RealEstate680

It’s important to tell you that I am not an expert in financial planning. I am a seasoned real estate professional that has discovered a way of buying property with our retirement funds. Moreover, this method can be used to buy property locally as well as internationally, including places like Costa Rica.

Self Directed IRA is legally no different than any other IRA. The term “self-directed” simply indicated that you, the client choose your IRA’s investments without the aid of a traditional financial planner or specific investment company. Your self directed IRA can purchase raw land, rental properties, commercial property, condos, mobile homes, boat slips, TIC and other foreign property investments and much more.

The IRS has a website http://www.irs.gov/publication 590, pages 40 and 41 discuss what you CAN’T do with an IRA. The rules of governing what an IRA can invest in are exclusive, not inclusive.

As a real estate professional I am always looking for ways to purchase property for the long term. The self-directed IRA is a tremendous way of buying property of all types. Careful planning will often enable an investor to profit from these opportunities with great success.

In November 1988, voters in the State of California approved Proposition 90, which is designed to allow people over the age of 55 to move from one county to another and retain their property tax base. Through the years many Counties have opted out of this option. The list tends to change from year to year.

Here is a list of Counties that accpet the tax value transfers: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara and Ventura.

Counties that have rejected Prop 90 in recent years include: Butte, Calaveras, Contra Costa, El Dorado, Fresno, Inyo, Kern, Lake, Madera, Marin, Mendocino, Merced, Modoc, Mono, Napa, Nevada, Placer, Riverside, Sacramento, San Benito, San Bernadino, San Luis Obispo, Santa Barbara, Santa Cruz, Shasta, Siskiyou, Stanislaus, Solano, Sonoma, Ttinity, Tularea and Yolo.

The Federal Reserve lowered the rate that Banks trade money by .50%. This reduction is intended to limit any damage done to our economy by the financial problems felt in past weeks/months. I must applaud the Fed for the .5% cut to Bank rates, as most real estate people expected a .25% redution.

What does this mean to consumers? Rates on consumer debt like car loans and home equity lines will benefit. Home loans will not feel relief as much because the cut was factored in a few weeks ago. This cut will hurt return on investments, like CDs. It also continues to weeken the dollar, making foreign goods more expensive. Inflation may nudge higher.

My idea of a normal market based more on activity than pricing or interest rates. It’s a process.

Renters buying for the first time. Condo owners buying their first single family home. Growing a family or just needing more space and buying a bigger home. Deciding to buy an investment property. Finally, making the decision to scale down to a manageable home that requires less time and work.

There is no other investment opportunity that offers the ability to leverage your money into such potential gains.

What’s a normal real estate market? It’s understanding how to apply your money and skills through a given period of time.

Walnut Creek real estate has shown to be one of the most consistent areas in the US while on a larger scale; Contra Costa real estate is so diverse that the statistics tend to show the market in more of a down turn that many of the individual areas like Walnut Creek . The 680 corridor has a very strong employment base that fuels housing.

In today’s age of technology, buyers and sellers have tremendous data at their finger tips. Combine that with a strong, knowledge real estate agent and you have the equipment you need to buy and sell real estate.

Marion Bennett has some thoughts of her own about the normal real estate market on the coast.

I am happy to report that the past seven days; from Tuesday, August 28th to today, Tuesday, September 4th there were more home sales in Walnut Creek than new listings on the Multiple Listing Service.

16 new home listings and 19 sales. This means more buyers are in the market. Open houses this weekend were busier than the past several weeks.

IT’S ALL GOOD!