Blog Archives - Real Estate San Diego CA

Real Estate Trusts: Pros & Cons

Real estate trusts work hard for you because you’ve worked hard, bought a nice home and built up some equity in it. You are getting up in age and are considering placing the home into a real estate trust. You’ve heard that a real estate trust is the way to make sure that the house goes to a family member of your choosing if and when you pass.

Although placing the home into a trust will avoid the hassle of probate court and save on estate taxation, there are also some distinct disadvantages. In this article we will explore some of the pluses and some of the minuses of placing your home in a trust.

Trust Advantages

Probate Avoidance – if your home is in a trust at the time of your death it will not be included in your probated estate. That means the beneficiary listed in the trust will immediately take ownership of the property and any personal possessions (cars, furniture, TVs and projectors, bank accounts, etc.) that are placed in the trust along with it without going through the probate procedure.

Probate can be costly and nothing could be done with the home or possessions, like selling them, without the court’s prior approval.

With a trust, everything in the trust would be transferred immediately to the beneficiary and that person could proceed in any way and at any time that they choose.

Estate Tax Avoidance – upon your death, the state government will step in and tax the transfer of your estate. The tax is based o

n a percentage of the total value of the estate and the rate varies from state to state. This tax is paid out of the assets before the beneficiaries receive any distribution. Depending on the type of trust, a trust could prevent this from occurring.

Creditor Collections – let’s face it, when we die we don’t usually see it coming. There are usually some debts that still remain. A trust can also protect your home and property from being attached. Anyone you may have still owed money to may be able to attach your property.

Deed Transfer on Death – many states allow what is called a “transfer on death” deed. The problem with this deed is that if, by chance, a beneficiary dies before the grantor, or is a minor at the time of the grantor’s death, a “transfer on death” deed is no longer valid and the property would have to then go through probate. An additional problem with a death deed is that the property involved has to be a single-family home. What if you own an apartment building or commercial real estate? A trust would protect your property if a situation like this occurs.

Trust Disadvantages

Cost Disadvantages – designing a trust is more complicated than making a simple will. A lawyer’s assistance is recommended and they don’t work on the cheap. A trustee must be designated. There could be fees associated with the trustee for maintaining any paperwork from year to year. The are real estate trust transfer fees at the local level. When you transfer the title of your home from your own name and into the name of your trust.

Trust and Taxes – if your trust also includes other assets, such as an investment account or savings accounts, and they are not immediately distributed, tax returns must be filed annually. For instance, the beneficiary is to receive partial distributions when they reach certain ages. The trust remains in existence and is subject to income taxes. Also, there may be certain tax breaks available to a probated property that are not available to trusts.

One More Thing

What if you own the property jointly, say with a partner. If you die, your partner would automatically be granted complete ownership of the property. If this partner is not a family member, or the person who you would like to receive your share of the property, a trust will prevent this automatic transfer because the trust would “own” your share of the property. The trust didn’t die, just you. The trust would protect the named beneficiary’s interest in the property.

As you can see, there are many things to consider when establishing and funding real estate trusts. That’s why hiring an estate planning attorney is so important. There are several complications involved in setting up a trust properly. A competent estate attorney can guide you through the entire process.

Your Home Assisted Living

This is a concern for most seniors. How can you make sure the safest way to spend your golden years is also the most comfortable and most fulfilling? For those approaching retirement, there are plenty of options. For those managing an illness or a health concern, however, assisted living centers can be the best possible situation. But that requires some additional planning, especially when deciding what to do with the family home while your living or moving to assisted living.

Selling Your Home

Parting with your home can be difficult, especially if you have spent a lifetime there making memories. Yet, selling your home can also be a great way to stockpile cash for retirement. Especially if you need to pay for an apartment at an assisted living facility. Living independently is important for many seniors,. Assisted living centers provide that independence along with necessary daily assistance. When moving to assisted living, it’s important to plan for the expenses you will need to cover.

A Place For Mom explains that prices in San Diego vary, but on average it can cost around $3,500 a month for a one-bedroom unit; the national average is closer to $3,700. The profits you earn from a home sale could help you cover all or a portion of your rent at an assisted living facility, making this a potentially great option.

