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Huge Upper Kingsbury Price Reduction!

255 Andria Offered at $499,000!

 

Reduced $50,000 to $449,000!!!

 

 

 

 

 

 

Located in Upper Kingsbury on the Nevada side of Lake Tahoe, this recently remodeled home offers three+ bedrooms, three baths, a mother-in-law unit, and beautiful private sauna.  This charming “Tahoe-style” cabin has three floors built into the mountain-side with plenty of windows, sunshine, and secluded forest and mountain views. 

Though the feeling is very “mountain retreat”, this cabin offers all the comforts you’d want in a home.  The great room featuresa stone fireplace (gas), Italian tile, a large bump-out window, front and back ipe decks, and coffered pine ceilings with covered beams.   A pine kitchen carries on the theme.  The renovated guest bath includes a claw-foot tub, vessel sink and antique-style vanity.  The top floor features a recently renovated bathroom with custom shower and full sauna; three bedrooms including a master with gorgeous views, private deck, and gas fireplace.  The optional fourth bedroom/extra room is located by catwalk over the garage and is very private. The walk-out basement is designed as a mother-in-law unit with café themed slate wet bar, sun room, and third bathroom.  French doors and slate entry open out to the driveway.     

This newly listed mountain retreat places you about three minutes from Heavenly’s Stagecoach and Boulder ski lifts, and five to ten minutes from major casinos, the Marriott resort and shops, and crystal clear Lake Tahoe beaches. Whether you are looking for casino shows and night life, outdoor sporting activities, or a quiet mountain retreat, Tahoe is the perfect vacation spot.
  • 3+ bedrooms, 3 bathrooms, 2 car garage
  • 2870 Square feet
  • Recently remodeled
  • 2 fireplaces
  • Double pane windows
  • Peaceful Setting
  • Much More!!!

New Stateline MLS Listing
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South Tahoe Real Estate Statistics for December 2010

December ended up being a solid month in terms of closings for the South Lake Tahoe Real Estate Market. There were 40 single family homes (not including condos) that were sold on the South Lake Tahoe MLS. Although the average price per square foot dropped below $200 per square foot, both the average and median sales prices were up from November.

South Lake Tahoe MLS Statistics

  • There were 40 single family homes in South Tahoe that were sold in December, up from 38 sold homes in November and down from 49 sold homes in December 2009.
  • There were 24 distress sales in December. 17 of the sales were bank owned foreclosures and 6 were short sales. 60% of the homes sold were distress sales, up from 53% in November and up from 43% in December 2009.
  • The average sales price for the sold  South Tahoe Homes was $404,998, this is up from $362,943 in November and down from $469,281 in December 2009.
  • The median sales price was $332,000, up from $291,250 in November and down from $343,000 in December 2009.
  • The average price per square foot was $192 which was down from November when it was $212. The price per square foot was also down from December 2009 when it was $220.

There were 5 Tahoe Keys Homes that were sold in December. The houses in the Tahoe Keys that sold had an average price per square foot of $276. The median sales price was $625,000 and the average sales price was $812,500.  Only one of the sold Tahoe Keys homes was a foreclosure, none were short sales.

5 Reasons to Buy a Home in 2011

5 Reasons to Buy a Home in 2011
Michele Lerner, author of Homebuying: Tough Times, First Time, Any Time, offers reasons why real estate is likely to improve in 2011. Here are five reasons she thinks consumers should consider a home purchase next year:▪ Mortgage rates will stay low. Even with rates climbing – maybe to as high as 6 percent by 2012 – they are still well below where they have been historically.
▪ Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.
▪ Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.
▪ Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.
▪ Homes are shrinking. Homes are getting smaller, which has made them more affordable.

Source: Investopedia, Michele Lerner (12/24/2010)

Good News For The Real Estate Market

 

In a news article on Realtor.org there was an interesting article about the pending home sales index. Realtor.org is the National Association of Realtors webisite.

Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the NATIONAL ASSOCIATION OF REALTORS ® .

The Pending Home Sales Index, a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The index is 5.0 percent below a reading of 97.0 in November 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” he said. “But further gains are needed to reach normal levels of sales activity.”

The PHSI in the Northeast increased 1.8 percent to 72.6 in November but is 6.2 percent below November 2009. In the Midwest the index declined 4.2 percent in November to 78.3 and is 7.7 percent below a year ago. Pending home sales in the South slipped 1.8 percent to an index of 91.4 and are 7.2 percent below November 2009. In the West the index jumped 18.2 percent to 123.3 and is 0.4 percent above a year ago.

