Orange County Real Estate and Community News

Oct. 30, 2017

How Rental Depreciation Works for Orange County Investors

When you invest in rental property in Orange County, there are many benefits you should know about! There’s the obvious income you’ll receive from tenants living in your rental property, but there are also numerous tax benefits and deductions you can take on rental property. This includes depreciation, which works a little differently than the rest, but can still be very beneficial. The Hakola & Associates team is here to fill you in!

First of all, it’s important to know the IRS requirements you need to meet in order to depreciate a rental property:

1.  You own the property and are considered the owner even if the property is in debt.

2.  You use the property in your business or as income-producing activity.

3.  The property has a determinable useful life. This means that it wears out and decays over time and loses value from natural causes.

4.  The property is expected to last more than one year.

Therefore, your investment property must be a structure that decays over time rather than just land, which does not depreciate. Landscaping or clearing on the land cannot be depreciated either.

You can begin depreciating a rental property once it is advertised and ready to be occupied, and you can continue depreciating until you deduct the entire cost or other basis in the property, or you retire the property from service.

How much depreciation you can claim on your Orange County rental property depends on many factors, including the basis in the property, the recovery period and the depreciation method used. Any residential property placed in service after 1986 uses a technique that spreads costs and depreciation deductions over 27.5 years.

Here are the basic steps for calculating deprecation:

1.  Determine the basis of the property, which is the amount you paid, settlement and closing cost fees, any amount the seller owes that you agree to pay, title insurance and more. However, depending on the situation, some settlement and closing cost fees cannot be included in your basis.

2.  Separate the cost of land and buildings, since you can’t depreciate the land value. Use the fair market value of each at time of purchase, or base the numbers on the assessed real estate tax values.

3.  Determine your basis in the house, and the adjusted basis, if necessary.

It is wise to use professional assistance from a tax accountant when determining these numbers! Then you must decide which system you will use for depreciation, the General Depreciation System, or GDS, or the Alternative Deprecation System, or ADS.

More details can be found in this Investopedia article. If you have questions, or you would like professional assistance with purchasing investment property, 1031 exchanges or any other real estate endeavor in the Orange County real estate market, contact us! The Hakola & Associate Team is here to help you accomplish all of your real estate goals this year. 

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Steve, Karen and Bryan Hakola
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Posted in Real Estate News
Oct. 2, 2017

Fall Festivities in Orange County This Fall!

Our seasons might not change much here in Orange County, but that doesn’t mean we don’t celebrate fall with a slew of fun, seasonal festivities! Allow Hakola & Associates to fill you in on some of the upcoming events to know about this fall season.

  • Dana Point Oktoberfest, Oct. 7 – Head to Sea Terrace Park from 12 to 7 p.m. for a day of celebrating German culture! Enjoy German bands, authentic food, craft beers on tap and more, along with tons of kids’ activities! This is the largest free Oktoberfest in Southern California and is family-friendly.
  • Heritage Festival and Parade, Oct. 14 – Celebrate Placentia’s heritage with a day of fun at Tri-City Park! Start with a pancake breakfast at 6:30 a.m., followed by a parade and band review at 9:30 a.m. Afterward, head to the festival for a car show, craft booths, food, kids games and more.
  • Spooktacular Fun Days, Oct. 14-15 – Enjoy all the things you love about fall at The Great Park in Irvine form 9 a.m. to 3 p.m. There will be a pumpkin patch, treats, games, crafts, gourmet food trucks and more. Adult tickets are free, kids 12 and younger are $5 plus food donation. Come in costume!
  • Yappy Howl-O-Week, Oct. 26 – If your dogs love dressing up in costume for Halloween as well, bring them to this event at the Ritz-Carlton in Laguna Niguel from 4 to 7 p.m. A winner will be awarded in numerous categories, and winners will take home a hand-painted dog bowl.
  • Ghostly Affair and A’Maze’ingly Haunted Hills, Oct. 28 – Laguna Hills Community Center gets spooky for Halloween From 5:30 to 7 p.m. Kids ages six and under can dress in costume and enjoy games, trick-or-treating and more. Then from 8:30 to 10 p.m., ages seven and older can enjoy a haunted maze!
  • Casa Creepy Haunted House, Oct. 27, 28, 31 – Head to Casa Romantica Cultural Center and Gardens in San Clemente from 7 to 9 p.m. each day that Casa Romantica is haunted! Families may encounter ghosts, mummies and more in this 1927 home. Enjoy candy and refreshments as well.
  • Newport Beach Spa Treatments – Pumpkins aren’t just for carving! The Spa at Island Hotel offers a pumpkin spice manicure during the fall season, and a pumpkin detox facial, as pumpkin enzymes refine and nourish the skin. Call to book an appointment!

