Nonresident Property Owner Withholding

Property managers will soon be collecting taxes on behalf of California against non residents.

This should create some very interesting issues.



Nonresident Property Owner Withholding: "Q 1. Who is a California nonresident property owner subject to withholding?

A Nonresident owners include the following:

. Individuals who reside outside of California,
. Corporations, Partnerships and LLCs who do not have a permanent place of business in California or who are not qualified by the Secretary of State to do business in California, or
. Estates and trusts who are nonresidents of California.

Q 2. Who is exempt from withholding?

A Those persons or entities exempt from withholding include the following:

. California residents,
. Corporations, Partnerships and LLCs qualified to business in California or who have a permanent place of business in California,
. Estates where the deceased was a California resident at the time of death,
. Nonresidents when the payments do not exceed $1,500 in a calendar year,
. Tax exempt organizations,
. California nongrantor trusts,
. A nonresident owner who has received either a Waiver or Reduced Withholding Exemption from the FTB.

NOTE: One fairly simple method for nonresident owners to be exempt from withholding is for them to form a California Corporation, Partnership, or LLC, or to have their foreign (out-of-state) Corporation, Partnership, or LLC qualified to do business in California with the Secretary of State. Depending on the income generated by the rental property, the cost of forming and maintaining such an entity may be justified to avoid withholding."

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com: "Upside Down Mortgages

“You are just starting to see the tip of the iceberg with luxury short sales,” said Adrian Heyman, owner of Property Advisors, a real estate broker in Scottsdale, Arizona. “A lot of wealthy people are upside down in their mortgages and they just can’t afford the second or third vacation home anymore.”

There are 114,000 home loans of more than $1 million, according to First American. About a quarter of all mortgaged homes in the U.S. have loan balances bigger than their current value, known as being upside down or underwater, the data company said."

WE are pretty sure we are about see a lot more short sales in Rancho Sante Fe and Mammoth Mountain.

Rancho Sante Fe short sales

Mammoth Mountain Short Sales

More homes are poised to hit the market -- latimes.com

More homes are poised to hit the market -- latimes.com: "First American estimated that the inventory not yet on the market constituted a 3.3-month supply at the end of the third quarter, up from 2.4 months a year earlier. The number of homes for sale was 3.8 million, a 7.8-month supply at the current sales pace, First American said. That's down from 4.7 million, or a 10.1-month supply, a year earlier.

Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, laid out a troubling scenario that could play out if shadow properties do hit the market early next year: a contagion effect in which waves of foreclosures beget more, taking down the values of entire neighborhoods. Concern over such an outcome could cause sellers and lenders to act more cautiously, slowing the pace at which they take back troubled properties, he said.

'Some are strategically holding property off the market and are only putting it back on in dribs and drabs,' he said. 'They're playing this interesting game where, on one hand, they need to liquidate these properties, but they can't create a downward implosion in prices that will come back and bite them even harder.'"

New drafts of real etate purchase and sale agreements

CAR is revising it Real Estate purchase and sale agreements.
The changes are worth reading.
It is amazing how many ways there are to get of the contracts.
But, I do not blame CAR for that... we were all told in contracts class in law school
there has to be an element of good faith between the parties in all contracts.

Note some of the changes were adopted to allow for Short Sales.




New drafts of RPA & related forms are available: "New drafts of RPA & related forms are available
Print| E-Mail| Contact Us| Bookmark
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Your input is invaluable to ensuring the forms relevance. Comments ranging from formatting to more substantive suggestions are welcome! Please click on the links below to review the respective forms and e-mail your comments to carforms@car.org

. Residential Purchase Agreement (RPA Draft 12-09)
. Table of Contents-Residential Purchase Agreement (TOC Draft 12-09)
. FHA or VA Notice and Addendum (FVA Draft 12-09)
. Wood Destroying Pest Inspection and Allocation of Cost Addendum (WPA Draft 12-09)"

San Diego home for sale

 

As of todays date we are accepting offers on this home located at 4343 Ohio St. Number 3. San Diego CA 92104.


