LivingMalibu.com » Malibu Home Sales http://www.livingmalibu.com Malibu Real Estate-Malibu Homes For Sale Tue, 18 Jul 2017 20:51:46 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 International Buyers Guide For Malibu and the USA http://www.livingmalibu.com/international-buyers-guide-for-malibu-and-the-usa/ http://www.livingmalibu.com/international-buyers-guide-for-malibu-and-the-usa/#comments Sat, 30 Aug 2014 17:12:10 +0000 ritasimpson http://www.livingmalibu.com/?p=3324

Foreign buyers have flooded our Malibu market but few know how to navigate the system. Here is a guide to help you get the Malibu property you seek. In the US, almost all new real estate listings are posted to the Multiple Listing Service – or MLS – within 24 hours of coming up for ...]]>

Foreign buyers have flooded our Malibu market but few know how to navigate the system. Here is a guide to help you get the Malibu property you seek.
In the US, almost all new real estate listings are posted to the Multiple Listing Service – or MLS – within 24 hours of coming up for sale. This ensures that active listings are available to all agents, and differs from practices in many other countries, where buyers have to go from agent to agent to find a property. However, a number of listings in certain markets – the luxury market in particular – remain “pocket” or “quiet” listings. Hence, it is important to have a real estate agent who is a specialist in the area you are interested in who is well connected in the community.
COMMISSIONS
The sales commission in the US is always paid by the seller, and then divided equally between both the buyer’s and seller’s brokers and agents. Generally, commissions range from 2 to 5 percent, depending on the property and the market. Buyers here don’t pay a dime to have an agent working on their behalf, and it is therefore always advisable to work with an experienced broker or agent who will protect your interests in the transaction, and to be loyal to the agent working on your behalf so that they invest in you the time required to best serve you.
WHAT YOU NEED TO PROVIDE:
 To purchase a home, be ready to prove who you are. You don’t need to be a US citizen, but you do need an Individual Taxpayer Identification Number. This is a number assigned by the Internal Revenue Service to foreign nationals who need to file income tax returns, something you will have to do when 
buying real estate here. You will also need a valid foreign passport, or two or more current photo identifications such as a driver’s license, in order to verify who you are and your country of origin. Though property ownership isn’t tied to immigration or visa status, there are still rules about how long 
you can stay in the US, so if you’re not a citizen, check out US visa requirements before you purchase.

FINANCING:
Qualified foreign buyers can generally obtain financing for properties with a 30% down payment – though certain
markets require a 40% down payment. Check the specific state requirement where you plan to buy.
Banks are happy to offer mortgages to foreign buyers, but they usually require a relationship with the customer that
goes beyond just the mortgage. Some banks, such as HSBC (which does a great deal of foreign homebuyer financing) have a requirement that the buyer hold a $100,000 deposit with their bank. Banks often also want to see proof of 12 months’ reserves to cover mortgage payment, maintenance, and taxes, in addition to the $100,000 mentioned above.
I have relationships with many of the major mortgage banks, and  can help you find a lender and mortgage terms
that best suit your needs. Please get in touch if you’d like more specifics on various financing options.
VERIFICATION DOCUMENTS:
International buyers will usually be asked to provide the following documents, so it’s a good idea to get them in order
ahead of time:
Credit References:Usually at least four references from credit sources will be
required for mortgage loan applications. These documents must come from finance professionals such as accountants,
bankers, or insurance officials. This is very important – in 2012, US realtors reported that most of the deals that fell
through with foreign buyers did so because the buyers lacked adequate credit history.
Proper Visa or Foreign Passport Copy
Double check to make sure these documents haven’t expired and aren’t expiring anytime soon.
Verification of Rent/Mortgage Payments: Proof of rent or mortgage payments are generally required for a period of at least one year before the application.
Proof of Employment: International buyers, just like US buyers, will be asked to :You will need to show that you can afford the purchase, as well as have funds on reserve to cover the full first year of payments, insurance costs, taxes, etc.
Every US lender requires borrowers to purchase homeowners insurance to protect the home from any potential damage
and natural disasters. Insurance costs vary based on the size of the property and by state. Costs tend to be significantly
higher in states prone to natural disasters, such as Florida
and Texas.
EVERYTHING YOU WANT TO KNOW ABOUT TAXES
Tax liability is different for foreign nationals than it is for US residents. Here’s a quick breakdown of major distinctions:
•  While federal tax on long term investments (holding property for over a year) is 15% for US residents, foreigners pay 30%.
•  Under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), income tax is withheld immediately after a non US-resident sells property. The rate varies from state to state, but the federal rate is a flat 10%.
•  The IRS requires a “Statement of Withholding on Dispositions by Foreign Persons of US Real Property 
Interests.” In addition, many states request a “Nonresident Real Property Estimated Income Tax Payment Form.”
•  I recommended seeking the expertise of a professional tax accountant to provide assistance with these forms. Consult a Tax Specialist in Your Home Country An international buyer’s overall tax liability will also differ country to country based on the home country’s tax treaty with the US. Therefore, it’s best to consult a tax advisor in the buyer’s country of residence, who is familiar with the tax treaty 
and its provisions. The capital gains rate for US residents is 20% (if the property was owned for more than one year) but it could be higher if you are from certain countries. Check with a local 
tax specialist before you buy.

