighbor first.  The following suggestions go a long way to improving your neighborhood and making new friends at the same time.

• Meet your neighbors and exchange phone numbers and email addresses.  Agree with each other that you’ll let them know if you see something strange going on at their home. 
• Slow down when driving through the neighborhood; it will make it safer and everyone will appreciate it. 
• Control your dog: keep it on a leash; pick up after it; don’t let it bark too much.
• Don’t park in front of your neighbor’s home.
• Notify your immediate neighbors when you’re having remodeling done and ask them to let you know if any of the contractors cause damage to their property.
• Let your neighbors know when you’re having a party and that there will be more cars on the street than usual.
• Maintain your home and yard so that it adds to the beauty of the neighborhood.
• Put your garbage out for collection on the correct day and bring the containers back in promptly.

In reality, it is fairly obvious; you just have to think of the things that you’d want from your neighbors.  Be friendly; don’t be noisy; offer a helping hand when available and respect each other’s boundaries.  Having a sense of community and that you all share the neighborhood can be underlying principles that will guide your behavior.

A good neighbor would be aware of suspicious activity and would call their neighbors and the police if warranted.  This might be something you can discuss with your neighbors.  Click here for a template to record your immediate neighbor’s contact information and keep readily available if needed.

Holiday Tree Safety

Fresh holiday trees are beautiful, smell great and really add to the spirit of the season.  Following some proven safety tips might help you avoid a disaster and keep the Grinch away.

• Select a tree with fresh green needles that don’t fall off when touched or when the trunk is tapped on the ground.
• When trees are cut too early, they have a greater risk of drying out and can become more dangerous especially with electrical lights.
• Cut 1” to 2” off the base of the tree before placing it in the stand to facilitate it drawing water to the limbs and quills.
• Trees require water similar to cut flowers or they’ll dry out. Tree stands should hold at least one gallon of water and it should be checked every day.  A six foot tree could use up to a gallon of water every two days.
• Position the tree a minimum of three feet or further from heat source like fireplaces, space heaters, heat vents or candles.  Do not allow the tree to block an exit.
• Lights should be labeled from an independent testing laboratory and intended for indoor use.
• Follow manufacturer’s recommendations for how many strings of lights can be connected to each other.
• Turn off all tree lights when you go to bed or leave the home.
• If the tree becomes dry and begins shedding needles, it can be a fire hazard and should be removed from the home.  Even if the holidays are not over, it is not worth the risk to keep it in your home.
• After the gifts have been opened, don’t return the paper and boxes under the tree.
• Remove the tree as soon as possible after the holidays.
• Trees should never be burned in a fireplace.  The trees will burn very hot and quickly when they are dry and could spread outside of the fireplace which could cause an unfriendly fire.
• Check to see if there is a recycling program for holiday trees in your community.

The National Fire Protection Association reports that “one of every three home Christmas tree fires are caused by electrical failures and a heat source too close to the tree causes roughly one in every six of the fires.”

Verify with Your Lender

If you have a mortgage with an escrow account to pay your property taxes and insurance, you expect the company servicing your loan to pay this year’s taxes this year so that you can deduct them on your 2014 income tax return.  After all, your monthly payment includes 1/12 the annual amount so there will be money available for them to be paid on time.

IRS requires that expenses must actually be paid in the year that a deduction is to be taken.

The predicament occurs when you’ve made your payments but the mortgage company didn’t pay the taxing authority in the tax year they were due.  If they paid your 2014 taxes in January of 2015, they wouldn’t be deductible for you until you file your 2015 income tax return.

Verify with your lender after you make the December payment that they did indeed pay your property taxes.  The question for your lender’s customer service is: "Have you or will you pay the 2014 property taxes this year so I’m eligible to deduct them on my 2014 income tax return?”

Consider an Adjustable Rate

With fixed rate mortgages as low as they are, most purchasers or owners wanting to refinance might not even consider an adjustable rate loan.  The determining factor should be how long the person plans to be in the home and which mortgage will provide the cheapest cost of housing.

For instance, if you compare a $300,000, 30 year term mortgage with a 4.125% rate on the fixed and a 3.25% on the 5/1 adjustable, the breakeven point would be almost seven years assuming the rates adjusted the maximum that they could in each year.