Renting Your Property

Renting your home is another option if you aren’t ready to deal with trying to sell your property. This enables you to use the rental income to cover costs associated with assisted living. It’s important to note that to make this work you’ll need a property manager and enough in savings to cover any emergency repairs that come up. If you don’t have enough set aside, it could make it hard to pay for assisted living. This is especially true for seniors on a fixed income. In many cases though, the profits from renting out your home can pay for your stay as well as help cover additional healthcare costs. For example, purchasing durable medical equipment or prescriptions. Before considering this option, look at your monthly budget and carefully compare it with potential rental income and home maintenance. You will also need to take this information into account if you’re a Medicaid recipient.

Leaving Your Home with a Family Member

Letting a close friend or family member take care of your home can be a great choice for people who quickly move into an assisted living center. This allows you to keep property in your family, hold on to an estate for an inheritance. You may buy yourself a little time before making a more permanent decision. Even in a hurried transition it’s important you do two things: have your family member sign a lease or other legal documents and tour several assisted living facilities to find the right fit. Choose one that addresses all your medical needs and health concerns. This will give you the quality of life you’d prefer. As you tour communities, you’ll want to ask questions like:

What is the resident-to-staff ratio?
Does the facility allow pets?
What’s the cost difference between a private apartment and a shared one?
What kind of social opportunities are available?
What are the meals like?
Do you have a family history of dementia, Alzheimer’s or other cognitive disorders?

There are many benefits associated with assisted living — from being able to participate in social activities to getting help with daily living activities. The costs are important to consider, and if you own property you might be able to use the income tied to it as a way to ease any financial burdens. Take the time to decide what’s best for you and your home, and get a plan in place as soon as you can. The sooner you prepare, the less likely you’ll have to maneuver around roadblocks and other obstacles as you make this significant transition.

A Quick Guide for Seniors Buying a Home in San Diego

Home buying is a complicated process no matter what your age, but for seniors searching for a property for retirement and beyond, there are a number of special considerations in play. Whether you’re new to the San Diego area and just beginning to look at properties or a local in the midst of downsizing, here are a few things you should keep in mind.

Gloria Roma helping seniors move — Gloria Roma works with adult children of seniors when their parents pass away

Picking the Right Location

San Diego is a big city made up of a lot of small neighborhoods. Depending on where you live, you may rarely need to leave the area around your home, or you might spend your whole day commuting. For seniors, travel times are less about getting back and forth to a job and more about proximity to hospitals, senior centers, and amenities. Before putting in an offer on your favorite property, take a look at what’s nearby, and think about how you’d get there. If you’ll be driving, you have a bit more freedom, but if you’ll be relying on public transportation, it’s essential to know which stores and parks are on the MTS routes.

Every neighborhood in San Diego comes with its own distinct vibe, too. Get artsy on the mural-lined streets of La Jolla, enjoy convenient access to the San Diego Zoo and Balboa Park in Hillcrest, embrace your bohemian side in Encinitas or keep exploring until you find the spot that feels right.

All About Amenities

Speaking of getting around, there’s a reason most retirement communities have club houses and other key amenities. The more amenities there are, the less transportation becomes an issue. Some communities keep it simple with a pool, gym and game room, while others go all out and include everything from a movie theater to a salon. If you love the great outdoors, look for a home with HOA-tended parks and walking trails. If you prefer spending your time indoors puzzling or reading, put a community library and arts-and-crafts studio at the top of your list.

Mind Your Budget

There’s a difference between how much you’ll pay for your mortgage each month and how much you’ll pay in total housing expenses. When you’re calculating your budget, remember the following:

Property taxes
HOA fees
Landscaping and property maintenance
Home insurance
Utility bills
Activity or facility fees (more common in retirement communities)

While many of these expenses apply to all home buyers, when seniors buying a home they are more likely to have a limited income and less able to accommodate sudden expenses. Living by the ocean is an incredible experience, but it comes at a cost. San Diego’s cost of living is above the national average, making it especially important to accurately estimate monthly expenses and choose a property accordingly.

Account for Accessibility and Mobility

Before you decide on a home, think about your current mobility needs and how you may be restricted in the future. Approximately 39.5 million Americans have some type of physical difficulty, and those struggles tend to increase in severity as we age. Choose a home you’ll be able to navigate even if you’re physically limited. Single-level homes are a good choice thanks to the lack of stairs, or, if you’re interested in a condominium or townhouse, look for units close to the elevator and parking.

