SPRING 2007 –
MAXIMIZING YOUR REAL ESTATE DOLLARS
WHERE TO BUY REAL ESTATE IN 2007
2006 COST vs. VALUE REPORT
Time for some national housing statistics….at the end of the third quarter 2006, the median home price in the U.S. was $231,000, according to the National Association of Realtors. Money magazine reported that Newport Beach had the highest median home price, at $1.36 million, followed by Greenwich, Conn., at $1.13 million and Santa Barbara, Calif., at $979,500.
And here is the $10,000 question…as the real estate market softens, where will home prices remain highest? Last year, the median price of homes in San Bernardino County rose 8.6 percent, while in Ventura County they fell 8.2 percent. Where is one to buy? Experts say look for a strong local economy.
“Investors will pull back from core office markets,” notes Forbes columnist Peter Slatin. “Instead, the two strongest targets for investment will be retail/affordable housing in inner cities and office buildings in outer suburbs, both of which have been passed over by investors for years--and both of which now represent strong value plays,”
If you’re a homeowner, at some point you’ve probably thought about remodeling or selling. According to Money magazine, since 1994, the cost of buying a home has increased approximately 3.7% per year nationally. The cost of remodeling has increased about 2.8% annually.
"House prices have risen faster than the dollar-per-square-foot cost of renovating, which suggests that investing in your home is a very wise thing to do," says Mark Zandi, chief economist at Economy.com.
UNDERSTANDING CAPITAL GAINS TAX
Ever notice how doing your taxes gives you a headache? The IRS has a complex taxing system. Currently, the tax rate on short-term Capital Gains - assets held for one year or less - are taxed at your normal income tax rate - 10% to 35%. When you sell a taxable item – such as real estate or stocks - that you have owned more than a year, you pay a sliding scale of fees that can range from 0% - 28% depending upon the nature of the capital gain. The taxes you pay on any given sale depend on your income-tax bracket, the type of asset you sold, and how long you held it, and when you sold it. Smartmoney.com’s Bill Bischoff, offers highlights on the breakdown on who pays what with long-term capital gains.
Homes and Small-Business Stock
The 0% Rate
Eligibility: Homeowners who owned and used their home as a main residence for at least two years before selling; some shareholders of small-business stock.
If you sell a home you've owned and used as your main residence for at least two years out of the five-year period, you are allowed to exclude up to $250,000 of gain tax free. If you are married, you can potentially exclude up to $500,000.
If your gain exceeds the amount you can exclude, the difference is treated as a long-term capital gain eligible for the 15% maximum rate (or 5% or 10% if you’re taxable income is low enough).
Investment Securities
The 5% Rate
Eligibility: Individuals in the 10% and 15% federal income tax brackets with net long-term capital gains from selling investment securities held for more than one year.
338 Rennie Ave, Venice
asking price: $980,000
ENDLESS OPPORTUNITY
716 VESTA ST. INGLEWOOD, CA 90302
asking price: $599,000
FINE LIGHT INDUSTRIAL IN SOUTH GATE
12305-12311 INDUSTRIAL AVE SOUTH GATE
LIVE/WORK SPACE IN MORNINGSIDE PARK
8455 S VAN NESS AVE, INGLEWOOD, CA
TRIPLEX FIXER IN LONG BEACH
1920 DAWSON AVE SIGNAL HILL, CA 90755
Superb West Side Office Building
3619 Motor Ave Los Angeles, CA 90034
A former family home of late President Gerald Ford's is for sale in Alexandria, Va., for $999,000. Ford and his family spent about 20 years in the colonial-style brick and wood-siding home on Crown View Drive in Alexandria. The Fords were the first owners of the home, which was built in 1953 and is now up for sale. President Ford spent the first 10 days of his presidency at the Crown View Drive house because the White House was not ready for him when he became president following Richard Nixon's resignation in 1974.
The three-level home has four bedrooms, two full bathrooms, three half-bathrooms, 3,537 square feet of space, a large pool and sits on a 0.22-acre lot. The Ford family home was designated as a historic landmark by the National Park Service in 1985.
Ford’s presidency was marked by the pardon of Richard Nixon and the final withdrawal of U.S. personnel from Vietnam. He lost a presidential election bid in 1976 to Jimmy Carter.
The Fords' home has changed hands twice, and the current owner bought the property in 1998 and has since rented it out.For details contact [email protected].
January 2007
¿HABLAN ESPANOL EN CASA?
According to the U.S. Census, there are 31 million U.S. residents age 5 and older who speak Spanish at home, - that’s nearly 10% of household residents. Texas tops the list at 29%, we bring in a close second at 28.2%. Vermont ends the list at .7%.
The U.S. average is 12%, with 10 states above the national average. Check it out…
