Capital Gain Taxes – The Same for Now
Toward the end of 2010, many people wondered what would happen to capital gain tax rates on January 1, 2011.
Some even scrambled to close the sale of property before the end of the year. As it turned out, Congress extended the capital gain rates in mid December; at least for two years. The following is a brief summary of portions of the Tax Relief, Unemployment Insurance Reauthorization and Jobs Creation Act of 2010 (not surprisingly referred to as “the extension of the Bush Era Tax Cuts”) which are likely to impact real estate investors.
• Capital Gain and Dividend Rates – Current rates were extended for two-years for all taxpayers with a maximum rate of 15% for both.
• Personal Tax Rates – Current rates were extended for two-years for all taxpayers with the top rate
remaining at 35%.
• Social Security Tax – The employee tax rate of 6.2% on the first $106,800 of wages drops to 4.2% in 2011.
• Alternative Minimum Tax – Current exemptions were extended for all taxpayers for two-years.
• Estate Tax – An exclusion amount of $5 million and a tax rate of 35% for amounts in excess of the
exclusion was established for two-years; the exclusion will become indexed beginning in 2012.
• Gift Tax – Like the Estate Tax, a Gift Tax exclusion amount of $5 million and a tax rate of 35% for amounts in excess of the exclusion was established for two-years, with the exclusion being indexed
beginning in 2012.
• Other Extensions – The $1000 child credit; an additional standard deduction for real-estate taxes;
extension of 15-year cost recovery for certain leasehold improvements, restaurant buildings and qualified retail improvements (through 2011); and the extension of various energy credits (through 2011).
Although the legislation provides some certainty for two years, we may find ourselves questioning our future rates again in 2012.
This information is provided by James Callejas of Investment Property Exchange Services. For all your real estate needs please contact Anju Bhatia at http://www.anju4homes.com/
Tuesday, February 1, 2011
Saturday, January 22, 2011
East Bay Home Sales Rise in December
Home sales increased by a whopping 17.5% in December 2010 over November in the 9 county Bay Area. Prices continued to feel the pressure and were down 1.3% from the previous year and month with the median price being $375,000. Lower end home sales dominated the over 7,000 homes that changed hands. Some of the increase in sales activity is attributed to the recent increase in interest rates, pushing on the fence buyers into action.
In the Alameda county home sales dropped 2.3% from a year ago and the median price fell by 3.6% to $347,000.
Foreclosure home sales in the Bay Area accounted for just over 30% in December. Foreclosure sales have been continuing to increase as a percentage of total sales in the recent months.
In the Alameda county home sales dropped 2.3% from a year ago and the median price fell by 3.6% to $347,000.
Foreclosure home sales in the Bay Area accounted for just over 30% in December. Foreclosure sales have been continuing to increase as a percentage of total sales in the recent months.
Friday, January 21, 2011
Germano house in Ruby Hill raided
The recently sold home on 1371 Germano was raided by Homeland Security in connection with a federal customs and immimgration criminal investigation. The bank owned home sold in early December for $1.8 million. It is almost 6,400 sf and on the golf course with 5 bedrooms. It had previously sold for $2.8m. For further details Click here.
If you would like to receive information on other bank owned properties in Ruby Hill, please email me at Anju@RubyHillLiving.com
If you would like to receive information on other bank owned properties in Ruby Hill, please email me at Anju@RubyHillLiving.com
Monday, January 10, 2011
Apartment Construction in East Bay takes off
According to the California Building Industry Association, multi-family housing did well in November 2010 as compared to a year ago, jumping 207 percent. Single family home starts fell 61 percent from last year and 37 percent from October. Builders are clearly anticipating an increase in demand for rental homes in the East Bay.
Visit http://www.rubyhillliving.com/ for information on East bay homes
Visit http://www.rubyhillliving.com/ for information on East bay homes
Monday, January 3, 2011
Foreclosures/Default Activity and Economy
Default Activity
In the East Bay, about 171,000 households or 31% of all mortgaged homes were underwater in the 3rd quarter of 2010 – a decline of 1.4% as compared to the previous quarter. Much of this decline was due to increased foreclosure action on the part of the banks as opposed to increasing home prices. The Federal Reserve Bank has estimated that one third of those who are underwater will return to positive equity within years by paying down debt. That still leaves a large chunk of homeowners who could suffer foreclosure action in the months to come.