Don’t Ignore Resale Value

Your opinion is the most important factor in your home-buying decision, but chances are you won’t be in your home forever. When you are seniors buying a home and you’re ready to try something new — a new city, neighborhood or style of living — it’ll be easier to offload a property that has wide appeal. San Diego may soon be a buyer’s market, (as of this post, July 2019) and a home customized to your tastes or with polarizing features is less likely to draw offers. Choose a popular neighborhood, invest in amenities and proximity to health care, hospitals, pharmacies

and weigh those unique attributes against your desire to one day make a quick and stress-free sale.

If you do eventually decide to transition from fully independent housing to more supportive senior care accommodations, you’ll have plenty of options. There are 77 assisted living facilities in San Diego proper and another 30 in the surrounding area.

Buying a home is a huge deal, but with a little forethought and a few compromises, you can retire in style and still enjoy all that San Diego has to offer.

Simplifying Downsizing for Seniors

Moving to a smaller home can be a major life transition for seniors. The tension of finding a new home, the anxiety of selling the old one, and the emotions involved with downsizing belongings can all be a little much for seniors to process on their own, which is why simplifying downsizing for seniors is so important. It allows seniors to process this major life shift and check the important tasks of their list with less pain and strife. So, if you are a senior who is looking to downsize or you’re helping a loved one, you should keep these simple steps in mind.

Try Homes Out Before You Commit to Buying

You wouldn’t dream of buying a car without driving it first, so why should you rush to buy a home? Making sure you have the right home to fit your needs will make your golden years much better, so consider using vacation rentals to test drive local homes too. As Turnkey explains, San Diego can be a perfect spot for seniors looking to retire in comfort, with its seemingly endless stretches of beaches and average temperatures in the 70s throughout the year. Also, communities such as La Jolla offer scenic, laid-back activities that are sure to fit everyone’s lifestyle. If that sounds like your idea of paradise, think about checking out a vacation rental in this prime Southern California spot.

Hire a Senior Move Manager to Ease Your Stress

One of the easiest steps in simplifying downsizing for seniors is to use a senior move manager. These highly trained professionals have experience helping senior with each and every step involved with downsizing. From helping you declutter your home to assisting you with relocation, a senior move manager could just be your ticket to a completely stress-free move. These services aren’t always cheap, so make sure this service is in your move budget and that you will be able to afford other help as well, such as professional movers.

Have a Family Member Help Out With Move Tasks

There are a lot of steps involved with downsizing your home. So, if you don’t hire a senior move manager, you may get stressed out handling them all on your own. For one, you need to start decluttering your home to get ready for the big move, which can be emotionally draining and even physically risky for seniors. So, ask your kids, grand kids, or other family members to help you with the process. Family can be helpful for other ventures as well, like finding a real estate agent who can help you find the next home of your dreams.

Begin Looking for Your Smaller Home Online or on a local website

Having a real estate agent you can depend on, and who has worked with seniors before, can make your home search easier. Still, you may not be able to go out looking for potential homes all of the time. Mobility issues can make getting out and physically searching for homes a challenge for many older adults. Thankfully, there are apps you can use to search homes online. Many of these tools even allow you to narrow your search by specific features, such as those with accessible floor plans. So, use these tools to browse for homes but use an experienced local realtor when it comes to time to actually start viewing homes.

Plan Out Your New Home Budget and Stick to It

We mentioned coming up with a moving budget earlier but you also need to figure out how much home you can afford. You need to take stock of your retirement savings and other financial assets, but online mortgage calculators can help as well. These handy tools allow you to input your income and expenses so you can actually see how much you can expect to pay monthly for your new home. Once you have a figure that fits with your budget, relay that information to your realtor so you can narrow your home search even further.

Simplifying downsizing for seniors doesn’t have to be complicated. If you’re a senior looking to move into a smaller home, you just need a few tools and tips to make the process smoother. So, keep this guide handy and be sure to connect with a local real estate pro.

Photos: Pexels

This Weeks Family Business

Thursday, KUSI’s Allie Wagner was in Serra Mesa checking out the Bear Buns Bakery!

