Real Estate Information Archive

Something to consider when selling your home is the capital gains ramifications. Will you owe Uncle Sam money after the sale of your Los Angeles home? Capital gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your capital gains. 

Calculating Capital Gains

(+) PURCHASE PRICE - Price paid for property

(+) COST OF PURCHASE - Transfer fees, attorney fees, inspections

(+) COST OF SALE - Repairs, commissions, attorney fees, inspections

(+) COST OF IMPROVEMENT - Room additions, deck, for example, though not replacing existing

(=) ADJUSTED COST BASIS OF YOUR HOME

(-) AMOUNT YOU SELL YOUR HOME

(=) CAPITAL GAIN 

A Special Real Estate Exemption for Capital Gains

Even though the above calculation may indicate you owe capital gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Los Angeles home is exempt from taxation if you meet the following criteria: 

• You have lived in the home as your principal residence for two out of the last five years. 
• You have not sold or exchanged another home during the two years preceding the sale. 

NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency. 

Learn more about selling your Los Angeels home by visiting EileenWalshRealtor.com. 

Search all Los Angeles homes for sale. 

Always consult a tax attorney regarding current tax laws.

Obtaining an FHA loan is going to become a more expensive option for the typical Los Angeles home buyer, according to HUD Secretary Shaun Donovan  in his Congressional testimony on Wednesday, Dec 2, 2009.

HUD feels the following changes are all necessary to maintain the fiscal health of HUD/FHA:

• 1) increasing the minimum required down-payment from 3.5% to 5% of the sale price
• 2) increasing the mortgage insurance premium either monthly, upfront or maybe both
• 3) decreasing the amount a seller can pay on behalf of the buyer towards closing costs from 6% down to 3% of the sales price
• 4) increasing the required minimum credit score a buyer must have

These proposed changes are not excpected to be finalized until next month. If you are interested in buying a Los Angeles home over the next 3-6 months, you should seriously consider buying as soon as possible.

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California Real Estate Property Taxes Timeline

Important Dates:

February 1:  2nd Installment Due
March 1:   Assessment date; Taxes on unsecured roll due
April 10:  2nd Installment delinquent
April 15:  Last date to file homeowners, veterans and senior citizen exemptions
June 8:  Publication date for delinquent taxes
July:   Beginning of fiscal year to July 1 of following year; Properties with delinquent taxes sold to state; Owners to be informed of new values
July 1st:  Assessment appeals board
July 30:  Last day to advise owners of new values
August (late):  Sale number assigned for delinquent taxes
September (mid): Tax rates set
October (last week):  Tax bills mailed
November 1st:  First installment due
December 11:  First Installment delinquent

February 1:

The county tax collector is responsible for mailing tax bills. Bills for the regular secured assessment roll are mailed November 1st and are due in two equal installments. The second installment is due February 1st and must be paid in full by April 10th.

February 15:

Last day to file most exemption claims with county assessor without a reduction in the amount of the exemption.

April 3rd:

Business property statements are due.

April 10th:

Second installment of taxes on the secured roll must be paid by close of business or 5 p.m.

May 8:

This is the last day to file the Business Property Statement without penalty.

July 3:

Property owners can appeal the value of the property appearing on the regular assessment roll by filling an application for change in assessment with the clerk of the board of supervisors (sitting as a local board of equalization) or assessment appeals board between July 3 and September 15, or November 30.

August 31:

Payment of unsecured property taxes must be paid in full by close of business or 5 p.m.

September 15:

Annually, property owners can appeal the value of property appearing on the regular assessment roll by filling an application for change in assessment with the clerk of the board of supervisors (sitting as a local board of equalization) or assessment appeals board. The regular appeals filing period, which begins on July 3, ends on September 15 in counties where the assessor has, by August 1, provided notices to all assesses of real property on the secured roll. (The filing period ends on November 30 in counties where the assessor has not, by August 1, provided such notices.)

November 1:

The county tax collector is responsible for mailing tax bills. Bills for the regular secured assessment roll are mailed on or before November 1 and are due in two equal installments. The first installment of the real property taxes and all taxes on personal property in the secured roll are due and must be paid in full by December 11.