San Diego Real Estate for sale.

Pricing Carlsbad Real Estate

 



This is an image of the National Association of Realtors Pricing pyramid.

What it means is that as you go up in price the probablity of find a buyer goes down.

As you become overpriced your buyer pool shrinks. Perhaps someone buying a house so that a relative can live next door will over pay.... but if the person is not buying with a large slug of cash the buyers lender will not let them pay much more than their appraisal anyway.

As you go under the fair market value you will set the investor pool in action so you will get offers relatively quickly.

If you go 20% below value you will probably get an offer within 24 hours.

Our experience selling our own investments and selling dozens of short sales proved to us that if you price your property a little low you have a very good chance of getting multiple offers. Frequently, we even have offers pay through the our slighly low list price to Fair market value or more.

I can not tell you how many times I had to tell Realtors in my office to the lower the price of their short sales.
I said look there are thousands of people on the internet with IDX alerts. When you price gets below their fair market value price - the phones start ringing off the hook. At first they did not believe me.

Later they just said -- lowered the price - phones started ringing.

Getting offers is all about price and showings.

If you do not care about your net lower the price.

If you care about your net - make sure your house shows well and offer buyers agent a higher than typical commission.... and let them know about it.

We will discuss that pricing strategy in the future.


Carlsbad and San Diego real estate prices.

how to sell a short sale properly

One in Four Borrowers Is Upside Down according to WSJ

One in Four Borrowers Is Underwater - WSJ.com: "But negative equity 'is an outstanding risk hanging over the mortgage market,' said Mark Fleming, chief economist of First American Core Logic. 'It lowers homeowners' mobility because they can't sell, even if they want to move to get a new job.' Borrowers who owe more than 120% of their home's value, he said, were more likely to default."

for more on loan modification and walkaway plans

more pictures from our currently listed vista short sale

 
 
 
 


more pictures from the short sale in vista ca.
carlsbad and vista real estate

Vista short sale in Shadowridge

 


here are pictures from our recent listings in the shadowridge area of vista. This property is part of the best school districts in vista.

The highs school is walking distance and the community has pool behind the property.

for more info on buying short sales

REALTOR® Magazine-Daily News-IRS Cracking Down on False Tax Credit Claims

REALTOR® Magazine-Daily News-IRS Cracking Down on False Tax Credit Claims: "IRS Cracking Down on False Tax Credit Claims
The IRS is cracking down on people who don’t qualify for the first-time homebuyer tax credit but try to claim it anyway.

The IRS says it is investigating 24 cases of people who falsely claimed the first-time homebuyer credit on their federal income tax returns. Getting caught making a false claim carries a penalty of up to three years in jail and a fine of as much as $250,000.

The First-Time Homebuyer Credit, enacted in 2008 and modified in 2009, provides up to $8,000 for first-time homebuyers. The purchaser must be someone who has not owned a primary residence in the previous three years. If the taxpayer is married, this requirement also applies to the taxpayer’s spouse."

Appraiser Checklist: Home and Design: REALTOR® Magazine

Appraiser Checklist: Home and Design: REALTOR® Magazine: "Appraiser Checklist

Help clients understand what to expect during the appraisal process by sharing information on how appraisers reach their property value estimates.
By Barbara Ballinger | April 2009

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.



* Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number."

info buying and selling homes in san diego and orange county

Home for sale in Oceanside Ca, San Diego house for sale, not a short sale

 

Just listed on the 08/02/09. Oceanside CA. Great views. Open floor plan. Vista Schools. Not a short sale.

For more info on our listings and homes for sale in San Diego

Freddie Mac Calls for Appropriate Comparables

Home Valuation Code of Contact.

IMO the lenders were using the Federal Government to make more money.
The legislation obviously distorted the market.
Now one of the big players says - hold on sure you lenders are able to make more money by controlling the appraisers but we need good comps. Not the ones your crappy out of town appraisers are providing.

