Oct 12, 2009 | No Comments | Sean Mills
Renting out homes has long been a profitable enterprise for many Valley landlords.
The business model was simple: Buy a home. Rent the home for at least the monthly mortgage payment. And when you decide to sell the home, enjoy the Valley’s reliable appreciation in home prices.
That model fell apart amid the housing-market crash. Landlords, like [...]
Renting out homes has long been a profitable enterprise for many Valley landlords.
The business model was simple: Buy a home. Rent the home for at least the monthly mortgage payment. And when you decide to sell the home, enjoy the Valley’s reliable appreciation in home prices.
That model fell apart amid the housing-market crash. Landlords, like everyone else, saw home values plunge. Rents fell. Many landlords who bought when prices were high now struggle to charge tenants enough to cover their mortgage payments. And this year, as foreclosures mounted, homes were snapped up by investors and turned into inexpensive rentals.
Suddenly, the landlord business has changed. Competition for tenants is increasing as more homes become rentals. Apartment owners are lowering rents, offering free utilities or a month’s free rent, eliminating security deposits and credit checks.
This is the third in a periodic Republic series on how different segments of the housing industry are reinventing themselves to work toward a recovery. The new reality for Valley landlords is still taking shape. Longtime landlords slammed by the housing crash find they have to settle for less income, take more risks on tenants’ reliability and try to keep their properties out of foreclosure. New landlords see opportunity in the low housing prices.
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Oct 12, 2009 | No Comments | Sean Mills
This, unfortunately, I do is a good step for a property owner. In the past I have seen the state and local municipalities step up and re-assess a building when a partner was bought out thereby raising our property tax basis, after all it is a transfer albeit to the remaining partners. We were not [...]
This, unfortunately, I do is a good step for a property owner. In the past I have seen the state and local municipalities step up and re-assess a building when a partner was bought out thereby raising our property tax basis, after all it is a transfer albeit to the remaining partners. We were not happy as the remaining partners did not receive the benefit the state did. Live by the sword die by the sword. California take notice this is the wave of tactics we will see.-Sean
SACRAMENTO – County assessors are increasingly worried that the historic drop in property values in the Inland area and around the state will turn out to be more than just a temporary blow to government coffers.
Millions of properties statewide have been temporarily reassessed to reflect their lower market value. Under state law, property owners will pay reduced taxes until the market recovers and the property returns to its base value.
But assessors and other tax officials say there are signs that some property owners are going a step further: using back-and-forth ownership transfers to trigger a property reassessment and lock in a much lower level of property taxes.
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Oct 12, 2009 | No Comments | Sean Mills
Note: The Sacramento Association of REALTORS® is now breaking out monthly resales by equity sales (conventional resales), and distressed sales (Short sales and REO sales). I’m following this series (as an example) to see changes in the mix.
Click on graph for larger image in new window.
Here is the September data.
They started breaking out REO [...]
Note: The Sacramento Association of REALTORS® is now breaking out monthly resales by equity sales (conventional resales), and distressed sales (Short sales and REO sales). I’m following this series (as an example) to see changes in the mix.
Click on graph for larger image in new window.
Here is the September data.
They started breaking out REO sales last Buy Acomplia pills year, but this is only the fourth monthly report with short sales. About 63 percent of all resales (single family homes and condos) were distressed sales in September.
The second graph shows the mix for the last four months. Conventional and short sales have held steady, but foreclosure resales were lower in August and September. There are many reports of more foreclosures coming, and the number of foreclosure resales should pick up later this year.
Total sales in September were off 18% compared to September 2008; the fourth month in a row with declining YoY sales.
On financing, over half the sales were either all cash (25.2%) or FHA loans (27.6%), suggesting most of the activity in distressed bubble areas like Sacramento is first-time home buyers using government-insured FHA loans (and taking advantage of the tax credits), and investors paying cash.
Calculated Risk source article
