Did you know that the current tax cuts are set to expire at the end of this year? What does that mean? Well, taxes are going up as of January 1, 2013 because the current tax cuts are set to expire. Ordinary income tax rates and capital gains rates are going up. The good news is that you can plan ahead.
For those who are considering whether or not to sell their home this year or next year, this impending increase in the capital gains rate could be of interest to you because the current federal capital gains rate on real estate is only 15% (which is expected to increase to 20% or more in 2013).
Sellers on the Westside and in beach communities throughout LA county are becoming aware of this tax increase and planning ahead. They understand that the market has shifted to become a Sellers' market and that a number of buyers lost in the bidding wars over the summer. So what does that mean? It means that Sellers still have a substantial amount of negotiating power during the third and fourth quarters of 2012. It is also good news for buyers because it means that there will be homes on the market during the Autumn and Winter months.
If this is the first time you're hearing about this tax increase, do not fret. The immediate impact will be on individual homeowners who will earn more than $250K in capital gains or married couple homeowners who earn more than $500K in capital gains from their sale. (Sidebar: This tax increase more often than not will affect those who are retiring and downsizing and/or those who are great real estate investors.) If you fall into this category of sellers, do not fret because there is still time to plan ahead. (www.marcel.kwrealty.com)
For more info about these tax increases, check out this article:
http://www.inman.com/news/2012/08/8/high-end-homeowners-rushing-beat-2013-tax-increase
Tuesday, August 28, 2012
Monday, August 20, 2012
Thinking of Buying a Fixer Upper?
Some of my clients have expressed interest in buying a "fixer upper". Often times, buying the "ugly duckling" in a nice neighborhood is a great investment because you get to buy a home that is priced well below what the house will sell for after the renovations. One hurdle with a "fixer upper" can be the cost of renovation.
Did you know that there is financing available to assist you with the renovations whether you plan to live in the house or just be an investor? I'm talking about a financing that could be less expensive than a home equity line of credit (HELOC) on the acquired property. With some loan programs, the renovation costs can be rolled into the loan you use to acquire the property.
Have you heard of any of the Renovation Loan programs?
1) Homestyle Renovation Mortgage allows you to make renovations, repairs and improvements totaling up to 50% of the as-completed value of the property with a first mortgage rather than a second mortgage, home equity line of credit and other more costly financing. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property. Your lender must be approved by Fannie Mae to offer this product, and there are some major players, such as Wells Fargo, that still offer it.
2) There's also the FHA 203K loan. This program is great because it could allow you a maximum mortgage amount of $729,750 with only having to put 3.5% down and possibly roll in your closing costs and repair costs. The loan cannot exceed 110% of the "as-improved" value of the property. Up to 6 months of the mortgage payments can be financed while the home is renovated and uninhabitable
If you'd like to find out more about either of these programs, I am more than happy to connect you with some of my preferred lenders. I also can help you with some of the other nuances of buying a "fixer upper". Feel free to call (310.482.2414) or email me (marcelanderson@kw.com) for more information.
Did you know that there is financing available to assist you with the renovations whether you plan to live in the house or just be an investor? I'm talking about a financing that could be less expensive than a home equity line of credit (HELOC) on the acquired property. With some loan programs, the renovation costs can be rolled into the loan you use to acquire the property.
Have you heard of any of the Renovation Loan programs?
1) Homestyle Renovation Mortgage allows you to make renovations, repairs and improvements totaling up to 50% of the as-completed value of the property with a first mortgage rather than a second mortgage, home equity line of credit and other more costly financing. The funds can be used for any repairs or renovations that are permanently affixed and add value to the property. Your lender must be approved by Fannie Mae to offer this product, and there are some major players, such as Wells Fargo, that still offer it.
