california Archives - Luxury Home Digest

Luxury Home Sales Hit by New Tax Laws?

Roberta Murphy Thompson — Thu, 07 Jun 2018 21:48:19 +0000

Realtors in California were groaning when the new tax laws hit this year. Luxury home sales were sure to crash and burn.

You see, the new tax code puts a limit on how much one can deduct in state and local property taxes–as well as income or sales tax–up to a measly total of $10,000. So when new tax laws went into effect, high profile experts were predicting an ugly impact on luxury home sales. Here are just a few of the predictions:

Capital Economics:

“The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.”

**Mark Zandi of Moody’s Analytics:**

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

The National Association of Realtors (NAR) predicted price declines in “high cost, higher tax areas” because of the tax changes. They forecasted a depreciation of 6.2% in New Jersey and 4.8% in Washington D.C. and New York. California luxury home sales would fare no better.

So, what really happened?

It appears the luxury home market may have been written off a little too soon. Of course, these are national figures, where in some locales a true luxury home can be had for less than 500,000. And in coastal California, you might find luxury homes starting at $2 million. Real estate pricing is always local. Regardless, here we present some interesting national figures:

1. According to NAR’s latest Existing Home Sales Report, here is the percent change in sales from last year:

Homes sales between $500,000 – $750,000 are up 11.9%
Homes sales between $750,000 – $1M are up 16.8%
Homes sales over $1,000,000 are up 26.7%

2. In a report from Trulia, it was revealed that searches for “premium” homes as a percentage of all searches increased from 38.4% in the fourth quarter of 2017 to 41.4% in the first quarter of 2018.

3. And according to an article from Bloomberg:

“Median home values nationally rose 8 percent in March compared with a year earlier, while neighborhoods of San Francisco and San Jose, California, have increased more than 25 percent.

Prices in affluent areas in Delaware and New York, such as the Hamptons, also surged more than 20 percent.”

And finally….

Aaron Terrazas, Zillow’s Senior Economist, probably summed up the luxury real estate market best:

“We are seeing the opposite of what was expected. We have certainly not seen the doomsday predictions play out.”

And isn’t that kind of a truism in life? When everything seems certain, life often delivers the unexpected. And so it is with tax laws.

States Soak the Rich–and Lose

Roberta Murphy — Mon, 28 Sep 2009 15:25:37 +0000

Donald Trump

Soak the Rich?

Yesterday, the Associated Press reported that millionaires are fleeing their luxury homes in New York to establish residency in less-taxing states. As a result, New York is receiving far less revenue than was expected from the wealthy since these wealth taxes were enacted last April.

Call it the law of unintended consequences.

To be fair, many of these losses come from scaled-back salaries and layoffs on Wall Street, but more than a few may be packing up and moving to more tax-friendly states such as Florida, Nevada and elsewhere–and are taking jobs with them. It is reported that billionaire Buffalo Sabres owner Tom Golisano who was paying $13000 a day in New York income taxes has moved to Florida. With him go 5000 jobs from Paychex, the Rochester, NY payroll processing company he owns. Rush Limbaugh has also given up his Manhattan home to escape excessive taxation.

Donald Trump tells Fox News that a number of his millionaire friends are also thinking of bailing from New York because of excessive taxation. Says AP:

“States also realized that having a higher tax rate than their neighbors would cost them talent, lose jobs and hinder economic growth, the foundation reported in May after Hawaii joined Maryland, New Jersey, California and New York to adopt a “millionaire’s tax.” New York, for example, has been careful not to raise its highest rates above New Jersey‘s, according to the foundation.”

In California, millionaires and job producers are already being heavily courted by Nevada, a state that is seeking to grow its employment base and fortunes with its minimal taxation and business-friendly environment: [youtube]http://www.youtube.com/watch?v=7pDKoX0uTwM[/youtube]

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Chilean Wine: You’ve Got to Be Kidding!

Roberta Murphy — Sun, 01 Feb 2009 14:20:53 +0000

by Eve Sieminski

I can’t begin to tell you how many years I have had a prejudice against Chilean wines. Each time I tried one, I was unimpressed–or worse, ended up with a raging headache.

Living in California, we are positively spoiled when it comes to wine. We have a never ending selection of fine wines, so it never occurred to me to search out fine wines from Chile.

At least not until I started connecting with wine folk on Twitter. There, I ran into Robert Bralow, who works for the country of Chile. And to my surprise and delight, send me a wonderful sample pack of 6 different wines (one white and the balance luscious reds).

The first one we opened up was a 2006 Santa Carolina Reserva Carmenere. My husband got to it first and said, “You will never believe how good this is.”
And was he ever right!

