Forum Replies Created
-
AuthorPosts
-
June 25, 2018 at 9:27 AM in reply to: CA Landlords. What do you plan to do if the rent control initiative passes in November? #810312
CoronitaParticipant[quote=spdrun]Why reimburse anything?[/quote]
Because if thsts what it take to keep my tenant for 5+years without bugging me versus your tenant that moves out every year leaving you with a month or two of vacancy each year and time spent on finding another tenant , time that I’d rather spend on a track, I’ll take the easy tenant and the rebate for the win.That 3% is so miniscule it’s only.purchase is an inflation hedge. won’t even pay for tires and a days worth of e85
June 25, 2018 at 6:20 AM in reply to: CA Landlords. What do you plan to do if the rent control initiative passes in November? #810308CoronitaParticipant[quote=Hobie]I view annual increases in the higher end market ( or quality long term tenants) as nitpicking. I’m thinking contract builds in 3% increase with a 3% courtesy discount for on-time payment history or preferred tenant status, etc. Keeps good tenant happy. Now if you are renting to college kids, 3% auto increase ;)[/quote]
That’s what I feel too. and I don’t necessarily mean higher end market being expensive real estate too. just people with good quality financial backgrounds…
So is your idea something like an annual rebate program? I was thinking something like of an end of year rebate that would be discretionary, but generally reimbursed.
June 25, 2018 at 6:19 AM in reply to: CA Landlords. What do you plan to do if the rent control initiative passes in November? #810306CoronitaParticipant[quote=FlyerInHi]Apartment complexes always increase rent annually.
You should do the same also, even if only 1%. Bad business practice not to increase rents. Tenants take is for granted and don’t appreciate anyway. Train them early.[/quote]completely disagree. there is an entire pain in the ass factor you are not considering. Maybe your rent pool is of lower quality, but I like to deal with tenants of higher quality that do not cause a lot of drama, who do not have a problem paying on time, and who do not like to move around. I have very low months of vacancy that I have to factor in as cost. And most of my tenants, when they do move out, it’s because they have saved/invested enough to buy their own home or have relocated to a different part of the country.
The main reason I am more than happy to keep rents below market is I value my time rather than spending my time dealing with vacancy. it’s extra days enjoying hobbies, spending time with family, going racing, or going to see a movie , going hiking, or traveling. Life is short…i am not trying to maximize my incoming funds if it means significantly increasing the pita factor. I don’t “need” to squeeze every penny out of people at this stage in my life. Who wants turnover all the time? perhaps if İ have no one or nothing else to do….or because i needed more time to blog on on piggington frequently. As far as I am concerned, it pays the bills and as long as it doesn’t inconvenience me, I dont mind cutting people a slight break.
CoronitaParticipantBrian. Hillary lost. Move on….I thought fear mongering was a conservatard thing? When did you switch party lines?
Isn’t there some charity you can volunteer to work out, to help people? after all, now that you have a lot of copious free time, shouldn’t you dedicate yourself to social causes instead of always expecting everyone else to help? Hmmmmmmm
Come on, let’s see your superior social responsibility and consciousness you are so proud you have and always boast about as a progressive over your typical “deplorable”.
Also, this link might help you.
June 20, 2018 at 4:56 PM in reply to: CA Landlords. What do you plan to do if the rent control initiative passes in November? #810290CoronitaParticipantI just don’t see how this would solve the unaffordable housing issue. All I see is landlords jacking up rent more regularly so they make sure to keep as close to current market rates as possible. Maybe some people will motivate and sell.
Or exchange and convert to a primary/vacation home.
I wonder what the extra eviction rights for the tenant consists of.
I do think rent control would be adopted by certain places more readily than others. San Francisco, Los Angeles, Santa Clara, San Jose comes to mind as places they would adopt this immediately….San Diego, Irvine, most of Riverside…not so much….
June 19, 2018 at 11:34 AM in reply to: Why someone can have tax assessment far less than sold price #810279CoronitaParticipant1031, as most people use it for, in practice is for tax avoidance, not deferral.
It’s only a deferral if you eventually sell a property while you are alive.
But if you never sell, it’s a tax deferral until you die (which for your purposes is a tax avoidance, given the way our tax laws are structured)…And when you die, your kids owe none of the capital gains or depreciation recapture that you would have had to pay if you sold at the time of death….
Because the way “step-up” cost basis and depreciation recapture resets upon your death, your kids does not inherit any capital gains taxes or depreciation recapture that you use to owe while you were still alive. It all gets reset at the time of your death and when they inherit.
So even if they inherit the property and sell the day they got it, they will owe $0 in capital gains (even if you never paid a cent on capital gains while still alive)…Also, they will owe $0 on depreciation recapture, even if you never paid any of that too while still alive…
While alive, if you need money, and borrow against the equity, that’s not a tax event either, since a loan taken out on the property does not incur a tax hit.
So while alive you pay no capital gains and depreciation recap. And when your kids inherit your property, they pay no capital gains and depreciation recap…They get to keep the property tax bases you had due to all the nice CA propositions…….AND…as icing on the cake now, they owe no inheritance and estate taxes…lol……And you borrowed money against it, to use it for whatever purposes, also not a tax event…In practice, this is legalized tax avoidance.I just call it how it is.
It’s probably one of the many ways how the rich(er) keep getting rich(er)….Non-property owners get the shaft… and this started way before this administration…….That’s the fundamental lesson I didn’t learn until I was in my 30ies. Had I known earlier, I would have gotten involved in real estate a lot earlier…
Sink or swim.