 

Therefore, if a person is going to stay in the house less than 7 years, the ARM would provide the cheapest cost of housing.  This example shows that at the end of five years, the ARM would generate almost $13,000 savings over the fixed-rate. 

On the other hand, this could be a good time for homeowners with an existing adjustable rate mortgage to consider refinancing into a fixed-rate mortgage.  The longer that they intend to stay in their home, the more advantageous it might be for them to convert their mortgage to lock-in their payment and fix their housing costs.

A trusted mortgage professional can analyze the alternatives to provide you with the information necessary to make a good decision.  You can try the Adjustable Rate Comparison with your own numbers to see the effect.

Executives Moving to or in Kansas City / Overland Park - Discover Lee's Summit - Winterset Woods - Hot Property Only $869,000!

I have spent my the majority of my life in Kansas City and what I have found is that people generally migrate to one polar centralization spot and that is their main understanding and day to day of this great city.  We have large corporations in Kansas City like Hallmark with a downtown / crown center headquarters, Garmin with an Olathe headquarters & Sprint headquartered in Overland Park.  

If I were moving into Kansas City for one of these organizations I am sure I would look to locate my home in Overland Park if I were moving to be a part of Sprint... it just makes sense.  Don't get me wrong, I do love lots of Overland Park, but this blog is out there to be found in the Google atmosphere for the next executive moving to Kansas City that wants to find more than just the closest city to their work they want:  1) Great schools, 2) 15/20 minute drive from all of Kansas City 3) Low taxes 4) A  kid friendly and adult conceived neighborhood that mature enough to not have construction around every corner 5) An executive retreat that is "private" but keeps you connected with great amenities all around!

To find this great setup and options please let me introduce you to Lee's Summit, MO and the subdivision of  Winterset Woods; located just off 470 highway in the western part of Lee's Summit this grand executive neighborhood is not all about a big golf course (although if you want to golf there is the beautiful Long View Lake Golf Course only 5 minutes away), it was designed to accent the rolling hills of this beautiful valley on one of the higher points in the area overlooking much of the surrounding area.

There are currently 5 subdivisions in the Winterset area that have access to three swimming pools, numerous ponds, great walking trails, a 100 acre dedicated greenspace, and some of the best views in Kansas City.  The crown jewel of these subdivisions is the original space, Winterset Woods, located just off Chipman road and I-470 - this part of the Kansas City Metro is uniquely situated to be just minutes from many parts of the city.

• Overland Park - Shooting for the center of Overland Park / College Boulevard, 17 minutes - straight to the Overland Park Convention Center.
• Downtown Kansas City - Enjoy the Kauffman Center, Sprint Center, First Friday Art Weekends, or just commute to the center of the city, 24 minutes - straight to the Sprint Center in downtown Kansas City.
• Arrowhead / Kauffman Stadium - Ready to cheer on the best teams in Kansas City, The 2014 American League Champions the Kansas City Royals, or the toughest team in the AFC West, The Kansas City Chiefs - a short commute - 20 minutes and you are in one of two of the best sports venues across the city!
• Downtown Lee's Summit - One of the most quaint city downtown locations you will ever find, walk the square and stop at great locations like The Red Door Wine Store, or Ophellias to have a quick bite or enjoy the "small town shopping: that you will tell all of your friends about.
• Longview Lake - New Shops / Community Center and the Longview Lakes Golf Course - Tradition and new all come together just minutes from Winterset Woods,  This award winning golf course is available, new shops for dining, shopping, groceries and more are just minutes away - 5 minutes & that's if you get caught by all of the red lights! :)  Check out the 

In many cities 15 / 20 minutes is what it takes to get groceries, to find a place to park, with this fabulous location in Winterset Woods, Lee's Summit, MO you are set to be ready to embrace everything Kansas City has to offer!

Perfect, now you know about the undiscovered gem of Winterset Woods in Lee's Summit, it is time to introduce you to what will seal the deal and make you want to make this the home for the rest of your lives!  Winterset Woods is set high atop a ridge overlooking the valley below.  My team, The Bubb Cribb Team @ ReeceNichols is ready to help you with any and all of your needs in moving to Kansas City.  Now let's talk about the incredible property we have for sale at an amazing price - 460 Riven Rock Circle, Lee's Summit, MO 64081 - be ready to be impressed, ready for you to make your own, this million dollar home can be yours for only $869,000 & if you tell me you saw it on this blog I will ensure you get a discount!