Overall Economy
The end of 2010 saw a number of encouraging signs for the economy with respect to layoffs, factory production and consumer spending. The latter should continue to improve with the Congress approved tax cuts putting a little more money in the hands of consumers. Economists are predicting a 4% growth in the US economy which should help lower the unemployment rate. Homeowners who fall behind on their mortgage payments and subsequently get foreclosed upon are often unemployed. The market has seen an increase in mortgage interest rates and the expectation is that these will continue to rise at a moderate pace in the year ahead.
Most predictions suggest that the housing market will begin stabilize in the second half of 2011.
For more information visit http://www.rubyhillliving.com/
In the East Bay, about 171,000 households or 31% of all mortgaged homes were underwater in the 3rd quarter of 2010 – a decline of 1.4% as compared to the previous quarter. Much of this decline was due to increased foreclosure action on the part of the banks as opposed to increasing home prices. The Federal Reserve Bank has estimated that one third of those who are underwater will return to positive equity within years by paying down debt. That still leaves a large chunk of homeowners who could suffer foreclosure action in the months to come.
Overall Economy
The end of 2010 saw a number of encouraging signs for the economy with respect to layoffs, factory production and consumer spending. The latter should continue to improve with the Congress approved tax cuts putting a little more money in the hands of consumers. Economists are predicting a 4% growth in the US economy which should help lower the unemployment rate. Homeowners who fall behind on their mortgage payments and subsequently get foreclosed upon are often unemployed. The market has seen an increase in mortgage interest rates and the expectation is that these will continue to rise at a moderate pace in the year ahead.
Most predictions suggest that the housing market will begin stabilize in the second half of 2011.
For more information visit http://www.rubyhillliving.com/
Pleasanton Home Sales for Period ending November 2010
In 2010 Pleasanton saw a big increase in sales of homes priced under $700,000. Looking at 2006 when the market was at near peak in housing sales activity, a total of 81 homes priced under $700k were sold as compared to 226 in the first eleven months 2010 (upto November 30th). In all price ranges, 2010 fared much better than 2009 including homes priced over $1million - a total of 141 homes were sold this year as compared to 101 last year. Increasing home sales and low inventories (only a 3 month supply in the last few months) should bode well for prices in the months ahead, to overcome the declines in 2010.
For more information visit http://www.rubyhillliving.com/
Ruby Hill 2010 Home Sales Fare Well
The highest priced Ruby Hill home sold in 2010 went for $5.5 million! This gorgeous home on Germano with over 12,000 square feet of living space, built on a lot with over 54,000 square feet closed in late December - showing once again, Ruby Hill is a place that can command record prices even in this slow economy. In fact 24 of the 66 homes which were sold or went pending this year were priced over $2million. Not too shabby by any means.
December 31, 2010 Total Bank owned share Short Sale Share
Active 11 1 0
Pending 7 0 3
Sold to date 2010* 59 4 9
*COE 01/01/10 or later
Inventories remained lower than previous years as some sellers chose to rent their homes rather than sell. Over 10 homes were rented in 2010 – currently there are about 3 homes available for rental. 1773 Via di Salerno remains the only bank owned property among the 11 active properties in Ruby Hill. The average price of the 59 sold homes was approximately $1.7m. at $334 per square foot and 60 days on market on average. Last year a total of 43 homes sold/went pending – a big improvement in total sales even though prices fell.
December 31, 2010 Total Bank owned share Short Sale Share
Active 11 1 0
Pending 7 0 3
Sold to date 2010* 59 4 9
*COE 01/01/10 or later
Inventories remained lower than previous years as some sellers chose to rent their homes rather than sell. Over 10 homes were rented in 2010 – currently there are about 3 homes available for rental. 1773 Via di Salerno remains the only bank owned property among the 11 active properties in Ruby Hill. The average price of the 59 sold homes was approximately $1.7m. at $334 per square foot and 60 days on market on average. Last year a total of 43 homes sold/went pending – a big improvement in total sales even though prices fell.
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