As Serra Mesa’s coffeehouse, we open our doors and invite our neighbors to come in and enjoy our yummy, home-baked goodies.

Our goal is to provide a warm and inviting gathering place to cultivate community. We offer the best locally roasted organic coffee, homemade baked goods, and other local products all served by our friendly staff.

Try our famous cinnamon rolls and customer-favorite bread pudding. We offer delicious smoothies in addition to our specialty teas and drinks including espresso, frappes and chai tea.

We are family-owned, operated, and supported. That’s right – we strive to make all our customers feel like family; that is what makes us this weeks family business.

Look for Bear Buns Bakery coupon in your local Serra Mesa magazine. Located in various areas throughout the community and delivered to select homes throughout Serra Mesa. Request yours today by contacting your local Serra Mesa real estate expert, Gloria Roma

619.993.3734 or Gloria@SanDiegohomesforsaleca.com

We’re NOT Moving!

We’re NOT Moving! Baby Boomers, the Silent Generation and seniors born after 1931 are deciding to stay home.

There has been a great amount written on millennials and their impact on the housing market. However, the headlines often contradict each other. Some claim this generation is becoming the largest share of first-time home buyers, while others claim millennials don’t want to own a home, blaming them for the dip in homeownership rate.

baby boomers silent generation aging in place causes housing shortage — Seniors are Not Moving; Serra Mesa is San Diego’s perfect example

While it is true that millennials have achieved milestones like getting married, having kids, and

buying homes later in life than their parents and grandparents did, they are not solely to blame for today’s housing market trends.

According to Freddie Mac

Insight Report explored the impact of the Silent and Baby Boomer Generations on the housing market. If millennials are unable to find a home to buy at a young age like their predecessors, then who is living in those homes?

The answer: Seniors born after 1931 are staying in their homes longer than previous generations. Instead choosing to “age in place.” Essentially saying ‘we’re not moving’.

Freddie Mac found that,

“this trend accounts for about 1.6 million houses held back from the market through 2018, representing about one year’s typical supply of new construction, or more than half of the current shortfall of 2.5 million housing units estimated in December’s Insight.
Older Americans prefer to age in place because they are satisfied with their communities, their homes, and their quality of life.”

According to the National Association of Realtors, inventory of homes for sale is currently at a 3.5-month supply. Which means that nationally we are in a seller’s market. A ‘normal’ housing market requires 6-7 months inventory, a level we have not achieved since August 2012.

“The most important fundamental in today’s housing market is the lack of houses for sale. This shortage has been identified as an important barrier to young adults buying their first homes.”

Bottom Line

If you are one of the many seniors who desires to retire in the same area you’ve always lived, you’re not alone. Will your current house fit your needs throughout retirement? If you have any questions about demand for your house, let’s get together to discuss the opportunities available today!

Gloria Roma 619.993.3734 or Gloria@SanDiegoHomesForSaleCa.com

Sell or Buy First?

This is probably the second most popular question I’m asked when speaking to a home owner about selling their home. It comes directly after ‘What is My Home Worth?”

I’ve happily answered the same questions hundreds of times over the past two decades. Now I’ve published my answer. Below is the article in my local magazine for April of 2019. I’ll continue to be asked the questions ‘should I sell or buy first?’ and I’ll continue to answer them… Though, after you ask I’m going to email the answer in the picture form. One, because it’s spring and chicks are adorable. Two, because it saves me time and I won’t forget anything important.

Which came first, The Chicken or The Egg?

Are you finding yourself in the quandary? Wondering which comes first, selling your current home or finding the replacement home? You are not alone!

Just as scientists are sure the egg came first; I’m sure that you need to GET YOUR HOME SOLD first. If you need to close escrow on your current home in order to secure financing on your next home, one of the biggest hurdles right now is to get it sold. Writing an offer on a replacement home contingent upon the sale of your current home puts you in a compromised position for negotiations and puts you at the bottom of the pile when competing with other buyers.

