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(former)FormerSanDiegan
ParticipantNo problem.
They are including post-foreclosure sales (REO sales)., which were 37.5% of the sales in So Cal in April.
Participantsurveyor is correct. You can deduct up to 25K of losses from real estate against regular income, up to income limits. Starts phasing out at 100K and completely phases out at 150K. Different rules apply for real estate professionals. These losses may be carried forward to future years and may be used against passive income (no limit) or against regular income up to the limits described above. Also, they may be used when the property is sold.
If you exceed these income limits … After owning rentals for a number of years, it is pretty easy to build up 10’s of thousands of dollars in carryover losses, even on properties that break even after taxes due to the depreciation. These losses you build up in early years of ownership translate into tax free cash in later years as you either pay off the loan or rents increase. If you think tax rates will be higher 20 years from now, carryover losses may not be a bad thing.
One other aspect you should get familiar with is loan eligibility and requirements. This is changing and likely to revert back to the more conservative end, particularly for better rates. Lenders have typically included 75% of the gross rental income when computing debt-to-income ratios. Also, down payment requirements for the best rates are likely to be in the 20-30% range.
Participantsurveyor is correct. You can deduct up to 25K of losses from real estate against regular income, up to income limits. Starts phasing out at 100K and completely phases out at 150K. Different rules apply for real estate professionals. These losses may be carried forward to future years and may be used against passive income (no limit) or against regular income up to the limits described above. Also, they may be used when the property is sold.
If you exceed these income limits … After owning rentals for a number of years, it is pretty easy to build up 10’s of thousands of dollars in carryover losses, even on properties that break even after taxes due to the depreciation. These losses you build up in early years of ownership translate into tax free cash in later years as you either pay off the loan or rents increase. If you think tax rates will be higher 20 years from now, carryover losses may not be a bad thing.
One other aspect you should get familiar with is loan eligibility and requirements. This is changing and likely to revert back to the more conservative end, particularly for better rates. Lenders have typically included 75% of the gross rental income when computing debt-to-income ratios. Also, down payment requirements for the best rates are likely to be in the 20-30% range.
Participantsurveyor is correct. You can deduct up to 25K of losses from real estate against regular income, up to income limits. Starts phasing out at 100K and completely phases out at 150K. Different rules apply for real estate professionals. These losses may be carried forward to future years and may be used against passive income (no limit) or against regular income up to the limits described above. Also, they may be used when the property is sold.
If you exceed these income limits … After owning rentals for a number of years, it is pretty easy to build up 10’s of thousands of dollars in carryover losses, even on properties that break even after taxes due to the depreciation. These losses you build up in early years of ownership translate into tax free cash in later years as you either pay off the loan or rents increase. If you think tax rates will be higher 20 years from now, carryover losses may not be a bad thing.
One other aspect you should get familiar with is loan eligibility and requirements. This is changing and likely to revert back to the more conservative end, particularly for better rates. Lenders have typically included 75% of the gross rental income when computing debt-to-income ratios. Also, down payment requirements for the best rates are likely to be in the 20-30% range.
Participantsurveyor is correct. You can deduct up to 25K of losses from real estate against regular income, up to income limits. Starts phasing out at 100K and completely phases out at 150K. Different rules apply for real estate professionals. These losses may be carried forward to future years and may be used against passive income (no limit) or against regular income up to the limits described above. Also, they may be used when the property is sold.
If you exceed these income limits … After owning rentals for a number of years, it is pretty easy to build up 10’s of thousands of dollars in carryover losses, even on properties that break even after taxes due to the depreciation. These losses you build up in early years of ownership translate into tax free cash in later years as you either pay off the loan or rents increase. If you think tax rates will be higher 20 years from now, carryover losses may not be a bad thing.
One other aspect you should get familiar with is loan eligibility and requirements. This is changing and likely to revert back to the more conservative end, particularly for better rates. Lenders have typically included 75% of the gross rental income when computing debt-to-income ratios. Also, down payment requirements for the best rates are likely to be in the 20-30% range.
