Hot Property: House Where Perry Never Made a Grand Entrance Sells

By Lauren Beale

Katy Perry has tidied up some old business, selling her fortress-like compound in Hollywood Hills West for $5.565 million.

The pop singer bought the property in 2011 with her then-husband, actor Russell Brand, for $6.5 million. But the couple never moved in and was divorced in 2012.

The double-gated Mediterranean-style house, built in 1925, features an impressive baronial stone foyer with a sweeping staircase. A two-story living room, stained-glass windows, a carved fireplace mantel in the living room, a pub, a study and a media room are among other features.

Called Park Hill, the house sits on nearly 3 acres with a caretaker’s apartment/carriage house and a guesthouse. The 8,835 square feet of living space includes a four-room master suite, two guest suites and staff quarters, seven bedrooms and nine bathrooms.

Perry, 29, released the album “Prism” last year. Among her previous albums are “One of the Boys” (2008) and “Teenage Dream” (2010), which included five No. 1 hits on the Billboard Hot 100 list.

She is slated to perform Jan. 26 at the Grammy Awards.

©2014 Los Angeles Times

Like Father, Like Daughter

Film producer Megan Ellison seems to be taking after her billionaire father, Larry Ellison, chief executive of Oracle Corp., when it comes to making shrewd real estate purchases.

He owns a string of houses along Malibu’s exclusive Carbon Beach. She is becoming known for buying up adjacent properties to create larger holdings.

Last year she sold her three-house compound in Hollywood Hills West for close to $47 million, pocketing a gain of about $14 million in the five years since she bought the first property. Now she has spent $20 million on a striking mansion and $10 million on adjacent land to create a 9-acre mountaintop estate in the same community.

The contemporary house, looking like a cross between an art museum and a modern church, was built in 1990. The city view home features nearly 10,000 square feet of living space containing guest apartments, a bar, a gym, a media room, a sauna, six bedrooms and eight bathrooms.

The grounds include a grotto swimming pool with a spa, a sand volleyball court and parking for 25 vehicles.
Ellison, 27, is the founder of Annapurna Pictures. Her producer credits include “Lawless” (2012), “Zero Dark Thirty” (2010) and “True Grit” (2010).

She is also a producer on the recently released “American Hustle.”

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Housing-Related Tax Rules That Expired at the End of 2013

At the end of 2013, a number of housing-related tax provisions expired. Collectively, these housing and other tax rules are part of a set of policies known as “tax extenders,” which have traditionally been extended every year or so.

While there is growing support for extending most, if not all, of these provisions, a potential debate on comprehensive tax reform may delay any Congressional effort to extend these rules. If such a delay carries through until late 2014, perhaps in a lame duck session after the election, then it is possible that a future extension may not be retroactive for 2014. In the past, Congress has enacted retroactive extensions, but such actions cannot be relied on for the future.

Thus, homeowners, builders, remodelers, and other real estate professionals are well advised to consider that it is possible that these provisions may not be part of 2014 tax law.

Another complicating factor for the tax policy agenda in 2014 is the news that Senate Finance Committee Chairman Max Baucus will be resigning to become the U.S. ambassador to China. While it is expected that Senator Ron Wyden will become the next chairman of the committee, what impact this transition will have on tax extenders is uncertain.
The following housing or real estate related tax provisions expired at the end of 2013:

Housing Rules
• Mortgage debt forgiveness tax relief: rule that prevents tax liability arising from many short sales or mitigation workouts involving forgiven, deferred or canceled mortgage debt.
• Deduction for mortgage insurance: reduces the after-tax cost of buying a home when paying PMI or insurance for an FHA- or VA-insured mortgage; $110,000 AGI phase-out.
• The section 25C energy-efficient tax credit for existing homes: remodeling market incentive with a lifetime cap of $500.

Business Rules
• The section 45L new energy-efficient home tax credit: allows a $2,000 tax credit for the construction of for-sale and for-lease energy-efficient homes in buildings with fewer than three floors above grade.
• The 9 percent LIHTC credit rate: absent the credit fix, the LIHTC program would suffer a loss of equity investment for affordable housing projects; in place for 2013 allocations.
• Base housing allowance rules for affordable housing: income definition rules.
• The section 179 small business expensing limits: offers cash flow and administrative cost benefits for small firms, with limits of $500,000 for deductions and $2 million for capital purchases.
• The section 179D deduction: provides a deduction for some energy-efficient upgrades to multifamily and commercial properties.
• New Markets Tax Credit: no new allocations of this community development tax credit

Source: NAHB blog, “Eye on Housing”

Housing's Contribution to GDP Expected to Improve from 2013

An abatement in economic policy uncertainty surrounding fiscal and monetary issues is expected to lay the foundation for improved private sector activity and accelerated economic growth in 2014, according to Fannie Mae’s Economic & Strategic Research Group. With growing momentum in economic activity, including a notable rebound in consumer sentiment following a dip associated with the government shutdown in the fall, as well as expected labor market improvements that are likely to support income growth, the group forecasts an increase in consumer and business spending that will serve to boost economic growth throughout the year. For all of 2014, growth is expected to accelerate to 2.9 percent from an estimated 2.6 percent in 2013.

“Our full-year 2014 economic forecast accounts for three key growth drivers: an acceleration in spending activity from private sector forces, waning fiscal drag from the federal government, and continued improvement in the housing market,” says Fannie Mae Chief Economist Doug Duncan. “Much of the policy uncertainty we saw in 2013 has cleared to some degree, which raises the possibility for a pick-up in growth as consumers and businesses, who held back on their spending amid those policy concerns, might loosen their purse strings this year. We expect the contribution from consumer spending to rise to about 2.0 percentage points, up from an estimated 1.6 percentage points last year. In addition, as consumer demand climbs, business confidence should improve and add to growth in the form of stronger hiring and capital investment.”

“The continued housing recovery also is expected to contribute to GDP, doubling from 0.3 percentage points in 2013 to 0.6 percentage points in 2014, due in large part to new homebuilding activity,” says Duncan. “Despite the rise in mortgage rates since the spring, many housing indicators posted strong gains at the end of 2013 and consumer housing attitudes are strengthening, all of which bodes well for continued but measured housing recovery in 2014. Overall, although we don’t expect growth to break the 3 percent barrier this year, we believe the economy is on a sustainable path for continued growth with upside potential.”

Source: Fannie Mae

Reprinted with permission from RISMedia. ©2014. All rights reserved.

Commercial Mortgage Lender Appetite Expected to Exceed that of Borrowers in 2014

Commercial and multifamily mortgage lending is expected to increase in 2014, as lenders’ appetites to place new loans grow even stronger, according to a new Mortgage Bankers Association survey of the top commercial and multifamily mortgage origination firms. Lenders were also polled on their expectations for borrower appetites in the New Year. A full 91 percent of the top firms expect originations to increase in 2014, with 48 percent expecting an increase of 5 percent or more. Almost two-thirds (64 percent) expect their own firm’s originations to increase by 5 percent or more.

“Commercial and multifamily lenders anticipate a market in which lending continues to grow and their firm gets a bigger piece of the pie,” says Jamie Woodwell, MBA’s Vice President for Commercial Real Estate Research. “Borrowers’ appetites to take out new loans are expected to remain strong, but perhaps drop a bit from 2013 levels. The resulting competition to lend leads originators to expect loan risk to increase marginally in the face of moderating returns.”

A majority of respondents expect originations for commercial mortgage backed securities (CMBS), commercial banks and life companies and pension funds to increase, and for originations for Fannie Mae, Freddie Mac and FHA to decrease. 65 percent anticipate a “very strong” appetite among firms to make loans and 23 percent anticipate a “very strong” appetite among borrowers to take out loans. Lenders were surveyed on a scale of “very weak, weak, fair, strong, or very strong.”

Specific findings include:
• In 2013, lenders had a “very strong” appetite to make commercial and multifamily mortgages. Borrowers had a “strong” appetite to take out loans.
• In 2013, lenders were more eager to make loans than borrowers were to take out loans. A “very strong” appetite among lenders (53 percent of respondents) to make new loans in 2013 faced a “strong” appetite among borrowers to take out new loans (63 percent of respondents).
• In 2014, lenders are expected to have a greater appetite to place loans, and borrowers a weaker appetite to take out loans. Compared to 2013, an even greater share of respondents expect lenders to have a “very strong” desire to make loans (65 percent of respondents anticipate “very strong” appetite versus 53 percent in 2013) and more expect borrowers to have only a “fair” appetite to take out new loans (23 percent versus 16 percent in 2013).
• Originators expect the market to grow at a moderate pace in 2014 (and their own firms to grow more quickly). Almost half (48 percent) of respondents expect total market originations to increase 5 percent or more in 2014. Almost two-thirds (64 percent) expect their own originations to increase by 5 percent or more.
• Loans for commercial mortgage-backed securities (CMBS), banks and life companies are expected to increase in 2014; loans for Fannie, Freddie and FHA to decrease. Originations are expected to increase for commercial mortgage-backed securities (85 percent anticipate growth to be greater than 5 percent), bank portfolios (78 percent anticipate growth to be greater than 5 percent) and pension/life insurance companies (56 percent anticipate growth to be greater 5 percent) and decrease for Fannie Mae and Freddie Mac (60 percent anticipate declines) and FHA (51 percent anticipate declines).
• Loan risk is expected to increase in 2014. Most respondents characterized the loans made in 2013 as “medium” to “somewhat low” risk (88 percent). In 2014, more respondents expect loans to be “medium” to “somewhat high” risk (89 percent). Lenders were surveyed on a scale of very low, somewhat low, medium, somewhat high, and high.
• Loan return is expected to moderate in 2014. Half of respondents (50 percent) characterized the loans made in 2013 as “medium” return. In 2014, nearly three-quarters (74 percent) expect loans to be “medium” return.

The 2014 MBA CREF Outlook Survey was conducted between December 11 and December 20, 2013. The Survey request was sent to leaders of 50 of the top commercial/multifamily mortgage origination firms, as determined by MBA’s 2012 Annual Origination Rankings Report. The survey had a response rate of 64 percent. Percentages shown are calculated based on applicable responses. Non-responses and “n.a.” responses are excluded from the percentage denominator.

Source: Mortgage Bankers Association

Reprinted with permission from RISMedia. ©2014. All rights reserved.

'Soft Modern' Trends To Drive Home Design in 2014

'Soft Modern' Trends To Drive Home Design in 2014

Cool, soft colors, open spaces with natural lighting and modern, angular details are the top home design trends of 2014, according to newly released information by Pulte Homes.
"Many of the prevailing trends from 2013 will be seen in 2014, but with a softer and more modern edge," said Janice Jones, vice president of merchandising for PulteGroup, Inc. "We'll still see soothing colors, bold accent pieces and open layouts, but 2014 is about mixing and matching a warm, comfortable environment with modern finishes and angular details."
Jones, along with her 20-person design team, uses direct merchandising experience and expertise to implement the latest trends when designing interiors for nearly one million square feet of model homes on an annual basis. Gleaned through experience in space planning, as well as consumer focus groups and surveys, Pulte Homes has identified the following home design trends for 2014:
Open layouts and natural light: The company's consumer research also reinforces that buyers continue to prefer open layouts. The kitchen continues to serve as the home's "hub" while the rest of the home freely flows off the kitchen. There's also a growing trend toward large windows and the use of natural light. Traditional, hanging, decorative light fixtures are being replaced with simple can lighting and under counter lighting and spotlights, which offer more flexibility for furniture placement and room design.
Shades of grey: Color continues to be a driving force in shaping the mood of a home. While blues are shifting to lighter, brighter hues to create relaxation and serenity, it's really grey that's providing the broadest spectrum of opportunity. Grey tones continue to have a multi-dimensional affect as they range from cool shades to warmer, heather tones. Paint and highly textured woven wall coverings in light grey, illuminated with blue tones, are a growing trend. These shades create a calming effect on the senses and are complimentary with the increased use of purples and plums. Grey cabinets, wood flooring, and hard surfaces continue to grow in popularity, too.
Mix and match: Mixing reclaimed furniture and natural wood tones with high-gloss, bright white accent pieces offer a rustic, yet contemporary look and feel. The introduction of natural textiles, such as linens and cottons, keeps with the trend while creating a fresh, organic look to the room.
"The contrast of whites mixed with rustic wood furniture creates an aesthetically pleasing affect," commented Jones. "An easy way to accomplish this is to pair a modern white sofa or slipcover with accent tables made from reclaimed barn wood, box cars or even driftwood."
Squaring off the details: Muted colors, wood furniture and organic textiles create a soft, vintage appeal, but Pulte Homes is also seeing a trend toward strong, angular details to add a modern flair. For example, countertop edges are now squared off and simple, while angular trims are replacing ornate crown moldings. Rectangular flooring and wall tiles of varying sizes are becoming more popular. Fireplaces, too, need to fit in with the modern surroundings. They're becoming more linear and less ornate to match the growing trend toward angularity.
Source: Pulte Group

How to Maintain Home Comfort during a Cold Winter

How to Maintain Home Comfort during a Cold Winter

As the chilly arctic air makes its way across the country, the Farmer's Almanac warns that winter's blast is far from over and bitter cold temperatures will return. News reports suggest all 50 states, even Hawaii, dipped below 32 degrees at some point owing to the arctic air. The cold snap left many thinking about keeping their homes warm.
Honeywell, a thermostat provider with more than 150 million customers, offers the following tips to maximize safety, home comfort and peace of mind this winter:

• Be Wary of Fireplaces: Many people don't realize that while a fireplace can provide warmth to those sitting near it, in reality they allow the warm air to escape making your home less comfortable. At the same time, cold air is also seeping into your house. If you don't regularly use your fireplace, seal the chimney flue to prevent this heat loss. If you do regularly use your fireplace, make sure to keep the damper closed whenever the fire isn't going;
• Opt for maximum personalized home comfort: Precision in temperature, humidity and air quality control is key to home comfort and for energy savings during winter months. While thermostats have become a trendy gadget, the bottom line is that they control one of the most expensive and critical systems in the home. Be sure to look for a thermostat that is both stylish and reliable with an accuracy of +/- 1 degree for optimum home comfort and energy savings;
• Utilize Ceiling Fans: By reversing the fan's direction to clockwise, the blades will create an updraft, effectively pushing down the hot air that rises to the top of the ceiling;
• Evaluate your existing thermostat: Programmable thermostats are especially beneficial if your home is unoccupied all day. If you have a programmable thermostat, review schedules to customize it to your lifestyle and extreme weather conditions to ensure that it not only maximizes your comfort 24/7 but also effectively manages energy use. If you have a non-programmable thermostat and you're thinking about an upgrade, consider a programmable or Wi-Fi programmable thermostat that will allow you to set different temperatures for different times of the day;
• Purchase a connected thermostat: A Wi-Fi programmable thermostat offers maximum flexibility and allows you to monitor and adjust your home temperatures directly from an app anytime, anywhere. This feature can offer greater peace of mind when you are away from home, as it alerts you of a malfunction so you can take action during a cold snap.

Source: www.wifithermostat.com.