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Cynthia S. Radom
Certified Seniors Specialist
Specializing in Trust Sales
Coldwell Banker Realty - Beverly Hills CA
NEWS & ISSUES for BABY BOOMERS to GOLDEN-AGERS
** Writer and Publisher since October 1999 **
There's No Place Like Home
Never before has your home been more important or meaningful than the months you spent sheltering during the COVID-19 crisis. Even if you have lived in the same place for decades, you may have gained a totally
on where and how you live.
Hundreds of older Seniors who read my
live without full-time help and some live totally on their own. They depended on a neighbor, housekeeper, far away relative or friend for their needs.
Lack of personal safety and the long period of isolation
may have brought thoughts of moving closer to a relative, into a condo or an apartment where others are close by, if needed.
Little warning of the
stay at home
order had many people scrambling to create a makeshift home office, and to work remotely for the first time. Did you find appropriate space, privacy and solitude in your home for this purpose?
For better or for worse...
but, how about 24/7 togetherness for months during the quarantine?
Did you find a spot at home for
? Does converting your garage into a gym, a work space or a woman/man cave take priority now? Or, how about creating an
for your aging parent?
If your financial position has worsened because of the stock market decline or being laid off from work, using the equity in your home may be a new need. Or, having enjoyed isolation at your vacation home, that may become your primary residence.
Real estate is an investment that you enjoy
, and a very liquid asset, as well. You should still
love your home,
how you live in it and how it works for you. If not, it may be time for a change.
Finally Sold: A Brentwood Seller finally found market value for their home after
three-and-a-half years on
In today's environment, how do you know if living in a Seniors' community is safe? I asked the management at
Sunrise Senior Living in Beverly Hills what they are doing to ensure residents are shielded from the spread of COVID-19, see below:
This is a great question and it will vary depending on the specific needs and concerns of each prospective family. Some of the overall things we are doing to keep our residents safe are the
infection control precautions
we have in place to mitigate the chance of spread, such as: screening all of our team members prior to the start of their shift, tracking which team members are serving each resident and limiting any change as often as possible, monitoring our residents for any signs of illness and maintaining communication with their doctor, PPE (personal protective equipment) is worn in the community, all non-essential visitors have not been allowed in our community for some time now, our residents were moved to in-suite dining and we paused our large activities and moved to smaller, more meaningful activities. Our approach was very
and at this time we have not had any positive cases at our Beverly Hills community. Here is a
with some information that highlights more of our efforts.
As a result of the health-related economic slowdown, a
30%-40% decrease in the number of homes sold in SoCal (2020 vs. 2019) is projected. But, what a difference a new month makes. Just in the
BH office, we
pended almost 100 deals in the month of June, compared to
closed deals in the whole month of May (normally
250-300 deals close monthly). Sales are
Tax Savings Guide
The LA County Assessor has provided a quick
Guide to Trusts and Tax Savings
and how to avoid common and costly mistakes.
to review this two-page guide, then discuss questions with your estate planning professional.
Like all investments, the real estate market rises and falls. When the market changes direction it is determined by the ups and downs of these four factors:
- Interest rates
- Stock market
- Housing inventory
However, there is only
one determining factor in
every real estate transaction that never changes, no matter what direction the market is heading.
What the Buyer is willing to pay, and what the Seller is willing to accept.
So far, the SoCal real estate market has been in an upward momentum since 2012. Prices have well surpassed the pre-2008 financial crash, and what lies ahead as a result of COVID-19 remains to be seen. This current recession is
different in many ways compared to 2008.
Today's downturn is a health-related issue, and is not caused by financial or other factors that determine a changing market.
Buyers are clamoring to purchase a home while interest rates are still amazingly low. What remains to be seen,
are homeowners ready to sell?
The real unknown is future inventory, which may determine if the real estate market is going to change, and in which direction.
CA Budget Woes
The pandemic has plunged CA into the
worst budget deficit in State history
An analysis released in May shows CA facing a
deficit through summer 2021
, raising the possibility of deep spending cuts or substantial new tax revenues to make up the loss.
Pre-COVID-19 CA had a $23 Billion budget
marked an historic low for interest rates
How important is the business of real estate to CA budgets? Revenue generated from property ownership and the sale of real estate is used by Cities and Counties to fund schools, libraries, community resources, police and fire protection, emergency equipment, road work, public utilities and every government-backed service.
A major source of revenue for local governments, CA property taxes
raise over $60 Billion per year. Local governments levy property taxes on an owner based on the market value of their property, and are reassessed annually by the County Assessor. In the year a property is purchased, its taxable value is based on the sale price. While rates vary by County, a Buyer in LA can estimate their annual property taxes to be about
1.25% of the purchase price. Thereafter, annual property taxes collected are adjusted for inflation and typically increase up to
around $1 Billion is raised annually from transfer taxes. When every property is sold, a City and County transfer tax is collected based on a dollar value per every $1,000 of the sale price (SP).
City tax: L.A. and Culver City are $4.50/$1K; S.M. is $3.00/per $1K of the SP (Beverly Hills does not impose a City tax).
