Who bought the 2010 home?
- Thread starter mikeirvine
- Start date
NEW -> Contingent Buyer Assistance Program
Both scenario happened to us. When we bought our CalPac home back in 05, we were able to pay for all upgrades out of pocket. Our home value was only our purchase price. However, this time around at Montecito, it's what AJW and waiting4ever described. Doesn't matter how I paid for it, it will be a part of the purchase price. We, Brookfield customers are not so lucky like mikeirvine who gets to paid not only with CC and not be a part of purchase price.
The total cost of my upgrades will be included in my total price ( I checked with my escrow company :'( ) that mean I have to pay tax for the upgrades.... even I pay in full for my upgrades before the close of escrow, I only get CC pts.
Look at the bright side the upgrades tax will be tax deductible.... it's too much trouble to do it after closing as I will need to take apart what the builder put in and that void warranties and might damage other stuffs and later move in dates. These 2010 Irvine home are not on the buyer side. A million dollar is what the builder want from me :-*with no options and negotiation, hope I can at least get the 10k tax rebate from CA
Mike
escrowbear
New member
They'll have to start taking contingent once the all cash pool dries up.
mikeirvine
New member
[quote author="escrowbear"]They'll have to start taking contingent once the all cash pool dries up.
[/quote]
The cash pool won't be dried up fast if Irvine company controls the inventory like what they are doing now.
Irvine company knows control inventory is the way to benefit themselves and Irvine properties value. I keep seeing more and more new people signing up at the model home every weeks ..... The sale people keep showing them the all sold home and telling people you need to get in line, many are still on the waiting list and the only way to get a new home is sign up and maybe they will build more.
My interior designers from San Diego told me new home are dead there and Friends in LA properties are 30% - 40% underwater.
Irvine company had their best year in 2008 and 2010 they sold 200 home in month. I'm one of those people that bought the new home (Stupid right?).
Wait if you can, as no one know what is going on for Irvine. It might get lower or it might get higher, no one knows the answers, but if you are planning to stay in your new home for more than 10 yrs and have the money.... go for it.
If you need to buy at the lowest cheapest big home, there are everywhere outside Irvine now or you have to wait and pray that the economy will have to get worse than the 2008.
Renting is the most make sense now to save money.... or get the smallest and cheapest to avoid paying rent.
I do know people that have more than 2 to 3 home in irvine that getting the new home .... but they do look at your down payment and what you can afford first even if you are planning to sell one before buying another.
Mike
[/quote]
The cash pool won't be dried up fast if Irvine company controls the inventory like what they are doing now.
Irvine company knows control inventory is the way to benefit themselves and Irvine properties value. I keep seeing more and more new people signing up at the model home every weeks ..... The sale people keep showing them the all sold home and telling people you need to get in line, many are still on the waiting list and the only way to get a new home is sign up and maybe they will build more.
My interior designers from San Diego told me new home are dead there and Friends in LA properties are 30% - 40% underwater.
Irvine company had their best year in 2008 and 2010 they sold 200 home in month. I'm one of those people that bought the new home (Stupid right?).
Wait if you can, as no one know what is going on for Irvine. It might get lower or it might get higher, no one knows the answers, but if you are planning to stay in your new home for more than 10 yrs and have the money.... go for it.
If you need to buy at the lowest cheapest big home, there are everywhere outside Irvine now or you have to wait and pray that the economy will have to get worse than the 2008.
Renting is the most make sense now to save money.... or get the smallest and cheapest to avoid paying rent.
I do know people that have more than 2 to 3 home in irvine that getting the new home .... but they do look at your down payment and what you can afford first even if you are planning to sell one before buying another.
Mike
mikeirvine
New member
There should be more new buyers as most of the new home release are sold ...... Congrats.
Just wonder how much new home owners spend on upgrades?
I paid my upgrades deposit, using my credit card to earn points for Sonoma ....They also allow to pay the full upgrades with credit card in May.
Mike
Just wonder how much new home owners spend on upgrades?
I paid my upgrades deposit, using my credit card to earn points for Sonoma ....They also allow to pay the full upgrades with credit card in May.
Mike
mikeirvine
New member
I'm surprise too when she ask for the CC or check for the deposit and told me if I want to pay for all the upgrades with CC then I need to pay earlier in May when I pick my last stage of upgrades.
I think my upgrades with the builder's design center will be around 50 - 60K and I will need to use a few CC or talk to the bank to increase my CC limits for that.
Mike
I think my upgrades with the builder's design center will be around 50 - 60K and I will need to use a few CC or talk to the bank to increase my CC limits for that.
Mike
fe9000 said:
usctrojancpa
Well-known member
Not if you pay for them out-of-pocket. You get the best of both worlds when you pay for the updates (whether it be CC or check)...Your taxable basis for property taxes is lower but you still have an increased cost basis in the home.irvinefan said:
waitin4ever
New member
That is not true. I'm told by by monterey folks that even if i pay for upgrades by check
which i'm doing my property tax will be accessed on base price+upgrades. There are
certain upgrades that are done after market for which you pay sales tax upfront but
no property tax for future. But some things like flooring and counter tops, carpet etc
which have to be done to close escrow you don't pay sales tax but you pay 1% for
rest of the time you own the property.
which i'm doing my property tax will be accessed on base price+upgrades. There are
certain upgrades that are done after market for which you pay sales tax upfront but
no property tax for future. But some things like flooring and counter tops, carpet etc
which have to be done to close escrow you don't pay sales tax but you pay 1% for
rest of the time you own the property.
usctrojancpa said:
usctrojancpa
Well-known member
That's how it worked when I purchased my William Lyon condo in Irvine in 2004. Only amount of the upgrades that I did not pay for got added to the sales price. Guess these builders don't do that which sucks.waitin4ever said:
ajw522
Active member
At Montecito, it doesn't matter the method you pay for the upgrades, they still always include the upgrades in the purchase price. If you want to pay for the upgrades up front, you pay a larger down payment on the home (essentially the same thing, but the upgrades are still included in property taxes)
usctrojancpa said:
Both scenario happened to us. When we bought our CalPac home back in 05, we were able to pay for all upgrades out of pocket. Our home value was only our purchase price. However, this time around at Montecito, it's what AJW and waiting4ever described. Doesn't matter how I paid for it, it will be a part of the purchase price. We, Brookfield customers are not so lucky like mikeirvine who gets to paid not only with CC and not be a part of purchase price.
mikeirvine
New member
irvinefan said:
The total cost of my upgrades will be included in my total price ( I checked with my escrow company :'( ) that mean I have to pay tax for the upgrades.... even I pay in full for my upgrades before the close of escrow, I only get CC pts.
Look at the bright side the upgrades tax will be tax deductible.... it's too much trouble to do it after closing as I will need to take apart what the builder put in and that void warranties and might damage other stuffs and later move in dates. These 2010 Irvine home are not on the buyer side. A million dollar is what the builder want from me :-*with no options and negotiation, hope I can at least get the 10k tax rebate from CA
Mike
usctrojancpa
Well-known member
Mike, upgrades are tax deductible whether you do them before or after you close in the sense that they will increase the cost basis of the home (please don't try to deduct the upgrade costs on your Schedule A or anything...haha). If you do them after you close, you'll need to keep copies of receipts and invoices of all the upgrades.mikeirvine said: