Timely Real Estate News………………………………………17 September 2007
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We’re all in the same boat…....
When I drive through our neighborhoods, I am amazed at how incredibly beautiful our communities are…the envy of the world. So it distresses me when I read about the economic news, the downturn in the real estate market, and perhaps (perhaps being the operative word here) that a recession is possible in 2008. It was somewhat comforting to read the latest UCLA Anderson School of Business report that while we could possibly experience a downturn next year, the prediction was that 2009 was going to be a good year for Southern California. We’re skidding across thin economic ice now…but I remain positive. We have just have to hang in there and get through this mess.
With the slowdown of the real estate market, increased inventories, and the mortgage industry debacle, I constantly remind myself of what I have been saying for the past 12 months: We are fortunate to live in a beautiful ‘micro-climate’ of communities that seem to endure, year after year, many of the travails other areas in California and the nation experience.
As a resident of Bel Air Crest, I share many frustrations many of you have with the real estate market…the looming construction on Sepulveda Boulevard…and the uncertainties of the economy. But overall, I have found new resolve, a new sense of positiveness about the future. The bright side of our real estate market is that we continue to show strength in our home values. If you’re thinking of moving, it is not a bad time to move — you just have to be careful about pricing your home properly. And if you are in the buying mode, there are some wonderful opportunities in our communities. But the bottom line is that quality homes will always retain their value as we have seen in Beverly Hills, Bel Air and Brentwood.
In the end…in good or bad times…we’re all in the same boat. But what a lovely, lovely boat we’re in!
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Thinking of moving down to something smaller?….remember Prop 60/90
I have many clients who decide that their present home no longer makes sense — it’s too large, the kids are gone, they want to scale down and charge their lifestyle, etc. If you’re 55 or older, Prop 60 allows you to transfer the assessed valuation from your old home to a new property (under Prop 13) if you move to a new home of equal or lesser value. This is allowed only once in your lifetime, however, and a spouse who has done it before negates the ability to use it a second time.
Prop 90 allows counties other than Los Angeles to accept the Prop 13 values if you are 55 and older. As of June 1, 2005, these counties allow for this transfer: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program).
Prop 60 and 90 apply if you ‘trade down’…if you buy or build a new home, you must go down in price. If you sell the old home first, then buy the new home, you may go up five percent in the purchase price of new home in first 365 days after the sale of old home. If you buy a new home more than one year from the sale of old home, but less than two years, you may go up 10%. For more specific and definite advice, please consult with your tax advisor.
I’ve done several of these transactions over the past few years, but it is important you understand the ramifications of both propositions….and you must apply to the tax assessor’s office to qualify for this benefit. It is not granted automatically. Call me if you have any questions about this please consult with your tax advisor.
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Great Tastes in Brentwood
Coming up in a few weeks is the 20th annual Great Tastes in Brentwood, which I have been proud to produce and direct for the last 19 years. The date is Sunday October 7 and it is held on San Vicente in Brentwood from 12 – 5. Over the years we have raised over $500,000 for the local public schools that service Brentwood and Pacific Palisades, and look forward to furthering our contributions to the schools this year. We will be featuring tastings from 24 restaurants throughout the city, have a live auction, wonderful entertainment for adults and kids, wine, margaritas, and fun for all.. Admission is $2.00 or a can of food for the Westside Food Bank (kids under 6 are free). Greattastesinbrentwood.com
Please join us for a fun and rewarding day.
If you have any questions, please give me a call (310) 442-1384 or ceschiffer@aol.com
Hope to see you soon.
Carole
