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PerryChase
Participantpowayseller, thanks for posting the info. I admire your dedication in informing friends and relatives about Real Estate.
However, I’ve given up because poeple just don’t want to listen. They think I’m crazy to predict a 50% crash. Like someone else said here previously, I hate to see people getting hurt by the coming crash, but if it happens it’ll be by their own doing. I don’t feel like it’s my responsibility to educate people anymore.
ParticipantI don’t advise to buy a primary residence throught your LLC:
1. You’ll cause yourself tax problems because the use of the home is income to you and would need to be declared on your personal income tax. The bookeeping complexity is not worth it. This raises a red flag and you might cause yourself to get audited.
2. Obtaining financing may be a problem unless you pay cash.
3. Lawsuits as was mentioned earlier.
4. Corporation may need to declare bankruptcy in the future. Who knows?
5. You loose homeowners exemption for property taxes. $7,000 reduction in assessed value is no big deal however.
6. If you want, you can buy a second/vacation home through corporation. If you make it available to all your employees, then you can justify it as a business expenses. That I would advise.
I know taxes quite well and i can tell you that middle and upper middle class pay a lot of taxes (proportionately) than the rich and the poor. Poor don’t pay much taxes and neither do the wealthiest because of business write-offs and tax shelters.
Participantsalo_t, what you’re doing is smart so long as you’re putting down 10% or less (money which you’ll no longer have use of). Don’t forget to add property taxes to your calculations as well. You might just get someone to bite.
Don’t worry about hurting the sellers’ feelings. We live in a capitalist society and a deal’s a deal.
Please let us know if things work out for you. Also please tell us about the funny/interesting responses from the sellers’ agents.
ParticipantSalo_t, are you sure you want to buy a condo now? Why not rent a condo in the same complex you want to buy then wait fr the price to drop even more? I’m sure that your interest, property tax and HOA payment would be more than rent.
Participantirvinesinglemom, I would second all the advice on delaying the purchase. Don’t succumb to the pressure to buy now. You’ll be amply rewarded.
I know people who bought expensive homes just to keep up with their friends and try to get that perfect lifestyle. Well, they’ll find how empty their lives are pretty soon.
Even stretching to buy an expensive car is unwise in my view. Remember that beautiful Mercedes you saw drive down the street? Do you remember the person at the wheel? huh… i bet you don’t even remember. So why try to live life by what others might think.
There’s nothing wrong with renting.
Participanttechnovelist, personally i would also move to Vancouver, Canada. Vancouver is a great place and also very scenic.
However, I don’t think that the city would qualify under mydogarelazy’s criteria for moving to given that housing there is also in bubble. Plus, it vouldn’t be that easy given that you’d have to apply for Canadian residency and work permit.
ParticipantYeah, people think they have the greatest kids… just like they think they have the greatest house (but they want to sell it and no one is offering). *Just joking* If anything, your kids must be smart.
BTW, I don’t think that Barnaby is bitter at all.
Participantmydogsarelazy, based on the criteria you’ve listed, I’d move to Austin TX. There are good jobs there. The cost of living is low. In Austin, one could buy a house, pay it off, invest the remainder, and even work part-time and go back to school. In essence have a fairly worry free life. Austin is a good American city with wholesome values and culture as well.
But that would however not really work for me. Personally, I’m getting my financial ducks in a row, then enventually, I’ll move overseas for about 1/2 the year while keeping my base in San Diego. I’ll travel the world and take it easy for a while — have passport, can travel kinda life. That’s what I’m aiming for. Of course, I don’t have wife and kids to take care of. While I live in a SFR now, I’d be OK living a studio apartment in Paris or Hong Kong.
On another note, if a family is Black, Asian or another minority, would they really want to move to middle America? I would guess not.
ParticipantJES, what state would you go to? I’m wondering what you think is a good quality of life and what housing should cost (not just for you but for everyone else around you).
ParticipantI have a friend just like Laura. He’s hates his house and wants to sell. But he’s holding out for a ridiculous price. He’s gonna learn the hard lesson in his own time.
August 6, 2006 at 9:38 AM in reply to: San Diego’s Big Investment in Low Wage Jobs, or Reality Check for Sellers #30922Participantbubble_contagion, that’s exactly what happened in the 1990s. I remember quite well. Many owners and sellers will get disillusioned with equity loss and leave the state. Many whites who have family in other states will leave for a better “quality of life.” Immigrants have no choice but to stay and tough it out.
I expect the upcoming crash to make California a more Hispanic state than ever (a good thing in my view).August 5, 2006 at 11:18 PM in reply to: Mortgage Lender to Answer Questions that You May Have #30899ParticipantAnother question for you X1Y2Z3. Say a buyer borrows $500k to buy a house. Prices drop to $300k. Can the buyer hand the key to the bank and walk? What recourse does the lender have?
ParticipantThanks SD Realtor. What does the “inactive” i see on Zip Realty mean?
ParticipantWithout immigrants, population would be flat and the economy would not grow much either. Immigration benefits people at the top because they own all the wealth and asset appreciation benefits them most.
We want our businesses to be competitive so we need to feed them workers. That’s one reason our economy is robust compared to other developed countries’.
Established citizens usually benefit from population growth because they own assets such as land and housing that new arrivals have to purchase.
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