Jaws Comes to Cardiff CA

The 44-acre property was purchased by the city from flower grower Robert Hall  in 2001 for $17 million.  Since that time, it has been bogged down by battles between various interests – in short, those who want the land to be developed into a sports park (heavily supported by city officials), and those residents living nearby who would prefer to have it be passive park land, arguing their way of life will be radically altered by the new facility  The proposal, as it stands now, includes five sports fields, a dog park, a skatepark, children’s play structures and a swim complex.

To keep up to date on the Hall Property and other issues concerning our beautiful Encinitas community, whether Old Encinitas, Cardiff, Leucadia or Olivenhain, sign up for the newsletter by emailing stoprezoning@yahoo.com.

Hey, Blake…if you’re looking for Del Mar CA Real Estate…you know who to call

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

Cleaning up the Ocean Views

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.

Undergrounding of the Powerlines – A Good Thing or an Undue Burden?

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…

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.

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!

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 recently received a copy of a letter written by Drew Cady, Del Mar CA resident and concerned citizen, to the Del Mar Fairgrounds Board on December 11, 2009.  If this plan is approved, it will seriously impact the quality of life for residents and visitors of the villages of Del Mar & Solana Beach and adversely impact the delicate wetlands adjacent to this fairgrounds.  In Drew’s opinion, it is an “ill-conceived, greedy attempt to secure revenues for the State, by sacrificing nature and our local communities.”  If you agree, or have an opinion to share, please comment.  You can also voice your opinion directly by writing your own letter to the board…

Here’s the letter:

Letter to the Board of Directors, 22nd District Agricultural Association, State of California commenting on the draft EIR for the expansion and development of the Del Mar
Fairgrounds

Dear Board Members of the Del Mar Fairgrounds, Agricultural District No.33:

I attended a meeting of the Fairgrounds Board of Directors several weeks ago and
spoke to you during the public 3ʼ commentary.  What I said is that I believe the quality of
life, not just for human beings, but for all the creatures who live on and near the Del Mar
Fairgrounds land will be radically and negatively altered forever by the enormous
development which you have set forth in your plan.  This development is wrong and
represents the greedy interests of a few people who are shortsighted and unaware of
the fragile ecosystem which exists around this massive fairgrounds land.  The other
evening while at the Inn LʼAuberge Hotel, I viewed an historic photograph of the river
basin that is now the Del Mar Fairgrounds.  Before me was a serene wilderness which
represented perhaps one of the most wonderful aspects of this relatively undisturbed
coastal area, up until man placed his heavy footprint upon it.  The slow takeover and
alteration of this marshland and delta which is the outflow of waters from a major
watershed along southern California has been mostly without regard for the damage
that it has caused to the natural environment.

We have learned a great deal in recent decades about how critically important these
natural environments are in maintaining a sustainable lifestyle for those of us who live in
this region, as well as for our offspringsʼ future.  To overdevelop this fragile land area, as you have depicted in your ʻmaster planʼ is thoughtless and reckless and damaging to
the future potentials of this region.  Like any environment, ours relies upon a cycle of life and a restorative water culture, which can endure all the burdens which mankind places
upon it.  I dare say, we are at a critical juncture in our history; one, that perhaps we will look back upon in future years, and realize that without significant efforts to preserve our watersheds, we would not have been given the privilege to continue to reside in this coastal desert land.  The earth is a naturally sustaining ecosystem which miraculously absorbs so much of the industrial and overdevelopment schemes of man, but we are rapidly approaching a time when these fragile systems will not be able to counteract the enormous pressure put upon them by Manʼs non-sustainable usage of natural
resources.

We are at this crossroad together and it is only through careful planning that we will be
able to assist the earth as it attempts to restore from all of the plunder it has endured
during the ʻreign of manʼ.   Our erroneous political structures and overactive
development instincts have proven us a weak caretaker of these lands, but we now
have perhaps our last opportunity to reverse this behavior and begin to work with the
earthʼs naturally sustaining systems in building a healthier and friendlier environment in
which to sustain our race and take care of all the other living beings on earth.

You can either ignore the pleas of what you might regard as a radical environmentalist
without any rationale for how to better utilize these Fairgrounds, or you can recognize
that your master plan represents a short sighted personal gain for few, at the expense of
the masses and our revered nature.