Someone has a twisted sense of humor - this sculpture of a surfer, which never won favor among locals because of the unnatural pose, was recently encased in the jaws of an enormous sculptural shark, apparently in the dead of night. 
The original sculpture, commissioned by the City several years ago, has been criticised repeatedly for not being truly representative of the sport Cardiff CA residents so love…
(interesting and informative article by Kathleen Pender about the potential for an $18,000 windfall from perfect timing of one’s home purchase; reproduced from San Francisco Chronical, page D-1)
Some home buyers in California could get a federal tax credit worth up to $8,000 plus a new state credit worth up to $10,000 if they time their purchase just right over the next three months. But double-dipping will be tricky and won’t come without risks.
One couple who lucked out are Sibel Demirmen and Scott Henry of San Francisco, who are purchasing a home, their first, in San Rafael’s Terra Linda neighborhood.
They were planning to close escrow on April 30, and knew they qualified for an $8,000 federal home-buyer tax credit.
To get the federal credit, buyers must – among other things – close before May 1 or enter into a binding contract before May 1 and close before July 1.
Last weekend, they learned that if they could delay their close until after April 30, they could also qualify for the new California home-buyer tax credit, which was signed into law last week. The state credit is worth up to $10,000, spread over three years.
The seller agreed, and on Monday they signed an addendum to their contract postponing the closing until May 4.
“I was elated. I was ecstatic. I was thrilled,” says Demirmen, a singer, music teacher and mother of two.
Although the prospect of double-dipping will excite many house hunters, “I don’t think a ton of buyers will get both and benefit from both credits,” says Renee Rodda, editor of Spidell’s California Taxletter.
To get both, buyers must meet two sets of strict criteria. Timing it right will be tricky, especially in foreclosure or short sales, which can involve long lead times and many parties.
People who have already locked in a rate on a mortgage could lose the rate, or have to pay an additional fee to keep it, if they postpone their closing.
Matt Duffy is buying a home with his wife in Santa Rosa in a short sale, in which the purchase price is less than the debt on the home.
The seller accepted their offer in January. Last week, they heard that both lenders agreed to the deal as long as it closes by April 26.
“We said, ‘Cool, we can do that.’ We have our mortgage and the federal tax credit,” he says.
After reading my Sunday column on the state credit, Duffy realized he could get that too if he delayed his close.
“As it turns out, we are not going to be able to do that. The second lender is demanding we close by April 26 or somebody has to pay an additional $20,000,” he says.
“I am of course upset we can’t move the date. But we don’t want to lose the house. We will still get the federal credit, which is the better of the two credits.”
The federal credit: The federal credit is 10 percent of the purchase price, up to a maximum credit of $8,000 for first-time home buyers or $6,500 for longtime homeowners who buy a replacement home. Either type of buyer can purchase a new or existing home.
Buyers claim the federal credit when they file their tax return (or amend the prior year’s return). This credit is refundable: The full amount will be paid out, even if you have zero federal tax liability or the credit is bigger than your federal tax.
You cannot get the federal credit if your income is too high or the home was purchased after Nov. 6, 2009, and cost more than $800,000.
The state credit: The California credit is the lesser of 5 percent of the purchase price or $10,000. First-time buyers can purchase a new or existing home but repeat buyers can only purchase a new home that has never been occupied.
The California credit is spread over three years, up to $3,333 per year. It is not refundable: If you owe less than $3,333 in one (or more) of those years, you lose the difference that year. Even if you owed $3,333 before you owned a house, you might owe less after because of all the new tax deductions.
The state credit has no income or purchase-price limits. But here’s the rub: Some buyers who fall below the income limits for the federal credit might not owe enough California tax to get the full benefit of the state credit.
To get the California credit, you must close escrow between May 1 and either Dec. 31 or whenever the money set aside for the program runs out, whichever comes first. The money is likely to run out long before Dec. 31.
Alternatively, you can reserve a state credit for new construction by entering into a binding contract between May 1 and Dec. 31 and closing before Aug. 1, 2011. People who do this won’t get the federal credit because they entered a contract after April 30.
