Leisure World Kitichen Appliances

Leisure World owns and maintains the standard appliances.  When those appliances wear out they are replaced with upgraded (digital oven, newer style stove top, newer style refrigerator) at no cost to the homeowner.  If they are not broken and the homeowner just wants new appliances the homeowner will have to pay a fee for the upgrade.

The homeowner may also remove the standard appliances and install non-standard items.  If they do this Leisure World will not maintain the non-standard items

Can These Be Used As Vacation Rentals?

Leisure World in Seal Beach has a total of 6600 unit.  They only 15 of these units are allow to be rented (none are currently for rent) and then only on a 1 year lease.  The balance of the units must be purchased for all cash and be owner occupied.

Is Leisure World a good investment option?

I truly believe that now a very good time to invest in Leisure World Seal Beach.  The prices have decreased and the demand for the units is growing.  One 3rd (70,000,000 people) of the US population are Baby Boomer’s who are at or nearing retirement age.  Most are looking for ways to cut living expenses.  LWSB is a great answer to that problem.

What Fees / Deposits are required by Leisure World to Sell a Unit?

The following fees / deposits are collected from the sellers proceeds at the close of escrow.

  1.  Withdrawal Inspection Deposit:  This to assure that all work prescribed under the pre-listing inspection is property completed by the seller.  Currently, Mutual One, Two, Three, Four, Six, Seven, Eight, Eleven and Twelve withhold $5000.  Mutual’s Five, Nine, Ten, Fifteen and Sixteen withhold $6500.  Mutual Fourteen withholds $7000.
  2. Inspection Processing Fee:  A 500 fee is charged to cover the costs incurred by Leisure World to inspect the apartment during escrow.
  3. Golden Rain Foundation Transfer Fee:  This is $350 Transfer Fee.
  4. Estate Supplemental Escape Tax Deposit:   A $3000 deposit is withheld for possible taxes owed when notification has Not been given to the Orange County Tax Assessor’ Office regarding the death of a shareholder/owner until the sale by the heirs.  All selling heirs are required to sign a green Escape Tax Form in escrow, agreeing to pay the $3000 Escape Tax Fee, if applicable.

Sellers of Mutual Seventeen condos do not pay the Withhold Inspection Deposit or Inspection Processing Fee as there is no pre-listing inspection done on the Condo units

Leisure World Condominium Units

Mutual 17 has condominium (158) units.  These units were built in 1982.  They are in Mutual 17 which is made up of three separate three stories high buildings.  These buildings have underground parking and are located on the south side of the main gate.  All of the units have 2 bedrooms and 1 3/4 baths and are between 1000 and 1100 square foot

  • When someone buys a condominium the purchase is processed just like the purchase of a condominium outside of the Leisure World community.
  • Buyers can obtain bank financing to purchase these units.
  • A maximum of 10% of these units may be rented out on a 1 year lease
  • The buyer or tenant must be interviewed and approved by the mutual director and be at least 55 years old
  • The buyer must pay the one time membership fee to the Golden Rain Foundation of $1,795 for a couple or $1,330 for a individual.

Home Buyers Tax Credit

Leisure World Units Qualify For This Tax Credit

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010.  The bill also opens up opportunities for others who are not buying a home for the first time.  http://www.irs.gov/newsroom/article/0,,id=204671,00.html

TAX CREDIT OVERVIEW

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

 Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

 What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS).  In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500.  If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No.  The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

What is Stock Coop and Condo Ownership?

 Condominiums
 
A condominium consists of an undivided interest in the CID’s common area coupled with a separate interest in the airspace defined as a specific unit.  The precise description of the unit will be found in a recorded document called the “Condominium Plan” or “Subdivision Map”. The owner receives a deed of ownership in the particular unit as well as an equal undivided ownership in the CID’s common area.  For example, in a 48-unit development on Main Street, the owner of Unit 8 would have a deed showing the ownership of an individual interest in Unit 8 plus a 1/48th undivided ownership interest in the common area.
Stock Cooperative

A stock cooperative is usually referred to as a “co-op”. In a stock cooperative, a corporation owns the entire real property.  The homeowner does not receive a deed, but a share of stock in the corporation tied to the right to a specific home on the property. The stock co-op will normally have one share per unit.

How Does Remodeling Effect My Prop. 13 Tax Rate?

My thanks go out to Shelley Middleton for researching and sharing of this information

Mr. X lives in LA County.

  • He sells residential property, buys residential property in OC for less than the selling price of his LA County residence.
  • He expands and remodels his new OC property.
  • The cost of the property plus the cost of the remodeling is still less than the selling price of his LA County home.
  • He is entitled to the benefits of prop 13 and prop 90.
  • He must be 55+;  purchase the replacement property within two yrs of selling the original property;  notify the Assessor within  30 days of completion of the purchase and construction.   
The benefit is that if the cost for the property plus the remodeling is less than the selling price of his new OC property, he may keep this Proposition 13 tax advantage.
 
So, for example:
  • Fred sells his property in L.A. for $300,000
  • He buys property in Leisure World for $100,000
  • Remodels for a cost of $150,000
  • He files the required form to the County Assessor w/i 30 days of completion of the project.
  • He is entitled to keep his LA County Prop 13 benefit.
This link will take you to the required filing form and also gives a full explanation of the process:
 

Does Leisure World Have a Bus System?

The Minibus system operates Monday through Saturday from about 7:30 am to 8 pm and Sunday mornings.  The fleet consists of eight buses and is provided free to residences.  There are over 100 bus benches in Leisure World for the convenience of the residences.

There are five regular bus routes: A, B, C, D and the evening bus.  Each route is traveled 12 times per day Monday through Saturday and it takes about 38 minutes per round trip.  The bus stops for 5 minutes at the Health Care Center.

 On Sunday the schedule is set primarily to get residents to and from the on site churches.  This is completed by 1:30 pm.  At that time three buses stop running and one bus continues the rest of the day and evening 

An on call wheelchair access bus service is available in the same areas as the regular minibus routes.  Residences will need to call for a pick up.

Can My Visitors Use The Recreational Facilities?

Caregivers and visitors are not permitted to use the swimming pool, golf course, or exercise room because of heavy usage by the residents.

Caregivers and visiting adults or children must be accompanied by a resident owner when visiting any of the other recreational areas or buildings.  It is the responsibility of each resident owner, when accompanying visitors’, to see that there is no abuse of the facilities or disturbance of the residents.

Children are not permitted to participate in any of the recreational activities.  The use of roller skates, in-line skates, skateboards, and scooters is not permitted.