Beginning in the 1920s, Florida was a magnet for people looking for an ideal place to call home. For example, senior citizens and retired persons started to move to Florida in ever increasing numbers. The number of retired men and women that flocked to Florida became a proverbial flood after World War II.
Beyond senior citizens, there are over a million so-called Snow Birds that spend part of the year in the Sunshine State. These people spend the summer months in other locales.
Over the course of the past ten years, Florida has started to experience some head on competition in regard to the recruitment of retired individuals and Snow Birds alike. A number of other states have developed intense programs to draw retired men and women to their states as permanent residents and have striven to attract Snow Birds in their own right.
For example, Arizona has been on the forefront of developing a concerted campaign to attract both retired persons and Snow Birds into its borders over the course of the past decade. Indeed, the Phoenix-Scottsdale metro-plex is the fastest growing community in all of the United States.
In addition, many other Southern states have become residential destinations for an increasing number of retirees and Snow Birds alike. For example, a growing number of men and women who might otherwise have landed in Florida are settling instead in the Carolinas, Georgia and Tennessee. There are other retiree residential destinations such as Branson, Missouri, that have enjoyed tremendous growth.
However, Florida remains the dream locale for many, many people heading towards retirement and for men and women who want to spend winter in a relaxing environment. Additionally, a most concerted effort is being made to stabilize and enhance the Florida real estate market.
First of all, there are a number of important efforts being made to lessen the property tax burden on people who purchase residences in the State. Indeed, there are some constitutional amendments that have been proposed and that are likely to be enacted that should provide significant property tax relief to residents.
In addition, more generalized efforts are being made to stabilize and improve the Florida real estate market more broadly. As with other states across the country, the Florida real estate market has taken some hits in recent years.
Finally, a great deal of effort is being spent on developing a system to improve the availability of more affordable housing. Due to the high dollar damages caused by natural disasters in Florida (and in some other Gulf States) the cost of homeowners insurance actually has made homeownership an impossibility for some men and women today.
In the end, experts who understand the Florida real estate market tend to agree that improvement will be seen in the market in 2008 and beyond. Because direct action is being taken to enhance the state of the Florida real estate market, most predict that the Sunshine State will remain a residential goal for many people.
Archive for May, 2009
The Florida Real Estate Market & Competition from Other States
Sunday, May 24th, 2009A common Cause: Florida real estate agents
Saturday, May 23rd, 2009When it comes to buying or selling a home, a good Miami Beach Real estate agent can be a valuable resource, but definitely with a price. Buying the home is definitely going to cost you something. Besides buying the house, you have to pay the real estate agent the necessary service charges too. Most of the Florida real estate Agents do not get a regular paycheck. As and when a house is sold, the Agents get a part of the money the money that the home buyer pays to the home seller. More the number of houses the Miami Beach Real estate agent sells, more money he gets.
Thus those agents, who sell very expensive flats or houses, will definitely earn more commission. The Miami Beach Real estate agent you have hired is investing a lot of time and effort in making your home and at the same time is earning that commission too. The agent generally receives the commission only at the end of the deal and never before that. Commission is the actually paid out of the funds received from the sale of the home and could sometimes range from anything between 5% and 6%, of the total cost of the house.
Many Florida real estate agents work from home, while the rest of the time is spent in showing houses to the buyers. One the buyer is ready to go and inspect the house, the agent has to go along with him and it could be any part of the day. Most agents are hard working, well organized and have a knack of remembering the names of every person they meet. Florida Real estate agents have a number of contacts right from the area where he stays, to the various legal offices from where he has to get the work done. Miami Beach Real estate is good and the agents are equipped to complete your work faster, better, and without any extra complications, which you would face if you had decided to do the work on your own. He saves much of your time, which is of course is so precious.
Florida Real Estate, Why Do You Buy? The Question That Realtors Should Be Asking
Friday, May 22nd, 2009It’s a buyers’ market in Florida housing. That’s a fact that no one denies. Sales are slow. Prices are stagnant. The projections, if you believe people like Wayne Archer of the University of Florida’s Bergstrom Center for Real Estate Studies, are gloomy. The question, of course, is “Gloomy for whom?”