Participantsurveyor is correct. You can deduct up to 25K of losses from real estate against regular income, up to income limits. Starts phasing out at 100K and completely phases out at 150K. Different rules apply for real estate professionals. These losses may be carried forward to future years and may be used against passive income (no limit) or against regular income up to the limits described above. Also, they may be used when the property is sold.
If you exceed these income limits … After owning rentals for a number of years, it is pretty easy to build up 10’s of thousands of dollars in carryover losses, even on properties that break even after taxes due to the depreciation. These losses you build up in early years of ownership translate into tax free cash in later years as you either pay off the loan or rents increase. If you think tax rates will be higher 20 years from now, carryover losses may not be a bad thing.
One other aspect you should get familiar with is loan eligibility and requirements. This is changing and likely to revert back to the more conservative end, particularly for better rates. Lenders have typically included 75% of the gross rental income when computing debt-to-income ratios. Also, down payment requirements for the best rates are likely to be in the 20-30% range.
ParticipantHow many of those reported sales were foreclosed properties that went back to the lenders?
That would be ZERO.
Those transactions are recorded by the county but not included as part of DQ’s sales numbers. Sales are only arm’s length transacitons and must include a buyer and a seller and money changing hands. A bank buying back their foreclosure at auction does not count.
“DataQuick Information Systems started collecting public record information in 1979. We started publishing statistics in 1989. For eighteen years we’ve used a tight “arm’s-length” definition to distinguish valid sales from all the other real estate activity that we get from county recorder offices. DataQuick has enhanced the database significantly the past 18 years and we’ve decided to take advantage of the improvements
To count as an “arm’s-length” sale for our sales counts, the logic we’ve used insisted that there be a seller, a buyer, and that money changed hands. We’ve now expanded this to include transactions where there was a purchase loan if no price was apparent. ”
ParticipantHow many of those reported sales were foreclosed properties that went back to the lenders?
That would be ZERO.
Those transactions are recorded by the county but not included as part of DQ’s sales numbers. Sales are only arm’s length transacitons and must include a buyer and a seller and money changing hands. A bank buying back their foreclosure at auction does not count.
“DataQuick Information Systems started collecting public record information in 1979. We started publishing statistics in 1989. For eighteen years we’ve used a tight “arm’s-length” definition to distinguish valid sales from all the other real estate activity that we get from county recorder offices. DataQuick has enhanced the database significantly the past 18 years and we’ve decided to take advantage of the improvements
To count as an “arm’s-length” sale for our sales counts, the logic we’ve used insisted that there be a seller, a buyer, and that money changed hands. We’ve now expanded this to include transactions where there was a purchase loan if no price was apparent. ”
ParticipantHow many of those reported sales were foreclosed properties that went back to the lenders?
That would be ZERO.
Those transactions are recorded by the county but not included as part of DQ’s sales numbers. Sales are only arm’s length transacitons and must include a buyer and a seller and money changing hands. A bank buying back their foreclosure at auction does not count.
“DataQuick Information Systems started collecting public record information in 1979. We started publishing statistics in 1989. For eighteen years we’ve used a tight “arm’s-length” definition to distinguish valid sales from all the other real estate activity that we get from county recorder offices. DataQuick has enhanced the database significantly the past 18 years and we’ve decided to take advantage of the improvements
To count as an “arm’s-length” sale for our sales counts, the logic we’ve used insisted that there be a seller, a buyer, and that money changed hands. We’ve now expanded this to include transactions where there was a purchase loan if no price was apparent. ”
ParticipantHow many of those reported sales were foreclosed properties that went back to the lenders?
That would be ZERO.
Those transactions are recorded by the county but not included as part of DQ’s sales numbers. Sales are only arm’s length transacitons and must include a buyer and a seller and money changing hands. A bank buying back their foreclosure at auction does not count.
