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I own a 3/2 1500 sq ft. house outright in the hills of Los Angeles--nice, average residential. I don't want to sell and buy---why go through all the taxes, paperwork, etc. Would it be more practical to do a long-term swap, say a year with option to renew every year if we mutually like the arrangement. I would think that many islanders are desperate to get off the "rock" and would jump at the opportunity to come back to the mainland minus the hassle of looking for new quarters but there doesn't seem to be a lot of offers on Craigs. What am I missing here?
I own a 3/2 1500 sq ft. house outright in the hills of Los Angeles--nice, average residential. I don't want to sell and buy---why go through all the taxes, paperwork, etc. Would it be more practical to do a long-term swap, say a year with option to renew every year if we mutually like the arrangement. I would think that many islanders are desperate to get off the "rock" and would jump at the opportunity to come back to the mainland minus the hassle of looking for new quarters but there doesn't seem to be a lot of offers on Craigs. What am I missing here?
There are many people moving from Hawaii all the time - I don't think desperate is a word I'd use though.
So, in your model - both parties should "swap" sight unseen? Not smart for either side. The rental market is so tight in Oahu right now there isn't much of an incentive for what you are suggesting - single family home rentals are grabbed within a day or so if reasonable priced.
I don't know the LA market, but there are certainly many places where the RE market is down and single family homes can be rented cheaply.
Personally I would want the cash out of the home I owned rather than a swap. Sold my home over a year ago, never want to own again, love renting. Home ownership limits your mobility too much. I'd rather sell. I paid the fees and taxes, got the cash, and haven't stopped smiling. Total freedom.
What if one of the parties grows tired of the other home or city quickly and wants to swap back, and the other doesn't? What a hassle.
What if one of parties totally trashes the other home?
If I actually stopped to think about the swap, I'd probably come up with more but these few would be enough to stop me.
...Los Angeles--nice, average residential... I would think that many islanders are desperate to get off the "rock" and would jump at the opportunity to come back to the mainland
Your plan requires:
1) a mainland transplant who wants to "come back to the mainland".
2) that person has to own a house here in Hawaii that they are willing to chance will fall back into their hands (rather than being sold outright) in a year.
3) they have to want to move to LA.
4) they have to be willing to move in a year if you decide to not extend the agreement.
It sounds like a setup for more work and confusion than a straight sell, or just renting their house out here and them renting on the mainland.
By the way, don't overlook that "bartering" can be taxable. If your house is "bartered" for rent, perhaps it could be subject to tax the same as if you were paid cash rent. You should consult a tax professional.
There is a procedure for doing this, a "checklist" and a specific contract that each person signs. Several companies operate these similar to rental agencies. I would assume they have a formula in place that makes the operation of such deals successful and protect both parties. The reason for swapping is to test out how I like Hawaii. I've visited many times but visiting is vastly different from living there, as I'm sure you all know.
last time I visited, which was in April of 2011 it was so hot and humid--I don't remember it ever being that hot in April. Maybe it's just old age creeping up on me and a hyper-sensitivity to heat but LA in summer is worse. Maybe it's all this global warming.
Properties are usually like for like, value doesn't really enter into the situation, best as I know, only comparable areas of the city. I was hoping someone here might have know someone who has done one of these and if they had any horror stories.
My number one concern about doing this, believe it or not, is centipedes and spiders. Don't want to get bit in the middle of the night by something sharing my bed with me other than my wife (doing the biting, that is
There is a whole industry built around vacation swaps. But that's not really what you are talking about.
I have done some advertising looking for permanent swaps and gotten a lot of response. What I have found 100% of the time is that the property offered is valued by the seller at a price that they could only dream of getting before the market crash. Literally, not one offer at current market value.
Market value is a huge consideration. I am not about to trade a property that I could sell for $150,000 within a month for a property that I could only sell for $80,000 if I could find a buyer, which might take multiple years.
However, if you want to do a trade, start running ads on Craigslist. There is a swap real estate section. Title it "permanent trade".
A swap has some real advantages. Nobody has to try to get a mortgage. There are no real estate commissions to be paid.
The trick is to find someone who has what you want who looks at what you are offering and thinks that it is just what they had in mind. Also, everybody needs to be free and clear.
Maybe not so easy to find, but you can try. Maybe you will meet the right person.
My number one concern about doing this, believe it or not, is centipedes and spiders. Don't want to get bit in the middle of the night by something sharing my bed with me other than my wife (doing the biting, that is
Then all I can say is don't move here. There ARE centipedes, they DO get into houses, they DO get into bedding, and they DO bite. They also charge across the living room floor, scamper under rocks in the garden, and leisurely rest in your shoes at night (you will meet them in the morning).
Ditto for spiders, we have plenty here, and some bite. If having a silver-dollar size garden spider stare at you in your garden, or rush across your feet when hiking, is going to undo you, then Hawaii is not the place. Some bite, and some can leave a very nasty injury.
Bugs are a fact of life in Hawaii, and if that is your #1 concern, you will be very unhappy here.
Seems like you are limiting the appeal of your otherwise nice house to a very small market. If you were to sell it in the "normal" way, can you get exposure to thousands of potentially interested buyers. Under your proposal, you'd be lucky to find maybe a dozen families that are even remotely interested, and doubtful that any of them would take you up on your deal. The smaller your customer base, the less your asking price. I just don't see the logic in your plan.
Why not consider just renting your LA home. That should be pretty easy, it's a big tax write-off, and you can use the proceeds to rent a beautiful Hawaii home.
There is a whole industry built around vacation swaps. But that's not really what you are talking about.
I have done some advertising looking for permanent swaps and gotten a lot of response. What I have found 100% of the time is that the property offered is valued by the seller at a price that they could only dream of getting before the market crash. Literally, not one offer at current market value.
Market value is a huge consideration. I am not about to trade a property that I could sell for $150,000 within a month for a property that I could only sell for $80,000 if I could find a buyer, which might take multiple years.
A swap has some real advantages. Nobody has to try to get a mortgage. There are no real estate commissions to be paid.
The trick is to find someone who has what you want who looks at what you are offering and thinks that it is just what they had in mind. Also, everybody needs to be free and clear.
Maybe not so easy to find, but you can try. Maybe you will meet the right person.
I didn't explain myself well in the OP. I don't want to change title as in permanently swap houses. I just want to use their house while they use mine, so the only two factors that become relevant, far as i can see, is are the houses is similar safe locations and do they have similar layouts (3+2 for 3+2 etc.) Otherwise we retain title our houses, continue to pay the taxes and insurance on them. If things don't work out we each return to our respective houses.
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Then all I can say is don't move here. There ARE centipedes, they DO get into houses, they DO get into bedding, and they DO bite. They also charge across the living room floor, scamper under rocks in the garden, and leisurely rest in your shoes at night (you will meet them in the morning).
Ditto for spiders, we have plenty here, and some bite. If having a silver-dollar size garden spider stare at you in your garden, or rush across your feet when hiking, is going to undo you, then Hawaii is not the place. Some bite, and some can leave a very nasty injury.
Bugs are a fact of life in Hawaii, and if that is your #1 concern, you will be very unhappy here.
However, if you want to do a trade, start running ads on Craigslist. There is a swap real estate section. Title it "permanent trade".
Good grief, how do people sleep at night constantly getting bit by insects? Aren't there ways of keeping the pesky critters away from beds?
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Seems like you are limiting the appeal of your otherwise nice house to a very small market. If you were to sell it in the "normal" way, can you get exposure to thousands of potentially interested buyers. Under your proposal, you'd be lucky to find maybe a dozen families that are even remotely interested, and doubtful that any of them would take you up on your deal. The smaller your customer base, the less your asking price. I just don't see the logic in your plan.
Why not consider just renting your LA home. That should be pretty easy, it's a big tax write-off, and you can use the proceeds to rent a beautiful Hawaii home.
One reason is that the house is paid off so I have no depreciation to declare. All that rent money has to be reported and taxes paid on the full amount minus only reasonable repairs. Bummer.
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