First Time Buyers: Better Hurry for $8,000 Tax Credit

It’s time to remind first-time home buyers that in order to qualify for the government’s $8,000 gift in the form of a tax credit, the deal must close by Dec. 1.

Buyers should have a purchase contract signed by early October, so they have 45 to 60 days to arrange financing and safely close the deal.

CNN Money Magazine: Coronado the Third Best Place in the Nation for the Rich and Single!

In its current edition, Money Magazine lists 25 towns and cities that are the best for those "seeking a sugar daddy (or sugar mama)." Says the magazine, "Follow the money to these towns and cities, where affluent young professionals are abundant." Third on the list of 25 is Coronado. A full 36.1% of residents are single. Median family income is $106,817. "Coronado is the perfect place for hanging out at the beach. Bond with fellow commuters on the ferry to downtown San Diego," effervesces the magazine, touting the "trendy bars and clubs in San Diego's Gaslamp district." Hermosa Beach is listed first and Arlington, Virginia, second.

Click here for more.

Tips for Parents Buying Homes for Children

With home prices low, now could be a good time for parents to give their children a home or even an investment property.Here are some suggestions for managing the tax consequences from Mark Luscombe, tax analyst with Wolters Kluwer.

Give a cash gift. Individuals are allowed to gift up to $13,000 per person in a given year without incurring gift tax. That means a couple could give their offspring and spouse $52,000 in a single year to go toward a down payment.

Lend money. The government requires that family members meet or exceed minimum loan rates to avoid having the loan be considered a gift. The rates are currently low. One way to handle this is for parent to use the $52,000 gift exclusion to forgive both interest and principal.

Use a trust. Set up a qualified personal residence trust, or QPRT. You’ll need an attorney to handle this transaction, but in a nutshell, parents put the home they want to give their children into a trust. At the end of a pre-set term, the home passes to the children with no taxes due.

Source: The Wall Street Journal, Shelly Banjo (06/25/2009)

Coronado Best Buys List for July 8, 2009

Greetings!

There are 20 properties currently in pending on Coronado Island right now. Action is brisk in the million dollar and below range, while anything above a million has been lingering a little longer. But there are exceptions to that rule...we’ve seen a few good deals sneak on the market priced so low that they are gone in just a few days!

Here is the current BEST BUY LIST:

$485,000 730 E Condo, 2/2, a charming condo with nice upgrades.$550,000--553 F Avenue, condo, 3 bedroom, 3 bathroom. Wow!

-$747,000—835 D #2, Condo, 3/3. Roomy and upgraded condo in the heart of the Village. High ceilings. Private location in the complex. Deck / yard area behind home. 3 bedroom home. More than 1700 square feet!! Granite countertops, stainless appliances.

$760,000. 60 Mardi Gras, House, 2/3. Least expensive detached home in the prestigious Coronado Cays. This home has one of the best locations in the Mardi Gras Village. The entry way is not shared with neighbour and is located across the street from the clubhouse with a common pool, hot tub & tennis court. It features: all hardwood floors throughout the 1st floor and stairway and has an air conditioner. There is a full bath on the first floor so the den/office can be converted into a 3rd bedroom with it's own full bath.

$824,900--78 Kingston, condo, 2/2. Priced reduced from $875,000. BRIGHT ONE LEVEL END UNIT WHICH OVERLOOKS BEAUTIFUL BAY CHANNEL WITH BOAT DOCK FOR UP TO 32' BOAT.. DINING ROOM WITH FULL WINDOWS & FIREPLACE IN LIVING ROOM NICE LIGHT EATING AREA NEXT TO KITCHEN WHICH HAS SLIDING DOOR TO DECK AND BACK STAIRS DOWN TO DOCK. WASHER & DRYER INSIDE. LARGE DEN OFF ENTRY COULD BE USED FOR 3RD BEDROOM W/O CLOSET. GARAGE & CARPORT.
$840,900—310 2nd Street, 3/2, House, BACK ON THE MARKET! Bank owned classic Spanish-styled home with bright exposures in prime location. Some remodeling w/original character preservation. Hardwood flooring, updated kitchen and fireplace in L/R. Bonus space over garage - zoning 1. Enclosed back yard.

$850,000-$950,000--438 D Avenue, House, 3/3. Brand new construction! Open floorplan with 3 bedrooms, 3 bathrooms and a finished attic. Gourmet kitchen includes a Viking range, cherry hardwood floors, open living room with fireplace, 2 car garage, laundry closet and more! Close proximity to Coronado Schools, Parks, Library and more. This property is approved for a VA loan.

$895,000—649 B, house, 2/1. Price Drop from $995K! This charming Tudor-style home will NOT last. In the heart of the Village on one of the nicest blocks in town. Check with city to build an addition.

$995,000—842 D, House, 3/2. TWO ON ONE -GREAT PRICE AND 2 REALLY NICE UNITS. Large lot approx. 3400sqft with FRONT HOUSE IS A CHARMING 2BR 1 BA HOME WITH BOTH A FRONT AND BACK YARD, FIREPLACE, HARDWOOD FLOORS COVED CEILING...THEN A SEPERATE 1 LARGE BEDROOM STUDIO, UPDATED AND CUTE WITH ITS OWN PRIVATE YARD AREA.GREAT LOCATION WALK TO EVERYTHING..SHOPS, RESTAURANTS AND BEACH..ALSO INCLUDED IN SALES PRICE ARE CONCEPTUAL PLANS FOR REMOLDELING OR REBUILDING SEPARATE UNITS...WOW.

