Real Estate and All That Jazz: February 2010

Condominiums and co-ops can be confusing since both types of projects can look the same. The main difference is what you actually own.

A condo means an undivided interest in common with the other condo owners in a portion of real property together with a separate interest in space called a unit. A "Stock co-op" (also called a co-op) means a development in which a corporation is formed for the purposes of holding title to the improved real property, either in fee or by lease, and the shareholders receive a "right of exclusive occupancy" in a portion of the real property and title to which is held by the corporation.

When you purchase a condo what you actually own is the air space within the walls of the unit. The air space is shown and defined on the Condo Plan which shows the dimensions of each unit and and their location within the boundaries of the project. You do not own the land that the condo project sits on. You will also own an interest in the common are of the entire project. The amount of this interest will be established in the Covenants, Conditions and Restrictions (CC & R's) that govern the use of the entire project. You will also become a member of the Homeowner's Association (HOA) which is responsible for,among other things, the maintenance and upkeep of the common area, and you will be assessed dues, usually monthly to help fund this maintenance and upkeep.

When you purchase a Co-op you are not purchasing any interest in real property or air space. You become a shareholder in the corporation that holds title to the project.By becoming a shareholder you receive a right of exclusive occupancy in a portion of the project. This right is customarily in the form of a lease between the corporation holding title to the project (Lessor) and the shareholder (Lesee). The portion of the project you gain the right to use will be described in the lease and will be shown and defined on a diagrammatic floor plan which can be recorded as a separate document or made part of some other document. The use of this portion of the project will be regulated by some form of CC& R's and may be further regulated by the terms of the lease. Just as with a condo you will become a member of an HOA with similar rights and obligations as outlined above.

Remember: A condo is owning real property and a co-op is owning shares in a corporation. 
            

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When you grow up with “Depression-Era” parents from New England, nothing ever gets thrown out. Re-use, repair and recycle is the mantra I heard constantly. Although I was familiar with “yard sales” , I couldn't believe the stuff people were selling when I moved to San Diego CA. Items with tags still on them, sporting goods in perfect condition and small appliances that were just months old.

Downsizing? Redecorating? Just Spring cleaning?Too busy to hold a yard sale? Need to sell that stationery bike you never used? Set of golf clubs collecting dust?

I had an idea and it worked great. I am downsizing and have several  small items that are in "useable" condition ......cat litterbox and carrier, small stained bookcase, old folding table and chairs, planters,

etc. Actually most of this stuff was kind of junky and I thought of discarding. (I actually didn't think anyone would buy a litterbox, but was I surprised by the response!)

I took pictures of all the items and placed them in seperate ads on Craigslist. Although I didn't care if I made any money on them, so as to avoid placing the ads in the FREE category (where FREE ads tend to get lost) I charged $5.00-$10.00. Besides, a nominal charge always imparts a bit more value to an item.

I got rid of EVERYTHING within a few hours of placing the ads.(one guy was at my house in an hour of placing the ad for some used tile flooring). I put the items in the driveway for pick-up to avoid strangers coming into my home and asked them to place the money in the mailbox .So far everyone has put their cash in the mailbox and nobody has cheated me yet.

So in downsizing, my belief in the honesty and kindness of the human spirit is reinforced AND I did something GREEN for the planet by not throwing this stuff in the landfill.

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Apple to be sued by 2 companies

That a manufacturer can be sued over a product is old school and
it is sometimes over really stupid things. Apple has irritated a few folks.
The Chinese company Shenzhen Great Loong Brother is planning on suing Apple because the Chinese company says that Apple copied their iPad idea from a tablet the Chinese company has called P88.

The president of the company, Wu Xiaolong, has said that the iPad is identical to their P88 Tablet and even the support is identical.Xialong also said that if the tablet stays in the U.S that there is not much they can do but if the iPad goes to China, that they are not going to have any choice but to sue. They will sue because if the iPad is launched in China it will certainly affect the P88 tablet's sales which has been on sale for 6 months now.

The difference in the tablets: The P88 tablet has a bigger screen and is heavier. The main differences is that the iPad’s processor is 64GB while the  P88 tablet has 160GB’s. The OS’ are different since the P88 uses Windows, the P88 only has a battery life of an hour and a half compared to the iPads 10 hour battery.Xiaolong has stated that he is very upset with Apple and that he was in disbelief when he saw what the iPad's final design was.

For the most basic model there is a slight difference in price since the P88 tablet sells for $529 USD compared to the iPads $499 USD starting price. The P88 tablet was registered but since the process take a while (about a year) has said that they could take legal action this Spring.

