All Forum Posts by: Jeremy H.

@Saeed J.. My opinion is that TX is volatile.  

If you are concerned with cash flow, please check the insurance rate on an address, it can be very high, and then check the property tax before submitting an offer.

That's a good point from Bill B.  The federal and CA state tax of 1 million cap gain (since it hits you in the same year), using online calculator it showed to be around $396K.   A millionaire ? not really after taxes and realtor fees.

I think we are talking about the same deadline: If you did not live there for 2 years of the previous 5 years, you cannot take that 500K subtraction from your capital gain, assuming you file jointly.  Assuming you do live there now, that means you can rent it out for 3 years max before this deadline (in reality less than 3 years including prep to sale) Do check with a tax professional.

@Ty Coutts

What do you suggest how one may deal with the Due on Sale Clause on an existing mortgage?

@John Campbell

You can search for the word LLC on the upper right corner, and you can see opinions about this.

The mortgage payment alone will be about 52% of the debt to income ratio (DTI).

Based on this, add townhouse/HOA fee, insurance (sometimes included in HOA), property tax, the mandatory mortgage insurance will put you solidly over the DTI. Therefore they will not lend or pre-approve a mortgage with these numbers.

It's also not a good idea to count tenants or income that not yet exist.  I don't think the lender will look at this projected income.

A 2 bedroom can cost significantly more in peninsula cities compared to east bay.  They all appreciate but peninsula is more stable in downturns and recovers the fastest, I witnessed this myself in 2012 further in east bay was still about 40% down and peninsula and "tech" cities already recovered fully.

I am not sure you need a loan or not, recently I asked my mortgage broker he told me for a second home it would need to be at least 50 miles away and also in a city known for vacation activity .   Otherwise it would need to be an investment loan.  But there may be ways around that.

Currently I found this advertised price from a Bay Area booklet I got in the mail

Doing some risk analysis.

Let’s say I buy a property now and market value drops soon by 20% is it better to have less downpayment such as 20%.  Or if it is better to have / had 40% (either higher down or big lump sum to principal)?

I planning to have backyard installed in new construction SFH.

I read this cannot be added to the cost basis of the rental property and be depreciated by 27.5 years since it is not an improvement to the property.

But what about paving the patio and side of the garage, where it is touching the house.    There was an example about plants near the foundation as depreciable.

Would this count as improvement to increase cost basis (as improvement)?    I have read both yes or no.

Thanks

So, if anyone search why doesn't Canada have 30 year fixed, the first article says they attach all your assets as collateral /lien.

Seems like getting a mortgage is a big deal, but is it true you will lose everything you own if you default (with Canadian mortgage)?

How exactly does it work there?  Does it take years to build a new construction and when does the mortgage start for those?   

Also in Canada when people sign their loan docs do they show a chart or disclaimer that if interest increased to xx% , what your monthly payment would be?   

They make home purchase risky there, with the 5 year renewal that's for sure.  But i guess people are used to things like that, ICBC comes to mind.