$1,065,000—425 E, House, 3/3. Lender approved short sale at $1,050,000 on 5/22/09--Buyer lost patience for short sale process. Great opportunity for your buyer to step in and take advantage of this great buy in the Village. Fantastic home over 2000 square feet.
$1,450,000-1,535,000—641 A Avenue, house, 4/3. Major price reduction - submit all offers. Beautifully designed, built in 2006. Craftsman Design by Dorothy Howard, AIA. This wonderful home offers 4 BR's each w/french doors leading to private balconies. Kitchen features all Viking appliances & opens to an inviting Breakfast room & Family Room. Classic formal entry leads to LR & separate DR. Professionally landscaped with stone patios & cozy seating areas. Relaxing & private. Oversized Two Car Garage with an abundance of storage. More than 2,400 square feet!

-$1,685,000--49 Green Turtle, house, 3 bed, 2 bath—least expensive detached home in the Cays with its own dock—for TWO 45 foot yachts!

We update this list every two weeks based on price, location, square footage, and condition of ALL homes currently on the Coronado MLS. To subscribe to the Coronado Best Buys List and get pictures and additional information, please email christinevt@prusd.com with BEST BUYS in the subject line.

How's Your Zipcode Doing?

Check out this cool chart . Its updated by the San Diego Union-Tribune every month and shows how much homes are selling for in each zip code.

5 Ways to Expedite Your Home Sale

Selling a home quickly remains a challenge in many markets across the country. Here are ways to expedite a sale:

1. Cut the asking price to 10 percent to 15 percent below what comparable properties in the neighborhood are selling for.
2. Spruce up the outside. Update the landscaping. Power-wash the exterior and paint the door.
3. Appeal to first-time buyers. Advertise on younger consumers' favorite Web sites, such as Facebook and Twitter. Hire a photographer to shoot the house with a wide-angle lens so the rooms look bigger in online photos.
4. Price the house in the lower end of the range. A $299,000 house is in the high end of the $250,000 to $300,000 range but a $301,000 home is in the low-end of the $300,000 to $400,000 range.
5. Do what you can to make the deal close quickly. Be ready to move, offer to pay part of the closing costs, and/or throw in a year’s worth of association fees.

Source: Money Magazine, Beth Braverman (06/30/2009)

9 Reasons You Should Use a VA Loan to Buy Your Next Home

Here are some of the big reasons to use a VA loan:
1. Purchase with $0 Down. The VA loan is one of the only loan programs that allows the borrower to finance 100% of the home's value and purchase with $0 down. Compare this to 10-20% down for most conventional loans!
2. Lower Rates. Because the loan is backed by the government, banks do not require PMI (private mortgage insurance) which is an added monthly expense.
3. Lower Monthly Payment. In addition, interest rates for VA loans are significantly lower than conventional loans.
4. No Closing Costs. On a non-VA loan, you pay miscellaneous up-front fees, such as for processing or underwriting the loan. These fees can run around 3% of the loan amount—thousands of dollars. But on a VA loan, the seller frequently pays these fees for you.
5. Getting qualified is easier. Because the loan is backed by the government, banks have relaxed the strict lending rules for VA loan applicants.
6. No Prepay Penalty. For most non-VA loans (especially if you have less than stellar credit), if you pay the loan off early, which often happens if you refinance or sell the home, you pay a fee. Not with VA loans. You won't pay that fee.
7. Assumable Mortgage. With a VA loan, you can transfer your mortgage to someone else. They would assume your mortgage. This can help sell your home, especially if the interest rate on your mortgage is less than the current interest rate.
8. Additional Benefits for Disabled Veterans. If you are 10% disabled or more, the VA waives the funding fee. Also, if you have a permanent and 100% service connected disability, you may be eligible for a $50,000 grant for adapting a home to accommodate your disability.
9. There is a great selection of VA Approved Homes for Purchase! Home inventory around San Diego County is extremely high, giving you more choices and options.

Department of Veterans Affairs home loans -- VA loans for short -- are a popular option with home buyers. In the past fiscal year alone, the government has guaranteed 489,418 VA loans totaling more than $63 billion. Loans are open to active and former members of the armed forces who meet specific criteria for length and time of service, as well as discharge conditions. Reservists and National Guard members could be eligible if they served at least six years and received an honorable discharge. Veterans discharged for a service-related disability are potentially eligible, as are some members of the Public Health Service and foreign veterans who served with the Allied forces during World War II, according to the VA's field operations office.

Do you qualify? Contact christinevt@prusd.com to find out, and to get a list of VA-approved homes to purchase in Coronado! (Disclaimer: Please note that we are licensed real estate agents, not mortgage brokers, but we are happy to put you in contact with a well-qualified mortgage broker who quickly and accurately can assess your lending needs.)