RENTAL INCOME
US law requires that the foreign nationals “elect“ to pay US income taxes on any net income earned from rental property. If this election is not made in a timely fashion – and the proper forms filed with the IRS – a tax of 30% of the gross rental income will be demanded. Even if the property owner is incurring tax losses initially and doesn’t owe any taxes to the government, he or she must still file their tax returns in order to make the “election” required by law.
DEDUCTIONS!
The good news is that international buyers who finance their purchases with a 40 to 50% down payment will generally not pay income taxes on their rental income for the first 10 to 15 years, since the US is very generous when it comes to expenses that can be deducted from rental income. Mortgage interest, common charges, depreciation, property taxes, insurance, and amortization of closing costs can all be claimed as deductions against income, so in the early years your property will generate negative taxable income and you will not have any tax liability.
NOTE: You Do Not Have To Be in the US to Close the Deal.
When the property is officially closed on and transferred to the new owner, the new owner does not need to be in the
US. Instead, the owner can provide his or her representative (usually a broker) with “Power of Attorney,” and then the
representative will close the deal on behalf of the new owner. This is a common practice and can be very convenient for the buyer who does not want to come back to the US for the closing. Talk to your realtor about that possibility if it may
interest you.
.ESTABLISHING AN LLC
 International buyers should ask themselves if it suits their interests to buy under the name of a domestic US company, or LLC (Limited Liability Company). Although there are benefits to buying through a LLC, such as tax incentives, certain treaties between a foreign country and the US can sometimes detract from those advantages. Foreign buyers should do their research ahead of time, and enlist the help of a tax adviser who specializes in international law.
Here are six things you should know about LLCs in the United
States:
1. It takes one week or so to form an LLC.
2. The LLC has to be created in the same state as the
property to be purchased.
3. The LLC is required by law to file local, state, and federal
tax returns.
4. An LLC can include foreign nationals and US residents.
5. At the time of sale, property owners can sell or transfer
shares of the LLC to a buyer.
6. A US-based LLC can be owned by a Foreign Corporation
for additional benefits.
Tip – If You Want To Avoid the US Estate Tax
When a non US-resident dies, his or her estate will be taxed by the US government at roughly 45%. This can be avoided if the international buyer sets up a Limited Liability Corporation (LLC) – which owns the property – and a Foreign Corporation to own the LLC. Since the property in this scenario is owned by the Foreign Corporation, the US would not be able to tax it upon the death of the owner. This can be a huge tax savings and is not very expensive or time intensive to implement, especially if you solicit professional help.
If you are considering buying property in Malibu or the Los Angeles area, give me a call 310-617-0996. I will make your search easy fun and productive!
This is meant as a general guide. Please consult an international tax attorney before you make any decisions.
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Picking The Best Malibu Beach Homes On the Market http://www.livingmalibu.com/picking-the-best-malibu-beach-homes-on-the-market/ http://www.livingmalibu.com/picking-the-best-malibu-beach-homes-on-the-market/#comments Fri, 18 Jul 2014 18:49:47 +0000 ritasimpson http://www.livingmalibu.com/?p=3248

When it comes to picking a winner among the many beautiful Malibu Beach homes on the market,it’s not an easy task.From a condo on Malibu Road to an Encinal Bluff estate prices ranging from  $4.5 million to $9 million Here is what and why I picked these:

Choosing is hard because it’s not just about the ...]]>

When it comes to picking a winner among the many beautiful Malibu Beach homes on the market,it’s not an easy task.From a condo on Malibu Road to an Encinal Bluff estate prices ranging from  $4.5 million to $9 million Here is what and why I picked these:

Choosing is hard because it’s not just about the house but it is also about the beach! and the money of course!!! so how to choose?? how to mix all those variables and average them out to see on average which ones come out ahead of the pack?