460 Riven Rock Circle, Lee's Summit, MO 64081 - sits at the end of a cul-de-sac off Riven Rock Trail on a huge 1.3 acre lot (one of the largest in all of the Winterset subdivisions) that backs up to the 100 acre green space reserved by the Winterset developers as a green sanctuary.  Looking off the deck our out the windows of this promontory point you are sure to see deer, turkeys and other wildlife as well as views all the way to the Longview Lake Water Tower & beyond.  

When I first had a glimpse of this awesome house and land I knew we needed to think outside the box to market how great this location is.  Take a look at this incredible drone video developed in conjunction with P.P. Productions out of Kansas City.  We took the drone up to show the wall of windows at the back of the property that let in light at all times & allow you inside to be a part of nature out the back at all of the three levels in the home.  Drive into this wonderful location and make it your own. 

Are you from out of Kansas City or need to commute? We are located just minutes from several major GA - General Aviation airports, and KCI - Kansas City International.  KC is the center of the United States and makes an incredible location for anyone travelling across the world.  The Kansas City Chamber of Commerce & KCADC are embracing business and know better than I the benefits to marketing this area, resources, tax benefits, etc...  What I do know is that this city keeps winning awards for #entrepreneurship, for #innovation & for #education... if these are what you want out of business, start by calling me for a visit (816.982.5990) and I will give you the grand tour!

Now, what can I say about this awesome property that is not said through the beautiful pictures, let's start out with the high points:

• Over 5200+ Square Feet with 4 Full  Bedrooms / 4.5 Baths on three levels!

• 1.3 Acre Wooded Lot @ Cul-de-sac end with stunning views over the 100 acre green space behind property (no back neighbors.... ever - it's in the contract for the green space)

• Open Kitchen / Breakfast Room w/ stunning hardwood floors, large pantry, granite counters, full laundry room off kitchen  & stainless steel appliances.

• Over sized three car garage built to let you open the doors of your car + extra storage space in LL for mower, snow blower, motorcycle and more - access with double door from backyard.

• Large 1st Floor Master w/ walk in closets, en-suite bathroom, whirlpool tub, dual vanities, over sized 2 person shower, walks out to large main floor deck, great for entertaining.

• Lower level hosts an amazing family room with full wet bar, recently updated with stunning granite on the full bar, storage space, walkout to LL patio space & 3rd bedroom suite.

• Possible 5th bedroom expansion option in LL with office / exercise room or build on to the 2nd level by outfitting the 600 sq. ft. + area that sits above the garage that already has heating / cooling run + is completely built out with exterior stud building.

The wow factors of this home only are truly available when you get to see the home in person, but just imagine:

• A 5000+ Square Foot Home that has an electric bill that averages only $250.00 per month, this is partially because of the:
• 12" thick concrete walls - larger than standard 8" thick plans.
• 50 year Commercial Grade EIFS Stucco siding with extra 1" insulation around entire property.
• Triple pane Pella windows throughout the house with blinds built in between the panes for ease in cleaning and efficiency.
• A gas bill that truly comes in under $50.00 each month, the only gas used is for the gas starters on the fireplaces & possible fireplace usage if the home needs additional heat.

The best parts of this home - direct from the sellers of the home are the Top 10 (Really 13) items that make this house and area a HOME:

1. A beautiful neighborhood with mature trees and great homes
2. Our large wooded lot provides privacy and tranquility
3. Breakfast on the deck or patio with the wildlife
4. Breathtaking views of the 100+ acre "green space" behind the house
5. Panoramic windows in most rooms allow awakening to the sunrise and savoring the gorgeous sunsets
6. Zoned heating/cooling makes every room comfortable no matter what the weather brings
7. High energy efficiency construction  allow for the comfort at very low total energy cost
8. Near zero maintenance exterior features means huge savings in maintenance costs
9. A short 3 minute drive to two new shopping malls and dozens of restaurants
10. The large Gathering Room windows make it a great place to watch clouds, soaring birds, or even the power of nature during a storm from the comfort of your couch.
11. The well designed floor plans provide great "flow" to life in the home
12. Being located close to I-470 means that Kansas shopping and dining and downtown Kansas City are only 20-30 minutes from the home
13. Lee's Summit has a small town feel to it but it has the amenities of a larger city!

Thank you!

Have a fabulous Thanksgiving!