Mark your calendars for the Orange County events that appeal to you and your family or friends most! When ready to achieve your Orange County real estate market goals, contact our Hakola & Associates real estate team! We are here and ready to help you achieve your home-buying and/or home-selling goals this fall season. It’s a great time for doing so, don’t hesitate to call!

Posted in Community News
Sept. 26, 2017

OC Housing Report - September 2017

OC Housing Report - September 2017

Please click on related links below to view the report

 

Related Links

OC Housing Report - September 2017

Posted in Real Estate News
Sept. 22, 2017

Just Listed: 140 Mayfair, Aliso Viejo - Incredible End-Unit in Cantora!

Stunning three bedroom, two and a half bathroom residence located in desirable Cantora featuring a two-story living room, luxurious master suite and a private patio. Follow the path to the front entrance of this end-unit surrounded by colorful landscaping and shade trees. Enter the residence to vaulted ceilings, skylights, large sun-filled windows and beautiful flooring throughout the open floor plan. Entertain in the dramatic two-story living room offering plenty of room for seating. The adjacent formal dining room features a cozy fireplace plus sliding glass doors to the patio. Prepare meals in the updated kitchen surrounded by wood cabinetry, a stainless steel sink and a custom tile backsplash. A powder room for guests completes the main level. Step outside onto the private paver patio for easy outdoor dining and grilling. Relax or entertain surrounded by lush landscaping and a manicured lawn. Back inside, the second level features a luxurious master suite complete with a large closet, ceiling fan and plush carpet. The master bathroom offers a double vanity for plenty of storage and a stand-up shower. Two additional guest rooms, both with ample closet space and large windows, share a nicely appointed hall bathroom with a bathtub. An attached two-car garage, with a convenient laundry area, completes this home. Residents of Cantora enjoy access to a community pool. Conveniently located across the street form the Aliso Viejo Shopping Center full of restaurants, shopping, Lowe’s, and a movie theater. Commuters will appreciate easy access to the toll road. This home is surrounded by schools, neighborhood parks and is just minutes to the beach!

Posted in Buying a Home
Sept. 1, 2017

Genius Tips for Cleaning Your Orange County Home

Whether you are gearing up for an Orange County home sale, or your house is just in need of a deep cleaning, we’ve got some great tips to share with you today! As any homeowner knows, there are some cleaning jobs that take more scrubbing and sweat than others. As your Orange County real estate team, we’re here to share how you can clean these troublesome areas without having to scrub at all!

Bathtub – Put a foam ball polishing attachment on the end of your drill and use that to scrub the bathtub for you! It’ll get into hard-to-reach areas too. Look for the attachment in the automotive section of your hardware store. (Afterward, apply water repellent on the walls to keep them clean longer.)

Stove burners – Ammonia is known for getting stove burners clean without having to spend hours scrubbing old grease! Just put them in a plastic bag with 1/4 cup ammonia overnight and then wipe them with a sponge the next day.

Vents – Cleaning off accumulated dirt and dust on your floor or ceiling vents is no fun. If yours are made out of aluminum or steel, you can throw these into a water-only dishwasher cycle and have them come out clean and ready to put back in place!

Carpet stains – We bet you never imagined that you’d iron your carpet, but that just may get out carpet stains, even if they are old and set. Spray a vinegar/water spray on the stain, lay a clean cloth on top, turn your iron to its highest setting, and run the iron over the stain for 10 seconds.

Showerhead – Mineral buildup on the showerhead not only looks gross, but can cause low water pressure as well! Without having to remove the showerhead for cleaning, attach a bag of vinegar around it and hold in place with a rubber band. Soak overnight and then remove!

