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How to Help Your Family Members to Buy their First Home

I found this interesting article on how parents can help their children to buy their first home. There is a way, though, I would suggest  that you consult with the bank or what your partner thinks about it.


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This is an arrangement where you — as investors — own a portion of the property with your children. Under a shared equity arrangement, there generally are two separate entities. You (and your spouse, if applicable) would be considered the owner-investors, and your son and daughter-in-law would be considered the owner-occupants. The four of you would take title to the property. You could own fifty percent, for example, with your children owning the remaining fifty percent. Your children, as owner-occupants, would pay half of the monthly principal, interest, taxes and insurance, as well as half of the estimated fair market rental of the property. You, as owner-investors, would pay half of the monthly costs, would receive the rental income, but would also be able to get some tax benefits if the transaction is properly structured.

In today’s market conditions, where prices are clearly higher than many young couples can afford, shared equity may be the only way to permit our younger generation to get into the home ownership arena.

Here is a general outline of how shared equity works. Although there is no magic formula by which one takes title, often — especially when dealing with family — title is taken on a 50-50 split.

The owner-occupant and the owner-investor each pay 50% of the monthly mortgage costs and taxes. Both parties are entitled to deduct from their income taxes their share of the mortgage interest and the real estate taxes. The owner-occupant pays rent to the owner-investor.

In our example, because your children — as owner-occupants — will only own half of the house, they will have to pay 50 percent of the fair market rental to you as owner-investors. This rental is considered income to an owner-investor, and must be included in your tax return. The main advantage for the owner-investor is that you can depreciate 50% of the property. However, this depreciation is subject to the passive tax rules which Congress enacted with its sweeping tax reform legislation in 1986.

There are a number of legal requirements for qualifying for the shared equity program.

1. The owner-occupant must pay a fair market rental for the portion that he or she does not own.

Perhaps the best way to determine this fair market value is to ask a real estate agent to give you a statement in writing as to what they believe is the fair market rental of the property. With such a document in your files, you should be able to justify the rental if and when the IRS comes knocking at your door to challenge the shared equity concept. A Tax Court opinion has ruled that owner-occupants could pay a somewhat lower rent than fair market rental because the investor will not have any vacancy losses, and because the owner-investor will save the additional costs of hiring a property manager.

A safe harbor would be to deduct 15% from the fair market value, and then your children, as owner-occupants would pay half of that amount to you.

2. There must be an equity sharing agreement. This document, which must be in writing and signed prior to the purchase of the property, should spell out the terms and conditions between the owner-occupant and the owner-investor.

For example, when will this agreement terminate? Who has the right to buy out the other, and under what terms and conditions?

These very serious questions must be resolved, and it is strongly recommended that you do so now while you are still talking with your children. As harsh as it may sound, parents and children often get into major fights, and you do not want to wait until you start having problems in an effort to resolve these important questions.

3. One of the owners must actually occupy the property as his or her principal residence.





Rent, Insurance, Cars, and Loans, Expected to go up by 2016


2015 has been a roller coaster ride for everyone. There were ups and downs that almost drove everyone to the wall. However, if you were like me who is actually looking forward to 2016 just because the year of the sheep has not been cooperating well. Anyway, I would like to share this article I found online that may or may not put us to a panic mode.

This article can give us more insights on what to expect next year and prioritize the plans that we have placed on hold this year. If you are renting, this might be the best time to actually own your house and stop renting before interests go up and the loan process harder.

Here’s a look at what could cost more in 2016.


1. Rent.

Residential and commercial property rental costs could rise in 2016, and not just in red-hot residential markets like San Francisco and New York. Michael Levin, associate professor of marketing at Otterbein University in Westerville, Ohio, says residential rental markets that have not been hot for the past several years, such as Cincinnati and Dallas, could see rising rents. “Demand is finally catching up with supply, and it’s squeezing the available supply, so residential rents will increase,” Levin says.

The Zillow Home Price Expectations Survey, which surveyed 101 real estate experts in January, found that more than half of the experts said they expect rental affordability to worsen for at least another two years.

2. Borrowing money.

Mortgage rates sat at historic lows the past few years, which was favorable for those looking to refinance or finance a new home. The U.S. Federal Reserve did not raise interest rates in 2015 as expected, but it could increase rates later this month or next year. If that happens, homeowners with home equity loans will pay more, as will people taking out new mortgages, points out Chip Manning, director of the Babson Center for Global Commerce at Sewanee–University of the South. “I think you’ll see upward pressure [on housing prices] because of the fact that people will try to get in under the wire [before rates increase],” he says.

