The Future of Real Estate for Financial Health For the past many years I have written in our <strong>Collection</strong> <strong>Magazine</strong>. I’ve covered everything from perceptions on our market to interpretations of economic conditions, housing results and a look to the future lifeblood of millions of property owners and investors. Now, a new question: “What will the future of real estate mean for me and my financial health?” The worldwide pandemic ushered in a massive and frenzied market. In 2020 and 2021 every well-priced property listed for sale received multiple inquiries, proposals and over-asking sale prices fueled by the multiple numbers of buyers emotionally prepared to push their offer to be the successful bidder. Inventory levels were low, and when these well-presented properties came to market, the buyer bananza began! A strong financial market and low interest rates also helped fuel this frenzy. But, alas, how the world has changed! Apprehension has overtaken buyer logic. Fear of the future has governed decisions and complicated the sales process. Additionally, sellers with substantial equity in their homes are reluctant to sell based on a couple of factors including the substantial tax on the equity/profit gained over the term of their ownership. In California, after the exclusion for tax purposes (500,000 for couples, 250,000 for individuals) the federal and state tax will approach 40 percent. For example, if an original purchase price years ago was $600,000 and now the value is $2,000,000, the gain is $1,400,000 (exclusive of brokerage fees and upgrades). With this gain of $1,400,000, a couple can exclude for tax (allowed by federal law) $500,000, leaving a residual gain of $900,000 that is taxable. This means a federal and state tax liability of approximately $360,000. This is hard, philosophically, for anybody to absorb and accept. To add insult to injury, because of low inventory levels, these sellers willing to downsize often cannot find a suitable replacement property. To compound all of this, the financial portfolios of individuals (stocks and bonds) have tumbled. So in any affluent community of owners, those investment dollars that grew to far greater numbers are now no longer available to pull from the stock market to invest in real estate. This has accelerated a slow-down in activity. But all is not lost! We still have a unique situation in San Diego. Bordered on the west by the Pacific Ocean, east by the desert, north by Camp Pendleton and the south by Mexico, San Diego has a very limited supply of quality real estate. This means your home should continue to accelerate in value in spite of all of the factors listed above. In fact, any new purchase should do the same. That means now is the time to continue to invest in real estate. Willis Allen Real Estate is pleased to have been selected as the exclusive representative to display our listed properties on the world recognized Forbes website, Forbes Global Properties (FGP). No other luxury real estate platform has the same global reach or media power as FGP. It capitalizes on an engaged audience of millions of consumers and presents the world’s finest properties paired with Willis Allen Real Estate’s trusted market coverage. This media site is touched by 132 million visitors monthly, which is phenomenal exposure for our luxury listings, and something only Willis Allen has. After rigorous review, qualified independent companies throughout the world are selected to be part of this exclusive partnership. I partnered with other global partners over the last five years to create this exclusive platform. Willis Allen Real Estate, along with Forbes Media and other broker owners internationally, will present your home to the world of potential buyers. No other San Diego company can do so. San Diego has always been known for its superb weather and welcoming population, and the area is fast becoming recognized as a hub for the growing high tech, bio med and entrepreneurial economy. Our affiliation with FGP gives us an opportunity to highlight our San Diego as a world class city. Don’t miss out. Join us! Andrew E. Nelson President
Contents 5 19 13 4 5 7 Cover Property North County Coastal Central San Diego 21 Forbes Global Properties 30 24 29 International Leases 32 35 Under $1 Million Agent Directory Recent Solds *All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description. All measurements and square feet are approximate and all information should be confirmed by customer. All rights to content, photographs and graphics reserved to Broker. Due to lead time for publication, some properties and information may not be current.
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