Below are some options to consider:

1. Work out a longer escrow and/or rent the property back from the buyers of your property while you continue to shop for your next home
2. Temporary housing options; preferably furnished
3. Consider renting for a short period of time (6 months -1 year)

Many sellers are hesitant to commit to selling their home if they have not found their next property, particularly as we have seen record low inventory in these past several years. However, it’s difficult to buy unless your home is in escrow. Some sellers will offer to sell their home contingent upon securing that replacement housing. While this worked a couple of years ago as buyers were desperate to find a home, it is not as agreeable today as it leaves a buyer in limbo as they wait for the seller to find that next property with no guarantee.

Although it may be uncomfortable to consider not knowing where you will be going, you will ultimately reap the best results by being pragmatic and selling first, then buying. I have helped many of my clients successfully move from one house to the other with no interim housing by negotiating creatively on their behalf and being proactive in exposing them to the market place so that all their cards fell in to place at the right time.

If you have been considering a move but have not been quite sure how to accomplish the logistics, give me a call at 619-993-3734! I can walk you through a plan customized to your needs and help you achieve your goals and so you’ll know which you should to ‘sell or buy first?’

gloria@sandiegohomesforsaleca.com

Omakase OMG at Kokoro Restaurant

Subtly seductive sushi and other delicacies at Serra Mesa spot

The dish started with the familiar: a comforting crunch and a flavor not entirely unlike that of French fries. But that didn’t last long. As my teeth sank into the interior, I became lost. Was it meaty or crunchy? It wasn’t either, but rather somewhere in between.

I couldn’t quite pinpoint either the flavor or the texture. Then I recognized the bits of green powder on the plate: that was the rich, aromatic, earthy and ethereal flavor of matcha. Then, with one hit of salt it suddenly all made sense. The world was back in balance.

Omakas Kokoro Serra Mesa — Serra Mesa Kokoro Restaurant

That lotus root tempura with matcha and salt at Kokoro Restaurant (3298 Greyling Drive Ste. B) in Serra Mesa was just a single dish in the middle of Chef “Taisho” Akio Ishito’s omakase menu. It was neither the meal’s first delicious bite nor its fantastic sushi finale. It was, rather, just one dish somewhere in the middle. And yet it captured the omakase’s essence: simple, surprising and subtly seductive precision and perfection. That’s why our title says Omakase Kokoro Restaurant.

Omakase, at least in the eyes of most Americans who have any understanding of the term, is often a sushi thing. But the Japanese word is much broader, translating literally as “respectfully leaving another to decide what is best.” Omakase dining, then, is much more expansive than simply sushi. It’s somewhat similar to kaiseke—both are elaborate, multi-course, tasting menu-style meals built around seasonality, quality ingredients and simple preparations—but without the ritualized structure and ceremony.

At Kokoro, the omakase includes raw and cured fish dishes, but it doesn’t exclusively feature those items. It’s not even mostly that. In fact, our omakase opened with a supremely simple dish of marinated spinach and enoki mushroom that was both understated and elegant. A miso-cured amaebi took that up a notch, with the miso marinade underlining the inherent sweetness of the shrimp.

Understated

Another surprising offering was a clear soup that seemed to feature a fish cake. But it wasn’t the fish cake that made the dish: it was the strip of yuzu, a Japanese citrus, sitting at the bottom of the bowl that really starred. That yuzu’s ever-so-slightly sweet acidity balanced and actually highlighted the deep umami of the soup and the fish cake.

Fried monkfish in lobster broth with snow pea and daikon was a bit more forward. The dish played on the parallels between the monkfish and the actual lobster broth. After all, monkfish is often called “poor man’s lobster.” Two big chunks of daikon balanced the richness of the seafood and the two little slices of snow pea offered a welcome hit of freshness.

The sashimi and sushi courses were, predictably, excellent. Taisho’s knife skills are second to none and his sourcing is impeccable. My favorite fish dish at Kokoro came at a lunch visit: mackerel battera sushi. Battera is Osaka-style sushi made by stacking translucent, paper-thin konbu over vinegar-pickled mackerel (Kokoro also offers it with salmon) and served on sushi rice. The entire package is compressed in an impressive wooden contraption resulting in a dish that is as dramatic and attractive as it is delicious.