“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”
The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.

For perspective, Yun said that the U.S. has added 27 million people over the past 10 years. “However, the number of jobs is roughly the same as it was in 2000 when existing-home sales totaled 5.2 million, which appears to be a sustainable figure given the current level of employment,” he explained. “All the indicator trends are pointing to a gradual housing recovery,” Yun said. “Home price prospects will vary depending largely upon local job market conditions. The national median home price, however, is expected to remain stable even with a continuing flow of distressed properties coming onto the market, as long as there is a steady demand of financially healthy home buyers.”

Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012. The median existing-home price could rise 0.6 percent to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009.

“As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said.
New-home sales are estimated to rise 24 percent to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21 percent to 716,000.

Yun sees Gross Domestic Product growing 2.5 percent in 2011, and the Consumer Price Index rising 2.3 percent.

Yun discusses the latest PHSI reading in a 5-minute video.

Source: NAR

Lake Tahoe Nevada or Lake Tahoe California?

Lake Tahoe is a very unique Lake which is located on the state line that divides California and Nevada. There are advantages and disadvantages to owning real estate on either side of the state line. Linda Granger of Chase International wrote a great article explaining these differences.

California or Nevada?

As a real estate professional I am frequently asked, “Is it true that if I am going to buy a second home at Lake Tahoe, I should buy in Nevada as opposed to California? Is it really less expensive?” Of course, this question makes sense as my market area, Lake Tahoe, is both in Nevada and California. Whenever I have attempted my intensive research consisting mainly of asking this question of other agents, or friends at the gym or over a glass of wine, I usually come up feeling as ‘gray’ about the answer as I did going into the research project.  It appears that everyone has ‘heard’ this or that, but no one is really sure. It is for this reason that I have decided to actually research the subject through experts, including conversations with CPA’s and attorneys that practice on both the Nevada and California sides of the lake.

Now, if you speak with a real estate agent on the Nevada side of Lake Tahoe, I guarantee that they will be able to sell you on all the financial benefits of purchasing in their marketplace as well as the fantastic amenities and the fact that the Nevada side of the lake gets less snow and more sun…they may even drop a few names of big dogs that own homes in their world.  But if you speak with a real estate agent on the California side of Lake Tahoe, they will probably be able to sell you on the fact that owners on the California side of the lake have access to charming old-Tahoe towns and neighborhoods on both the North and West shores, have easy access to some of the greatest ski resorts in the country, and oh…did i mention those California girls?

Regardless, you are in the right place. Yes, I am a California girl and for me, once a Californian, always a Californian. However, the great news is that I also have real estate partners on the Nevada side of Lake Tahoe, so hopefully the information below will not be slanted and will really help you decide between California and Nevada.

Let’s start with a quick summary, and then if you would like more details on each state, click on these links for more summarized  information about California Tax Benefits & Nevada Tax Benefits.

California vs. Nevada

  • Property taxes in NV are county specific.
  • Washoe County assesses property taxes every 5 years, but currently they are several years behind in that process
  • There is no personal income tax in the state of Nevada. This can be a good thing, especially for retirees from CA who can bring their retirement incomes with them if they become residents. This is the main difference. It’s like getting a 10% raise for living across the state line. Residency is considered to be a minimum of 183 days a year. Some Californians/Nevadans fudge on this and maintain homes in both states but claim NV as their primary residence and vote/register vehicles/bank etc. in NV.
  • Generally, if you buy a $1,000,000 house in CA, your tax bill will be about $1000/month, while in Douglas County the property tax on a $1,000,000 house is +/- $3500 per year.  Assuming an 8% annual increase in Douglas County, it will take 9 years for the Douglas County tax to equal the CA tax, and property taxes are usually just one of several considerations in the equation.  The most important thing, of course, is for the client to decide what the most important factors are in his personal equation .
  • In California, property tax is reassessed upon transfer at approximately 1.25% of sales price.
  • In Douglas County, NV,  including the Carson Valley and Tahoe’s East Shore, taxes tend to be significantly lower than in Washoe County, NV, which includes Incline Village and Reno.   In recent years the Washoe County rates have become very controversial as they’ve approached those of California.
  • Douglas County property tax bills cannot be calculated from the “Total Assessed Value” posted on the Assessor’s website.  Among the subjective considerations are view, age of the property and Special Taxes.  Sewer is the biggest component of Special Taxes – that’s generally where a property is hooked up directly to county sewer rather than being part of a General Improvement District.  Those Special Taxes are billed as part of the prop tax bill.  GID members pay for water, sewer and snow removal separately at roughly $135/month.  The newer the improvements the higher the property tax bill.  View is also a subjective element –  in the case of two seemingly identical homes, the one with the better view usually has higher taxes.
  • Several years ago the Nevada legislature capped annual increases at 3% for primary residence.  I called the Douglas County Treasurer and confirmed that the increase for second homes and rentals (non owner occupied properties) can be up to 8% in the county.
  • As a resident, there is no state income tax if you earn your money in Nevada or if you have passive income, even if it comes from California.  If you are a resident of Nevada and are employed in California you will be taxed by California.
  • My experience has shown me that if it is a primary home as opposed to a second home or investment home,  then the tax advantages can be more substantial.  If it is a second home and you already live in California than the difference is minimized UNLESS you plan to retire in that home. If this is the case, then in an attempt to protect your assets Nevada may be a better option.
  • Another point to consider is that the median price of homes in Nevada is greater than that in California if you compare Incline Village (2009 median price was $915,000) to Tahoe City ($530,000) and Truckee ($538,000). So…while it may be less expensive on an annual basis, there is a cost to that…price upon entering the market.