November 30 - Property Tax

Annually, property owners can appeal the value of property appearing on the regular assessment roll by filing an application for change in assessment with the clerk of the board of supervisors (sitting as a local board of equalization) or assessment appeals board. The regular filing period, which begins July 3, ends on November 30 in counties where the assessor has not, by August 1, provided notices to all assessors of real property on the secured roll. (The filing period ends on September 15 in counties where the assessor has, by August 1, provided such notices.)

December 10 - Property Tax

Last day to pay first installment of secured property tax without penalty.

Get a copy of your tax bill and learn payment options.

Food for Thought 

THANKSGIVING TIDBITS AND TIPS

 "Thanksgiving Day comes, by statute, once a year; to the honest man it comes as frequently as the heart of gratitude will allow."
                               ~ Edward Sanford Martin

Although some historians claim that the first day of giving thanks in the New World was on December 4, 1619, at Berkeley Hundred in Virginia, it is commonly believed that the first actual celebration of the harvest and blessings from God took place in Plymouth in 1621.

The festivities lasted three days and included feasting, entertainment, and competitions. President George Washington issued the first governmental National Thanksgiving Proclamation in 1789. In 1863, during Abraham Lincoln's presidency, Thanksgiving became a federal holiday, and FDR, in 1939, designated the fourth Thursday in November as the official Day of Thanksgiving.

Food Fact:   The first Thanksgiving feast most likely did not include turkey, mashed potatoes, or pumpkin pie, but the early settlers did enjoy seafood of all kinds, seals, swans, geese, corn, turnips, and spinach. 

Here are some great sites for Thanksgiving recipes!! Here you will find food from the past (chestnut stuffing, mince pies), meals for the vegetarian or diabetic, healthy adaptations for old favorites, gourmet dishes, treats for kids (Daddy's Popcorn, cheesy ranch Chex mix). Also visit the websites of Ocean Spray, M and M's, Pepperidge Farm, and McCormicks. And get all your Turkey cooking questions answered at Butterball or call  the Turkey Talk Line - 800-288-8372.

"What we're really talking about is a wonderful day set aside on the fourth Thursday of November when no one diets. I mean, why else would they call it Thanksgiving?
                                  ~Erma Bombeck
                                    "No One Diets on Thanksgiving," 26 November 1981

Tasty Tip:
To make basic cornbread stuffing crunchy and delicious, simply add lots of toasted pecans and moisten the mixture with sweet apple cider. You can also add liquid bacon for a smokey flavor. For extra zing, do this while softly singing, "Oh, turkey dear, oh, turkey dear, how lovely are thy feathers..." and drinking spiked hot cider punch!

More tips: To calculate amount of food and drink you'll need, follow this guide.

• Whole turkey-1 lb. per person
• Bone-in turkey breast-¾ lb. per person
• Boneless turkey breast-½ lb. person
• One bottle of wine = about five glasses

Time required for thawing the bird: for each 4 ½ lbs. of frozen turkey, allow 24 hours of thaw time in the refrigerator. Once fully thawed, the turkey may be refrigerated for 1-2 days. And still another...Suggestions for turkey leftovers include dumplings, patties, chili, tetrazzini, barbeque, turkey/wild rice soup, turkey/ginger/apricot salad, all sorts of casseroles, and a myriad of others found at Allrecipes and many, many others.

Want to share Thanksgiving greetings with friends and family? AmericanGreetings, BlueMountain, 123Greetings,  Hallmark will send them out for you free of charge. 

And speaking of greetings-and gratitude-Xerox has a web site that lets you send a message of thanks to soldiers currently serving in Iraq. This is a FREE service and only takes a minute to do. What a great way to spread the spirit of the season! Visit LetsSayThanks today.

Thanksgiving Myth:

Ever feel sorry for the poor Pilgrims always dressed in drab shades? Not so, say many historians. Those early settlers used vegetable dyes to produce colorful attire, and although the colors weren't as bright as they are today, it was not at all unusual to see clothing made of wool, linen, fur, and leather in hues of blue, green, violet, red, yellow, orange, and purple. Many of the Pilgrims were skilled in clothing related trades, and they produced fashions which mirrored those of England at the time. And no buckles on shoes or hats, either-those didn't come into style until much later. 

HOLIDAY DECORATIONS-EXERIOR AND INTERIOR Create a warm and thankful holiday mood by decorating your doorstep with nature's bountiful harvest.