I first went down the list of the favorite beaches, then I picked the cleanest, nicest homes per beach, then I compared relative prices and picked the better priced ones in each category and beach. Today I came out with this short list, but tomorrow it will be different I can assure you. As listings come on the market and others sell the composition of what is offered will change and so will the best picks, but today here are the ones that deserve some attention:

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

 

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Buying a Malibu Beach House http://www.livingmalibu.com/buying-a-malibu-beach-house/ http://www.livingmalibu.com/buying-a-malibu-beach-house/#comments Wed, 05 Mar 2014 19:34:09 +0000 ritasimpson http://www.livingmalibu.com/?p=3098

Malibu beaches are diverse and so are the prices that similar homes may command. Just before the summer hits, I will give you the Best Buys for Malibu Beach homes in each area right now.

Keep in mind, some of the factors that influence the price differences is the physical nature of the site, the other ...]]>

Malibu beaches are diverse and so are the prices that similar homes may command. Just before the summer hits, I will give you the Best Buys for Malibu Beach homes in each area right now.

Keep in mind, some of the factors that influence the price differences is the physical nature of the site, the other factor,  the social perceived value of an area.

In the  physical realm: Wet versus dry beaches, meaning  whether the beach is mostly under water (these are usually located in the southernmost area of Malibu closer to Santa Monica, like Las Tunas Beach, Big Rock Beach) and are generally more affordable. Semi-wet ones  (where at low tide you get some sand to walk on, in little coves like Las Flores beach or Malibu Cove Colony) prices at these beaches are a little higher  and the dry beaches, a great example of that is Zuma Beach and Escondido and Paradise Cove beach, Point Dume beaches, where in general prices are higher.

For the social value of an area consider the neighbors. Wherever the concentration of residents is mostly entertainment celebrities, or CEOs of companies,  their capacity to pay more for the properties has over time  made certain areas almost exclusively affordable to that group. Like the Malibu Colony, Carbon beach, Bluffs at Point Dume, Paradise Cove Bluffs etc..

Here is my selection of the Best Buys in Malibu Beach Houses on the Market today. And because for each price range there is a Best Buy that is how I will feature them starting from lowest to highest price:

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

 

 

 

 

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Malibu Contemporary With Pool and Beach Club, Priced Under $3 Million http://www.livingmalibu.com/malibu-contemporary-with-pool-and-beach-priced-under-3-million/ http://www.livingmalibu.com/malibu-contemporary-with-pool-and-beach-priced-under-3-million/#comments Sat, 22 Feb 2014 00:11:32 +0000 ritasimpson http://www.livingmalibu.com/?p=3073

This is the Hottest deal in Malibu Today.

 

Architectural home with 3 Bedrooms and 3 baths all with amazing views of the Pacific Ocean, includes La Costa Beach and Tennis Club deeded rights, beautiful pool and garden. Priced under $3,000,000. Take a look at the details and don’t waste a minute! these don’t come on the ...]]>

This is the Hottest deal in Malibu Today.

 

Architectural home with 3 Bedrooms and 3 baths all with amazing views of the Pacific Ocean, includes La Costa Beach and Tennis Club deeded rights, beautiful pool and garden. Priced under $3,000,000. Take a look at the details and don’t waste a minute! these don’t come on the market every day…

We're sorry, but we couldn't find MLS # 14738061 in our database. This property may be a new listing or possibly taken off the market. Please check back again.

 

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Malibu Posted The Most Expensive Real Estate Sale In The Nation Last Year http://www.livingmalibu.com/malibu-posted-the-most-expensive-real-estate-sale-in-the-nation-last-year/ http://www.livingmalibu.com/malibu-posted-the-most-expensive-real-estate-sale-in-the-nation-last-year/#comments Fri, 07 Feb 2014 23:41:45 +0000 ritasimpson http://www.livingmalibu.com/?p=3048

 Luxury sales came roaring back to Southern California last year, and there is no reason to expect less this year.

Sales of homes priced over $1 million went up by 45% last year compared to 2012, and just 8% shy of the sales volume of homes over $1 million in 2007!

Malibu notched the most expensive sale last ...]]>

 Luxury sales came roaring back to Southern California last year, and there is no reason to expect less this year.

Sales of homes priced over $1 million went up by 45% last year compared to 2012, and just 8% shy of the sales volume of homes over $1 million in 2007!

