OPEN WATER swimming…But WHY??
December 1, 2008 · Leave a Comment
For many years I have been an active member of the South End Rowing Club in San Francisco. I share my passion for OPEN WATER swimming with a very diverse group of cold water enthusiasts from all over the world. Here is an article written by Dave Ford in 2003 on Bay Swimming interviewing many of the South End Rowing Club members.
SF Chronicle article on the “Daily Plunge” from July 11, 2003
Although my name was misspelled (from Carlson to “Carson”) the article captures the spirit of the swimmers.
IRC 1031 Tax Deferred Exchanges
December 1, 2008 · Leave a Comment
It is amazing how many sellers have told me to sell their rental and income properties and have NOT considered tax planning. When I ask about the tax consequences, they tell me they will worry about this after the property sells.
Some of these sellers have owned the property for years, with a VERY low tax basis, so the Capital Gain Tax is going to be substantial.
Fortunately, the IRS has created tax deferred exchanges to help investors keep more your hard earned dollars. However, if the trade is not structured correctly, the seller has no option other than to pay the IRS on the taxable gain.
Tax deferred exchanges allow sellers to defer the taxable gain from the sale of their properties subject to IRS rules and regulations. The 1031 Exchange and Reverse Exchange serve to postpone all or part of the gain from the sale of qualified properties. The rules are fairly simple but VERY unforgiving if not followed exactly as allowed. Therefore, a qualified and experienced intermediary is a MUST if you are considering an exchange. The Title companies and many independent qualified intermediaries offer their clients services and ADVICE for IRC 1031 Exchanges. Here are a few links to explore: Please call for specific details:
1031 Exchange Services
Asset Preservation Incorporated
First American Title and another good First American Title resource
Market Meltdown- The Winners and the Losers!
December 1, 2008 · Leave a Comment
We are all challenged with the current market swings. It feels like we are on a rollercoaster ride and we are helpless to do anything but HANG ON. But for many long term homeowners, the paper loses on the market fluctuations may have little or no effect…And here is why:
Real Estate always follows trends and market cycles. Market corrections are inevitable. We have been on an upswing market trend in San Francisco since 1999. The good news is that after the market corrects itself, the 50 year market performance statistics reveal that the market eventually recovers and, in time, the prices go even higher than the last high. In real estate, timing is everything. The object is to be ahead of the herd…to anticipate market swings. The big question now is HOW MUCH TIME will it take before the recovery begins.
FOR FIRST TIME BUYERS: The reduced prices and some foreclosure bargains allow for many FIRST TIME BUYERS to afford home ownership.
FOR SELLERS: For sellers trading up, what sellers lose based on previous values, they will pick up on the now lower values if they purchase an equal or greater priced home.
SHORT TERM SELLERS take the hit: The people who get hurt in market swings are the short term buyers and sellers. If you are a recent home purchaser and if you are forced to sell because of financial needs, a job transfer to another area and you do NOT replace this property with another property in the area, then you may suffer financially from the downturn.
Some of you remember, as I do, the real estate market in 1980 when interest rates peaked at over 18% interest on FHA 30 year Loans. There was recession then and a recovery period followed. During the market swings in the 1980s, there was another price correction followed by recovery. In the 1990′s we had the DOT COM boom, then another market correction, followed by recovery.
The TRUTH about real estate markets is this:
There is ALWAYS a market…good or bad.
There are ALWAYS buyers and sellers.
Any given market is determined by an offer from a willing buyer and acceptance from a willing seller.
Buying opportunities occur when there is less competition and increased inventory.
And such is our present market.
Tom Carlson…. Real Estate since 1980
Lower your property taxes??
December 1, 2008 · Leave a Comment
With declining real estate market values in many areas, it may be time to review your property tax basis. So far, in 2008, there have been 810 property owners who have had their taxes lowered by the City Assessor-Recorder’s office. If you believe the property values in your neighborhood have declined since you purchased your home, you might want to appeal the tax assessor’s valuation of your property with the County Tax Assessor.
This map shows the actual areas with the percentages where these tax reductions for the 810 property owners in San Francisco took place. Notice that the majority of the assessment adjustments were in Area 9 (South of Market and the Inner Mission District). These adjustments would be mostly attributed to the devaluations on the lofts and newer construction condos more than single family homes. In Area 10 (Bay View, Silver Terrace, Outer Mission, Excelsior, Portola) the values have dropped as a higher percentage of homeowners purchased homes with subprime loans and the resulting foreclosures have had a negative impact on the market.
The Appeals Process
There is a formal and informal property tax appeal process in California. The informal process involves filing with the County Assessor while the formal process involving filing an appeal with the Assessment Appeals Board where you can choose to have a Hearing for an independent review of your property’s assessed value. An appeal will need to include recent comparable sales in your area and other pertinent data.
For details of the appeals process, please see SFGate.com and CaliforniaPropTaxAppeal.com.
Please note: There are many web sites that will assist you with this process for about a $30 fee. However, be careful. Computer generated comparables from Zillow.com and other sales data bases do not always accurately reflect positive and negative individual property value adjustments and the resulting property valuations can vary greatly. Median property values on single family homes have declined approximately 6% overall in San Francisco from October 2006 to October 2008. However, the individual districts and neighborhoods adjustments require personalized market expertise to accurately assess the comparables.
Prime rate drops and Mortgage rates go higher…Buy Why?
December 1, 2008 · Leave a Comment
At the end of October, the Fed cut its overnight rate on loans between banks by 0.5% to 1%.
so… why do the Mortgage rates go up? This article explains why.
Is the Government Bail Out Helping or Hurting the mortgage Industry?
Government bailout uses tax payer money to help stabilize the banks but where does all the money really go?
Is the government bailout money being used by the banks to purchase other banks and monopolize the industry or to stabilize the industry? The Washington Post offers more information.
Trickledown Effect
Some of the banks have now started a “trickledown” effect to pass on this saving to their best customers. But will JOHN Q PUBLIC and the new home buyer ever see the benefits of this easy money?
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