Thursday, December 27, 2012
Thursday, December 20, 2012
Monday, December 17, 2012
Friday, October 19, 2012
Thursday, October 11, 2012
Did you know this about the 3.8% Rule?
1) When you add up all of your income from every possible source, and that total is less than $200,000
($250,000 on a joint tax return), you will NOT be subject to this tax.
2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll
NEVER pay this tax at the time that you purchase a home or other investment property.
3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any
capital gain you realize at settlement is just one component of that year’s gross income.
4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax
return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital
gain is greater than these amounts, then you will include any gain above these amounts as income on
your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain
on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your
total income is more than these amounts, a formula will protect some portion of your investment.
5) The tax applies to other types of investment income, not just real estate. If your income is more
than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest
income, dividend income and net rents (i.e., rents after expenses).
6) The tax goes into effect in 2013. If you have investment income in 2013, you won’t pay the 3.8% tax
until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in
the following calendar year when the tax returns are filed.
7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll
NEVER pay this tax, even if you have millions of dollars of other types of income.
8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000
on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single
and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000.
9) It’s true that investment income from rents on an investment property could be subject to the 3.8%
tax. BUT: The only rental income that would be included in your gross income and therefore
possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest,
property tax, maintenance and utilities.
10) The tax was enacted along with the health care legislation in 2010. It was added to the package just
hours before the final vote and without review. NAR strongly opposed the tax at the time, and
remains hopeful that it will not go into effect. The tax will no doubt be debated during the
upcoming tax reform debates in 2013.
Monday, October 8, 2012
Tuesday, September 18, 2012
Friday, September 7, 2012
Friday, August 31, 2012
Friday, July 6, 2012
Lowest mortgage rates!!
"The average U.S. rate on the 30-year fixed mortgage stayed this week at the “lowest level on record" story. (In fact, the lack of volatility recently prompted one trader to note, "This market is harder to move than Joan River's eyebrows."
Let me help you get pre approved now..
Call me @ 408 67 MY MLS (69657)
Tuesday, June 12, 2012
It is time to sell now!!
Did you know that inventory is VERY low right now.
If you have ever thought about selling this would be the best time with only about 1700 homes for sale in Silicon Valley.
There are less that 400 condos and less than 1300 single family homes for sale right now.
Call me today and let's talk about you and the real estate market!!
408 67 My MLS (69657)
www.monicamanocha.com
Wednesday, June 6, 2012
Tuesday, May 22, 2012
Tuesday, February 28, 2012
The latest on the real estate market in the Bay Area
Home sales, economy and job market show signs of improvement
2012 has certainly started off on the right foot. Home sales in the Bay Area were up in January. Several key economic reports showed surprising gains. And even the long beleaguered job market turned in positive numbers in the initial weeks of the new year.
Bay Area home sales in January jumped to their highest level for the month in five full years, according to DataQuick, the La Jolla-based real estate research firm. A total of 5,479 new and resale houses and condos sold in the nine-county region during the month, up 10.3 percent from January 2011. This marked the seventh straight month of year-over-year sales gains.
DataQuick attributed the improvement to lower home prices, record-low mortgage interest rates, a surge in investor purchases and an improving economy.
While the jump in sales is encouraging, the firm cautioned that activity was still tilted heavily toward distressed sales in many Bay Area markets. As a result, the median sale price dipped 2.8 percent from the previous month and 3.6 percent from a year ago.
Meanwhile, the U.S. economy finally appears to be gaining some traction. The government reported that the GDP grew at a 2.8 percent annual rate in the final quarter of last year, up sharply from the third quarter's 1.8 percent rate. And there are indications that the latest GDP figure could actually be revised higher due to wholesale inventories rising in December.
Even more encouraging for the housing market, the labor market is steadily improving. Initial weekly unemployment claims fell 15,000 to 358,000 in a new report by the Labor Department. And the four-week average fell to its lowest level since April 2008, the period before the financial crisis. Finally, the unemployment rate has dropped to a three-year low of 8.3 percent.
Most analysts agree that in order to have a self-sustaining recovery in the housing market we first must have a significant turnaround in the job market. There are indications with improvements in recent months that could be happening at long last.
While all of these economic and employment reports give us reason for optimism, we can’t ignore the fact that the housing market still faces some challenges before returning to normalcy.
Sales have rallied in the new year, but we’d like to see the mix of homes selling move more towards the center of the market and become less reliant on distressed sales. That’s happening in many communities, but far from all.
Additionally, while buyers have gotten the message that things are turning around and they’re jumping back into the market with both feet, the same can’t be said of sellers. In many communities there still is a drastic shortage of homes for sale, which is frustrating buyers and leading to multiple offers in many cases.