Crayon marks – If your children decided to decorate your home’s walls with crayons, use a bit of Goo Gone to remove the marks. Just spray it on, wait a moment, then wipe it off.

Range filter – Your range filter should be cleaned regularly as a safety measure. The easiest way to do so is to boil water in a pot, add 1/2 cup of baking soda and submerge your filter for five minutes. Afterward, dump the greasy water somewhere safe, but not down your drain!

For more genius house cleaning tips, such as how to clean the garage and your mattresses, check out this HouseLogic article. No one said cleaning had to mean scrubbing on your hands and knees.

When ready to accomplish your home-buying or home-selling goals in the Orange County real estate market, Hakola & Associates is here to help make your dreams a reality. Contact us with questions or to begin the process! We look forward to working with you.

Posted in Selling Your Home
Aug. 31, 2017

OC Housing Report - August 2017

OC Housing Report - August 2017

Please Click on the Image to View the Report

Posted in Real Estate News
Aug. 7, 2017

Last Week to Enjoy the OC Fair!

Have you visited the OC Fair yet this summer in Costa Mesa? As your Orange County real estate team, we’re here to give you a heads up that the Fair concludes on Aug. 13! You’ve got less than a week left to enjoy Southern California’s largest fair. Enjoy events, carnival rides, interactive exhibits, food creations and more.

If live music is what you seek, head to the Pacific Amphitheatre for music under the stars! This Wednesday is Steve Miller Band with Peter Frampton. Thursday is The Isley Brothers and The Commodores. Friday and Saturday is Rebelution, and Sundaya is Jake Owen with Honey County. You can also find local talent and tribute bands at The Hangar.

More than 150 events take place during the OC Fair, and there are still plenty left to enjoy! Sample an array of award-winning wines for $3 per taste or $8 per glass. Themed wine seminars take place over the weekend. Enjoy City Days Celebration, where residents in certain Orange County cities can pick up discount coupons for certain days during the Fair.

Kids will love to visit the Carnival Midway for rides and games! Tickets are sold daily in numerous package sizes. There are tons of rides for kids of every age and size, from Balloon Ride and Barnyard Express for the little ones, to Crazy Coaster and Dodgem for the older ones. A list of rides and how tall riders must be can be found on the Fair website.

Many people attend the OC Fair merely for the food! You won’t find food quite like this at your local diner. Meat lovers can indulge in a five-pound barbecued pork leg or bacon-wrapped asparagus or Brussels sprouts. Flamin’ Hot Cheetos fans can munch on Cheetos served with cheese fries, corn dogs, corn on the cob or pizza. Sweet lovers can savor fried peanut butter meatballs, or crazy drinks from D&D Country Fair Cinnamon Buns. Try the strawberry lemonade topped with whipped cream, fruit loops, frosted rice krispies, marshmallows and a sour Air Head!

You could spend a day checking out the variety of exhibits and displays, like the farm and agricultural exhibits, garden and flora, culinary, kids and craft exhibits, livestock, woodworking and more. Or, spend some time shopping from the various vendors!

Ticket prices vary for adults, seniors and youth, and kids five and under are free. Parking is $10, cash only, but there is free off-site parking on weekends with a shuttle service from the Experian parking structure. Take the OC Fair Express and receive a coupon for $3 off general admission!

Enjoy the last week of the OC Fair before it’s gone. This is a great place for families to blow off some steam before the start of the school year in Orange County.

When ready to accomplish your Orange County real estate market goals, contact Hakola & Associates! We are here to help you achieve all of your buying and selling needs.

Posted in Community News
Aug. 4, 2017

OC Housing Report - July 2017

Posted in Real Estate News
July 10, 2017

What to Do In Laguna Niguel This Summer

Laguna Niguel is one of the many Orange County communities that we serve as OC real estate agents! If you’ve recently relocated to the area, or would like to soon, allow us to fill you in on what to do and where to go this summer. Laguna Niguel is an incredible community to live in, and we’d love to help fill local residents in on local events and attractions to check out!