Let me just say, the upside down market had been very good to me. But, I am concerned about our children's future.

My concern is that the banks and Congress are doing everything possible to make sure that we have an upside down real estate market for 5-10 years. San Diego may recover a little more quickly but I expect to be doing short sales for at least 3 more years.

appraisals real estate prices and San Diego short sales






REALTOR® Magazine-Daily News-Freddie Mac Calls for Appropriate Comparables: "Freddie Mac Calls for Appropriate Comparables
A July 10 lender bulletin from Freddie Mac says appraisers 'must be familiar with the local market,' select 'appropriate comparable sales,' and certify them as 'most similar' to the property in question."

craigslist | about > FHA

Thought I would link to this information on Craigslist which gives a summary of housing discrimination law.


craigslist | about > FHA

As I was reading this I had two thoughts

I am all in favor of equal opportunity for all.

But I think this is a disgusting intrusion by the government into a person property rights.

I found it so nice of the government to allow a person to show a sex preference when renting a shared home. What the hell is the government doing in that area of the law anyway?

Just a rant. I know some will take this the wrong way, but it was not meant to anti minorities. Just anti big brother socialist government.

Market Snapshot for Carlsbad Real Estate

Market Snapshot

Carlsbad Homes priced form 500,000 to 1 million - in 92009 zip code

You can see sales are slow but inventory is dropping

Will high end homes in rancho sante fe and la jolla drive down average home prices

REALTOR® Magazine-Daily News-Prices Slide in Wealthiest Towns

Prices Slide in Wealthiest Towns
America’s high-end neighborhoods could feel the pain as homes linger on the market and prices slide.

There are more than 60,000 homes priced above $1 million listed on Realtor.com with the inventory at levels far above the national average of 10 months.

Some observers predict that big inventories in formerly protected enclaves will drive down prices as much as average prices fell in less-pricey metros a year ago. "Any [inventory] over seven months generally means falling prices," says David Stiff, chief economist at Fiserv in Brookfield, Wis.

rancho sante fe real estate

San Diego Real Estate sales

Right now there is strong demand for san diego real estate and limited inventory of homes under 600,000. 
It will be interesting to see if these promised foreclosures drive down prices. 

REALTOR® Magazine-Daily News-Another Rash of Foreclosures Coming Soon

Another Rash of Foreclosures Coming Soon
Some economic observers are predicting another wave of foreclosures later this summer or in the fall. That’s because lenders that have held off on foreclosures as part of President Obama’s plan will now move forward aggressively to clear the backlog of troubled mortgages.

Rising foreclosures will further depress home values, says Mark Zandi of Moody's Economy.com, who calculates that 15.4 million home owners—one in five of those with first mortgages—will be underwater.

To find out if the real estate market has stabilized.

REALTOR® Magazine-Daily News-How to Capture Home Photos That Sell

REALTOR® Magazine-Daily News-How to Capture Home Photos That Sell: "How to Capture Home Photos That Sell


* Use a flash – even if you don’t need it, force it to work. It will make the room look brighter.
* Take exterior shots when the sun is shining. If the picture is still dark, lighten the exposure by pushing the exposure-compensation button (the one with the +/- on it).
* Keep the image level and straight. Shooting upward on a house will distort it. Get on a stepladder or shoot from across the street.
* Avoid glare on the lens. Use an umbrella to avoid sunspots.

for more tips click on the link above

San Diego Real Estate

Foreclosure Law as it applies to tenants - tenants get help from fed

Tenants in San Diego are getting help from the feds. (they already have protection under California law.)  





Federal Issue Information: Housing Issues Update

S. 896, the “Helping Families Save Their Homes Act of 2009” included some provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented. Many examples were seen of families living in rental housing throughout the United States who were evicted without any prior notice when the home where they had lived was foreclosed upon. Much of the time, the rental family had no idea the home was in delinquency or subject to foreclosure until their eviction.