The fact is that when you step back from the housing sales figures and take a look at the big picture, what you see is far different. A healthy and growing job market, recent drops in mortgage interest rates and property tax reform combine to make Florida an excellent place to buy a home – note that word. HOME, not a house, not an investment property, not a speculative deal, but a HOME.
Florida’s real estate boom of the last five to ten years has been driven in large part by two things – land speculation and sub-prime lending. Anyone can tell you that those are a shaky foundation for long-term growth. The recent slowdown in the real estate market is, likewise, due to the breakdown of those two factors – and it should come as no big surprise.
What Happened to the Bubble?
Real estate prices were driven higher and higher by investors who bought into the dream of flipping new construction and making a quick buck. They bought pre-construction and early construction properties with the intent of selling them at high profit when they were finished. According to some real estate analysts, close to 70% of real estate sales during the “boom years” were to investors.
At the same time, home buyers were seduced by the “creative financing” offered by many lenders. Promised fast gains in real estate value, many home buyers jumped at mortgage deals that were affordable in the short term. The first of those adjustable rate mortgages have hit the wall as they come up for interest adjustment, and those buyers who are unable to refinance are suddenly faced with mortgages that they can’t afford.
During the boom years, the real estate market favored investors. With prices rising as fast as you could record them, it made sense to buy with the intent to sell. Now that housing prices have stabilized and are even starting to drop slightly in some markets, the investment attraction has dropped. Those investors who bought with an eye to high profits from resales are ready to sell before prices drop. At the same time, many home buyers are faced with the prospect of a quick sale or foreclosure. The two market streams – investors unloading their properties to preserve as much profit as possible and homeowners who need to sell or lose their investment entirely – are creating a glut on the market.
Fewer investors and more houses on the market add up to a slow market. Buyers have been holding back, understandably. High property taxes and high interest rates had persuaded many buyers to wait for a better time to buy. For those home buyers who wanted to buy now, there is plenty of choice, and no urgency to close on a house before another buyer snaps up their dream home. In a soft market, a buyer who is in no hurry can afford to wait out a home seller in the hope that the price will drop, or try to negotiate better terms.
Florida is More than the Sum of Its Real Estate Market
Before we start mourning the death of the Florida real estate market, though, let’s take a look at the bigger picture. Overall, Florida’s economy is flourishing. The Florida unemployment rate continues at more than 1.3% below the national unemployment rate. Major companies – both national and international – are moving their headquarters and opening new offices in Florida cities, and account for nearly 150,000 new jobs in Florida since January 2006. In fact, the February issue of Forbes named six Florida cities in their top 25 “Best Cities for Jobs”.
Florida’s A+ Plan for Education is being touted as a model program for school improvement. Every school in the state is given a letter grade, so that it’s easy for parents to decide on options for their children’s education. The school choice program allows parents to move their children out of schools with bad grades, or provides incentives for them to work with those schools to improve them. Schools with poor grades are eligible for financial and technical aid to help them improve. Schools with good grades are eligible for monetary incentives as reward for doing well. In short, Florida has made providing excellence in education a priority.
Property taxes, which have been a major negative for many prospective buyers, are in the process of undergoing reform. Florida Governor Crist has committed not only to immediate tax cuts and savings, but to long term overhaul of the state’s property tax structure to make it more fair and equitable. In the meantime, there are several initiatives and methods to cut property taxes on the table.
Finally, for the first time in years, interest rates on Florida mortgages dropped for three consecutive weeks early this summer, and all indicators are that this trend will continue. Lower interest rates and lower home prices, combined with good schools, lower taxes and a strong economy – you can add up the numbers yourself.
Bad News for Speculators is Good News for Home Buyers
The doom and gloom sayers concentrate on falling home prices and the effect that those prices will have on investment value of housing. The fact is that most people are not buying real estate for speculation. Most people who buy houses are buying homes, not property. They are buying with the intent of settling in, raising a family, living in a community and creating a home.
Now is a perfect time for doing that in the Florida market. Today’s Florida home buyer will find a wealth of choices on the market, prices that reflect the value of their home, an excellent school system with a commitment to improving, a government that is committed to lowering property taxes while maintaining services and an economy that is attracting the biggest players in the world’s business market. Put all those together and shake it up with Florida’s stunning beauty, gorgeous beaches and balmy weather, and how can you lose?