First off, here are some events coming up in Laguna Niguel this month, which are a great way to for new residents to meet others who live in the community:

1. On July 21, enjoy a free concert at the amphitheater at Crown Valley Community Park! From 6:30 to 8:30 p.m., LA Vation, a U2 tribute band, will perform. Enjoy food and dessert from food trucks on site. Bring low lawn chairs or blankets to enjoy the music on if you wish. A free shuttle service is available, so feel free to park at City Hall and take the shuttle over.

2. On July 28, head to Laguna Niguel Regional Park for Sunset Cinema! You can catch free outdoor movies all summer long and throughout Orange County. ‘Finding Dory’ will be the movie shown on July 28. Pack a picnic, or purchase food from food trucks on site, and enjoy the movie on blankets or chairs. Parking is free after 6 p.m. and movie starts around 8 p.m., after the sun has set!

3. On July 27, unite your dog with other dogs in the Laguna Niguel area by attending Yappy Hour at the Ritz-Carlton. This takes place from 5 to 8 p.m. Your dog can enjoy water flavored with bacon, chicken, beef or vegan, and you can enjoy a cocktail, wine or beer along with a selection of barbecue items. Proceeds support the Canine Companions Veterans Initiative.

Aside from events, there are plenty of attractions to check out this summer in Laguna Niguel! Spend time in nature at the Aliso & Wood Canyons Regional Park, Laguna Niguel Lake at Laguna Niguel Regional Park or Niguel Botanical Preserve. Cool off in the summer heat at the Crown Valley Community Pool, or head to one of many beaches along Laguna Beach!

If you’d like to move to Laguna Niguel, where homes are located in a variety of unique, master-planned communities, browse listings currently for sale in Laguna Niguel! If you have questions, or would like help relocating or buying in the Orange County real estate market, contact us. Our Hakolas & Associates real estate team is standing by, ready to help you achieve your real estate goals this summer in Orange County!

Posted in Community News
June 18, 2017

Just Listed: 32181 Weeping Willow Street - Inviting Home with Expansive Views!

32181 Weeping Willow Street, Rancho Santa Margarita, CA

5 BEDROOMS | 4 (3 FULL, 1 HALF ) BATHROOMS | 3414 SQUARE FEET

Panoramic views welcome you to this five bedroom home located in the desirable gate guarded community of Walden. Situated on a single loaded cul-de-sac street, this incredible home features a beautiful gourmet kitchen, inviting master suite with a private deck and amazing views of city lights and the Saddleback Mountains. This ideal private corner lot welcomes you with a gated front courtyard and freshly painted trim. Step inside onto hardwood flooring and take in the neutral décor, plantation shutters and tinted double-pane windows that can be found throughout this home. Sunlight pours in through the floor to ceiling windows in the dramatic two-story great room complete with a gas fireplace. Entertain in the adjacent formal dining room perfect for large or intimate gatherings. Prepare your favorite meals in the updated gourmet kitchen featuring granite counter tops, white cabinetry and a six-burner Viking stove. Enjoy smaller meals at the center island with seating or the breakfast nook. Hardwood flooring, crown molding, a mosaic stone backsplash and a pot rack complete the room. A nicely appointed powder room is perfect for guests. Unwind in the inviting family room complete with a built-in entertainment center or step outside onto the patio in the backyard and experience the unbelievable view. An electric awning keeps you comfortable any time of day while a sprinkler system and automatic lights throughout the property keep the landscaping beautiful all year. Back inside, relax and rejuvenate in the master suite complete with a private deck and cozy gas fireplace. Two closets with organizers provide plenty of storage space while the suite bathroom offers a double vanity, soaking tub and separate shower. Three additional bedrooms offer comfort and privacy for overnight guests. One of the bedrooms is on the main level and includes a private bathroom with a shower. The bonus room is full of possibilities! This room can easily be a den or a fifth bedroom. A convenient laundry room offers both gas and electric hook ups plus a utility sink while a central vacuum system makes clean up a breeze. A newer water heater and dual HVAC system, including one newer condenser and furnace, combine to keep utility costs low. Do not miss the attached 3-car garage perfect for vehicles and toys! Residents also enjoy access to an association pool, spa area and fishing pond plus award winning Saddleback schools!

Posted in Buying a Home