3. High-tech home appliances.

Home appliances are going high tech, and more bells and whistles often translates to higher prices. “More products have home automation, app inclusion and voice inclusion,” says Howard Schaffer, vice president of merchandising at “It’s everything from high-end appliances down to your light switches, light bulbs and even crockpots.” However, if you’re in the market for a basic model that doesn’t sync with your phone or offer other features, then you likely won’t notice much of a price increase over this year, according to Schaffer.

4. College costs.

The College Board reports that the cost of undergraduate tuition at public and private universities for out-of-state students rose more than 3 percent between the 2014 to 2015 and 2015 to 2016 school years. Despite talk on the presidential campaign trail about plans to rein in college costs, Manning says there’s an “arms race” in the college space. “They’re still building nice facilities, and a lot of the colleges are doing more in the area of research, which can impact the cost structure,” he says.

MOOCs (massive open online courses) and online schools have been hot topics over the past seven or eight years because of their potential to drastically reduce college costs, Manning adds. “It just hasn’t materialized [on a large scale],” he says. “I think it will eventually have an effect, but I don’t think we’ll see that in the foreseeable future.”



Encinitas 92024

New Handpicked Listings for Carlsbad 92009 and Encinitas 92024

Newly Listed Homes in Carlsbad and Encinitas December

Just Listed Homes in Carlsbad and Encinitas Exclusively Chosen by The Biszantz Connection Team

🎶 For the first day of Christmas, my true love sent to me, New Handpicked Listings! 🎶 Lol! I know, that it didn’t match the tune, but I know you guys sang it, or maybe not. It’s the first day of December and that means we are just 24 days away from Christmas!

No matter how excited I am about the up and coming Christmas Holiday, I am even more excited to bring you this week’s New List of Handpicked Listings and of course, we are including a PDF file that you can download or view the other Listings available in other areas such as Rancho Santa Fe, La Jolla, other zip codes in Carlsbad and more. Just click here to view or download the PDF FILE.

This week’s listings for Carlsbad 92009 and Encinitas 92024 may be fewer than I expected, but you can check the PDF file for the other listings available. Since we only have a few available listings that had been posted over the weekend, we have included everything in the list.



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New List of Handpicked Homes in Carlsbad 92009 and Encinitas 92024


It’s almost Thanksgiving and I know we are all excited for the long weekend ahead f us.Don’t forget to say Thank you to all the people who made a difference and became part of your life. Good or bad, we have to be Thankful for everything. I know I have a lot to be Thankful for this year and it’s not 2016! Lol!

But, I am even more excited about this week’s handpicked listings I cannot believe that we are on the 4th week of November and it’s almost Christmas time!

For this week’s Handpicked Listings, we have included another downloadable pdf file, Click Here to view or download the file.

Here is week 4, New List of Handpicked Homes in Carlsbad 92009 and Encinitas 92024.

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San Diego’s TOP 5 Restaurants Open on Thanksgiving Day 2015


Thanksgiving is all about traditions, Thanking anyone or everyone who made a difference in our lives, and a way to say thank you to all the blessings we have received. We traditionally do all of this by preparing a Thanksgiving meal and invite our family and friends to celebrate with us. One thing is for sure, nothing can compete with a home cooked meal, right?! Some families even have their own recipe handed down from one generation to another.

However, times are changing and so are traditions. I guess what I’m trying to say is that thanksgiving is best spent with family and friends, but it doesn’t mean that you always have to cook or do it at home. There are times where we want some changes with the routine that we have and we don’t have to cook, wash the dishes or setting up the table, and have a Thanksgiving meal prepared by a chef!

I guess, it doesn’t matter where we eat or what we eat on Thanksgiving, what matters is, who we spend our time with and how we can make it special for them. With that being said, I decided to list down San Diego’s TOP 5 Restaurants Open on Thanksgiving Day 2015.

Again, here is San Diego’s TOP 5 Restaurants Open on Thanksgiving Day 2015. Enjoy!

1. AR Valentien at The Lodge at Torrey Pines

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Address: 11480 N Torrey Pines Rd, La Jolla, CA 92037 | Phone: +1 858-777-6635

A.R. Valentien, Chef Jeff Jackson showcases, only uses fresh seafood, meats, produce and dairy products. Their menu is determined and influenced by what is available at any given time during the various seasons. For this Thanksgiving, a limited 3-course menu will be served for $95 per person. Visit their website at or call their number to reserve a table.

2. The Westgate Hotel – Sunday Brunch & Le Fontainebleau Room

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Address: 1055 Second Avenue, San Diego, CA 92101 | Phone: +1 619-238-1818

The Westgate’s award-winning Sunday brunch has been a San Diego tradition for 40 years. Have a Traditional Thanksgiving Dinner Buffet in Le Fontainebleau Room $69+ per person and Children under 12 are half off. To make a reservation, you may visit their website at or give them a call to make your reservations.



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