If you are looking to sell and list your home or to put an offer in on a new home, now is the time and the Bubb Cribb Team would love to help you!  Fall / Winter rates are outstanding, let us know and we will send you along to one a trusted parter in the mortgage business to get the best rates and customer service in #KC!

The Bubb Cribb Team at ReeceNichols would love to be your neighborhood experts in buying or selling your home in any part of Kansas City.  We have great area specialists in Union Hill, Hyde Park, Brookside, Sunset Hills, Waldo, Mission Hills, Prairie Village, Overland Park, Fairway, Leawood, Kansas City North, Lees' Summit and more; please contact Christopher Cribb, Megan Bubb Cribb or Eric Bubb for assistance!

Christopher Cribb - The Bubb Cribb Team 
ReeceNichols - StateLine / Southgate - 
Direct Line 913.239.2023 - Text 816.982.5990

Realize Tax Savings Sooner

A homeowner’s tax saving benefit is generally realized when they file their federal income tax return after the money has been spent for the interest and property taxes.  Some people look forward to the refund as a means of forced savings but some people need to realize the savings during the year.

It is possible to adjust the deductions being withheld from the homeowner’s salary so they realize the benefit of the savings prior to filing their tax returns in the form of more money in their pay checks.  Employees would talk to their employers about increasing their deductions stated on their W-4 form.

By increasing the exemptions or deductions, less is taken out of the check and the employee will receive more in each pay check.  If a person over-estimates their exemptions and therefore, underpays their income tax, they might incur interest and would have additional tax to pay when they filed their tax return.

Buyers considering this strategy should seek tax advice and discuss it with their human relations department at work.   Additional information is available on the Internal Revenue Service website about Completing Form w-4 and Worksheets.

Talking Points with an Agent

A list of talking points can be very valuable to guide the conversation with an agent that will lead to a decision to have him or her represent you in the sale of your home.  If you haven’t been through the process before or it has been a while, the answers to these questions can reveal things about the experience and where-with-all of your candidate.

Even if you only intend to interview one agent and maybe they are a trusted friend, it is appropriate to understand how different issues will be handled.  Professionals should not feel challenged to discuss these important concerns.

1. Tell me about your experience and training.

2. Do you work real estate full-time?

3. Are you a REALTOR® and a member of MLS?

4. What is the average price of the homes you have sold and how many did you sell last year?

5. Which neighborhoods do you primarily work?

6. How many homes have you sold in my neighborhood?

7. What is your list price to sales price ratio?

8. How many buyers and sellers are you currently working with?

9. Tell me about the positives and negatives of my home?

10. Describe your marketing plan for my home and if you will use outside professionals.

11. Specifically address Internet exposure, open houses and showings.

12. Describe how you’ll keep me informed all along the way.

13. Will I work directly with you or with team members?

14. Can you provide me with three recent references?

You might have noticed that price was not in the list of talking points.  The seller sets the price but the market and the buyer determine the value.  The agent can advise you about the proper range that will insure activity and ultimately affect your final proceeds.  The advice should be based on facts that are available to all agents as well as the prospective buyers and the appraisers.

The decision to list a home with a particular agent and company should never be based on the listing price suggested by the prospective agent.

Relax...There's an Alternative

Is the stock market keeping you up at night?  Are you consuming more antacids than ever before?  Are the ups and downs causing more stress than you want or need?  There is a simple alternative in rental real estate.

Single family homes for rental purposes offer an excellent rate of return in an investment that most people understand better than other investments.  The concept is simple: stay with predominantly owner-occupied homes in a slightly below average price range.  In most areas, tenants are easy to find and they’ll usually stay two to three years or more.

For the person who doesn’t want to be bothered with calls from tenants, professional management is available and commonly won’t dramatically affect the rate of return.  Managers can achieve economies of scale that individuals can’t due to managing multiple properties and having good connections with the best workmen.

Unlike most commercial property, single family homes are much more liquid because of the higher demand for residential property.  Single family homes offer the investor the opportunity to borrow high loan-to-value mortgages at fixed interest rates, for long periods of time on appreciating assets with tax advantages while providing the investor a higher than normal level of control.

Spend an hour investigating the benefits and you might sleep better at night, eat less antacids and find yourself more mellow than you’ve been in years.