Fujitsu also has plans to sue for the name no one likes to start with, iPad. We'll have to wait patiently for the outcome.

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 I recently landscaped the front of my home  hiring San Diego CA company North Park Native Plants.

  Rocks Forming "Streambed"

Wes Hudson, the owner did a great job using native plants to Southern California and decomposed granite (DG). He aso added a "streambed" wth rocks which I loved! After the first torrential rain (and we have been having a very wet winter here in San Diego CA) we ran into a problem. There was quite a run-off of water from the back yard since the front is on a slope and the deluge of water formed gullies in the DG and washed a lot of it away. It looked awful. I was not very happy, but knew Wes would figure out a way to address the problem. 

The gutter at the side of the house was attached to a downspout and we could have removed the downspout and installed another gutter across the front of the house, channeling the water away into the gutter on the garage. But thinking caps were put on and a bright idea evolved. Water in a San Diego CA climate is like "manna from the gods" and an idea was born: Why not try to save the water in a holding tank and use it to water the garden on dry days........CHEAPLY. However, we had just gone over budget and I knew I was tapped out but could this idea be achieved for lttle money? You bet!

Wes bought a barrel with a cover (and screen for mosquitoes) and a spigot at the bottom.($75) He cut the downspout at the height of the barrel and voila~ a rain cistern that any desert dweller would be proud of was born. You can attach a standard size hose to the spigot.

Now not only do I have landscaping that has native plants but also a sustainably managed groundwater storage system for a very small $$ investment.

Contact me for all your real estate needs and other bright ideas!

Rob Sidner, director of the Mingei International Museum in Balboa Park and Mexico’s Consul Remedios Gomez. (Courtesy of Mexico General Consulate in San Diego)

2010 is a very significant year for Mexican history. First, Mexicans will celebrate 200 years of independence from Spain on Sept. 16. Later, on Nov. 20, a century of the Mexican Revolution will pass.To celebrate here in San Diego, the Mexican Consulate will present a cultural program with art exhibits, artistic presentations, festivals, a symposium, and much more.

Mexican Consul Remedios Gomez said that with the collaboration of San Diego Museums in Balboa Park and Tijuana’s Cultural Center,  activities are planned for the entire year.“In fact our first activity has just begun at the Museum of Photographic Arts with the projection of a Mexican classic film ‘Que Viva Mexico,’” she said.

Gomez said that with these activities the Consulate wants to celebrate and share a space for reflection of the 200 years of relations between Mexico and San Diego County.

She also said that at the time that Mexico fought for its independence, the California region was part of the New Spain territory.

“This is also a celebration for all the families that live here and an opportunity to learn and admire the Mexican art,” she said.

Activities for the first half of the year is listed below. More information can be found at the Consulate Web site.

February

17 - Mexican Film in the Barrio “Aguila o sol” by Cantinflas @ Salon Imperial, National City.
25 - Conference about the work of Carlos Merida, curator of the San Diego Museum of Art @ SDMA.
27 - Opening historical exhibition “Viva Mexico! Heroes y artesanos” @ Mingei International Museum.
27 - Exhibit “Brutal Beauty” by Hugo Crosthwaite @ SDMA.

March

3 to 21 - Latino Film Festival @ Hazard Center.
4 - Raul Anguiano exhibit @ University of San Diego.
11 - Mexican Classic Cinema Series “Doña Barbara” @ Museum of Photographic Arts.
11 - “The Mexican Landscape” exhibit by Jose Lobo @ Mexico General Consul.
13 - Opening of photographic exposition Colburn Collection “Photographs of old Mexico” by Hugo Brehme @ SDMA.
14 - Conference by Hugo Crosthwaite about “Brutal Beauty” exhibit @ SDMA.
19 - Benito Juarez Anniversary @ Pantoja Park.
21 - Mexico’s Folkloric Ballet @ San Diego Symphony Hall.
26 - Latin Jazz Festival @ Mingei International Museum.

April

8 - Mexican Classic Cinema Series “La Cobarde” @ Museum of Photographic Arts.
24 and 25 - Art Walk @ India Street, Little Italy.

May

1 - Spanish storytelling with Laura Whiteside @ Timken Museum.
1 - Artistic Festival “Viva Mexico!” with Tijuana’s High School Lazaro Cardenas @ Organ Pavillion.
13 - Mexican Classic Cinema Series “Los Olvidados” @ Museum of Photographic Arts.
13 - Mexican serenade dedicated to Mexican mothers, by Mariachi Garibaldi @ Southwestern College.
14 - Iconoclastic pictures of Mexican revolutionaries by David Silva @ Mexico’s General Consulate.
20 - Symposium about the Mexican history and culture @ Mingei International Museum.

