Beginning January 1, 2013, a new 3.8% tax on some investment income will go into effect. This new tax was passed by Congress in 2010 as part of President Obama’s health care bill. The tax has been dubbed the “Medicare tax” because the proceeds (expected to be $210 Billion) are to be used to cover the Medicare Trust fund which is expected to run dry in a few years. There are many misconceptions about this new tax, and it is complicated, but here is some … Continue reading The 3.8% Medicare Tax

It is important for all active buyers and sellers to be aware of the approaching loan limit change as of October 1st. Currently, buyers can borrow up to $729,500 in Monterey County at conforming loan rates, which is called the High Balance Conforming Loan. This loan amount is decreasing in Monterey County to $483,000 on October 1st. Different counties have different loan limits, but because Monterey County not only includes higher priced areas such as Carmel and Pebble Beach, but … Continue reading High Balance Conforming Loan Limits to Decrease October 1st

The past 6-8 weeks has witnessed a drop in buyer activity here on the Monterey Peninsula. For the most part, we believe that prices have bottomed in our market, although our recovery has been stop-and go. And the word “recovery” is really not the right word to use, as projections show prices to remain flat this year, and well into 2013 and  possibly 2014.  For those deciding whether to sell now or hold on for a few years, I would consider your carrying costs as … Continue reading Market Snapshot

Well there has certainly been a buzz in our community around a recent article in the New York times, “Federal Retreat on Bigger Loans Rattles Housing.” Monterey County was the main character in this article serving as an example of an area that will be affected more than others when it comes to the loan limit change slated for later this year. Essentially, the federal government has been backing mortgages up to $729,750, a limit that has been in place … Continue reading New Loan Limits Expected to Hit Monterey County