"A 10 percent increase in housing costs in a county is associated with a roughly 5 percent increase in housing costs in its neighboring counties." -California Legislative Analyst Office "Historically, Santa Cruz has provided housing base for major job centers located in Silicon Valley. This relationship has been one of the major drivers of housing demand, especially for single family dwellings in the above moderate household income category. Further, jobs in Santa Clara County
A reduction in incentives for homeownership results in strong demand in the rental market. This fact, and a new deduction on taxable income of pass-through companies suggests that landlords and other real estate investors stand to benefit from the new law.
On Tuesday, February 13th, the Santa Cruz City Council passed temporary rent freeze and a just cause for eviction ordinances for certain rental properties within the city limits (see exceptions below). This sudden action was in response to community-member complaints that, given the impending threat of a rent-control moratorium on the November ballot, landlords have an incentive to raise rents and evict tenants to guard against losses should new laws come into effect. The following
Assemblyman Richard Bloom (D-Santa Monica) proposed legislation on January 11th to repeal Costa-Hawkins, which would have allowed local governments to implement new rent control policies. The bill failed. But this is not the end of the rent-control battle. The California Local Rent Control Initiative, which would expand local government's authority to adopt rent control and repeal the Costa-Hawkin's Rental Housing Act may be on this year's November ballot. Locally, the Sentinel reports that
The following was announced by the Santa Cruz County Association of Realtors: On February 13, 2018 the City Council of Santa Cruz will be holding two public hearings that you should be aware of. At 2 pm there is a public hearing discussing the potential passing of a relocation assistance ordinance. If passed, this ordnance would make landlords liable to tenants for relocation assistance upon eviction or rent increase. Landlords would also be subject to
The Tax Cuts and Jobs Act has been signed into law. There were some big "wins" in the final bill from the perspective of homebuyers, owners, and real estate investors. However, the bill removes important incentives for homeownership and may have an adverse impact in some markets. According to the National Association of Realtors, home prices will grow at a slower pace of 1-3% nationally. Unfortunately, some local markets in high cost, higher tax areas
At the beginning 2018, there are some important changes on the horizon for Santa Cruz Real Estate. The Tax Cuts and Jobs act, which is making its way through the House and Senate, will be a major determinant of 2018 housing market health. We've written about its potential impact on the California real estate market in a separate blog post, and will provide regular updates on this topic. Here, we summarize some other major factors
On Thursday, November 9th, Republicans in the Senate Finance Committee released an outline of their version of the "Tax Cuts and Jobs Act". Just one week earlier, the Republicans' congressional House Ways and Means Committee released the original version. Both pose a threat to homeownership as we know it today. Here is a short summary of how both may affect your real estate. Mortgage Interest Deduction The house bill will keep the mortgage
The passage of Prop 64 allows for the sale and taxation of commercial cannabis in the state of California. This development may have both negative and positive consequences for local Real Estate Markets. Commercial real estate owners in areas where cannabis cultivation and the sale of marijuana are legal may see a significant increase in real estate values and lease-rates. For example, in Denver, cannabis cultivation is only allowed in certain industrial zoned areas.
Bitcoin is a decentralized currency that is used to send money instantly to anyone around the globe with negligible fees. It relies on blockchain technology, which provides a level of transparency and reliability needed to foster trust amongst bitcoin users. To learn more about the basics of bitcoin and blockchain, take a look at this video. Why is this relevant? Because bitcoin was just used to purchase a piece of US real estate. According
Previously, you needed a 4,500 square foot lot, or larger, to build an Additional Dwelling Unit (ADU), also commonly known as a granny unit. Now, any legally built unit within the existing footprint of your home can be turned into an ADU under new state law. This applies to new projects and conversions, so long as the unit is within the pre-existing structure and is build legally (meaning it was permitted and build to code).
Great news! Home buying just got a lot easier. A combination of two major changes in credit reporting and lending criteria could help tens of millions more individuals and families to qualify for a home loan. In 2012, the Federal Trade Commission determined that at least 20% of those surveyed had at least one error in their credit reports from one of the three major credit reporting agencies, Equifax, TransUnion and Experian, which had negatively affected their credit
Did you know that new 2016 Residential Building Energy Efficiency Standards (Energy Standards) are now being enforced and California is expecting to see 28% more energy savings in regulated loads* than those built under the 2013 Energy Standards? *an electrical load is an electrical component or portion of a circuit that consumes electric power Having energy efficient buildings: Reduces energy costs. Increases reliability and availability of electricity. Improves building occupant comfort and reduces impact to the environment. Energy efficiency requires
In response to our state's housing shortage, Governor Brown has signed Senate Bill (SB) 1069, which will make it easier, and for some, less expensive to develop Additional Dwelling Unit's (ADU's). SB 1069 will require local governing bodies to loosen ADU regulation. Both Santa Cruz County and City have amended their ADU related ordinances. We report on major ordinance changes that the city has publicized. We also summarize County ordinance changes, which are still contingent on Coastal Commission
The truth is, homeownership is challenging for many right now because of high prices, high rents, and low supply. However, the state and local governments are working to remove barriers to development, improving the supply shortage in our state. Additionally, there are loan programs that are helping to break down walls to homeownership for new homeowners.
It’s amazing that we are at the end of another year. Here at Schneider Estates we have much to be grateful for. Most of all, we are so grateful for you. You allow us to do what we love everyday. From helping younger couples find their first homes to ensuring seasoned investors find good deals and everything inbetween, we are honored to get to work with you and help you to make wise, informed real estate