2006: Most Active Real Estate Foreclosure Markets
Friday, May 22nd, 2009The foreclosure market is an attractive option for buyers wanting to invest in real estate. A foreclosed property is a mortgaged property that has been taken over by the lender due to non-payment of the mortgage. The lender then sells the property in order to recover the money, often at below market prices. Foreclosed homes, condos and other properties can for make excellent investments and is a popular choice for those entering the real estate market.
The October 2006 issue of Business 2.0 Magazine ranks the top 10 foreclosure markets in the United States. Greeley in Colorado tops the list followed by Detroit in Michigan, Miami in Florida, Indianapolis in Indiana, Ft. Lauderdale in Florida, Denver in Colorado, Dayton in Ohio, Dallas and Fort Worth in Texas, and Atlanta in Georgia.
Greeley, CO, has the largest number of foreclosure households in the country, with 0.59% of homes falling in the category, an increase by 14.7% since January 2006. The report holds aggressive residential development, risky underwriting practices and stagnant wages as the main causes.
Detroit, MI, stands next with 0.51% of the households in foreclosure. The badly performing auto industry and the resulting impact to autoworkers’ incomes has contributed to number of homes in foreclosure in this city.
Third on the list is Miami, FL, where 0.37% of the households are in foreclosure, a staggering 91% increase since January 2006. The report states a weakening economy, higher property insurance premiums, and rising energy and interest rates, as the reasons for this rapid increase.
The fourth among the top ten foreclosure markets is Indianapolis, IN. Although the foreclosure rates are slightly lower from last year, still the portion of households in foreclosure stands at 0.35%. Setbacks and layoffs in the city’s auto industry together with falling home prices have contributed to foreclosure rates in this city.
Fort Lauderdale, FL, stands fifth with 0.34% of households entering foreclosure, which is up by a whopping 118.5% since January 2006.
Denver (with 0.33% of households in foreclosure), Dayton (with 0.33% of households in foreclosure), Dallas (with 0.31% of households in foreclosures), Fort Worth (with 0.31% of households in foreclosure) and Atlanta (with 0.31% of households in foreclosures) round out the top 10 foreclosure markets.
If you are looking to invest in the foreclosure market, consult a real estate agent who can help you clinch the best deal on the foreclosure property of your choice.
Overseas Property for Sale – Egypt Has it All
Friday, May 22nd, 2009If you’re looking for an overseas property for sale, Egypt is the country of choice for investors, as investors are benefiting from high returns from both rental yield and capital growth.
Property Investments
In recent years Egypt has started to attract an increasing numbers of visitors and property buyers alike. Apart from the resorts, the majority of property investments are taking place in the major cities, such as Cairo and Alexandria, and the major cities are currently attracting as much as 25% annual capital growth.
When you’re looking for property for sale, Egypt offers old properties, new builds, and off-plans. When buying off-plans (buildings not yet built, and the sale is based on the plans of the building) you get the opportunity to reserve your property at around 30% below market value. The reason properties are offered at a reduced price is to attract individuals who are in no hurry to take occupation, but realise the significant savings of early purchasing. Buy–to–let investors can hope to achieve good rental yields from a well–located property as the climate in Egypt supports a year–round tourism industry. If you’re a looking for a commercial property for sale, Egypt is an attractive location for shopping mall developers, as the total number of malls in the country is relatively low for a population of 72 million.
Tourism
Egypt is a vast and wonderful country and is synonymous with pyramids, Pharaohs, and temples. Egypt is an unmissable destination and it remains one of the world’s most fascinating travel experiences. Throughout history it has attracted many famous travellers, archaeologists, treasure hunters and, more recently, sightseers wishing to see the famous sites of ancient Thebes, Aswan and Cairo. Egypt is also a hotspot for divers as the water is warm, there are beautiful coral reefs that are home to an abundance of colourful sea life, and there are several ship wrecks to discover.
Remember that Egypt is a conservative society, and visitors should respect local customs and sensitivities, and dress modestly. For women especially, the wearing of long skirts or loose fitting trousers, and shoulders covered, discourages physical and verbal attention.