Even with all that, I keep coming back to that fried lotus root tempura. Unexpected, subtle and surprising, that dish summed up what makes Kokoro stand out. There’s really nothing in San Diego quite like it.

by Michael A. Gardiner

Saving San Diego’s Skateworld

The San Diego City Council Monday voted down a proposal to sell the city’s only remaining wooden roller skating rink to a developer who planned to demolish it and replace it with a big box retail store.
After listening to dozens of speakers who pleaded with council members to save the skating rink in Linda Vista, the council voted 6-3 against selling the Skateworld property to the developer Pacifica Companies. The technically nonpartisan council voted along party lines to avoid the sale, showing the influence of council Democrats’ supermajority.

The fate of the rink has been hanging in the balance since Civic San Diego, a city-owned nonprofit, decided to open bids to sell the property last year. Skateworld advocates collected thousands of signatures in an effort to save the skating rink, including a change.org petition that garnered more than 19,000 supporters, who are local San Diegan’s Who have memories from their childhood as well as their children celebrating birthday party’s and other fun events held at the skating rink over the decades. The skating rink’s supporters argued it is one of the last family oriented and relatively cheap activities for residents in the Linda Vista neighborhood, let alone San Diego proper so they should have some say in how the property is managed.

Sunday, Skateworld supporters held a rally calling on the city to reopen the bidding on the property, their goal of saving San Diego’s Skateworld from going to sale. They claimed that Civic San Diego opened a secretive bidding process that didn’t include the community.

“I really appreciate that residents of every council district came to speak today about the community that Skateworld fosters,” said City Councilwoman Barbara Bry. “I think there’s so few family friendly opportunities in that community that it’s really essential.”

Supporters of the sale

Including City Councilman Scott Sherman, who represents the district Skateworld is in, argued that because the process was transparent. The city’s hands were tied and it should honor Pacifica’s bid. “I mean we had three different rounds of the bidding process. We had a tour of the area. He added the tour was sponsored by the Linda Vista planning group and Bayside Community Center and they were both here saying they weren’t involved.” City Council members Mark Kersey and Chris Cate also voted in favor of the sale. “They could easily lose a year from now and we go through this whole process, and if we can get all 13 entities to agree to go back into redevelopment. They can go back open for bids they could be on the short end of the stick again and we’re right back to where we started,” said Councilman Scott Sherman.

Owner of Skateworld, Gary Stang is just happy the community will have a chance to bid and provide input. “Transparency. It’s really important. It’s important that the community have a say of how their community is developed, and what’s important. And this was important to a lot of people,” said Owner of Skateworld Gary Stang.

Serra Mesa Mid-Century Bomb Shelter

Serra Mesa mid-century bomb shelters aren’t something we see or hear about every day. You’ve got to read this!

If Serra Mesa resident Amy Holles ever gets married again, she has the perfect room for her future mother-in-law.

Holles’s home came equipped with a 1950s-era bomb shelter dug underneath the driveway. The shelter is accessed through a wooden hatch door in the garage. A steep wooden staircase leads shelter seekers into a pocket of stale air walled by concrete. Beyond a power outlet, a retractable dining table, and flat turquoise paint, the shelter doesn’t provide much luxury. What it can provide, presumably – its efficacy has never been tested – is protection from nuclear holocaust.

Serra Mesa Bomb Shelter — Surprise in garage after she inherited house from family member.

While the issues of safety from air raids and boarding for her future in-laws are solved, Holles is worried about a more immediate issue: the cracking in her driveway.

Now It’s Time For An Engineer

There are several apparently severe cracks in the concrete. Holles says it seems like there are more cracks now than there were a year ago when she inherited the lot from her aunt. She thinks her driveway is about to give out, but doesn’t know for sure.

“Who do you call?” she asked. “You can’t look up bomb shelter inspectors.”

For now, Holles says she’ll embrace the shelter. The city of San Diego recommended she call a structural engineer to assess its stability. The city also said it can’t force her to do anything because the shelter is legal and it’s on private property.

When you need a structural engineer, give me a call. I always have 2-3 names of engineers I refer to my clients. In San Diego we have moist clay and Mission Valley sand both of which shift. Shifting causes sink holes, like the one in Serra Mesa earlier in 2019 off the 805 Murray Ridge off ramp as well as cracks in foundations and pieces of backyards falling into canyons. Though, these kinds of things aren’t known to happen on the mesa in Serra Mesa they do randomly occur in and around the city of San Diego.