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San Diego Real Estate Veterans

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October 2012

When it makes sense to sell your property at a loss

There are times when it makes complete sense to take a loss on your property. Sounds screwy doesn’t it, but it’s true!

Let me begin with I am not a Lawyer or CPA. You should always seek advice from a licensed professional in these fields. I am a designated REALTOR© in the state of California and a proud member of the San Diego Association of REALTORS.

Now, disclaimers out of the way; why would a person sell his/her property at a loss?

It’s all about taxes!

Let’s say you own a piece of property that has a tax lien levied against it. For simplicity’s sake lets say that you purchased the property for $10,000 and you sell that property for $100. You just took a loss of $9,900 and here is where that is advantageous to you. The law states that you can write that loss off against any other income from investments to an unlimited amount.

Keeping it simple, let’s say that you made $9,900 in the stock market and you are in the 30% to 35% tax bracket. This means that you’re responsible for approximately $3,000 in taxes from your investments. If you sold your home for $100 this means that you can now write off the $9,900 loss against your $9,900 gain in the stock market effectively eliminating paying the $3000 in taxes on the income from your investments.

Here’s the really crazy part, if you had no gains from investments you could write off up to $3,000 per year in W-2 income. Just by realizing the loss you would be able to take $3,000 per year against ANY kind of income. The IRS allows you to write off anything left over from your loss therefore in year 2 you could write off another $3,000, year 3 another $3,000 and then in year 4 the final $900 which would then total your overall loss of $9,900.

Again this is a very simple explanation of when it makes sense to sell your property at a loss. Certain things do need to align to make this a viable option, but it happens everyday in this country and could be an option for you. If you would like more information regarding a tax lien that has been levied on your property and you are considering selling it, then contact me via email or give me a call.

Remember always seek help from a licensed professional!

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FIRST-TIME HOME BUYERS WORKSHOP

Come join me at the free workshop for first time homebuyers.

Senator Joel Anderson and San Diego Association of Realtors (SDAR) have partnered to host another free workshop for first-time home buyers. “Achieving the Dream of Homeownership” will be presented at SDAR’s Kearny Mesa Service Center next Saturday (Oct. 20) from 9:30 to 11:30 a.m.

A panel of experts will be assembled including agents, brokers, and lenders to answer questions about purchasing a home. The clinic is free, but registration is required to attend.

“The San Diego Association of REALTORS® workshop will give first-time homebuyers the critical information they need for what may be the biggest investment of their lives,” said Sen. Anderson, who is involved in these workshops because he believes strongly in home ownership as well as the value in investing now.

Topics covered will include educational resources to help buyers become purchase-ready, how to choose a realtor, available tax credits, and short sale information. Additional topics covered at this workshop will include:

• Special down payment assistance programs for first-time home buyers

• Home buyer programs in cities throughout San Diego County

• Special loan products and grants for first-time home buyers

• Renovation loans for your existing home

• Legislative update with Q & A opportunity

According to SDAR, this is critical information needed for what may be the biggest investment of one’s life. The panel of experts will discuss how to achieve the dream of homeownership and answer questions about purchasing your first home.

SDAR’s Kearny Mesa Service Center is located at 4845 Ronson Ct. Check in for registrants begins at 9 a.m.

For more information and to register, call (858) 715-8066; or, visit http://sdarworkshop.eventbrite.com/.

$100k Condos in San Diego, CA.

Are you looking for a condo under $100,000?

Do you feel as if there are no affordable properties in good neighborhoods?

Have you been stressed out by the hordes of investor buyers that seemingly have a choke-hold around this end of the market?

Have no fear, you can buy a condo today, under $100,000 for you and your family. Seriously, it’s true! Every month a few of these properties appear on the market. Not everyone has $100,000 cash to buy at the drop of a hat, but if you do, it makes the process easier. The great news, today it is easier to finance a condo under $100,000 than it has been in the last 4 years. There is no need to begin shopping until your financing has been secured and you have an approval letter in hand. In this market you will generally need to supply a proof of funds and approval when submitting an offer, so have them ready when you begin your search.

So what is the secret to getting an offer accepted on a condo in San Diego county?

For Starters: make sure that you have a really good agent that has been working consistently in real estate for at least 3 years. The real estate market we face today is unlike any other time. The multitude of transaction types such as short sales, probate, trustee sales, bank owned, etc makes it easy for an inexperienced agent to miss out on an opportunity. Understanding each of these vastly different transactions requires time and dare I say hands-on experience.  Choose an agent that has been certified as a REALTOR©. These agents have pledged to a strict code of ethics and standards of practice. Most importantly, they have sworn not to work in an area that they are not practiced.

Secondly: make sure that your expectations are in-line with reality. It has been my experience when working with first time buyers that their expectations are just a bit high compared to what is reality in the housing market. There is no “Perfect” property. Every property will have an issue that will need to be addressed: a toilet may not flush properly, a fluorescent light fixture may flicker too much or there may be an indication of an old water leak underneath the kitchen sink. These are all issues that can be dealt with easily and should not keep you from purchasing the property. Always have an inspection completed to verify that there are no major underlying issues, but don’t be afraid to purchase a property if doesn’t seem perfect. In most cases you can get a pretty good deal by simply negotiating around these items.

Finally: Research the neighborhoods. If there is a neighborhood you would like to move to, make sure there are properties in your price range. There are many web sites available for you to check home prices. If 1 bed 1 bath condos generally sell for $175,000 and your budget is $100,000 you may want to consider looking in an adjacent neighborhood. There has been a ton of redevelopment in San Diego county over the past few years and a neighborhood that you wouldn’t have considered just 1 year ago, may be completely different today. Patience is a virtue! In most cases you will not find your new home in a week, it could take 3 to 6 months. Keep your options open and be ready to move when an opportunity presents itself.

There is no better time to purchase your first home than today. Interest rates are low and owning our home has turned out to be cheaper than renting. Take advantage of this opportunity, you’ll be glad you did.

  • J.R. Thrasher
  • License #01888955
  • 619-929-0105

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For more information regarding consumer protection visit the Consumer Financial Protection Bureau now.

Condo Rental Available: San Diego

4424 Estrella Ave. San Diego CA 92115

$1,014 Monthly

Cute 1 bed 1 bath condo located in the Talmadge area within walking distance of grocery stores, retail shops and restaurants. 580 sq. ft with stainless steel appliances. Quaint complex, only 7 units and a dedicated parking space. Cathedral ceilings makes this unit feel open and brings in plenty of natural light.

It’s available for showings. Call 619-302-8989 for more info and to schedule an appointment to view today.

  • J.R. Thrasher
  • 619-929-0105
  • License: 01888955

Rare Cottage Conversion in 92116

New Listing in “Normal Heights”

$339,000 to $399,000

3 Bedrooms

1 Full Bath

2 Half Baths

1184 Sq. Ft.

This wonderful 2-story home is located within a short walking distance of Garfield Elementary school in the Normal Heights community. Near shopping and restaurants with easy freeway access. This home has outstanding insulation keeping it warm in the winter and cool in the summer. The interior was lovingly outfitted with custom woodwork around the windows and doors with built-in book shelves and custom cabinetry in the kitchen.

This home is truly one of a kind. 3 bedroom 3 bath homes in Normal Heights are a rare find at this price. Call me today for more information on this wonderful home.

2628 Monroe Ave. San Diego CA 92116

  • J.R. Thrasher
  • 619-929-0105
  • License: 01888955

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