Malibu notched the most expensive sale last year — at  $74.5 million for a 15,355-square-foot, eight-bedroom, 14-bathroom beachfront estate built in 1993, according to Dataquick. The estate sits on a 4.85-acre lot on the north end, the Encinal bluffs area of Malibu,  with a tennis court and infinity pool and sweeping ocean view.

According to Forbes.com  in a Dec 6 posting,  Howard Marks, founder of Oaktree Capital Management, sold the estate to an anonymous Russian buyer. It was the most expensive sale in the U.S. at the time and a record for Malibu, the site noted.

“The luxury home market is unique, and always has been,” John Walsh, DataQuick president, said in a statement. “It responds to its own set of economic factors. Things like job growth, mortgage interest rates and migration patterns do not play the same role as IPOs (and) stock-market performance.

 

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Point Dume, Malibu, Best Buy Home http://www.livingmalibu.com/point-dume-malibu-best-buy-home/ http://www.livingmalibu.com/point-dume-malibu-best-buy-home/#comments Sat, 01 Feb 2014 19:24:32 +0000 ritasimpson http://www.livingmalibu.com/?p=3024

Sometimes opportunity knocks. This is it: Under $3 million

Ideal Pt. Dume property with private beach key.

Almost one acre useable with lighted tennis court.

Move in condition. Main house has 3 bedrooms, 2 bathrooms, plus room and bath off garage. Room for pool.

Incredible investment opportunity.

Come see it before it goes! 310-617-0996

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Sometimes opportunity knocks. This is it: Under $3 million

Ideal Pt. Dume property with private beach key.

Almost one acre useable with lighted tennis court.

Move in condition. Main house has 3 bedrooms, 2 bathrooms, plus room and bath off garage. Room for pool.

Incredible investment opportunity.

Come see it before it goes! 310-617-0996

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Appraisals Tanking More Home Sales http://www.livingmalibu.com/appraisals-tanking-more-home-sales/ http://www.livingmalibu.com/appraisals-tanking-more-home-sales/#comments Sat, 14 Sep 2013 14:40:44 +0000 ritasimpson http://www.livingmalibu.com/?p=2824

With bidding wars in hot markets , the property-appraisal process has been undermining transactions, forcing some would-be buyers to walk away.

The impact can be significant. Consider a jumbo borrower required to put 20% down on a $1 million purchase expects to pay $200,000. But if the home appraises at $900,000, the down payment goes up ...]]>

With bidding wars in hot markets , the property-appraisal process has been undermining transactions, forcing some would-be buyers to walk away.

The impact can be significant. Consider a jumbo borrower required to put 20% down on a $1 million purchase expects to pay $200,000. But if the home appraises at $900,000, the down payment goes up to $280,000—the sum of the $100,000 shortfall plus the $180,000 down payment!

A few forces are at work. First, many homes are being appraised at a lower price than what buyers have offered on a house. That is because home values are improving so fast in competitive, high-priced markets that “comps,” recent sales of nearby homes with comparable characteristics, haven’t kept up.

Another deal breaker is the length of time it takes to get an appraisal, some as many as 20 days. Delays also mean loosing interest rate locks. Another force is the mortgage contingency clause: Sellers in a hot market don’t want to tie their homes with an uncertainty in this climate. So cash buyers are still king! more on this

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Malibu Market Update http://www.livingmalibu.com/malibu-market-update/ http://www.livingmalibu.com/malibu-market-update/#comments Mon, 01 Apr 2013 00:08:25 +0000 ritasimpson http://www.livingmalibu.com/?p=2752

If you want to know what is going on in Malibu Real Estate today here is a glimpse:

Realtors are busy, busy in Malibu. Activity as been in a frenzy at the beach but is also catching on  for the land side market, meaning properties on the land side of Pacific Coast Highway.

Last year, during the ...]]>

If you want to know what is going on in Malibu Real Estate today here is a glimpse:

Realtors are busy, busy in Malibu. Activity as been in a frenzy at the beach but is also catching on  for the land side market, meaning properties on the land side of Pacific Coast Highway.

Last year, during the first quarter, we witnessed a good upsurge in market activity and it has not softened since. During the first quater last year, Malibu land side properties registered 39 closed transactions. This year, during the same period  Malibu had 45 closed transactions. This translates into a 15% increase in the number of units sold. The Median Price  also increased from $1,225,000 in 2012 to $1,588,888 in 2013 during the first quarter. That is a 29.7% increase.

