Love Letters. Real Estate

[plowhog]

County assessor said so long as the next owner is a direct descendant then 100% of the tax relief goes to the new owner and it doesn't have to be our primary home.

I'm not familiar with Sonoma County's specifics on parent/child exclusion re: property taxes at inheritance. But, beware that CA voters recently approved a new proposition (19?) greatly diluting that exclusion and watering down others. Might be something to check, fyi.

 

[California]

I'm not familiar with Sonoma County's specifics on parent/child exclusion re: property taxes at inheritance. But, beware that CA voters recently approved a new proposition (19?) greatly diluting that exclusion and watering down others. Might be something to check, fyi.

Yeah. I think the advantages continue only so long as there is no change in ownership, after the recent modifications.

We're older, we're about to create a Trust so the kids can more easily settle our estates. A big question I need a clear answer to: will transferring my sole ownership of the orchard into the Trust jointly owned by my wife, be a change of ownership that ends the present Prop 13 grandfathered low assessment.

 

[Sigarms]

Which is why I'm not buying guns or real estate right now.

I've only bought one house in my life, but funny enough, I have had a bad habit of buying guns in my past, but haven't bought any (guns) lately as well LOL

 

[plowhog]

will transferring my sole ownership of the orchard into the Trust jointly owned by my wife, be a change of ownership that ends the present Prop 13 grandfathered low assessment.

Obviously check with an attorney; however, I believe they will tell you it is a "nominal" transaction that is not considered a change of ownership as necessary to reassess. Good luck!

 

[goeduck]

MSN

www.msn.com

I was a first time home buyer in 1981 when interest rates were 18%. House prices are not what they are today, but that interest rate was a killer. I could not find a good inflation adjusted mortgage calculator but it is not like buying back then was a cake walk. In some ways it was probably harder. Today's mortgage rates are a dream.

 

[Jstpssng]

I was a first time home buyer in 1981 when interest rates were 18%. House prices are not what they are today, but that interest rate was a killer. I could not find a good inflation adjusted mortgage calculator but it is not like those buying back then was a cake walk. In some ways it was probably harder. Today's mortgage rates are a dream.

I was looking in 1981 but it took me another 20 years before I finally bought anything. As the saying goes, I wish I'd known then what I know now.

 

[two_bit_score]

I was a first time home buyer in 1981 when interest rates were 18%. House prices are not what they are today, but that interest rate was a killer. I could not find a good inflation adjusted mortgage calculator but it is not like buying back then was a cake walk. In some ways it was probably harder. Today's mortgage rates are a dream.

Oh I did love that RE market back in the 1980’s!

Owner finance at 10%. Buy today because the interest rates could be 5% higher tomorrow. Price was never even a question.

 

[Frankenkubota]

I was a first time home buyer in 1981 when interest rates were 18%. House prices are not what they are today, but that interest rate was a killer. I could not find a good inflation adjusted mortgage calculator but it is not like buying back then was a cake walk. In some ways it was probably harder. Today's mortgage rates are a dream.

me too.

i sold it a year later by owner, which was my first by owner transaction.

i ran an ad in the local paper....it said, duplex, x$, 14.5% FHA assume loan, no rate change no qualify .

the phone rang off the hook, nobody cared much about the house, it was that below market loan they wanted.

 

[Jstpssng]

Oh I did love that RE market back in the 1980’s!

Owner finance at 10%. Buy today because the interest rates could be 5% higher tomorrow. Price was never even a question.

That's what's happening to a lot of tracts of land, larger local companies are buying them, cutting all of the wood then splitting them up into smaller tracts and selling each parcel for what they paid for the entire tract. With owner financing they have driven the price of bare land out of sight... at 10-14% interest people will have so much money tied up into it prices will never go down.

 

[two_bit_score]

That's what's happening to a lot of tracts of land, larger local companies are buying them, cutting all of the wood then splitting them up into smaller tracts and selling each parcel for what they paid for the entire tract. With owner financing they have driven the price of bare land out of sight... at 10-14% interest people will have so much money tied up into it prices will never go down.

What are those tracks marketed for? Ranchettes?

 

[Jstpssng]

What are those tracks marketed for? Ranchettes?

Mostly hunting, or homesteads. It’s pretty frustrating because it’s almost impossible for the average Joe to pick up a decent piece of timberland... when somebody approaches a realtor the first thing he does is call a liquidator.
I also see the same thing when looking for used pickups... anything which the new car dealers pass on goes to a “buy here pay here” dealership which sells them for well over the value, then charges exorbitant (sp) interest rates.

 

[Frankenkubota]

here's a new one for me

yesterday ups shows up. i haven't ordered anything but you never know.

he pulls this envelope out.

I said son, if that envelope requires a signature, you can shove it where the sun don't shine. He laughed and assured me it didn't require a signature. He mentioned he had delivered several envelopes that day that all looked the same.

If you ever have to sign something in front of a witness, grab your ankles, call your lawyer and get out your check book!

Turns out it was a letter from the xyz co. and they want to rent 48 of my 53.19 acres. They develop solar farms and will pay about $900/year per acre. It's a tree farm so about $100K in logging revenue?

