[quote=DWCAP] . . . The resulting bounce since then has convinced them to hold on till they can get out for even.
There isnt too much room to expand. I dont understand all of it, but it was gonna cost him like a quarter mil+ to put a second story on it. . .
. . . They make great $$$, and if they really wanted to make it up, they could just cut back on the lifestyle alittle. But they dont so they have chosen to remain stuck. . .
It was just an example of how family housing inheritances can sometimes not be optimal. [/quote] (emphasis added)
I believe the way your parents left the RE was FAR MORE VALUABLE than them or the estate liquidating the RE in order to be able to distribute cash. Our wonderful “Prop. 13” makes it so.
DWCAP, I don’t feel condos are currently benefitting from any “bounce” in the market right now or will appreciate at all in the foreseeable future.
Well, your post just illustrates that an heir can’t have it both ways. If one chose to occupy mom and dad’s house instead of selling because of the Prop 13 treatment, all the while knowing how big the property was and then subsequently “grow out of it,” one either has to live in it as it is or, like you said, “go up” if there’s no room. I believe your brother can save at least $100K by doing as much of the second-story himself as possible and build it for $125 – $150K. Here, of course, the family might be inconvenienced for more than a year.
DWCAP, both parcels are protected under Prop 13, no? Do YOU or another relative own the property next door and if so, would you/they be willing to sell it to your brother so he can apply for a lot joinder thru the subdivision map act?? I’ve seen this done in Chula Vista. Then he can build a sprawling one-story and take years for platting, permitting and building and the family would be much less inconvenienced. While he’s messing around with the formalities for 1.5 yrs. +, he can rent the place next door for more cash flow.
He is probably aware that another option is to sell and buy a bigger house, with market-rate taxes.