Save Interest, Build Equity & Shorten the Term

If you invest in a savings account, you’ll make less than 1% and would have to pay income tax on the earnings. On the other hand, contribute something extra to your house payment and you’ll earn at the mortgage interest rate which is certain to be more than you are earning in the bank.

Making additional principal contributions on your mortgage will save interest, build equity and shorten the term. An extra $100 a month in the example shown will save thousands in interest and shorten the term of the mortgage as well.

Reducing your cost of housing is another way to improve the investment in your home. Becoming debt free is a worthy goal that is achieved with discipline and good decisions. Suggestions like this are part of my commitment to help people be better homeowners when they buy, sell and all the years in between.

Check out what would happen if you were to make additional payments on your mortgage.

Enjoy Your Improvements and Profit by Them

Homeowners can raise the basis or cost in their home by money spent on capital improvements. The benefit is that it will lower their gain and may save them taxes when they sell their home.

Improvements must add value to your home, prolong its useful life or adapt it to new uses. Repairs are routine in nature to maintain the value and keep the property in an ordinary, operating condition.

Additions of decks, pools, fences and landscaping add value to a home as well as new floor covering, counter-tops and other updates. Replacing a roof, appliances or heating and cooling systems would be considered to extend the useful life of the home. Completing an unfinished basement or converting a garage to living space are common examples of adapting a portion of the home to a new use.

Other items that can raise the basis in your home are special assessments for local improvements like sidewalks or curbs and money spent to restore damage from casualty losses not covered by insurance.

Here’s a simple idea that could save you money years from now.

Every time you spend money on your home other than the house payment and the utilities, put the receipt or canceled check in an envelope labeled “Home Improvements.” Regardless of whether you know if the money would be classified as maintenance or improvements, the receipt or cancelled check goes in the envelope.

Years from now, when you’ve sold your home and you need to report the gain on the property, you or your accountant can go through the envelope and determine which of the expenditures will be adjustments to your basis.

Some people disregard this idea because of the generous exclusion allowed on principal residences. At the unknown point in the future when you sell your home, circumstances may have changed and the proof of these expenditures will be valuable. The tax laws could lower the exclusion amount or eliminate it altogether. Your marital status may change because of death or divorce. The market value of your home may skyrocket.

Since the future is unknown, it is better to keep track of the improvements as they are made and how much is spent on them. Download an Improvement Register and examples or read more in Publication 523 on Increases to Basis.

This Is Why I LOVE Brookside - Houses with Size & Character - 5715 Central, Kansas City, MO $285,000

One of my favorite historic neighborhoods and areas of Kansas City is "Brookside", while there is not an exact cut off on where this area runs East, West, North or South - if you ask someone they can tell you where we are talking about.  The heart of Brookside is most likely centered at the Brookside shops on 63rd / Meyer Boulevard and Brookside Boulevard.  For a bit more information on the shops, check here:  The Brookside Shops in Kansas City

While talking about the Brookside shops and before I get into telling you about this fabulous home for sale we have in the area I would encourage you to check out to restaurants that we have had fabulous dining experiences at in the last couple of weeks.

• JulianKC - where celebrity chef Celina Tio has created a great small bistro restaurant where the menu changes daily and the food is TOP NOTCH!  On a recent visit we had the Pork Belly BLT sandwich, fresh homemade hush puppies & the lobster bisque.  It was a great lunch and with the bright flavors you felt comfortably full, but not stuffed.  I would highly recommend Julian to anyone in the area!  Located in the Brookside Shops.

• Bella Napoli - Wow, this place is a true hidden treasure, 1/3rd luxury food market, 1/3 restaurant, and 1/3rd great wine / local bar... you could feed yourself for every meal from this location.  The Italian food was authentic and delicious, the wine prices were good and on Tuesday nights you have half off bottles of wine to help out even more.  This one made it to our go-to list for Italian in KC.  The homemade pastas, wood fired pizzas & sliced meat . cheese trays are worth buying for sure!  Check them out when you get a chance, located in the Brookside shops.

Now on to our featured listing - 5715 Central, Kansas City, MO 64113.  This beautiful home was built in 1929 and has outstanding finishes and character throughout that will pull you back to the classic style while living in the comfort of today's technology.  Starting with the commanding pillars out front and moving on to the coveted central hall floor plan you will love the feel of this home.  Possibly the best thing yet about this home, the price - just reduced $5,000 you can get into this outstanding block of homes from 250K to 500K for only $285,000!