That's about $45K/ year. I could almost move to Cali!

 

[riptides]

We get weekly offers on our land for solar installs. Flat, near high transmission lines, no trees. Serious cash.

Only issue, county government. Really big issue. Most always say NO. Like 9 times out of ten. Their claim is, "don't want to remove land from agriculture zoning". Property owners statement " We don't farm, ever, anymore or etc."

I am sure it will be in the court systems soon. Property rights vs. government. There is too much cash at stake. And well....in this area....farms are just not viable anymore. No one wants to farm, age, expenses, you know.

here's a new one for me

yesterday ups shows up. i haven't ordered anything but you never know.

he pulls this envelope out.

I said son, if that envelope requires a signature, you can shove it where the sun don't shine. He laughed and assured me it didn't require a signature. He mentioned he had delivered several envelopes that day that all looked the same.

If you ever have to sign something in front of a witness, grab your ankles, call your lawyer and get out your check book!

Turns out it was a letter from the xyz co. and they want to rent 48 of my 53.19 acres. They develop solar farms and will pay about $900/year per acre. It's a tree farm so about $100K in logging revenue?

That's about $45K/ year. I could almost move to Cali!

 

[MoKelly]

On the other hand, prices of water front property here in cottage country (2.5 hrs NW of Toronto) have doubled during the pandemic. People are wanting to “escape from Alcatraz” in my view, and this new “4th wave” of Covid is not helping things.

Your water front property comment is spot on due to covid.

We had a place at Lake Ozark Mo. Nice place on the water with a dock to hold boat and 2 ski.

It was on the market a few months before covid but got little interest. Took it off the market.

Covid hits. I think “no way it will sell now until this stuff is over”. Just sort of forget about selling.

Wrong! Market spikes and a few months later realtor is calling saying she has multiple folks asking. We sold for 1.7x what we originally asked only a few months earlier. Absolutely craziness. Never seen anything like it in my life.

MoKelly

 

[riptides]

Rural property in my area is scarfed up before it even gets listed. Word of mouth.

My neighbor "sold" their property before I even knew it was for sale. Probably close to a 48 percent increase from when they built it less than a year ago. Million dollar properties are the norm around me these days. Growth and Covid play into it.

My issue, I don't see where I can go, I still like my property. And it still has future potential.

Your water front property comment is spot on due to covid.

We had a place at Lake Ozark Mo. Nice place on the water with a dock to hold boat and 2 ski.

It was on the market a few months before covid but got little interest. Took it off the market.

Covid hits. I think “no way it will sell now until this stuff is over”. Just sort of forget about selling.

Wrong! Market spikes and a few months later realtor is calling saying she has multiple folks asking. We sold for 1.7x what we originally asked only a few months earlier. Absolutely craziness. Never seen anything like it in my life.

MoKelly

 

[MoKelly]

Rural property in my area is scarfed up before it even gets listed. Word of mouth.

My neighbor "sold" their property before I even knew it was for sale. Probably close to a 48 percent increase from when they built it less than a year ago. Million dollar properties are the norm around me these days. Growth and Covid play into it.

My issue, I don't see where I can go, I still like my property. And it still has future potential.

Yep! There was a 20 acre parcel of undeveloped property next to mine at the farm. The owner was an absentee owner. I saw him rarely but did ask him once that if he were to sell let me know first. I wanted to control that parcel since it was adjacent to me.

Well, one day a new guy is there. Turns out the owner sold and, as you say, no listing. I never even knew it was on the market.

New owner seems like a good guy but I still would have liked to had a chance. Price was very high as you’d expect but they aren’t making any more land.

MoKelly

 

[two_bit_score]

Yep! There was a 20 acre parcel of undeveloped property next to mine at the farm. The owner was an absentee owner. I saw him rarely but did ask him once that if he were to sell let me know first. I wanted to control that parcel since it was adjacent to me.

Well, one day a new guy is there. Turns out the owner sold and, as you say, no listing. I never even knew it was on the market.

New owner seems like a good guy but I still would have liked to had a chance. Price was very high as you’d expect but they aren’t making any more land.

MoKelly

I know at least one family in a rural area here where they have amassed a considerable amount of property and some parcels acquired by granting the sellers "Life Estates" in the property.

The buyer pays the seller now and the seller continues to live on the property and use it as they please but upon their death the property fully conveys to the buyer.

 

[MoKelly]

I know at least one family in a rural area here where they have amassed a considerable amount of property and some parcels acquired by granting the sellers "Life Estates" in the property.

The buyer pays the seller now and the seller continues to live on the property and use it as they please but upon their death the property fully conveys to the buyer.

That is interesting. I never even thought about that concept.

MoKelly

 

[California]

I know at least one family in a rural area here where they have amassed a considerable amount of property and some parcels acquired by granting the sellers "Life Estates" in the property.

The buyer pays the seller now and the seller continues to live on the property and use it as they please but upon their death the property fully conveys to the buyer.

If I ever considered buying a Life Estate property I would make darn sure the elderly couple's heirs are in full agreement.

 

[Jstpssng]

An up and coming source of revenue for timberland is “selling carbon credits.” Basically big companies will buy your right to cut the wood so that they can keep on polluting.