This was unlike any Chilean wine we had ever had: Very earthy, smooth and oh so drinkable!
The next night we opened the 2006 Caliterra Tributo Single Vineyard Carmenere. This wine was unbelievable! It resembled a very full bodied Pinot with intense fruit and flavor that just exploded with each sip.
The remaining 4 bottles went down just as smoothly and not a headache to be had!
This article is my mea culpa to the winemakers of Chile. Their price point is very affordable (all the ones we tasted were under $20), and with the great assortment out there to choose from, I am confident you and I will easily find wines that capture our tastes.

Wine Tip: Searching for a specific bottle of wine and can’t seem to find it? Check out www.wine-searcher.com. I found that Caliterra Tributo and ordered 6 bottles!
Na Zdrowia!

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A Most Unorthodox Market: Bob Dyson

Roberta Murphy — Mon, 01 Sep 2008 16:48:55 +0000

by Roberta Murphy

Last Thursday, I had the opportunity to sit across from Bob Dyson at his office in Del Mar and listen to this real estate legend discuss today’s real estate market. We were also fortunate to have Chris Dyson videotaping much of the discussion, which we have divided into four segments.

At the start of our interview, Bob Dyson said these are the worst conditions he has seen during his 40 years in the real estate business–citing symptoms such as lack of buyer confidence and the drastic deflation in certain real estate markets–including California, Nevada, Arizona and Florida.

The causes stem from irresponsible mortgage lending practices from 2003 to 2007 and the resultant and reactionary tightening of mortgage funds. Dyson simply calls it a “lending debacle.”

At the same time,he says, there is a large and growing backlog of buyers who want to buy–and are just waiting for reassurance that the real estate market has really bottomed, or is at least close to that point.

See below (and stay tuned for a radical solution):[youtube]http://www.youtube.com/watch?v=fV0WIWDrfIA[/youtube]

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Luxury Real Estate Exchanges

Roberta Murphy — Wed, 18 Jun 2008 03:20:12 +0000

by Roberta Murphy

This is a market that sometimes brings out the creative forces in real estate. And more and more, real estate exchanges are making lots of sense in the luxury real estate market.

Earlier this evening, I had an interesting conversation with a Sotheby’s real estate agent in Northern California.

It seems he is interested in exchanging his exquisite 104 acre property just outside Carmel for a luxury home in Rancho Santa Fe, just outside San Diego. His acreage offers 380 organic citrus trees that supply local restaurants, two greenhouses that produce basil for Whole Foods markets, Zinfandel grape vines that go you-know-where, and a number of fat and field-fed Angus cattle. He also has plans for an exquisite Tuscan villa that might be built for $1.5 million.

He is seeking to move to Southern California, and to Rancho Santa Fe in particular. And knowing that Rancho Santa Fe property owners love privacy, space and quiet, he thought that perhaps an easy and compatible exchange might be accomplished.

The numbers are certainly workable. He owes less than $800,000 on this parcel, in which he has invested nearly $3 million. He is seeking a Rancho Santa Fe home valued at $1.5 to $2.8 million–and may or may not be accomplishing the transaction via a 1031 exchange.

Quite simply, Northern California landowner wishes to relocate to Rancho Santa Fe and figures that some homeowner there would love the opportunity to exchange properties with him.

Makes sense to me.
So, if you have a Rancho Santa Fe home and have dreams of a bucolic life outside Carmel and California’s premier wine country, please let me know and I’ll arrange for a proper introduction. Just give us a call at 877-818-81979 or 760-402-9101.

And if you have an unusual luxury home exchange proposal of any sort, we’d also like to hear from you!

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La Costa Villas Offer Big Investor Bonus

Roberta Murphy — Sat, 29 Mar 2008 01:29:37 +0000

Roberta Murphy

Investors are moving back into the San Diego real estate market with impatient wallets. And luxury real estate investors are no exception.

They are seeking well-priced foreclosures, pre-negotiated short sales and most favored of all: Real estate investments with income streams.

So-called bargains in sub-marginal areas may not be the wisest real estate investment move anywhere. Perceived bargains in outlying markets may be nothing of the sort, and we persistently advise our clients to stay with blue chip real estate investments especially in volatile economic times.

We just received a whisper from La Costa Resort and Spa in balmy Carlsbad, California that buyers of their Villas will receive up to $125,000 at closing for leasing their properties back to them for two years. And of course, there is always the option of using their condos too.

This is a very limited offer, as only 10 La Costa Resort Villas whole-ownership, luxury condominiums remain. Each is fully furnished (just pack a toothbrush) with designer decor and high-end amenities throughout, and is located on the grounds of the world-class La Costa Resort and Spa.

Low out-of-pocket expenses enable resort ownership for minimal cost.

One-bedroom luxury condos start at $594,825, while two-bedroom units list for up to $1,033,000. With 75% financing, buyers can claim ownership with considerably low out-of-pocket expenses of up to $125,000. Plus, La Costa management will also waive monthly fees for two years to save La Costa Villa buyers even more.

