Public Policy "NEWS"

To understand why Proposition 13 is fair, one must understand how it works. Proposition 13 curbs property taxes by restricting the maximum rate (1%) and, more important, by limiting increases in assessed valuation (2% annually). With the latter provision, it is easy to see how a home’s current value can greatly exceed it’s taxable value over a span of just a few years. The substantial difference between a property’s actual value and its taxable value disappears when the property changes hands. When this occurs, county assessors reassess the property at full market value. Thus, recent purchasers derive no immediate benefit from the limitation on annual increases in taxable value. Shortly after Proposition 13’s adoption by the voters in 1978, the California Supreme Court recognized its inherent fairness. Justice Frank K. Richardson, speaking for a nearly unanimous court, concluded that “an acquisition value system…may operate on a fairer basis than a current value approa

The notion "creditworthiness" can be defined as a presumed ability to meet agreed deadlines related to repaying the credit and the interest accrued without affecting the vitality of the borrower, i.e. the repayment process should be based on the income received in the process of the borrower's usual activity, without affecting adversely his/her financial situation or financial results as well as other business entities. An important point in conducting the credit activity is the thorough analysis of the business activity and the income received in this business activity is taken as a fulcrum. It is necessary that a number of conditions be observed, namely: The credit extended as an absolute value should meet the real needs of the borrower; ƒThe credit period should correspond exactly to the circulation speed of the resources for the securing of which it has been extended; ƒThe profitability of the borrower's business activity should entirely cover the c

Personal retirement funds, like those held in self-directed IRAs, are an often overlooked source of capital because most investors (and real estate pros) do not know it’s possible to invest IRA funds beyond stocks, bonds and mutual funds. But self-directed IRAs give account owners control over choosing their investments and they can use IRA funds to participate in almost any form of real estate investment -- from condominiums and office complexes to REITs or tax liens. Using an IRA to invest in real estate provides the added benefit of investing with tax-advantaged dollars. When a real estate investor uses retirement dollars, in most, if not all cases, capital gains are avoided and taxes on income from return on investment are deferred until it's time to take distributions. There are also certain regulations that you need to be aware of when it comes to investing in real estate with a self-directed IRA. One example is that self-directed IRAs are prohibited fro

California Senate Bill No. 1461 is effective as of July 1, 2009 and it has real estate agents scrambling to comply. This Bill amends Section 10140.6 of the Business and Professions Code. As of July 1st, it requires a real estate "...licensee to include his or her license identification number on specified solicitation materials, as defined, and on real property purchase agreements when acting as an agent in those transactions.What is covered? The Business and Professions code states: A real estate licensee shall also disclose his or her license identification number on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting as an agent in those transactions... For purposes of this section, “solicitation materials intended to be the first point of contact with consumers” includes business cards, stationery, advertising fliers, and other materials designed to solicit the creation of a

In today’s market, securing financing for home ownership can be tedious and stressful. Many builders have simplified this process in order to provide you the best deal possible that gets you into your new home quickly and easily. And in a buyer’s market, some builders are willing to pay additional closing costs.

More housing‬ units are being occupied, and that dictates a strengthening market in 2016. In 2016 and 2017, housing ‪ construction‬ will increase and home prices will rise. Read more

Home sellers can truly benefit from online promotion of their property.  If you are a home seller, ask your realtor to explain their internet marketing campaign.  If you are a real estate agent, we'd like to know - what online tools work in your marketplace?