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September 26, 2007 at 12:04 PM in reply to: Fairbanks Ranch vs. Santaluz vs. Cielo vs. rest of Rancho Santa Fe #85986
(former)FormerSanDiegan
ParticipantThose are closed sales, so August reflects deals made in June-July. The impact of the mortgage mess will hit about the same time as the typical seasonal slowdown (Sept-Oct). Weak sales are baked into the cake for Sept and Oct.
September 25, 2007 at 3:27 PM in reply to: Nice place but never in a million years could I afford it yet. #85876ParticipantIn this area nearly half the children are ranked in the upper 50% percentile of their class. It’s like a 2 minute drive to the airport, and people bake cookies, have lemonade stands and hold hands singing Kum Ba Ya on the weekends.
Participant[img_assist|nid=4914|title=10 Minutes from La Jolla|desc=|link=node|align=left|width=466|height=343]
September 25, 2007 at 10:10 AM in reply to: What does it take to sell a place in this market? #85822ParticipantThanks for the reminder of the rent being taxable income – I had forgot about that when considering different scenarios.
CAREFUL. Rent is only taxable to the extent that it exceeds your costs. In your case you will surely have a tax loss, which will adds to what you can deduct assuming you make less than 150K per year. These costs include Mortgage interest, Property Taxes, Insurance, Depreciation, maintenance, property management (if used), etc. Depreciation is about 3.6% of the value of the structure at the time you acquired it (land not included). If the structure was worth 250K, this is a paper (tax) loss of ~ 9000 per year.
You can deduct up to 25K of these losses per year against your income if you make under 100K. This maximum amount is reduced by 1$ for every 2$ you make aver 100K.You will surely not have any taxable gain. And will likely have a significant additional tax deduction beyond what you currently have.
ParticipantMath API quiz :
1. If you leave Santee at 8:00 am traveling west at 65 MPH, what time will you arrive in La Jolla 20 miles away ?
a. 8:10 am
b. 8:10 am
c. 8:10 am
d. All of the Above2. Rank in order according to the number of years that the following tribes/countries that ruled Southern California over the past 700 Years:
a. Chumash, Kuymeyaay, Cahuilla, and Tongya tribes
b. Spain
c. Mexico
d. United States of America3. True or False:
The Majority of people taking a test fall above the 70th Percentile.Answers :
1. B.
2. A, B, D, C
The various native tribes ruled until approximately 1600 (unknown # of years) The Spanish from the 1600’s through 1821 (About 200 years) and the USA from 1848-present (159 years), Mexico from 1821-1846 (25 years).
Note: Mexico actually acquired the state for 25 years as the result of Spanish colonists stealing the area from the natives in the first place.It is currently officially ruled by its inhabitants through what is known as a Democracy. It’s inhabitants include primarily those who descended from European, North American, South American, Asian, and African descent, as well as every combination thereof.
3. Either answer is acceptable, as long as you feel good about it.
ParticipantIt appears that the futures market is projecting current declines indefinitely into the future. When the actual housing market is priced as such it will be time to buy.
ParticipantAdditional thoughts:
At age 60, if she is unable to take care of herself, could she be considered disabled ? That’s awfully young to be too old.
You don’t have to provide details. Just consider the fact that if she has a condition that impairs her ability to work and/or take care of herself, she is likely eligible for disability payments from Social Security. Even before retirement age …
http://www.ssa.gov/dibplan/index.htmSeptember 24, 2007 at 2:14 PM in reply to: Did this rate cut do anything to help the economy? #85724ParticipantIt typically takes a few months, not a single week, for the effects of rate cuts to ripple through the economy.
ParticipantAlong the lines of Rustico’s trade idea, but less complicated …
If you wanted to hold this house long term, consider the costs to rent out your home and finding another place to rent. To make the numbers work, you’d have to move to a less expensive neighborhood.
ParticipantHas anyone looked behind the facts behind the common perception that the FED, by lowering rates is killing the dollar.
If this were true, would the converse be true. i.e.. When the FED raises rates does that cause a stronger dollar ?
The answer is NO.
FACT:
In 2002 the Fed Funds Rate = 1.75%
In 2002 the Dollar Index = ~ 120FACT:
In 2007 the Fed Funds Rate = 5.25% (prior to recent cut)
In 2007 the Dollar Index = ~ 82 (prior to recent cut)So, the FED raised rates, in fact they TRIPLED the Fed funds rate, but the dollar still declined by more than 30% over this period.
It appears to me that the value of the Dollar is not really closely related to the Fed funds rate.
So, why all the buzz in the media about the FED killing the dollar ? It’s been declining over the past 5 years. Must be other factors at play here, don’t you think.
ParticipantJust another rat hole for the City Council to stuff money down. If any action in this direction is taken it will end up putting Gov’t money into the hands of city council buddies.
ParticipantMy favorite (NOT) proposal …
“Form a regional land bank to buy foreclosed properties to create affordable buying opportunities while guarding against neighborhood blight. Purchased homes could be rented at affordable rates and later sold at affordable prices.”
Who wants to compete with shady City Hall or the County-appointed bureaucrats on discount property ?
Brought to you from the same guys who brought you the pension scandal/mess.
ParticipantThey know the front end will be volatile with the dollar getting hammered and oil and commodities going higher but they see the magnitude of the slowdown coming our way and are gambling that will mute inflation. Ben indicated the Great Depression could have been avoided if more liquidity had been available in the system. I am not saying this is right or wrong and there are plenty of holes here. I am just trying to make sense of the move our FED made that on the surface seems idiotic.
Regarding the FED’s move … In my opinion, it’s actually quite simple and obvious. When the economy starts sucking, the FED lowers rates. This is what they do. The dollar declines if our cycle is ahead of the rest of the world.
When the rest of the world’s economies start sucking, their central banks will cut rates, too.
When the US recovers the dollar will recover. It’s happened before.
Regarding the dollar … It sank in the late 80’s to early 90’s as well. Starting from a dollar index of 124 in 1986 and declining to 80 in September 1992, as the US started recovering from recession.
The dollar went through a couple smaller cycles and peaked again around 120 in early 2002, dropping to 81 at the end of 2004 and is about 79 today.
So the dollar declined to about 65% of it’s 1986 value by 1992, only to return to within ~5% it’s previous peak by 2002. Currently in a drop to about 66% of its recent peak.
I know things are different this time, but they were different last time, too.
Extrapolating the current trend of the dollar and coming to the conclusion that it’s a one-way trip is the same mentality that led some to conclude that real estate prices go up forever.
ParticipantActually, this happens in La as well. There is more traffic in the morning coming from downtown to the westside than from the westside to downtown. Ask anyone who drive on the I-10.
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