Businesses in California vs. Nevada

A San Diego Business Law Firm created this article comparing owning a business in California or Nevada.

A limited liability company, better known as “LLC”, is a flexible business entity. It gives you the asset protection characteristics of a corporation, but with less formality. From a tax perspective, the LLC is taxed most often as a partnership. This avoids the double taxation issues that arise with a traditional corporation.

After deciding to form an LLC, the next issue is picking the state in which to do the formation. For people living in California, there is a temptation to form the entity in Nevada. Why? Well, it usually comes down to tax issues. California taxes everything including a LLC. Nevada, on the other hand, provides a much better tax situation.

So, when we ask about the merits of a California versus Nevada LLC, the answer is Nevada is the best jurisdiction to pick, right? It might appear so at first glance, but there are problems with this approach. You will often read that you can form a business entity in any state you desire. This is true, but you probably should not.

Let’s assume I live in Tahoe City, CA and have a business idea. I decide to go ahead and form a Nevada LLC. Once created, I launch my business in Tahoe City, CA. I open an office in my home. I meet with clients in the office. I take calls in Tahoe City, CA. I receive orders in Tahoe City, CA. Basically, all the business activities are taking place in Tahoe City, CA.

This is a common scenario, but problematic. Since the day-to-day activities of my business are taking place in Tahoe City, CA, California state agencies are going to view me as a California business. This means I will have to register with the Secretary of State as a foreign LLC since my entity is based in Nevada. I will also have to pay California state taxes and other fees.

The end result of all of this is that I end up paying all the fees I would have by originally forming the LLC in California. On top of that, I will also be paying all the Nevada fees. Given this scenario, the benefits of using a Nevada LLC are lost and I actually end up in a worse situation.

Most books and websites discussing the creation of business entities are painfully inadequate. Make sure you understand the complete picture before choosing where to originate your LLC or any other business entity.

CBS News put on a great video about the differences between California & Nevada when it comes to running a business. Click here to view video.

Lake Tahoe Realtor Testimonial

I love hearing back from happy clients, and I wanted to share this nice note from my clients Tom and Kathy Andrade:

Dear Chase International,

We wish to convey to you our thoughts and feedback regarding your agent Mr.Brent Johnson.

At our initial time of vast interest in being educated with Tahoe property investment, you referred us to your colleague Mr. Brent Johnson. Brent was readily available, enthusiastic, and well-prepared with the research in showing us around the areas we were interested in. He was extremely flexible, knowledgeable, professional, and very congenial. We appreciated his “no pressure” approach so much that we were back for a second visit.

Brent’s background and expertise in Tahoe residency and construction left no questions unanswered. He is indeed an asset to your Chase Realty Company.

We continued/continue to appreciate his un-ending research, E-Mail/phone contacts and visits to properties that may be a “fit” for our curiosities/needs.

In this time of our pondering and weighing the pros and cons, we highly regard and appreciate Mr. Johnson’s contacts, knowledge, his time spent with us, and his sincere love of the Tahoe area as he shared properties and the availabilities. A very fine young man! We are so comfortable with Chase International after our initial contacts and follow through.

Sincerely,

Tom and Kathy