REQUIREMENTS: Cornucopia or Baskets, Yellow and Orange Christmas Tree Lights,
Ears of Indian Corn, plain Wooden Wreaths, Gourds, Pine Cones, Oak Leaves, Pumpkins, a yard long Velvet Ribbons, glue.  

INSTRUCTIONS: Purchase a cornucopia (horn of plenty) basket and arrange pumpkins, corn, gourds, apples and nuts inside so that some of them are spilling out onto the walkway. Create garlands of autumn leaves and orange and gold Christmas lights and wrap them together around any poles or columns.  Place pumpkins, stalks of Indian corn and gourds along the edges of walkways and steps. Buy a plain wooden wreath and decorate it with artificial autumn leaves, nuts, pine cones and berries. Add a fall-colored velvet bow.  Hang the wreath on the door.  Tie around orange and gold lights in any trees or plants near the doorway.  Wrap garlands of artificial autumn leaves in the branches along with colored lights if some of your trees are bare from cold weather, Make sure none of your decorations block the peephole in your door.

CAUTION:  Check to make sure that your outdoor decorations are not in the direct line of your sprinklers.  

AND INTERIOR...A PAPER CHAIN OF BLESSINGS

You'll need:  Construction Paper, Scissors, Markers, Stapler

Directions:  Cut out 2 inch by 6 inch strips from various colored construction paper. Have everyone write one thing they are thankful for on the strips. Form the strip into a circle and staple. Make sure the writing is side out!  Take the second strip and stick it through the center of the first circle you made then staple. Continue doing this until you have used all your strips.

These hints-and hundreds of other craft ideas, songs, turkey jokes and one liners, and games are found here. A GREAT source of ideas!!

And now Kid Stuff...

Turkeys made from paper, pine cones and gourds. Download Thanksgiving screensavers. Make special Indian Corn Napkin Rings. Enjoy Thanksgiving crossword puzzles, jokes, and trivia.

Get kids into the Thanksgiving spirit with a festive turkey hat.  Make a turkey out of yarn and paper. And dress up the fridge with Indian corn magnets.

Read beautiful Thanksgiving stories, sing Thanksgiving songs, and learn about Thanksgiving around the world.

Help children make the most of Thanksgiving by planning activities that become family traditions. During dinner, have everyone tell what they are most thankful for.  If someone is thankful for food, plan to share a meal with someone less fortunate. If the kids are thankful for toys, collect unused or nearly new toys for a toy drive.

GIVING BACK...

Thanksgiving is a perfect time to share our blessings with those less fortunate than we are and to spread the spirit of friendship and community. Opportunities for helping others during the holiday season are many and can involve one individual or the entire family. Some ways to foster goodwill and embrace the idea of sharing include:

Contribute non-perishable foodstuffs for a local food bank. Give money to local agencies who feed the hungry. Volunteer your time to sort supplies, set up and/or clean up, or serve meals on Thanksgiving Day.

Invite a neighbor who lives alone to join you for dinner. Take a warm plate of Thanksgiving food-and a big smile-to a shut-in.  Contribute to holiday food collection bins in grocery stores. Purchase pre-packaged boxes of food (generally around $10.00) to be distributed by local grocers. Check with your local place of worship to see where your help is most needed.

So there you have it-facts, myths, tips, websites, and everything you have ever wanted to know about Thanksgiving. May your Los Angeles Thanksgiving be an enjoyable celebration shared with friends and family and filled with gratitude for all your blessings!

A new survey found that 12.1 percent (one out of eight) of today's home buyers plan to purchase a home as an investment property, compared with 5.6 percent in March 2009, according to the Move.com Homeownership Survey.  Of those interested in buying a home as an investment, 15.8 percent were men and 8.1 percent were women. 

The survey also found that buyers who plan to purchase foreclosures expect to profit both from deeply discounted purchase prices, as well as healthy appreciation rates over the next five years.  Most foreclosure buyers (58.2 percent) expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a discount of 25 percent or greater.  While, 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more during that same investment horizon. 

Interested in buying an investment property in Los Angeles? Have questions? Ask Eileen.