County tax: LA County is $1.10/per $1K of the SP.
Personal Income Taxes
over $90 Billion is raised in personal income taxes. When a property is sold, any profit from selling real estate (capital gains) is taxable income for the coffers.
Propositions 58 and 193 exempt
60,000 to 80,000 properties Statewide from annual reassessment, mostly in higher income areas. Today, most inherited properties are under Prop 13 when annual tax increases were capped at 2% based on
1974 market values. When a property is left to an owner’s off-spring, the low property tax follows ownership. Around two-thirds of these properties are
not used as primary residences, rather rentals or vacation homes. A major loss of revenue to CA City and County budgets.
Suze Orman, the renowned personal finance guru, discusses
Orman understands that it can be wrenching for longtime homeowners to consider a move after many years, she suggests to at least "
open your mind
to contemplate a few
Those happy memories are about the people you welcomed into your home and the experiences that took place within it.
You can move and still share those memories with your loved ones".
Here are other points
Suze makes for downsizing:
Move sooner than later, when you are more physically and emotionally able.
- Move to a less expensive home to open a cascade of retirement savings.
The equity from your home sale can add to your nest egg for an earlier retirement.
- Reduce monthly housing costs
(rent or mortgage), property taxes and maintenance.
Downsizing may enable you to work less or do work that pays less, but is more enjoyable.
says that waiting a few years to downsize may be a
Strike while the housing market is hot, for it may not be that when you decide to sell.
Suze says: A
Trust is THE
important document you can have.
Tidbits of News!
Negative": Results from my COVID-19 test.
Realtor Radom is cleared to be of service to you.
- Estate sales:
of June, the number of
the same period in 2019.
If your tenant(s) did not pay rent during COVID-19, they
have one year
the crisis is declared
to make good and pay back rent, as of now.
- WOW! F
or the first time ever
title of the wealthiest city
in the U.S.
the SoCal hillside community of roughly 24,300 people has an average annual income of $194,000 - more than double the national average, and surpassing Beverly Hills by $4,000.
Louis Vuitton Moët Hennessy, the world leader in luxury, has chosen Beverly Hills as the site of its first hotel in the U.S., expected to open in 2025.
heval Blanc Beverly Hills
will occupy four contiguous parcels bordering Rodeo Drive, Little Santa Monica Boulevard and Beverly Drive (the former
Sorry, no condos are in the plans.
LA County Assessor,
Jeffrey Prang, offers information on a
Trust, and what happens after the passing of the property owners. A
Will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. Even if you have property in a
Will, it needs to go through
Probate, a costly and lengthy delay in distributing proceeds to a beneficiary. By contrast, a
Trust can begin distributing property
after death, and a
avoid Probate. Either document does not prevent the property from being
reassessed as of the date of death;
a common misconception.
When the owners of a
Trust pass, the
Successor Trustee needs to notify the Assessor
within 150 days of the passing by filing a
Change in Ownership Statement-Death of Real Property Owner. If the beneficiaries of the
Trust are the decedents’ children, they are eligible to file for the parent-child
exclusion from reassessment.
Failure to notify the Assessor in a
timely manner and
without filing before the property is sold is a
common problem. Filing deadlines are
critical and can be
COVID-19 created new issues for owners who
rent their property. Mainly, if a tenant does not pay rent during the pandemic, they
cannot be evicted. If you
need the income from rent, rethink being a landlord -
Selling real estate during the pandemic has its challenges. Open houses were, and still are, banned. On-site showings were allowed if the home was vacant, but now all can be shown per
So, what happened to all those listings when COVID-19 hit?
Some owners decided to withdraw their listing or to place their property on a temporary
status. Some listings (mostly unoccupied) found a Buyer who actually opened and closed escrow during the shut-in. But, the bulk of completed transactions were rentals. New listings came on-market for sale and for lease, and for the first-time REALTORS
virtual open houses
means not real, but almost, or nearly as described, and possibly the next best thing. There have been
on a listing website, which is a video throughout the property. Choppy, lack of flow and some create a little dizziness while watching. Some are in 3-D.
starts with a video, often with the listing agent conducting a walking tour while describing the property and pretending the videographer is the Buyer. Prospects or other agents can view the video on the listing agent’s Facebook page or the listing website. Next, the listing agent announces a block of time he/she will be on-site at the property to answer
questions as the interested party watches the video tour from their home.
virtual open houses
may be the next best thing when public open houses are forbidden, it’s just not the same as an on-site viewing. Buying real estate is an
and a Buyer’s senses must be piqued to bond with the property.
viewings are a must
; to see, feel, hear and smell the property and its surroundings before making an offer.
available by appointment only for on-site viewings.
Respecting your privacy and confidentiality
, names and e-mails will only be used for providing pertinent material from Cynthia S. Radom and will not be shared with any other organization.
©2020 Coldwell Banker Real Estate LLC. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Owned By a Subsidiary of NRT LLC. This is not intended as a solicitation if your property is already listed.