The Palm Beach Post from West Palm Beach, Florida on December 7, 1997 · Page 347
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The Palm Beach Post from West Palm Beach, Florida · Page 347

West Palm Beach, Florida
Issue Date:
Sunday, December 7, 1997
Page 347
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4 THE PALM BEACH POST ' RESIDENCES ADVERTISING SECTION ' SUNDAY, DECEMBER 7; 1997 j Don't risk blowing sale over inexpensive repairs About Real Estate DAVID W. MYERS your credit record for seven years, even if you have since brought your payments up to date. Be prepared to explain why the delinquencies occurred the next time you apply for a mortgage or credit card. Although you missed some payments because you were unemployed, the fact that you immediately brought the accounts up to date after you found a new job might be enough to ease a lender's concerns about your creditworthiness. Your chances of borrowing money in the future are certainly better than those of someone who didn't pay his or her bills without having a good reason. Arpents is French measure Q: In researching my family tree, I came across a letter my great-great-grandfather wrote to his uncle saying that he had purchased "a farm with approximately 50 arpents of fine soil for tilling." Is an arpent the same thing as an acre? A: Sort of. An arpent is a French measure of land equal to .84625 acres. Fifty arpents works out to about 40 acres, a fairly standard size for a farm. Question: We accepted an offer for our home three weeks ago. The home inspector came by last Monday. The inspector's report said our home is structurally sound but includes a list of nine little things that the inspector said should be fixed including the leaky faucet in one of our bathrooms and a cracked windowpane in our son's bedroom. The repairs would cost $600 to $900, and the buyer wants us to pay for them. I think we should cancel the sale because the buyer is acting like a cheapskate, but my wife argues that we should pay for the repairs and close the sale. If you were in my shoes, what would you do? A nswer: If I were in your shoes, I " would follow my wife's advice to make the repairs needed to close the sale. Sure, nobody wants to spend $600 or $900 on a home they won't own much longer. But the fact that you've been willing to live with a leaky faucet and a cracked windowpane doesn't mean a prospective buyer should accept those problems, too. Frankly, you should have fixed those things before you put the house on the market. You also have to weigh the cost of making the repairs against the cost of canceling the contract and putting your house back on the market. It could take weeks or even months to find a new buyer, especially because sales in many parts of dered if he could deduct the interest on the loan if he used the money to purchase a house. My answer was no. Although the Internal Revenue Service allows investors to deduct finance charges on loans used to make other investments, a personal residence doesn't qualify as an "investment." And since the man would be borrowing against the value of his stock portfolio rather than getting a mortgage, the interest on the loan could not be considered fully deductible "mortgage interest," either. It's a different story if you borrow against your stocks or other investments to purchase rental property rather than a house you would live in. Since rental property is an investment, the interest on the loan would probably be tax-deductible as long as you manage the property yourself and meet a few other IRS guidelines. Credit report not forgiving Q: I was out of work for several months last year, so I was unable to pay my credit-card bills on time. I have since gotten a new job and have brought my payments up to date, but I recently ordered a copy of my credit report and it still shows last year's delinquencies. When will those delinquencies be erased from my record? A: Delinquencies generally remain on the country have entered their traditional holiday slumber. And if you were lucky enough to find a new buyer quickly, there's no guarantee that he or she won't find even more things wrong with your home. Don't let the buyer you already found get away. Make the repairs and close the transaction now. IRS: Residence not an investment Q: A recent column of yours said that a reader could not borrow against his stock-brokerage account to buy a house and then write off his interest payments because a house is not considered an "investment." But what if I borrowed against my account to buy a small rental property? Would the interest be deductible because the property would be an investment rather than my place of residence? A: Yes, you could probably borrow against the equity in your stock portfolio, use the money to buy a rental and then deduct your interest payments on the loan. For readers who missed that earlier column, a letter-writer who had an opportunity to borrow against his brokerage account at a very low interest rate won David Myers has been writing about real estate, finance and consumer issues for 15 years. Send questions to David Myers, P.O. Box 2960, Culver City, CA 90231-2960. Iff ' P kV..f7 is . M 1 i '- '-'7 - v "SVC .-, ; 4 i ?3 I I x. M Hv. am I - -t 1 if" - "m 1 ISLAND COUNTRY ESTATES PRESERVE AT JUPITER 4BR2BA in gated community. Large island kitchen. vaultAri roilinns A room VILLAS OF OCEAN DUNES Spacious 2BR2.5BTH Villa with garage within walking distance to beach & shopping. 24 hr. manned security gate. Lake view from MBR balcony. $119,900. Very private 1.5 acre lot backing to preserve in gated comm. Media room, built in office, htd. pool & spa, gas fireplace, island kltrhpn uurnrian tnne 1 tv,,nk for a pool. Move-in condition. MVP- u niuuii mute, very open & bright. CBS construction, tile roof & uwner win entertain offers between $200,000 and $235,000. vuiuuie i6iiifiys. $ooy,UUU. V if SKIP YACHANIN RANKED AMONG THE TOP 1 OF REALTORS NATIONWIDEPRODUCTION Alot PoHUe& OFFICE: 561-744-2500 EXT. 278 PAGER: 561-787-8486 v 4T' SMALL BOATERS PARADISE LOXAHATCHEE RIVERFRONT NORTH PALM BEACH HEIGHTS Freshly painted inside and out. This 3BR2BA home shows like new. Over 1.600 sa. ft. of livina area, cathedral 3BR, 2.5 Bth on large waterfront lot With nvpr arrocc hrr, mh r in -fr7 Tl j 1 4BR, 2Bth fixer-upper on large riverfront lot. Lot extends from Riverside Drive to the Loxahatchee & can be subdivided. Dock permit available. dock & davits. Cathedral ceilings, hoataH nnnl ....a ' ju;) rruaentiai ceilings, wood cabinets, alarm system auu move-in conaition. a lots or otner extras. $125,900. Florida Realty

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