“DataQuick Information Systems started collecting public record information in 1979. We started publishing statistics in 1989. For eighteen years we’ve used a tight “arm’s-length” definition to distinguish valid sales from all the other real estate activity that we get from county recorder offices. DataQuick has enhanced the database significantly the past 18 years and we’ve decided to take advantage of the improvements
To count as an “arm’s-length” sale for our sales counts, the logic we’ve used insisted that there be a seller, a buyer, and that money changed hands. We’ve now expanded this to include transactions where there was a purchase loan if no price was apparent. ”
ParticipantHow many of those reported sales were foreclosed properties that went back to the lenders?
That would be ZERO.
Those transactions are recorded by the county but not included as part of DQ’s sales numbers. Sales are only arm’s length transacitons and must include a buyer and a seller and money changing hands. A bank buying back their foreclosure at auction does not count.
“DataQuick Information Systems started collecting public record information in 1979. We started publishing statistics in 1989. For eighteen years we’ve used a tight “arm’s-length” definition to distinguish valid sales from all the other real estate activity that we get from county recorder offices. DataQuick has enhanced the database significantly the past 18 years and we’ve decided to take advantage of the improvements
To count as an “arm’s-length” sale for our sales counts, the logic we’ve used insisted that there be a seller, a buyer, and that money changed hands. We’ve now expanded this to include transactions where there was a purchase loan if no price was apparent. ”
ParticipantI’ve always preferred used. I’ve owned four houses in my life. Newest one was 33 years old when I bought it. Some people call these existing homes.
Here’s why:
1. Location: I like to be closer to my job. Older established neighborhoods tend to be closer to the job centers.
2. Location: Older established neighborhoods tend to be closer to entertainment and amenities, like the beach, downtown, Zoo, Bay, etc. Places we would take the kids.
3. I don’t like to pay HOA or mello roos.
4. Character of the house. Older homes typically (not always) tend to have more character than cookie cutter developments.
5. Character of the neighborhood : Older neighborhoods have more variety of population. Newer neighborhoods are built and sold out over a short period you end up with similar price points, resulting in relatively narrow slice of demographics. (Some people like that aspect, I don’t).
6. Lot size to house footprint tends to be higher. I hate the thought of my next door neighbor calling to borrow sugar or butter and having them hand it through our side windows.ParticipantI’ve always preferred used. I’ve owned four houses in my life. Newest one was 33 years old when I bought it. Some people call these existing homes.
Here’s why:
1. Location: I like to be closer to my job. Older established neighborhoods tend to be closer to the job centers.
2. Location: Older established neighborhoods tend to be closer to entertainment and amenities, like the beach, downtown, Zoo, Bay, etc. Places we would take the kids.
3. I don’t like to pay HOA or mello roos.
4. Character of the house. Older homes typically (not always) tend to have more character than cookie cutter developments.
5. Character of the neighborhood : Older neighborhoods have more variety of population. Newer neighborhoods are built and sold out over a short period you end up with similar price points, resulting in relatively narrow slice of demographics. (Some people like that aspect, I don’t).
6. Lot size to house footprint tends to be higher. I hate the thought of my next door neighbor calling to borrow sugar or butter and having them hand it through our side windows.ParticipantI’ve always preferred used. I’ve owned four houses in my life. Newest one was 33 years old when I bought it. Some people call these existing homes.
Here’s why:
1. Location: I like to be closer to my job. Older established neighborhoods tend to be closer to the job centers.
2. Location: Older established neighborhoods tend to be closer to entertainment and amenities, like the beach, downtown, Zoo, Bay, etc. Places we would take the kids.
3. I don’t like to pay HOA or mello roos.
4. Character of the house. Older homes typically (not always) tend to have more character than cookie cutter developments.
5. Character of the neighborhood : Older neighborhoods have more variety of population. Newer neighborhoods are built and sold out over a short period you end up with similar price points, resulting in relatively narrow slice of demographics. (Some people like that aspect, I don’t).
6. Lot size to house footprint tends to be higher. I hate the thought of my next door neighbor calling to borrow sugar or butter and having them hand it through our side windows. -
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