Category Archives: Uncategorized

Entry-level housing affordability at 64 percent in Q2 2010

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Posted by Lily Lam on August 31, 2010 – 2:00 pm
Filed under Uncategorized

C.A.R. reports entry-level housing affordability at 64 percent in the second quarter of 2010
• C.A.R. First-time Buyer Housing Affordability Index stood at 64 percent in the second quarter of 2010 compared with 67 percent in the second quarter of 2009
• The median price of an entry-level home in California was $266,750 in the second quarter of 2010
• The estimated monthly payment including taxes and insurance was $1,470 in the second quarter of 2010
• The minimum household income needed to purchase an entry-level home in California in the second quarter of 2010 was $43,960.

Source: www.car.org

How To Set The Sales Price For Your Property ? (I)

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Posted by Lily Lam on August 12, 2010 – 3:20 pm
Filed under Uncategorized

When setting a price for your property, the listing

level must strike a balance between the seller’s need

to achieve the best-possible return and the buyer’s

need to get good value. With many years of

experience, a professional Real Estate Agent can help

you set a price that will accomplish both objectives.

Establishing market value

The market value of your property is determined in exactly the same way as any other commodity – what

a buyer is willing to pay for it in today’s market. Despite the price you paid originally, or the value of

any improvements you may have made, the value is determined by market forces.

Look at the competition

Buyers look at about a dozen properties on average before making an offer on a property. As a result, they

have a good overview of the market and will compare your property against the competition. If it’s not in

line with similar properties that are available, buyers won’t consider it good value for money.

Article from   www.mrmls.com

One of The Last Tax Shelter

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Posted by Lily Lam on February 17, 2010 – 2:41 pm
Filed under For Investors, Uncategorized

The §1031 Tax Deferred Exchange is one of the last tax shelters allowed by the Internal Revenue Service.  It is a transaction in which a taxpayer exchanges investment property for like- kind investment property, which defers the payment of capital gain taxes and the recapture of Deprecation taxes.  The IRS defines like-kind property as all real property held for investment purposes, or the productive use in a trade or business.  This basically includes any real estate held for investment except your primary residence and second family home. There are some important rules which must be followed to effectuate a valid exchange: • The exchange must be opened before the close of Escrow on the relinquished (sale) property. • The taxpayer must identify the replacement (acquired) property within 45 days after the close of the relinquished (sale) property. • The taxpayer must close Escrow on the replacement property within 180 days from the close of the relinquished property, or, before the date the tax return filing is due for the tax year in which the relinquished property was transferred – whichever comes first. • The taxpayer must reinvest all net proceeds into the replacement property. • The taxpayer must obtain a debt of equal or greater amount on the replacement property. By following these rules, the taxpayer shelters capital gains tax into the replacement property, and defers the recapture of depreciation tax.  This creates more buying power for the taxpayer than if the capital gains tax was paid.  Also, by deferring the payment of capital gains tax, the taxpayer gets to invest the taxes into the replacement property interest free from the IRS.  The 1031 Tax Deferred Exchange also avoids the California Withholding Tax.