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Tag: brokerage

  • A house under $500,000 in the Bay Area? The catch is there’s a tenant until 2053

    A house under $500,000 in the Bay Area? The catch is there’s a tenant until 2053

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    Imagine the first morning you wake up inside your new house in the Russian Hill neighborhood of San Francisco.

    An AI robot rolls in to deliver you breakfast in bed. You’re feeling good. The year is 2053.

    You made the right decision.

    Nearly 30 years ago, you purchased the three-bedroom, one-bath house on North View Court for way under its market value — at just $488,000. But there was a catch — you couldn’t move in for 29 years, because a tenant had a long-term rental agreement that lasted into the second half of the 21st century.

    That’s a possible future for anyone seriously interested in the new listing from Park North Real Estate brokerage.

    Long lines formed to tour the occupied house, according to KFSN-TV. While it is not clear who the tenant is or how exactly they negotiated their 30-year-lease, Park North did say the owner of the house died recently at the age of more than 100.

    The tenant also pays well below market rate rent — just over $400 per month for the spacious house.

    “Tenant’s current lease appears to grant tenants strong long-term rent rate amount restrictions, unconventional method of rental payment, and possible occupancy rights until 2053,” the brokerage wrote in the listing. “Seller & listing agent do not guarantee access to the home and STRONGLY recommend buyers review the seller disclosure package/addenda and confer with a San Francisco landlord/tenant attorney BEFORE making offer.”

    Douglas Lee, a real estate agent with Compass, said the house in San Francisco is an ideal spot for someone to “land bank” — meaning someone who doesn’t intend to use or develop the property until many years out.

    “You sit and wait until that tenant either dies, vacates or the lease ends,” Lee said. “Once that happens, you realize a ton of your potential. That’s a really good purchase for trust fund people. If you’re buying it for your kid who is like zero or 1, in 18 years you know that this thing will be about ready to realize.”

    The Edwardian-style home on the hill is not the brokerage’s only strange and cheap listing. The company also features what it referred to as a “fire sale” for a $188,000 condo. The catch?

    “Property is gutted down to the studs due to fire. Outstanding opportunity for a Contractor, Investor or Homeowner who is willing to pay CASH. Please use caution when viewing as there are exposed construction materials. No access to the private deck as slider is damaged from fire,” the brokerage wrote.

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    Noah Goldberg

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  • Vanguard Fee Schedule Changes – Doctor Of Credit

    Vanguard Fee Schedule Changes – Doctor Of Credit

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    Vanguard sent out an email with some updates coming to their fee schedule, effective July 1, 2024. I’ll post the full email image at the end of this post and you can see the updated Vanguard fee schedule at this pdf.

    Two things that jumped out, as pointed out by readers:

    1. Vanguard added a $100 Account closure and transfer fee: “A $100 processing fee may be charged for account closure or transfer of account assets to another firm.”

    This can be very relevant for those of us who like to transfer brokerage funds to get brokerage bonuses. I’m not certain if the $100 (which “may be charged”) will apply when transferring out partial assets or a portion of one holding. Regardless, it’s a new thing to be worried about with Vanguard. Some people find Fidelity to be the best brokerage hub account.

    2) Vanguard added a 1% fee on some foreign dividends: “Foreign securities and American Depositary Receipts (ADRs) dividends fee: A fee of 1% on the gross dividend amount will be charged when a dividend is paid on a foreign or ADR asset held in U.S. dollars.”

    I haven’t fully wrapped my head around this yet, but this might substantially increase the overall expense ratio for foreign holdings. For example, I keep a chunk of my investments in VXUS which has an expense ratio of .08%. Let’s say that the stock gives around 3% in annual dividends annually. The expense ratio would end up being .11% instead of .08%. (For each $100 in VXUS holding, you’ll pay $.08 for the .08% expense ratio, plus you’ll pay $.03 for the 1% cost on the $3 of dividends paid. Total cost ends up $.11 per $100 for a total expense ratio of .11%.) Readers note that the 1% fee is only for stocks that trade on foreign exchanges, not funds like VXUS which trade on US exchanges.

    3) $25 for broker-assisted trades: “A $25 broker-assisted commission will be charged for each Vanguard mutual fund1 and Vanguard ETF® (exchange-traded fund) trade placed over the phone and for closing transactions placed by Vanguard Brokerage Services® to cover a margin call or satisfy an outstanding debt owed in your brokerage account.”

    The changes aren’t terrible overall, but I am weighing whether to switch from Vanguard to Fidelity or another brokerage. Feel free to share your analysis or thoughts about the various fee changes in the comments below.

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    Chuck

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  • ‘Worst broker ever’: Kotak Securities app users rush to Twitter to vent fury amid tech glitches all day

    ‘Worst broker ever’: Kotak Securities app users rush to Twitter to vent fury amid tech glitches all day

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    With Kotak Neo app beset by tech glitches for whole day, many investors and traders on Monday took to Twitter to vent their anger. Users said they were unable to place orders, or square off positions as the app wasn’t working the whole day.

    At 11:40 am on Monday, Kotak Securities took to the micro-blogging site to provide an update. “We’re facing issues with the NSE adapter and NSE orders in Kotak Neo currently. The trades in BSE are working fine. The team is actively working on resolving the issue. We regret the inconvenience caused,” it said.

    However, even at 9:15 pm, Kotak Securities responded to a user admitting the glitches continue to persist. “Hello, we are extremely apologetic for this. We completely understand your side and the team is working on this. We are trying to ensure such instance does not repeat,” it said. 

    “This must be the first time in Indian Stock Exchange history that a broker was down for the full day. Very bad service” wrote a Twitter user while tagging Kotak Securities. 

    “Anyone facing problem with order placing in Kotak ? Third time in a row this is happening,” said another hassled user of the app.

    “2022 Worst broker award goes to @kotaksecurities,” said another user.

    An options trader said option price wasn’t getting updated since 45 minutes. Another options trader said he wasn’t able to book profit on Monday and faced a similar situation on Thursday. 

    “How can Kotak just release a product with so many faults and not take any accountability?,” asked an user of Kotak Neo.

    Many traders also posted screenshots of the losses incurred as they were not able to square off their positions on time.

    “This (app glitch) is the heights of carelessness and unprofessionalism,” said another user.

    Last month, markets watchdog directed stock exchanges to impose “financial disincentives” on stock brokers for technical glitches at their end, amid instances of snags at the brokers’ end impacting the overall trading system.

    Besides, the stock brokers would have to inform the bourses within one hour of any glitch happening in their trading sysstems as well as submit a preliminary incident report in one day.

     As part of tightening the regulations, Sebi also said that the bourses should disseminate on their websites the instances of technical glitches occurring in the trading systems of stock brokers along with the Root Cause Analysis (RCA) of such issues. The new framework would be effective from April 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.

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