2) There's also the FHA 203K loan. This program is great because it could allow you a maximum mortgage amount of $729,750 with only having to put 3.5% down and possibly roll in your closing costs and repair costs. The loan cannot exceed 110% of the "as-improved" value of the property. Up to 6 months of the mortgage payments can be financed while the home is renovated and uninhabitable
If you'd like to find out more about either of these programs, I am more than happy to connect you with some of my preferred lenders. I also can help you with some of the other nuances of buying a "fixer upper". Feel free to call (310.482.2414) or email me (marcelanderson@kw.com) for more information.
Monday, August 6, 2012
Shrinking Supply of Homes: Sellers & Buyers Are Happier!
This likely comes as no surprise to those of you who are out there as buyers, but homes throughout Los Angeles are being sold through bidding wars.
The bidding wars for the best homes often lead to the home selling for much more than its initial list price. A recent LA Times article discusses how the inventory of homes on the market this summer in Los Angeles is much less (i.e. about 49% lower) than it was last summer, while 24% fewer homes are listed across the nation this summer when compared to last summer. This may seem odd to you because most would agree that the fundamentals in the economy were not stronger than today.
http://www.latimes.com/business/realestate/la-fi-harney-20120729,0,308220.story
This is good news for both Sellers and successful Buyers in today's market. Sellers are happier because this means that their homes are appreciating in value. Successful Buyers are happy for the same reason. Given the strict underwriting standards of Lenders, the fundamentals for your home's appreciation are real.
As we go into the final stretch of the summer, feel free to contact me if you want to sell your home or if you want to win a bidding war for your dream home. marcelanderson@kw.com and 310-482-2414.
The bidding wars for the best homes often lead to the home selling for much more than its initial list price. A recent LA Times article discusses how the inventory of homes on the market this summer in Los Angeles is much less (i.e. about 49% lower) than it was last summer, while 24% fewer homes are listed across the nation this summer when compared to last summer. This may seem odd to you because most would agree that the fundamentals in the economy were not stronger than today.
http://www.latimes.com/business/realestate/la-fi-harney-20120729,0,308220.story
This is good news for both Sellers and successful Buyers in today's market. Sellers are happier because this means that their homes are appreciating in value. Successful Buyers are happy for the same reason. Given the strict underwriting standards of Lenders, the fundamentals for your home's appreciation are real.
As we go into the final stretch of the summer, feel free to contact me if you want to sell your home or if you want to win a bidding war for your dream home. marcelanderson@kw.com and 310-482-2414.
Friday, July 13, 2012
This Week's Pocket Listings!
Here are some great pocket listings to consider before they go to market.
Westwood--3 bedroom, 3 bath. North of Wilshire.
Beverly Hills Post Office--$2.45M. 4 bedrooms, 4 baths w/ city and canyon views. 4,300sf.
Beverly Hills (flats)-- $8.9MM. 6 bedrooms, 7.5 baths. 8,500sf on 1700sf lot. 1920s style home was completely remodeled in 2007 with separate Guest House, pool, cabana, theater room and wine cellar.
Atwater Village--$799K. Spanish Triplex.
For more info about these listings, please email me at marcelanderson@kw.com or call me at 310.482.2414.
Westwood--3 bedroom, 3 bath. North of Wilshire.
Beverly Hills Post Office--$2.45M. 4 bedrooms, 4 baths w/ city and canyon views. 4,300sf.
Beverly Hills (flats)-- $8.9MM. 6 bedrooms, 7.5 baths. 8,500sf on 1700sf lot. 1920s style home was completely remodeled in 2007 with separate Guest House, pool, cabana, theater room and wine cellar.
Atwater Village--$799K. Spanish Triplex.
For more info about these listings, please email me at marcelanderson@kw.com or call me at 310.482.2414.
Wednesday, July 11, 2012
US Home Sales Up 20% from Last Year!
It should come as no surprise that the number of home sales have increased substantially and that home prices are INCREASING as well!
Given that 30-year fixed rate mortgages are currently 4% or below, it is not surprising that many buyers are trying to take advantage of this moment. The Sellers who are on the market are not complaining about the multiple bids they are receiving for their properties.
