APARTMENT INVESTMENTS HEDGE INFLATION CONCERNS 

The Federal Reserve sees core inflation ending the year at just over 4% after raising the Federal funds rate to 1.9%.  This inflation creates strategic issues from an investment perspective. For bondholders, inflation erodes principal value. Furthermore, because the coupon on most fixed income securities remains the same until maturity, the purchasing power of the interest payments declines as inflation rises. For equity investors, the problem relates to stock valuation methods. Market participants frequently discount future cash ... Read more

PANDEMIC PAYDAY: ULTRAWEALTHY ADDED $1.2B PER DAY WHILE INEQUALITY KILLED MILLIONS

A new report explains how inequality contributed to the death of 21,000 people each day of the pandemic while the wealthiest collectively got $1.2 billion richer every 24 hours. Oxfam International’s latest report on global inequality finds that while the 10 richest individuals in the world more than doubled their collective wealth since COVID-19 hit in 2020, the related result of this billionaire surge has been a deadlier and more prolonged pandemic for the rest ... Read more

2022 Capital Gains Tax Rate Thresholds

2022 Capital Gains Tax Rate Thresholds Capital GainsTax RateTaxable Income(Single)Taxable Income(Married Filing Separate)Taxable Income(Head of Household)Taxable Income(Married Filing Jointly)0%Up to $41,675Up to $41,675Up to $55,800Up to $83,35015%$41,675 to $459,750$41,675 to $258,600$55,800 to $488,500$83,350 to $517,20020%Over $459,750Over $258,600Over $488,500Over $517,200 Tax on Net Investment Income There's an additional 3.8% surtax on net investment income (NII) that you might have to pay on top of the capital gains tax. (NII includes, among other things, taxable interest, dividends, gains, passive ... Read more

San Diego Ranked #1 MOST FUN Place to Live in the U.S.

According to U.S. News & World Report analyzing 150 metro areas in the United States to find the best places to live -- based on quality of life, job market in each metro area, the value of living there and people's desire to live there -- San Diego is the “most fun” place to live in the U.S.  The Southern California beach city is ranked #1 for its sunny weather, amazing beaches, beautiful and ... Read more

Governor Newsom Ends Single Family Zoning in California

Governor Newsom signed Senate Bill 9 into law in September 2021, which effectively eliminates single family zoning throughout the state of California. SB 9 requires jurisdictions to ministerially approve a housing development of two dwelling units on a non-historic single-family zoned parcel, and to also ministerially approve a lot split for existing non-historic single-family zoned parcels of 2,400 square feet or greater, subject only to limited exceptions. This means that an existing parcel with one ... Read more

WHY INVEST IN SAN DIEGO AND CALIFORNIA in 2021-2022?

Though some people are leaving California, San Diego and California continue to attract more affluent and highly educated people from across the nation and internationally, creating a mega-market for the housing.60% of adults moving to California have a bachelor’s degree or higher.The unemployment rate in California among those with college degrees is 2.9%, with San Diego County total unemployment below 7%.San Diego County has gained 50,000 new jobs since January 2021.In 2020, more than ... Read more

Regal Properties Closed 3 Fantastic Financings in Early May 2021

In about a 1-week period, Regal Properties’ financing team closed 3 amazing loans on 3 different property types with 3 different lenders. The owner of a neighborhood retail shopping center in east San Diego County, in a refinance, pulled out approximately $7,500,000 in cash and still reduced the monthly payment by over $16,000, with a non-recourse life insurance company loan fixed for 10 years at 3.32%, with interest-only for 2 years, amortized over 30 years. The ... Read more

Commercial Real Estate Investor Strategies After Prop 19 in California

Under the newly passed Proposition 19 in California, property taxes on commercial real estate will now be reassessed upon any transfer from parent to child.  This new consequence of death will likely lead to the sale of many inherited commercial real estate investment properties because the reassessment renders the property a less desirable investment.  However, can parents still transfer such property to their children without reassessment?  Possibly. Assume, for example, the parents own an apartment ... Read more

How Proposition 19 Affects California Homeowner Property Taxes

Recently passed Proposition 19 in California affects homeowners in 2 key ways: (1) making it easier for owners over 55 or victims of natural disasters to relocate, and (2) restricting the exempt intra-family transfers (aka parent to child or grandparent to grandchild). Primary Residence Transfers Prop. 19 allows persons over 55 and victims of a wildfire or natural disaster to make three transfers per lifetime, in any county in California, and that they may do so ... Read more

1031 Exchange Trap – You Could Have Less Than 180 Days

IRC Section 1031’s regulations state, “The exchange period begins on the date the taxpayer transfers the relinquished property and ends at midnight on the earlier of the 180th day thereafter or the due date (including extensions) for the taxpayer’s return of tax imposed by chapter 1 of subtitle A of the Code for the taxable year in which the transfer of the relinquished property occurs.”  Thus, the regulations generally allow for 180 calendar days for ... Read more
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