Things are out of balance right now and that needs to change for us to have a healthy market. I suspect it will as the spring selling season comes along and homeowners realize that the market and economy have both turned the corner.
Buyers are out there and willing to pay fair prices for attractive, well-priced and well-maintained properties. Now we just need sellers to join the party.
Below is a market update for our area.
Silicon Valley – Lots of competition for well-priced homes in the popular areas, our Cupertino office manager says. The high end market is picking up, especially under $2 million. In Los Altos, more buyers are getting ready to move, trying to beat the Facebook crowd. Multiple offers are happening in half of the sales. Creating inventory continues to be the biggest challenge in Los Gatos. The same story is echoed by our Palo Alto office manager, who says inventory is almost as low as in 2005 – with extreme demand. Lots of activity at open houses, reports our San Jose Almaden manager. Buyers are competing for homes under 500K. Sellers who feel the market has improved and now they can ask more don’t sell. However, buyers are willing to pay top dollar for “turn key remodeling.” In Saratoga, even though we’re experiencing multiple offers below the $2.5 million level, the inventory remains very low. Our manager is encouraging agents to tell their sellers that this is the time to place their homes on the market. We’re experiencing many multiple offer situations. Anything below $3,000,000, if priced correctly, seems to be selling fast. Buyer’s agents seem to be frustrated as there are 5 to 15 offers on each property.
That’s it for now. Have a great week but please let me know if you or anyone you know could use my real estate services.
408 67 MY MLS (69657)
2012 has certainly started off on the right foot. Home sales in the Bay Area were up in January. Several key economic reports showed surprising gains. And even the long beleaguered job market turned in positive numbers in the initial weeks of the new year.
Bay Area home sales in January jumped to their highest level for the month in five full years, according to DataQuick, the La Jolla-based real estate research firm. A total of 5,479 new and resale houses and condos sold in the nine-county region during the month, up 10.3 percent from January 2011. This marked the seventh straight month of year-over-year sales gains.
DataQuick attributed the improvement to lower home prices, record-low mortgage interest rates, a surge in investor purchases and an improving economy.
While the jump in sales is encouraging, the firm cautioned that activity was still tilted heavily toward distressed sales in many Bay Area markets. As a result, the median sale price dipped 2.8 percent from the previous month and 3.6 percent from a year ago.
Meanwhile, the U.S. economy finally appears to be gaining some traction. The government reported that the GDP grew at a 2.8 percent annual rate in the final quarter of last year, up sharply from the third quarter's 1.8 percent rate. And there are indications that the latest GDP figure could actually be revised higher due to wholesale inventories rising in December.
Even more encouraging for the housing market, the labor market is steadily improving. Initial weekly unemployment claims fell 15,000 to 358,000 in a new report by the Labor Department. And the four-week average fell to its lowest level since April 2008, the period before the financial crisis. Finally, the unemployment rate has dropped to a three-year low of 8.3 percent.
Most analysts agree that in order to have a self-sustaining recovery in the housing market we first must have a significant turnaround in the job market. There are indications with improvements in recent months that could be happening at long last.
While all of these economic and employment reports give us reason for optimism, we can’t ignore the fact that the housing market still faces some challenges before returning to normalcy.
Sales have rallied in the new year, but we’d like to see the mix of homes selling move more towards the center of the market and become less reliant on distressed sales. That’s happening in many communities, but far from all.
Additionally, while buyers have gotten the message that things are turning around and they’re jumping back into the market with both feet, the same can’t be said of sellers. In many communities there still is a drastic shortage of homes for sale, which is frustrating buyers and leading to multiple offers in many cases.
Things are out of balance right now and that needs to change for us to have a healthy market. I suspect it will as the spring selling season comes along and homeowners realize that the market and economy have both turned the corner.
Buyers are out there and willing to pay fair prices for attractive, well-priced and well-maintained properties. Now we just need sellers to join the party.
Below is a market update for our area.
Silicon Valley – Lots of competition for well-priced homes in the popular areas, our Cupertino office manager says. The high end market is picking up, especially under $2 million. In Los Altos, more buyers are getting ready to move, trying to beat the Facebook crowd. Multiple offers are happening in half of the sales. Creating inventory continues to be the biggest challenge in Los Gatos. The same story is echoed by our Palo Alto office manager, who says inventory is almost as low as in 2005 – with extreme demand. Lots of activity at open houses, reports our San Jose Almaden manager. Buyers are competing for homes under 500K. Sellers who feel the market has improved and now they can ask more don’t sell. However, buyers are willing to pay top dollar for “turn key remodeling.” In Saratoga, even though we’re experiencing multiple offers below the $2.5 million level, the inventory remains very low. Our manager is encouraging agents to tell their sellers that this is the time to place their homes on the market. We’re experiencing many multiple offer situations. Anything below $3,000,000, if priced correctly, seems to be selling fast. Buyer’s agents seem to be frustrated as there are 5 to 15 offers on each property.
That’s it for now. Have a great week but please let me know if you or anyone you know could use my real estate services.
408 67 MY MLS (69657)
Tuesday, January 24, 2012
A very Happy New Year for Real Estate...
Last year closed on several positive notes when it came to the housing market, and a number of recently released reports suggest we could be seeing the market stabilizing and even gaining some momentum as we begin the New Year.
Noted housing economist Liz Ann Sonders of Charles Schwab said in a recent report that “we’re seeing a light at the end of the housing tunnel.” The senior vice president and chief investment strategist for the brokerage firm pointed out that the pending-home-sales index surged more than 7% last month to its best level since April 2010.
“At that point, housing was artificially supported by the homebuyer tax credit,” she said in her new economic forecast. “The last time pending sales were at the current level without government support was June 2007.” Adding to the optimism, Sonders said, was the fact that the latest construction spending report was well ahead of expectations with most of the gains in private housing.
Sonders isn’t alone in her estimation that real estate could be bottoming out. In a report released Monday, Clear Capital, a real estate valuations company, predicted that prices in the San Francisco-Oakland-Fremont metropolitan area will remain flat this year versus a 4.7 percent drop in 2011.
The firm said Silicon Valley should see a 1.6 percent increase in home prices, compared with a 2.5 percent drop last year. "This region overall is doing pretty well," Clear Capital research director Alex Villacorta told the San Jose Mercury News.
The positive signals add more evidence that the housing market overall is moving in the right direction as we begin 2012.
Of course, we’ll continue to face headwinds. While foreclosures declined sharply last year, the drop was in part due to legal and regulatory issues that prompted lenders to delay action on delinquent borrowers. That “shadow inventory” of distressed homes could come back on the market this year, although it’s doubtful we’ll return to 2010 levels again.
The jobs picture is improving, although there will be bumps along the road as we saw this week. Weekly unemployment claims spiked last week more than expected after companies let go of thousands of holiday hires.
And while predicting that the real estate market has bottomed, Schwab’s Liz Ann Sonders believes the recovery in housing will be a slow and gradual one, similar to how she sees the recovery in the overall economy playing out.
Nonetheless, the economic and housing news in recent months continues to trend higher and offer reason for encouragement that 2012 will truly be a “Happy New Year.”
Noted housing economist Liz Ann Sonders of Charles Schwab said in a recent report that “we’re seeing a light at the end of the housing tunnel.” The senior vice president and chief investment strategist for the brokerage firm pointed out that the pending-home-sales index surged more than 7% last month to its best level since April 2010.
“At that point, housing was artificially supported by the homebuyer tax credit,” she said in her new economic forecast. “The last time pending sales were at the current level without government support was June 2007.” Adding to the optimism, Sonders said, was the fact that the latest construction spending report was well ahead of expectations with most of the gains in private housing.
Sonders isn’t alone in her estimation that real estate could be bottoming out. In a report released Monday, Clear Capital, a real estate valuations company, predicted that prices in the San Francisco-Oakland-Fremont metropolitan area will remain flat this year versus a 4.7 percent drop in 2011.
The firm said Silicon Valley should see a 1.6 percent increase in home prices, compared with a 2.5 percent drop last year. "This region overall is doing pretty well," Clear Capital research director Alex Villacorta told the San Jose Mercury News.
The positive signals add more evidence that the housing market overall is moving in the right direction as we begin 2012.
Of course, we’ll continue to face headwinds. While foreclosures declined sharply last year, the drop was in part due to legal and regulatory issues that prompted lenders to delay action on delinquent borrowers. That “shadow inventory” of distressed homes could come back on the market this year, although it’s doubtful we’ll return to 2010 levels again.
The jobs picture is improving, although there will be bumps along the road as we saw this week. Weekly unemployment claims spiked last week more than expected after companies let go of thousands of holiday hires.
And while predicting that the real estate market has bottomed, Schwab’s Liz Ann Sonders believes the recovery in housing will be a slow and gradual one, similar to how she sees the recovery in the overall economy playing out.
Nonetheless, the economic and housing news in recent months continues to trend higher and offer reason for encouragement that 2012 will truly be a “Happy New Year.”
Tuesday, January 17, 2012
Buy now!!!
It's a great time to be a buyer in today's real estate market!! If you are ready to jump into the market and buy or have any real estate related questions, please don't hesitate to contact me. I look forward to hearing from you and would welcome the opportunity to work with you.
A better future ahead?
