SMA Realty & Finance Real Estate & Home Loan Specialists Serving Californians since 1992

SEPTEMBER 2004

Dear Friends,

It is official, summer is over for the rest of the nation, and fortunately we Californian’s have another eight months of good weather to look forward to. Sure we may pay more for housing than the rest of the nation, but we get great weather - no hurricanes, no humidity problems, great restaurants, and access to snow when we want it.

Real Estate Update

Buying activity seems to have picked up after the Labor Day Holiday. Homes that show well and are priced right sell quickly, however, anything that’s been sitting for more than 15 days may be discounted. Check the stats for your local market at http://www.bayeast.org/buysell_housingstats.html

Escrow Accounts and Property Tax Reminder This year I had only one request to set-up escrow accounts (also referred to as impound accounts). With an impound account the bank collects with the mortgage payment on a monthly basis the money needed to pay your property tax and insurance payments when they are due. Consider it forced savings for those big payments. However most of my clients prefer to manage and determine payment dates themselves. Especially in the case of taxes, sometimes it makes sense to pre-pay your second installment of property taxes. Your 1^st Installment of Property Taxes is coming up due Nov. 1 and late on Dec. 10. There are really no valid excuses for not paying on time, even if you didn’t get a property tax bill. Alameda County and a few others offer online access to your assessment and payment history online. To find out more at go to: http://www.smafinancing.com/property_taxes.htm

Income Taxes This is your final reminder that the 3rd installment for Federal and State income taxes is due on Sept. 15. You can estimate what your 2004 Tax Liability will be this year by using the Federal and state tax rate schedules at: http://www.investinginbonds.com/statetaxes.htm

Refi Central 1^st Mortgages rates are better this month than August. I received a number of referrals from past clients who let their friends and co-workers know about no-cost refis. Please pass this newsletter to any friend you think might benefit. Home Equity lines programs are very aggressive right now. Even if you don't need the money today, it's a better idea to get a line while you can qualify for it vs. when you need the money and can't qualify. There's no cost involved to open one or to later close it if need be and rates are tied to the prime rate. The interest rate on home equity lines may be deductible, check your tax preparer.

Perennials Here are some ideas for late season perennials.

Final Regs. Issued for Exclusion of Gain on Sale of Personal Residence The Final regulations replace temporary regulations issued for the exclusion of gain from sale of a personal residence. The regulations fine-tune the partial exclusion rules that apply for taxpayers who sell their principal residence before holding them for two years because of unforeseen circumstances. To read a copy of the new regulations go to: http://www.smafinancing.com/property_taxes.htm

SMA Realty & Finance.

Service is our number one goal, and the reason that 99% of our customers come from referrals. If there is any way we can help you, a friend or a neighbor, please let us know.

Best regards,

Sunil Sethi, Broker, MBA, CPA

SMA Realty & Finance

www.smafinancing.com

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