Housingwire sent out a newsflash article today.
Friday, July 6, 2012
This Week's Pocket Listings
Beverly Hills: North Alpine Drive--7 bedroom + 10 bathrooms. 10,500sf on 21,000 sq ft lot. Exclusive showings and price upon request.
Bel-Air: $3.2MM. Contemporary, gated.
Bel-Air: $13MM. Contemporary, gated estate.
Studio City: 4 bedrooms, 2 bath. Price and details upon request.
Toluca Lake: $569K. 2 bedrooms, 2 bath. Home is gated and includes tropical koi pond with water fountain and a beautiful pool, an updated kitchen with granite, and a gorgeous master suite. Large family room with wood burning fireplace. Burbank public schools.
West Hollywood: $540K. 2 bedroom, 2 bath. 1200sf. HOA currently under $400/month.
If any of the above interest you, call me at 310.482.2414 or email me at marcelanderson@kw.com
Bel-Air: $3.2MM. Contemporary, gated.
Bel-Air: $13MM. Contemporary, gated estate.
Studio City: 4 bedrooms, 2 bath. Price and details upon request.
Toluca Lake: $569K. 2 bedrooms, 2 bath. Home is gated and includes tropical koi pond with water fountain and a beautiful pool, an updated kitchen with granite, and a gorgeous master suite. Large family room with wood burning fireplace. Burbank public schools.
West Hollywood: $540K. 2 bedroom, 2 bath. 1200sf. HOA currently under $400/month.
If any of the above interest you, call me at 310.482.2414 or email me at marcelanderson@kw.com
The Lowest Mortgage Interest Rates in 100 Years!
I attended a conference last Wednesday that reminded me just how low interest rates are.
Interest rates are the lowest that they have ever been in 100 years.
In today's market, you can get a 30-year fixed jumbo loan from lenders like Citibank with an interest rate around 3%-4%. That's on par with the low interest rates for adjustable rate mortgages (ARMs) during the subprime bubble when lenders relaxed their underwriting standards (to say the least). Today, lenders actually are underwriting the loans and requiring higher down payments (i.e. 20% unless you use an FHA loan program with a 3.5% down payment or a VA loan program). What surprises many of my peers is that during the 1980s, it was not uncommon for people with good credit to put 20% down and have an interest rate of 20% on their 30-year loan.
I know that a picture is worth one thousand words. Check out this chart that shows how mortgage interest rates have changed over the past 100 years. It's fascinating when we contextualize what is happening today
For more information about how interest rates how fluctuated since 1910 and an interesting discussion about how real estate functions as an inflation-resistant asset, please see the link below:
http://www.dailywealth.com/1615/The-Best-Time-in-History-to-Buy-a-House
The moral of the story is: "Interest rates will eventually go up. Inflation is coming. So get ready for it by taking advantage of this particular moment in history."
Interest rates are the lowest that they have ever been in 100 years.
In today's market, you can get a 30-year fixed jumbo loan from lenders like Citibank with an interest rate around 3%-4%. That's on par with the low interest rates for adjustable rate mortgages (ARMs) during the subprime bubble when lenders relaxed their underwriting standards (to say the least). Today, lenders actually are underwriting the loans and requiring higher down payments (i.e. 20% unless you use an FHA loan program with a 3.5% down payment or a VA loan program). What surprises many of my peers is that during the 1980s, it was not uncommon for people with good credit to put 20% down and have an interest rate of 20% on their 30-year loan.
I know that a picture is worth one thousand words. Check out this chart that shows how mortgage interest rates have changed over the past 100 years. It's fascinating when we contextualize what is happening today
For more information about how interest rates how fluctuated since 1910 and an interesting discussion about how real estate functions as an inflation-resistant asset, please see the link below:
http://www.dailywealth.com/1615/The-Best-Time-in-History-to-Buy-a-House
The moral of the story is: "Interest rates will eventually go up. Inflation is coming. So get ready for it by taking advantage of this particular moment in history."
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