All signs point to 2011 as the year that pushed Silicon Valley right out of the recession. But it wasn't without its ups and downs. Real estate came back with a bang — major housing projects ramped up with thousands of units under construction. High-tech companies and developers haggled over campus space, as they quickly absorbed 100,000-plus square foot sites. On the flip side, health care hit some challenges with reform uncertainty and a higher number of uninsured heading into the emergency rooms for treatment. Technology and venture capital was a mixed bag — Solyndra went belly up, while Facebook and Google saw massive growth. And a number of CEOs were shown the door.
Let's talk more later
Let's talk more later
Monday, January 9, 2012
Some facts about real estate in the Bay.
The median price paid for all new and resale houses and condos sold in the Bay Area last month was $363,500. That was up 3.9 percent from $350,000 in October, and down 4.3 percent from $380,000 in November 2010. The median has declined on a year-over-year basis for the last 14 months.
The low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflected a shift in the sales mix.
Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up 47.8 percent of the resale market. That was up from 45.2 percent in October and 46.7 percent a year ago.
Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 26.5 percent of resales in November. That was up from 25.3 percent in October, and down from 28.6 percent a year ago. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 15 years is about 10 percent.
Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 21.3 percent of Bay Area resales last month. That was up from 19.9 percent in October and 18.1 percent a year earlier. Two years ago the estimate was 16.5 percent.
Last month 31.0 percent of Bay Area sales were for $500,000 or more, down from a revised 31.3 percent in October, and down from 37.2 percent in November 2010. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.8 percent of homes sold for $500,000-plus.
Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 22.3 percent of all Bay Area home purchase mortgages in November. That was up from 21.2 in October and down from 23.9 percent a year earlier.
One indicator of mortgage availability that had seen improvement earlier this year dropped again in November, when 11.6 percent of the Bay Area’s home purchase loans were adjustable-rate mortgages, down from a revised 12.9 percent in October, and up from 9.9 percent in November last year. Over the last decade, ARMs have accounted for 51.0 percent of all purchase loans. ARMs hit a low of 3.0 percent of purchase loans in January 2009.
Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 29.7 percent of last month’s purchase lending, up from a revised 27.9 percent in October, and down from 33.4 percent a year ago. Jumbo usage dropped to 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.
Last month absentee buyers – mostly investors – purchased 22.6 percent of all Bay Area homes sold, up from 22.3 percent in October and 19.1 percent a year ago. The peak was 23.4 percent in February this year, while the monthly average since 2000 is 13.9 percent. Absentee buyers paid a median $240,000 in November, down from $243,500 in October and the same as a year earlier.
Buyers who appear to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 27.9 percent of sales in November, down from 28.5 percent in October but up from 25.2 percent a year ago. The record was 30.5 percent last February, while the monthly average going back to 1988 is 12.1 percent. Cash buyers paid a median $240,000 in November, down from $248,000 in October and down from $250,000 a year earlier.
For more information let's set up a time to talk real estate and you.
The low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflected a shift in the sales mix.
Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up 47.8 percent of the resale market. That was up from 45.2 percent in October and 46.7 percent a year ago.
Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 26.5 percent of resales in November. That was up from 25.3 percent in October, and down from 28.6 percent a year ago. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 15 years is about 10 percent.
Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 21.3 percent of Bay Area resales last month. That was up from 19.9 percent in October and 18.1 percent a year earlier. Two years ago the estimate was 16.5 percent.
Last month 31.0 percent of Bay Area sales were for $500,000 or more, down from a revised 31.3 percent in October, and down from 37.2 percent in November 2010. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.8 percent of homes sold for $500,000-plus.
Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 22.3 percent of all Bay Area home purchase mortgages in November. That was up from 21.2 in October and down from 23.9 percent a year earlier.
One indicator of mortgage availability that had seen improvement earlier this year dropped again in November, when 11.6 percent of the Bay Area’s home purchase loans were adjustable-rate mortgages, down from a revised 12.9 percent in October, and up from 9.9 percent in November last year. Over the last decade, ARMs have accounted for 51.0 percent of all purchase loans. ARMs hit a low of 3.0 percent of purchase loans in January 2009.
Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 29.7 percent of last month’s purchase lending, up from a revised 27.9 percent in October, and down from 33.4 percent a year ago. Jumbo usage dropped to 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.
Last month absentee buyers – mostly investors – purchased 22.6 percent of all Bay Area homes sold, up from 22.3 percent in October and 19.1 percent a year ago. The peak was 23.4 percent in February this year, while the monthly average since 2000 is 13.9 percent. Absentee buyers paid a median $240,000 in November, down from $243,500 in October and the same as a year earlier.
Buyers who appear to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 27.9 percent of sales in November, down from 28.5 percent in October but up from 25.2 percent a year ago. The record was 30.5 percent last February, while the monthly average going back to 1988 is 12.1 percent. Cash buyers paid a median $240,000 in November, down from $248,000 in October and down from $250,000 a year earlier.
For more information let's set up a time to talk real estate and you.
Subscribe to:
Posts (Atom)