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Congress has voted to extend the current higher Fannie Mae, Freddie Mac and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits. The higher limits, along with the home buyer tax credit extension, are necessary to keep the markets moving at this critical time," said National Association of Realtors President Charles McMillan.

"Home sales have shown significant movement upwards in the past six months and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified home buyers to purchase in those markets," McMillan said.

Let's look at Los Angeles real estate sales in October to see how the housing recovery is progressing locally. 

 CCautiontiCaon: Caution: In all of these Los Angeles neighborhoods, housing quality and size, as well as lot size, vary greatly. Therefore, the highest and lowest sold prices often reflect which particular houses sold and are not generally indicative of an increase or decrease in overall value. So I caution against reading too much into the following statistics:

Beverly Hills Real Estate Sales Statistics - Single Family Homes

Beverly Hills Post Office Real Estate Sales Statistics - Single Family Homes

Bel Air Real Estate Sales Statistics - Single Family Homes

Hollywood Hills East Real Estate Sales Statistics - Single Family Homes

 Hollywood Hills West Real Estate Sales Statistics - Single Family Homes

West Hollywood Real Estate Sales Statistics - Single Family Homes

With prices continuing to moderate paired with historically low interest rates, Los Angeles real estate is a great buy.

Search all Los Angeles real estate and homes for sale.  

California First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)

Mortgage Rates - week ending 11/12/09 30-yr. fixed: 4.91% Fees/points: 0.7% 15-yr. fixed: 4.36% Fees/points: 0.6% 1-yr. adjustable: 4.46% Fees/points: 0.6% (Source: Freddie Mac)

More and more Los Angeles home buyers are looking for green features in the homes they buy. The green trend is a means of lowering costs, becoming more environmentally friendly, and adopting a healthier lifestyle. 

The average green buyer will pay $12,400--on average--for green features, according to the National Association of REALTORS. National Association of Home Builders green-building standards program manager Kevin Morrow expects the market share of green-certified homes to rise to 20 percent in 2010 from about 10 percent in 2009 and 2 percent in 2006. 

Green features Los Angeles home buyers are looking for include energy efficiency, water efficiency, resource efficiency, and indoor air quality and include such elements as Energy Star appliances, low-flow shower heads, carpets and paint with low volatile organic compounds, and building materials procured from local suppliers.

Today's Los Angeles home buyers benefit from tax credits and other financial incentives. 

Learn more about buying green by visiting EileenWalshRealtor.com or give us a call anytime. 

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Everyday life can get crazy at times; many people fantasize about running off to their own personal retreat right here in California. But how do you know which vacation home is best for you?

Choosing A Location

Do you want to be in the middle of all the activity or enjoy the peace and quiet of a secluded location?  Is a condo in the mountains your cup of tea or a farmhouse tucked away in the woods? Whichever environment you prefer, here are some things you should consider:

• Popularity.  A house in a hot vacation market will usually cost more than a place off the beaten path.  At the same time, continued popularity may help you profit from appreciation.
• Proximity to your home.  If you plan to visit regularly, look for a place that's easy to get to. 
• Rental possibilities.  If you're hoping to offset some costs by renting the home for part of the year, find out about seasonal demand for rentals in the area.

Maintaining Your Getaway

Regular upkeep is more difficult with a vacation home than with your primary residence, but no less important.  The value of the home, both as an investment and as a place you enjoy visiting, depends on good maintenance. 

If your primary residence is not far from your vacation home, you may want to make weekly visits to mow the lawn, water the garden, clean the gutters or shovel snow.  If doing it yourself is impractical, consider hiring a vacation property management company to provide maintenance services during the times when you're not using the home. 

Visit EileenWalshRealtor.com to learn more about buying a vacation home or give me a call for more personal service.

Search all California vacation homes for sale.

Have a question? Ask Eileen!

The extension of the home buyer tax credit until April 30, 2010 and the inclusion of a tax credit for some existing Los Angeles home owners is causing many fence-sitters to decide that NOW is the time to take the plunge and buy a home. There is some preparation involved, however. Below are 10 steps you need to take to prepare for Los Angeles home ownership: 

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.

7. Get preapproved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you've saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of home ownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.  That's me! Contact me and together we'll find your dream home!

And don't forget, in many cases the tax credit can be used towards your down payment and closing costs!

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