Getting both: Both credits require you to buy the home as your primary residence. Both define a first-time buyer as someone who has not owned a home in the three years prior to purchase.
In short, to get both credits you must be in contract on or before April 30 and close between May 1 and June 30 – and meet all other requirements.
Buyers who are already in contract and want to postpone their closing need to get the seller and lender to agree.
“Sellers might be flexible because it’s still a buyer’s market, but they may want something in return,” says Richard Redmond, a mortgage broker in Larkspur.
“If you have a loan locked in with a close date in April and you want to extend it, you may have to pay a fee or get a higher interest rate,” Redmond adds.
Buyers should consult a well-informed tax person and make sure they understand both credits.
This article appeared on page D – 1 of the San Francisco Chronicle
Del Mar CA is an extraordinarily beautiful place to live, with its coastal sandstone bluffs, majestic old growth Torrey Pines and spectacular ocean views. We who live or work here are thankful for all these things. For me, coming to the office, located in the heart of Del Mar Village, is truly a treat! I get to enjoy dazzling sunsets every day.
Hiking in Del Mar CA
Well, for many Del Mar residents, the ocean views are about to get even better. A very long time in the planning stages, the Utility Undergrounding Packetis finally underway. The plan includes replacing overhead wires, poles and transformers with new underground utilities in Del Mar neighborhoods, improving upon views that people are already willing to pay millions for. The project, partially paid for by parcel assessments, will enhance both safety and community aesthetics.
The problem is, this is not a clear cut issue – while it sounds like a good thing, a project that in the end will greatly enhance the look of the community and boost property values, it poses a real financial burden for some, particularly longer time residents who may not have the means for such improvements. As Art Olson explains in his article in DelMarSandpiper.org, this debate highlights “a financial chasm between long-time residents, many of whom bought modestly priced homes and are now retired, living on fixed incomes, and newer residents who have invested more into their Del Mar home purchases, and appear less concerned about the financial impact of their proposed assessments”.
Undergrounding powerlines - two sides of the same coin
I understand the views on both sides. It will be interesting to see how this issue unfolds. Hopefully, some kind of compromise will be reached will allow the undergrounding to proceed without placing an undue burden on residents and pushing them to the brink of financial ruin…
It’s soon time for the seventh annual Encinitas Rotary Wine Festival, a celebration of international wines, local microbreweries and cuisine, hosted by the San Diego Botanic Garden, one of my favorite places.
This is an opportunity to enjoy a fabulous evening of fine wine and tasty samplings from our local restaurants, listen to great music, and support wonderful and worthy causes, all the while enjoying the beautiful setting of the Gardens, one of North San Diego County’s true jewels. The event takes place June 5th, 2010 from 5pm to 8pm. More details and ticket prices can be found at www.encinitaswinefestival.com.
While you will most likely want to get a babysitter for the evening, make sure to return to the Garden with the kids on another day to visit the Hamilton Children’s Garden, a enchanting place where children and families can enjoy the outdoors and experience the wonder of being close to nature.
According to various economic and real estate pundits, we’ve hit bottom and are on our way back up!
At a recent conference hosted by NSDCAR (North San Diego County Association of Realtors), John Tuccillo, a former Chief Economist for the National Association of Realtors, George Chamberlin, Executive Director of The Daily Transcript, and several other renown experts, all seemed to agree – we hit bottom sometime around March of 2009. This graph from statistics gathered by NSDCAR shows the median prices starting to rise again after a steady two year decline.
Of course, each niche varies and has its own specific statistics – some markets are still declining and some are going gangbusters – but overall, there is light at the end of this long dark tunnel!
With rates still at historic lows (roughly 5% with no points for a 30 yr fixed conforming loan!!), PLUS tax incentives, PLUS prices still low but drifting upwards, this is a great time to buy! As one of my colleagues put it, “if you don’t buy now, you’re either broke or stupid!” Kind of mean, but true!
Give me a call if you want to jump in and take advantage of the awesome opportunities out there right now (760-815-1318), or visit my website and do some searching on your own: www.DreamHomesByTheBeach.com. North San Diego County Real Estate – a fantastic investment in your future and a paradise to live in!
Encinitas residents, please remember to attend your community specific workshop this week!
