Showers or Flowers?

They say April showers bring May flowers, but sometimes it’s the other way around. Which rite of Spring do you prefer?

CHIC (Pearl)

Rain has a way of making everything feel fresh and new. Ever since I was a child, I’ve loved the cool scent of the air when you wake up and showers are already falling outside. I even keep my bedroom window open on warm rainy nights. But lately, that’s been a recipe for catching a cold!

GEEK (Kevin)

Living in California, it seems like you turn your head one day and suddenly the world is covered in fruit blossoms, poppies, and crocuses. The colors and smells surround you on a morning hike, filling your soul and making your feet feel like they’re floating just off the ground.

A Spectacular Investment

If you’re young or living on a tight budget, renting a home makes a lot of sense. But there’s no substitute for the power of homeownership to build wealth and financial security. So how do you get the most out of your investment?

CHIC (Pearl)

The benefits of ownership vastly outweigh the upsides of renting, especially over the long term. According to the S&P CoreLogic Case-Shiller Index, home prices in the San Francisco Metro Area rose a whopping 375% from 1990 to 2021, and every mortgage payment builds your equity and allows you to leverage more of that value. Speaking of payments, instead of basically throwing money away on rents that increase with inflation, a fixed rate mortgage locks in your monthly budget for the duration of the loan. You can also deduct interest payments on your tax return and take advantage of other tax incentives. And if you don’t need the home, you can always rent it out and get an even greater return!

GEEK (Kevin)

No matter if you’re buying to occupy or rent, the home you purchase should fit your life goals — and your monthly budget. Buying your dream home might not make sense if you’re starting a family or embarking on a new career. Quick turnarounds can also get you into trouble responding to market fluctuations instead of betting on trends. And it’s incredibly tempting to borrow against your growing equity to pay for non-essentials like a new car when you should be accruing wealth and setting yourself up for the future. A better option would be to consider refinancing as mortgage rates decline. You could also think about maintaining a “rainy day” reserve fund for those unexpected curve balls life likes to throw.

Buying a home is a deeply personal decision and possibly the most significant financial transaction you will ever make. We’re here to help, but in the end, it’s your future — and your choice!

It’s Tax Season!

With pandemic provisions running out, most of us are coping with filing our taxes by April 15 again. Already filed? Congratulations! Here are some tips for the procrastinators in the rest of us.

CHIC (Pearl)

Even though I prefer to use a tax professional instead of relying on an app, there’s still a lot of paperwork to pull together, and it’s easy for things to get lost. For me, it’s as simple as collecting all of our tax documents as they arrive in a special basket next to the rest of the mail. This way, when April 14th rolls around, I know where to find everything.

GEEK (Kevin)

Paperwork is so old school. The best part about modern technology is you can procrastinate until the last minute and just send your accountant a zip file. Just don’t sleep on your property tax bill! Second installments in Santa Clara County become delinquent — and subject to hefty fines — after April 10th. Good thing they let you pay online. Learn more here.

Stepping into Spring!

After a weekend of open houses at our new listing, we’re ready for an opportunity to reset. What are you looking forward to about the Spring Equinox?

CHIC (Pearl)

It’s been a rainy winter, and I’m ready for some sunshine! Monday was a nice teaser, but it looks like we’ll have to wait for a real heat wave since the forecast calls for another wet weekend. In the meantime, I’ll get my sunglasses ready.

GEEK (Kevin)

As you’d expect, I’m already feeling the urge to reorganize the garage, clean out the closets, and upgrade outdoor lighting. But first, I need a break — a spring break. Maybe we’ll get in the car and take a drive up the coast. Or we could just sleep!

The Fallout from Prop 19

In November 2020, California voters narrowly passed Proposition 19, changing the way property taxes are assessed to provide more portability for seniors, people with disabilities, and those who lose their homes in wildfires and other disasters. But the new law also came with consequences for family transfers…

CHIC (Pearl)

Under Prop 19, there are new limits on property tax exemptions in transfers to family members. The transfer must be to a child or grandchild, that family member must make the home their primary residence within one year of the transfer, and the exemption is limited to the first $1 million of assessed value over the original base assessment. And no, gifting your property to your child would not qualify for an exemption!

GEEK (Kevin)

Another Prop 19 quirk is that the same property owner can take their base property tax assessment with them to 3 different properties anywhere in California, provided the original and replacement homes are of moderately equal value. I don’t think this will lead to a flurry of seniors on the move, but it seems a bit antithetical to the original intent of Prop 13, which was to allow Californians to age gracefully in place.