Of the 45 sales on the landside so far this year 12 were  properties under $ 1 million, 32 transactions were for properties under $2 million and 40 transactions were for properties under $3 million, That is 88% of the transactions were under the $3 million price tag.  On the beach side to the contrary most transactions are happening on the upper end of the price Ranges. With 6 transactions closed so far this year, over 50% of the transactions on the beach are over the $7 million dollar mark. with the highest this month at $17 million, and another closing at $10.5 million. The Median has ticked up 10% from last year same period but the highest sold item was 3 times as expensive as last year, indicating a clear trend towards the most exclusive properties unlike previous years were we saw a clean up in the lower price ranges.

Sorry, but we couldn't find any results in the MLS that match the specified search criteria.

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Latigo Canyon In Malibu Posted 5 Big Sales http://www.livingmalibu.com/latigo-canyon-in-malibu-posted-5-big-sales/ http://www.livingmalibu.com/latigo-canyon-in-malibu-posted-5-big-sales/#comments Wed, 09 Jan 2013 01:29:05 +0000 ritasimpson http://www.livingmalibu.com/?p=2624

After a quiet start, these Five Malibu homes, located in the first 2 miles of Latigo Canyon, sold in what looked like a shooting star parade. All five within a couple of months of each other. These were some of the great deals to be had in 2012: the homes were spacious averaging 5,200 square ...]]>

After a quiet start, these Five Malibu homes, located in the first 2 miles of Latigo Canyon, sold in what looked like a shooting star parade. All five within a couple of months of each other. These were some of the great deals to be had in 2012: the homes were spacious averaging 5,200 square feet each and included large acreage. Every one of these homes had spectacular ocean and Malibu landmark views, such as the bluffs of Point Dume, Catalina Island, Palos Verdes and the Santa Monica Bay and Queens Necklace. The homes were also all relatively new, most having been built after 2000. Yet they lingered for a long time on the market, then as if finally re-discovered they all sold at the same time!

Latigo canyon is still one of the best kept secrets around. Located in the mid Malibu section it is close to all the Malibu amenities and some of our best beaches. The prices here are about 30% lower than Malibu Park and Point Dume, and for those who value spectacular views there is no better choice than taking the road up Latigo Canyon, in Malibu!

20130108-172745.jpg

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Malibu Real Estate Market Update http://www.livingmalibu.com/malibu-real-estate-market-update-2/ http://www.livingmalibu.com/malibu-real-estate-market-update-2/#comments Thu, 08 Nov 2012 02:18:02 +0000 ritasimpson http://www.livingmalibu.com/?p=2489

It’s been a great year for Malibu Beach Home sales, especially for those priced between $5 and $10 million. In this bracket sales surged 933% from the sales last year in the same price bracket, quite a surge! meanwhile the priced paid per square foot of those homes dropped by an average of 25% although ...]]>

It’s been a great year for Malibu Beach Home sales, especially for those priced between $5 and $10 million. In this bracket sales surged 933% from the sales last year in the same price bracket, quite a surge! meanwhile the priced paid per square foot of those homes dropped by an average of 25% although Sold to list price ratio remained constant at 90% This meant Sellers were pricing their properties close to Market level. The median remained unchanged In the $6.5 million range.

Here are three of the best buys at the beach so far this year:

This gorgeous Encinal Beach property Sold at $7,600,000 in June.

This other home on Malibu Road is another example of the great buys at the beach this year. It closed in May at $7,300,000

ocean front pool

And this Malibu Cove Colony Beach home wich also closed in May at $4,367,500.

Twenty seven properties are on the market in this popular Price range and a few are quite the deal. Call me if you have any questions, or would like to take a peak.

The other price brackets: Under $2 million, between $2 and $5 million and over $10 million The sales volume, price paid per square foot and ratio of Sale Price to List price  90+- % remained constant for 2011 and 2012.

On the land side of Pacific Coast Highway however the big action was on the under $2 million dollar range. Here sales surged 45% and while the Median remained constant at $1.2 million the price paid per square foot declined about 20%. There are 41 such properties on the market right now.

The other price range that performed better this year than last year was the $2 to $5 million dollar range. Here sales increased by 34% and while the median also remained constant the price paid per square foot went up by 5%.

Here are some of the beautiful Malibu landside homes that sold:

This 4,500 sqft home with pool and spectacular ocean views sold for $2,035,000 in September.

This other in a gated community went for $3,100,000.

 

And last but not least this impeccably appointed home with La Costa Beach rights, sold in May for $3,450,000

There are 59 homes currently on the Market in Malibu in this price range. Call or email me for the best selection.

 

 

 

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