June 

10 - Mexican Classic Cinema Series “Pedro Paramo” @ Museum of Photographic Arts.

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A popular tax-savings loophole regarding capital gains taxes on some primary residences has been impacted by the 2008 Housing and Economic Recovery Act. The law places new restrictions on wealthy homeowners who own 2 or more homes and plan to "house hop" to avoid paying capital gains taxes. Although this law is almost 2 years old, I thought it would be useful to explain it in more detail, since many of my clients have questions about it.
Under previous law those who sell a house for profit after living in it as their primary residence for 2 of the past 5 years would not have to pay capital gains taxes on $250,000 of the gain for a single person or $500,000 for a married couple filing jointly.

Some taxpayers have avoided the capital gains tax by selling their primary residence, claiming the full tax exclusion, then moving to a 2nd or 3rd home that they have owned for some time making it their primary residence which they then sell and pay little or no capital gains tax. The new law states that the gain may not be excluded for periods of "non-qualified" use, basically the period of time the house was not used as the taxpayer's primary residence.

While the change to the law will affect only a small minority of homeowners it will cause some tax headaches for a few. Partial exclusions will still be available in some cases and there are some special rules for members of the uniformed services and federal employees. Here are the basics to remember:

** The new law is effective for sales beginning in 2009
** Partial exclusion may still be available if the home was sold due to a change in place of employment, for health reasons or "unforeseen circumstances" such as the death of a spouse.
** The tax exclusion does not apply to portions of the gain attributable to depreciation allowed for rental or business use of the principal home for periods after May 6,1997.
** The gain may not be excluded for periods of "non-qualified" use or any period when the property isn't used by the homeowner, spouse or former spouse as a principal residence.

Here is an example of the "unqualified use" rule:

A married couple buys a home on January 1, 2009  for $600,000 and plans to hold it as an investment. On January 1, 2012 they begin using it as their principal residence. They live thee 2 years and sell it on January 1, 2014 for $1.1 million, a profit of $500,000.

Under the old law, the couple would have excluded the entire $500,000 gain from their taxable income. Under the new law they can only exclude $200,000-two fifths-since the other $300,000 would be considered non-qualified because of the 3 years the home was not their principal residence. For more information consult a tax professional who may be able to identify any exceptions or other important points for individual situations.

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February 20-21
28th Annual San Diego Chinese New Year Fair

The San Diego Chinese Historical Museum is celebrating the
Year of The Tiger at the 2010 Chinese New Year Fair. Festival
entertainment includes lion and dragon dancers, Chinese acrobats,
folk dance and music, martial arts, Asian Story Theater, a children's
activity area and 75 food and vendor booths.

Time: 10:00 am - 5:00 pm
Location: San Diego Chinese Historical Museum, 404 Third Ave., downtown San Diego

For more information information visit www.sdchm.org

  February 27
Walk for Wishes

SeaWorld will host Walk for Wishes to raise money for the
Make-A-Wish Foundation of San Diego, whose mission is to grant
wishes to children with life-threatening illnesses. Walk for Wishes
will include a 1-mile route through SeaWorld, with an optional
4-mile course along Mission Bay. After the walk there will be activities, refreshments and entertainment for the whole family.!

Time: 8:00 am - 11:00 am
Location: SeaWorld, 500 Sea World Dr.

For more information call 858-707-9470 or visit www.WalkForWishesSD.org

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What I love About Lakeside,CA...Shhhhhh...Don't Tell Anyone About Property in Lakeside CA

In 2000 I purchased an investment property in Lakeside CA for a ridiculously low price. Colleagues asked me why I would even think of buying anything in that part of San Diego County. I am not originally from San Diego so I think I possess "eyes for investments” that perhaps locals may not have. The rural feel of the area appealed to me since it was only 30-40 minutes from downtown, and best of all there were horseback riding ranches, horse farms and riding trails. Now I come from greater Boston, where one cannot affordably have a horse anywhere that is close to the city. Cold winters require heated barns and water sources and monthly boarding costs are prohibitively expensive. To say nothing about the notorious traffic problems out of the city.Warmer climates eliminate the need for “housing” for the horses and thus the expense of boarding is less. The fact that I could have a Real Estate business, live in a close-to-urban environment AND then go riding a couple of times per week with minimal traffic problems..........pinch me, I'm dreaming!

In 2007 there was a plan called  Sunny Side Gateway Project to extend the 52 from the SR-125 to the SR-67 in Lakeside. This will improve access to western and northern parts of the county, where as now one must travel down the SR-67 to the SR-8 West, a circuitous route taking about 45-50 minutes to get to North County San Diego. In 2010 when the 52 is complete, a trip from Lakeside to North County will be about 20 minutes. What do you think that means for property values in Lakeside?

On a recent trip to Lakeside I stopped in the downtown area on Maine St. and walked around. Mixed in with the bucolic mountains and Lindo Lake a few minutes walk away, there was a bustling shopping district with new stores, businesses and much more foot traffic then I ever remembered. There is also a "Farmer's Market" every Thursday at 2 p.m. in the parking Lot at Lindo Lake. A Tack and Feed Store, Mexican Restaurant and a Yoga Studio give Lakeside its California western flair but it still retains its small town ambience. Condos, homes and land are priced well compared to other parts of East County.Contact me to buy or sell Lakeside CA Real Estate.

My dad wasn't a wealthy man, nor did he have more than a high school education but he was one of the smartest people I knew. His advice has gotten me further than much of the knowledge I have accrued from college degrees and industry courses. Being raised during the Depression, he had to assist supporting his mother and 4 siblings when he was 12 years old (his father had died very young) by being a golf caddy. There was no welfare or public assistance at the time. Fortunately, the Stone brothers had inherited high intelligence and a strong work ethic. His brother, my Uncle Harold, had nothing more than an 8th grade education, but made millions of dollars in the stock market in the 60's and 70's. My dad worked at GE for 35 years as a "tool and dye maker" for jet engines. He also ran his own part-time business creating wrought iron fixtures for industry. He was always resourceful and optimistic. He was a man of short stature, reserved in nature but one of the most honest and diligent I knew. 

Here are the basics of his business plan:

If you can't take the heat, get out of the kitchen. This was advice he gave to me when I was complaining about rents and tenant issues. In other words, shut up and keep on working hard, or get out of the business. You will always have battles to fight, no matter what business you are in.

If you invest in several pieces of Real Estate, you will never be homeless Perhaps not 100% true, but more than once did I have to move into a rental unit I owned to compensate for a slow R.E. market and less income than I expected that year.

There is no such thing as being a "little" honest. Either you are or you are NOT. Hmmm. We all don't like to hear this, but it's the truth. Integrity goes a long way in this industry.

Buy "bread and butter" property. In a market downturn, the demand will be much higher than high end property.Wow, have I learned this. Not only the past few years in San Diego CA Real Estate but also in Boston in the early 90's. The luxury condos were sitting empty and my phone was ringing off the hook for the "less fancy" affordable units.

Invest in what you KNOW, ie. the stock market or real estate or stamp collecting. Not that you should not try to learn about other investments, but if you have a track record of success with Real Estate in San Diego CA, stick to it. Perhaps dabble in the unknown with limited funds, but save the big bucks for what you do well with.

Well there you have it. If anyone has anything else they may have learned about business from wise parents, please feel free to contribute.

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February 6   
Moscow Festival Ballet: Sleeping Beauty  
 
The story of Sleeping Beauty is told through dance by members of the Moscow Festival Ballet, which is created to bring together the highest elements of the great Bolshoi and Kirov Ballet companies.

Time: 2:00 pm Location: Balboa Theatre, 868 Fourth Ave., Downtown San Diego

For more information visit www.sdcivic.org

February 6
Banked Track Roller Derby

 Finally Banked Track has come to San Diego. San Diego Derby Dolls  All Stars Team take on Mitten Kittens. This is an all ages event.

Time: Doors open at 6:00 pm / Bout starts at 7:00 pm
Location: Wyland Hall, Del Mar Fairgrounds, 2260 Jimmy Durante Blvd., Del Mar
For more information visit http://sd.derbydolls.com/events

February 13
8th Annual Little Italy Carnevale

Get your Passaporto di Carnevale at the Piazza Basilone located on the corner of India and Fir streets. The Passaporto de Carnevale will guide you through all the participating businesses and give you the locations of entertainment and their performance times. All are welcome, so load up your family and friends for a night of shopping, dining and entertainment!

Time: 5:00 pm - 10:00 pm Location: Little Italy, India and Fir Street, Downtown San Diego

For more information visit www.littleitalysd.com

February 14
Bill Cosby Performing

Over the past century, few entertainers have achieved the legendary status of Bill Cosby. His successes span five decades and virtually all media, remarkable accomplishments for a kid  who emerged from humble beginnings in a Philly project. With hit movies like Uptown Saturday Night and best-selling books like Fatherhood, Bill Cosby is quite simply a national treasure with the unique ability to touch people's hearts.

Time: 6:00 pm and 9:00 pm Location: Harrah's Rincon Casino

For more information visit www.harrahsrincon.com

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