June 19, 2018 at 10:41 AM in reply to: Why someone can have tax assessment far less than sold price #810277CoronitaParticipant[quote=barnaby33]FLU, are you referring to an 1031 exchange?
Josh[/quote]no, I was referring to seniors exchanging properties and keeping their tax basis.
If you are wondering about keeping property tax basis on inheritance, that’s prop 58 and prop 193.
the former is what happens when parents transfer to kids.
the later is what happens when grandparents transfer to kids.
CA and our Federal government disproportionate ly rewards property owners versus everyone else.
1031 exchange is good in that it allows you to avoid paying any depreciation recapture and capital gains on rental properties if you sell and buy something else. So a lot of people borrow against it, sell and exchange property with something and carry the debt over while freeing up cash. There are rules for the exchange, and they aren’t exactly easy. but if you call pull it off, good.
Separate tax laws governs what happens when you die and your kids inherit the property.
Basically , upon death, all sort of depreciation recapture and the property’s cost basis gets reset upon transfer to your kids. So If the house you bought for $100k is now worth $500k, your kids “cost basis” is now $500k so if they sell right away, they owe zero capital gains. Also, if it was a rental, all of the depreciation recapture you normally would have to pay ends up being reset to $0 for your kids… Hence why a lot of people never sell property unless they are in financial distress….If you need money, borrow against it….Now before, one thing your kids might be subject to was inheritance tax if your estate was large enough. But that was what a living trust was for if you are a joint couple… Using I believe a bypass trust, you can double the amount excluded from estate taxees..
However, with the recent changes to estate taxes by the GOP and Trump, for most people in practice, there no longer is estate taxes since the upper bound on that exemption is $10million i think. lol…and for some of us abitious enough to exceed that, I think there are ways to double that that exemption too as a joint couple..
of course all these rules can change … if the financial situation of the majority of people in this country continue to decline, home ownership in CA increasingly get more difficult for most people, and the property ownership is concentrated is a small percentage of the population….Enough people will be pissed and put something on a CA ballot that would then have a good chance of passing….if in doubt, consider CA the rent control bill on November’s ballot lol…
CoronitaParticipantI haven’t looked until a friend pointed it out recently….But these days, all I can say….
Eat sh1t, AMD short sellers…. Ha ha. Finally, vindication at its finest.
CoronitaParticipant[quote=flyer]Agree, flu. Our rentals have been performing very well, and also had the same issue concerning allocation of extra funds, so, after selling several commercial properties we had in the past, we jumped back into CRE a few years ago in different locations, which are also doing well at this point.
Wouldn’t want to recommend anything or give any advice in that regard, as there is definitely more risk involved, but just throwing the idea out there as an option.[/quote].
I need to find a new butler. So do you have any recommendations on that? And where’s cheapest place I can buy grey poupon? My stash is running low.
CoronitaParticipantI’m more worried each month that I have more available funds than anticipated, I am running out of ideas of what to do with them besides sticking them into a CD. I didn’t think tech would have lasted as well as it has. I guess it’s pretty difficult to get a work visa these days to fill a lot of unmet demand, lol.
Also, rent has been good. I had folks move out because they were impacted by the QC layoff, but they were filled right back up, again with newer recent hired QC guys. There were also folks looking to rent from Intel, Illumina, random biotech startups,etc. The bulk of the applicants didn’t make less than $90k/year and didn’t have a credit score less than 750. The problem was trying to close on a lease with tenant prospects during the week of the QC layoff. Two people signed a lease and then backed out because the found out the next week that they were impacted. I should have waited for the dust to settle.
Has anyone noticed the freeway traffic?It’s starting to look like L.A. traffic in some parts. I’m super excited about the trolley lines going all the way to UTC/Genessee.
On a side note, I predict by the same time next year the new dimsum place Fung Fung Yuen in Mira Mesa will be closed. Their business sucks. In other news, Pearl in RB has reopened under new management. Supposedly some korean restauranter that does a lot of BBQ places… And the food is pretty good there again…
CoronitaParticipantI am looking forward to deregulation of lending again $$$o the market$$$$ go bonker$$$$ again.
It’$$$ coming….
And it’$$$ going to be a totally awe$$$$ome ride up and back down when it happen$$$$…e$$pecially that even before that happens$$$$ we are $$$$eeing above peek price$$$$ (albeit non inflation adjusted).
The va$$t majority of people will once again try to borrow their way to affordability.
June 5, 2018 at 10:06 AM in reply to: Why someone can have tax assessment far less than sold price #810227CoronitaParticipantsink or swim. it’s not that hard to figure that one out. the great wealth inequality divide is about to get a lot worse.
June 5, 2018 at 6:33 AM in reply to: Why someone can have tax assessment far less than sold price #810224CoronitaParticipantlots of ways… for example if they are seniors Prop 60 and Prop 90.
great way to leave your kids properties too. when you die, they get to keep your property tax basis. so prior to that, exchange to a home a more expensive home to lock in the old tax basis , then they inherit it.
that’s probably why there’s a big devidd in CA home owners and non home owners. Existing home owners have so many advantages to just keep rolling properties into more properties. not just for them, but for their kids.
Hence why some people will keep accumulating and never sell.
even better now that inheritance tax for most of us has been eliminated .
CoronitaParticipantIf you are sure it’s trash…Have you reported it ot the CAL Air Resource Board?
https://www.arb.ca.gov/smp/resburn/resburn.htm
https://www.arb.ca.gov/smp/resburn/factsheets/resburnfstri_english_072014.pdf
-
AuthorPosts