This home just had all of the hardwood floors refinished throughout the home in a dark wood color and the large formal dining room, living room and kitchen with a half bath on the main level make it a great circular flowing plan.  Three large bedrooms with a sun-room in the master on the 2nd floor and a remodeled full bath are roomy and move-in-ready.  In the basement (unlike many Brookside basements that worry about water issues) this basement is dry and has a bonus finished room with an extra bath that for convenience.  

The backyard features a large deck for entertaining and a privacy fence.  Finish off this lovely setup with a location just a short walk away from Loose Park, The Trolley Trail, The Crestwood Shops, The Country Club Plaza & The Brookside Shops and you are nestled in a neighborhood that people move into and never move out of.  You will love having your own private drive and a large 2 car garage to take care of your vehicles.  I know that the right Brookside buyer is going to fall in love with the character of 5715 Central, KC, MO 64113.

If you have trouble accessing the link above for more information about this property go to:  5715 Central - The Bubb Cribb Team $285,000

Read more here: http://www.kansascity.com/living/star-magazine/article302401/Fifty-things-every-Kansas-Citian-should-know.html#storylink=cpyThe American Royal, a cause very near and dear to The Bubb Cribb Team is an every-autumn-since-1899 horse and livestock show, it was originally first known as the National Hereford Show. It picked up a new name, the story goes, after an Iowa State ag school dean returned from the British Royal Agricultural Fair and declared that the KC show compared favorably with the Brits’. The American Royal, meanwhile, is also at least part of the reason our major league baseball team is known as the Kansas City Royals.  The American Royal also holds the world's largest BBQ, theAmerican Royal World Series of Barbequeevery year in October, a great time and place to bring people from out of town to experience Kansas City at a great time of year and focus on our BBQ culinary expertise.  The economic impact of this great Fall event in Kansas City at last estimate was around $70 Million Dollars per year!

Read more here: http://www.kansascity.com/living/star-magazine/article302401/Fifty-things-every-Kansas-Citian-should-know.html#storylink=cpy

Read more here: http://www.kansascity.com/living/star-magazine/article302401/Fifty-things-every-Kansas-Citian-should-know.html#storylink=cpy

If you are looking to sell and list your home or to put an offer in on a new home, now is the time and the Bubb Cribb Team would love to help you!

The Bubb Cribb Team at ReeceNichols would love to be your neighborhood experts in buying or selling your home in any part of Kansas City.  We have great area specialists in Union Hill, Hyde Park, Brookside, Sunset Hills, Waldo, Mission Hills, Prairie Village, Overland Park, Fairway, Leawood, Kansas City North, Lees' Summit and more; please contact Christopher Cribb, Megan Bubb Cribb or Eric Bubb for assistance!

Christopher Cribb - The Bubb Cribb Team 
ReeceNichols - StateLine / Southgate - Direct Line 913.239.2023

Opportunity Costs

Sometimes, there are costs associated with not taking a particular action.  If a person left their money in a certificate of deposit earning 2% when they could have made an investment that earned 8%, the difference is the opportunity costs associated to not taking action.

If a couple has a down payment and good credit, locking in a low interest rate mortgage for 30 years could easily provide their lowest cost of housing.  If that couple waits three years to purchase a home, the price would probably be higher as would the mortgage rate.

However, assuming the price and interest rate remained constant, look at what the opportunity costs might be compared to doing nothing.

If their money was invested in a certificate of deposit at 2.00%, in two years their $8,750 would have grown to $9,104.  They would have earned $354 and had to pay ordinary income tax on the interest.

If their money was invested in the stock market that had increased 7%, in two years they would have a profit of $1,268 which would be subject to long-term capital gains tax.

On the other hand, it the same investment was used to buy a home that increased in value at 3% annually, the equity would be $31,938 or an increase of $23,188. Tax would not be triggered until the home is sold and may not be due then based on their homeowner’s principal residence exclusion.

The home goes up in value due to appreciation and the unpaid balance goes down because of amortization.  The dramatic difference in growth in the equity of the home is effected by leverage: the use of borrowed funds controlling the asset.

A home is a place of your own where you can feel safe and secure, to enjoy with your family and friends and in many instances, a very good investment.  It is difficult to measure the opportunity costs of intangibles but not necessarily money.

Make your own projections with Your Best Investment.