A bonus of complimentary Villas Signature La Costa Sports Membership, valued at $16,500, is also included.

If you are interested in this exceptional value, please call Mike or Roberta Murphy for additional information at 760-402-9101 or 760-402-9102. We are including some luxury spa treatments for our buyers as well.

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A Novel Green Mansion

Roberta Murphy — Sat, 15 Mar 2008 01:23:41 +0000

by Roberta Murphy

Redneck Mansion

Any verbiage I add to this photo would probably be superfluous, since this chatty picture already exceeds the expected thousand words.

Hats off to someones clever recycling of mobile homes.

Not sure if the intent was green construction, but the designer certainly managed to minimize the footprint of this little mobile home park.

I also wonder about the relation of people who live here. And what about plumbing? Or high winds?

Finally, hope this upwardly mobile community isnt anywhere near the path of tornadoes.

Thank you Ronnie Sellers, fellow ANTS investor and bonsai guru in North Carolina, for the photo. He is especially fond of the red shipping container with the attached solarium.

Embarrassing Note: Just discovered this photo is from a movie set. The onlookers are cropped out of the photo. Still a clever arrangement!

A Luxury Home Bargain: Rancho Santa Fe Farms

Roberta Murphy — Sun, 09 Mar 2008 01:26:48 +0000

by Scott Murphy

Discriminating luxury home buyers in the San Diego area are starting to raise sophisticated eyebrows at some of the better real estate buys in luxury neighborhoods such as Rancho Santa Fe.

One of the best buys on the market these days is a magnificent 4-bedroom, 4.5-bath single story estate on two level acres that was recently remodeled. This Rancho Santa Fe Farms home features a lagoon pool, a citrus grove, fine hardwood flooring and a 4-car garage,and is now available for $2,195,000 or the price of a luxury tract home in coastal San Diego.

Rancho Santa Fe Farms is a favorite for golfers who appreciate equity membership in the Rancho Santa Fe Farms Golf Course, or for those who simply want a home sitting on some of the finest acreage in San Diego County.

Located at 15032 Rancho Santa Fe Farms Road, this residence listed by Danny Powers of Villa Sothebys International Realty will be held open this weekend. For additional information, please call Scott Murphy at 760-613-6190 or meet me at the home this afternoon!

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WCR to Unveil California Blog Network

Roberta Murphy — Tue, 08 Jan 2008 01:19:59 +0000

Updated note: This was written during the heady, early days of real estate blogging–when we are all going to be connected and syndicated in every direction. It never quite turned out that way. First came the Great Recession and many early players moved on to different ventures. As a seasoned and toughened San Diego Realtor, I continue to list and sell homes and write when the opportunity arises.

Many of the ealy elationships, though, have not only survived–but thrived.

by Roberta Murphy

Its fun to peer into the crystal ball and try to divine what fortunes lie ahead. It also helps when you have a visionary providing some tips and guidance.

Pat Kitano and Kevin Boer are two visionaries worth following, and they are convinced that 2008 will be the Year of the (Authoritative) Blog Network. Kitanos article is a great read that provides good information and understanding of what blogging networks are and how they can benefit both the consumer and the blogger.

An authoritative real estate blog is what the California Chapter of the Womens Council of Realtors plans to launch at the end of January. They are tapping their membership seeking capable and knowledgeable real estate bloggers whose personal real estate blogs will feed into the California WCR Blog Network.

All of the members contributed blogs will be indexed and offered as an encyclopedic resource for home buyers and sellers. As with most blogs, consumers will be able to enter into casual and anonymous, if they choose conversation with the blogging authors. Consumers and agents will be able to ask questions ranging from open houses, to market insights, to home selling strategies. The goal, says Kitano, is to promote the free exchange of real estate knowledge without any sales pitch.

Kitano and Boer, with Domus Consulting Group, are working feverishly to have the California WCR Blogs online by the end of this month. The site will feature mapping tools so viewers can check not only houses for sale, but can also find participating and local WCR bloggers to learn more about neighborhoods, market trends, home features and other real estate related topics.

The WCR Blog Network is revolutionary, says Kitano and will provide solid benefits for both the real estate consumer and the blog authors. œThe WCR Blog Network home page in effect acts as the ˜main newspaper to aggregate and distribute the published content of their agent œeditors. As a content repository, the blog network is positioned as a search engine magnet, and the resulting traffic flows through directly to the participating agents blogs. Each blog, he says, is a separate website that reflects the personality and special expertise of its author.

The WCR Blog will be non-denominational, in that the blog authors will represent many different real estate companies, and their blogs may come from any number of frameworks including WordPress, TypePad or other available sources.

As a member of the Womens Council of Realtors, I am tickled to share that I will be a representative blogger for North County San Diego when the WCR Blog debuts. For additional information, email roberta@sandiegopreviews.com

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