Your inputs on what Leucadia, Cardiff-by-the-Sea and Encinitas should be (and not be) are critical to getting a good and workable General Plan.
The consultants preparing the plan are based in Northern California. They need our inputs to understand what we like about our community, what can be improved, and what is “off the table”. Your inputs will be used in developing the General Plan, so it is critical to be heard. Otherwise, we may end up with a general plan that does not address our desires as a community.
Please come share your vision – even the smallest inputs will be of value.
Community Specific Workshops, all from 6pm-8pm
1. March 8 (Monday) in Olivenhain (Olivenhain Town Hall, 423 Rancho Santa Fe Road)
2. March 9 (Tuesday) in New Encinitas (Diegueno Middle School, 2150 Village Park Way)
3. March 11 (Thursday) in Cardiff (Cardiff Elementary School, 1888 Montgomery Ave)
4. March 22 (Monday) in Leucadia (Paul Ecke Central Elementary, 185 Union Street)
5. March 23 (Tuesday) in Old Encinitas (Encinitas Library, 540 Cornish Ave)
I ran across a new and scary website today – well, scary if what they claim is true: Caltrans is proposing a massive expansion of I-5 from Oceanside to La Jolla. P.L.A.G.U.E. is a community action group that is committed to stopping the transformation of our uniquely charming and beautiful North San Diego County coastal environment into an LA-like maze of highways. Let me know what you think – extremists on a soapbox or concerned citizens willing to step up and fight this real threat?
Courtesy SkilliShots, flickr.com
Effective February 1, 2010 the Department of Housing and Urban Development (HUD) will relax FHA rules that previously prohibited insuring mortgages on homes that are owned by the seller for less than 90 days – a move that could help expedite the rehabilitation and resale of foreclosure properties.
In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has (1) kept some homebuyers from being able to purchase affordable homes and (2) prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.
Flipping: before and after
On multiple occasions, this has affected my business personally - I’ve shown a buyer a home that had been purchased by an investor, rehab’d and put back on the market, i.e. “flipped”, but because they could not obtain an FHA loan on the property if it was owned less than 90 days, these homes were beyond their reach. The process of buying, fixing, and reselling foreclosed properties can often be achieved in less than three months time, so this policy was hurting both buyers and investor sellers.
“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”
To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:
• All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
• If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the lender must meet specific conditions for the waiver to apply.
• The waiver is limited to forward mortgages, and cannot be used under the Home Equity Conversion Mortgage (HECM) purchase program.
You can read the full text of the HUD waiver here. The temporary waiver, which will expand access to FHA mortgage insurance to many, will be in effect for a period of one year, unless extended or withdrawn by the FHA. With this in mind, now may be an excellent time to purchase a foreclosure as a short-term investment! Call me, Eva Meier, if you’d like assistance taking advantage of this new policy - there are many opportunities in coastal north San Diego County! 760-815-1318.
Reverse mortgages (RM) are not for everyone, but for seniors who have owned their home for a long time and have lots of equity, it may be a great option. Especially for those who have little income or retirement to enjoy in their later years, taking out a RM can provide a highly improved quality of life and make good on the term “golden years”.
I have to admit – until fairly recently, I associated the phrase “reverse mortgage” with SCAM! It was largely out of ignorance. As long as the terms are clearly explained, and completely understood by the borrower, it can be a godsend.
To provide more information about the pros and cons of these relatively obscure financial vehicles, locally renown financial consultant and radio personality, George Chamberlin, and local mortgage broker Mehran Aram are co-hosting an informational workshop 2 weeks from today on January 27th, from 6pm to 8pm at the Encinitas Community and Senior Center in Encinitas CA. The event is free, open to the public, and light refreshments will be served. Reservations are requested by calling 877-600-1130.
Maybe I’ll see you there! By the way, this is not intended as an endorsement of reverse mortgages, nor the opinions either speaker…
A rare opportunity to meet Kris Kringle himself at the Kringle Mingle in Cardiff CA. Bring the kids, a camera, and your holiday spirit to the Cardiff Town Center this Thursday, Dec 10th, from 4 pm to 8 pm!
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