I'm a Realtor®. What does this mean to my business?
Notification will have to be provided to tenants of rental housing before they can be evicted following a foreclosure.

NAR Policy:
NAR supports programs to reduce the impact of foreclosure on communities.

Legislative/Regulatory Status/Outlook:
Under the new law, which went into effect on May 20th, tenants will have to receive 90-days notice prior to being evicted, when their rental home is foreclosed upon. In addition, tenants must be allowed to stay in the property through the end of their lease, with two exceptions:

* The new owner wants to occupy the property as a personal residence, and
* There is no lease (month to month), or there is a lease but state law allows the lease to be terminated at any time upon notice.

San Diego real estate

California Real Estate home prices

Here is an interesting article by the economist of the National association of Realtors.

I do not necessarily agree with his conclusions, I do think the article is food for thought.

(I am still waiting to call a long term bottom in San Diego and Orange and Riverside counties. I need to see how many Bank owned properties are unloaded onto the market over the next six to twelve months.)


Real Estate Insights: "Home sales in the hard-hit California market have recently reached levels that are nearly twice as high compared to when they were in the trough. Evidently the California housing market is experiencing a tipping-point phenomenon: potential buyers suddenly wanting to enter the market all at once. People have waited and waited for the best time to enter the market. Why buy now if prices will be lower later? After having tumbled from unsustainable heights, home prices there are highly attractive and within budget for many fence-sitters. So when some buyers started to enter the market, other bystanders just couldn’t let others take advantage of the great buying opportunity. Many are now fighting to jump into the market. Multiple-bidding on lower-priced homes are said to be common in California. People who “lose out” during a bidding war don’t simply go home and wipe away their tears -- they come back with almost vengeance-like determination and hope their next bid will be the highest. What does that mean for home prices? Though the year-over-year price measurement will continue to show declines in California, probably for the remainder of the year, the month-to-month price trends will more likely be on an upswing. In short, people who buy in June 2009 will likely see a price gain in June 2010."

short sales san diego

san diego real estate prices

Obama new plan for destroying Wealth - Make high end homes major liabilities

I find it very difficult to believe that a person spending as much as President Obama wants to propose such a measure now.

I was once told to not judge a man by his words but by his deeds. 

1. bail out banks instead of homeowners
2. Drive the federal deficit higher
3. Give trillions to zombie banks (while destroying their assets)
4. Further crater the value of real estate by making it less tax deductible. 

Obama seems to be on a mission to restrucuture America.  

Look out Rancho Sante Fe, Del Mar and LaJolla.  Obama is coming for your money even if it means he has to collapse the price of Real Estate further.

 


The Associated Press: Under Obama plan, tax burden shifts to the wealthy

Couples making more than $250,000 would face new limits on the amount of deductions they could take on their taxable income, including deductions for mortgage interest, charitable donations and state and local taxes. The change would raise about $180 billion over 10 years.

Forecast for San Diego Real Estate prices

San Diego has a least a years supply of housing and we suspect there is a lot of housing not even on the market that will be becoming on the market.  The problem is, the buyer pool can not qualify for the mortgages.  The demand is there, but the salary power is not. 


Gary Shilling's 2009 Predictions More of the Same Pain: Tech Ticker, Yahoo! Finance

If you're betting the economy will recover in the second half of this year and should be buying stocks now in anticipation, economist Gary Shilling, president of A. Gary Shilling & Co., isn't your guy. Shilling -- author of the popular INSIGHT newsletter -- says the recession will run for the duration of this year and stands by a forecast for the S&P 500 to hit 600 in 2009.

A recovery isn't likely until 2010 -- at the earliest -- says Shilling, who is effectively doubling-down on his 2008 predictions, which proved eerily prescient.

Shilling is bullish on the dollar and cautiously optimistic about high-grade corporate debt, but doesn't see much to be hopeful about from the long side in 2009.