Geography
Egypt is bordered to the north by the Mediterranean, to the south by Sudan, to the west by Libya, and to the east by the Red Sea and Israel. Egypt is in the arid desert belt and it is very hot in the summertime and cool at night. In the wintertime it is warm during the day but cold at night. Most of the country is covered by desert, except in the valley of the Nile River where 95% of the population lives.
Conclusion
Egypt is growing both in the tourist market and the property market. Investors looking for a low risk place in which to invest their money would be wise to seriously consider Egypt. Once people realise that Egypt is more than just history and culture, the Egyptian property market will really escalate, and when that happens, investors who have bought into the property market early are certain to make a very good return on their low risk investment. The crucial point when purchasing a property in Egypt is to find the right property in the right location and getting it at the lowest price possible. When such a purchase is based on careful research and advice, your property can provide you with a secure and profitable investment. So when you’re looking for an overseas property for sale, Egypt can offer you many benefits and rewards.
All You Need to Know About Foreclosed Real Estate Listings
Thursday, May 21st, 2009Foreclosed real estate is a great way to find a home at a bargain price, and avoid paying high commissions to real estate agents. But there is a great deal of new information to wade through if you’re on the lookout for foreclosed real estate listings, and a number of important things to keep in mind as you pursue a repossessed home.
Whether you’re shopping for a home for yourself and your family or strictly seeking an investment opportunity, the following tips may be helpful in selecting and buying a piece of foreclosed real estate:
- Where to Find Listings: You can find listings and information on upcoming foreclosure auctions advertised in local newspapers, real estate publications, from banks and mortgage lenders, and online. Web listings are especially helpful, because they’re usually updated in real-time to reflect changing sale dates. REDC is the nation’s largest real estate auctioneer and always has thousands of homes to bid on in person at live auctions or online at www.Auction.com
- What’s in the Listing? Most foreclosed real estate listings will tell you the date, time, and location that the property will be put up for auction, and may provide additional information about the property itself.
- What’s Not in the Listing? Don’t expect to see details of the property’s condition, or the reason it’s been repossessed, in the foreclosed real estate listing. That kind of information is almost never disclosed to new buyers. For auctions on the courthouse steps, you won’t be able to look inside the home, either, so be aware that there’s a lot of guesswork involved in purchasing a house at this type of foreclosure sale. Properties here will be sold in “as is” condition. REDC auctions, however, usually feature three open house dates for viewing and inspection and homes in these auctions are sold with title insurance to protect you.
- Starting Bids: Some listings will provide a starting bid for the property – an amount that is usually the total cost of outstanding loans, interest, and any additional fees accrued in the course of the repossession. This bid is the starting point for the property at a trustee sale auction, and will usually be posted online several days before the sale.
There are some amazing deals available in foreclosed real estate. Reading the listings and doing your research could put you on the path to a handsome profit and a great new home.
Buy to Let Property Investment. Landlord Property Management Advice
Wednesday, May 20th, 2009Over the last 15 years there has been a dramatic rise in the number of people who choose to invest in property for the purpose of renting. Buy to Let sales have become much more common. It is believed renting has become very popular among tenants due to the flexibility and freedom it offers, without the commitment of buying a home. For many, purchasing and letting property has become a very profitable investment. They provide a steady, reliable income as well as a steady rise in value of their property. The income from renting property should be enough to cover the landlords mortgage payments and make a profit.
Initially it appears that property investment and rental is a flawless way to a steady income and security but property management can be a complex area with its own set of risks and pitfalls but with the right knowledge and approach it can be very rewarding. Letting agents are a good way to have your property professionally managed for a small cost. They will generally take 10%-15% of your monthly rent, plus a one off management fee and will take care of all aspects of managing your property from arranging marketing, web site advertisements and property signboards, supervised viewings, credit checks, tenancy agreements and inventories, collection of rent, property inspections, and possibly a 24 hour emergency contact.
Reasons for Rental Popularity among Tenants.
For tenants, renting has become a more flexible and attractive alternative to buying. There are several benefits that property renting can offer tenants. With job insecurity, many people now fear having the commitment of mortgage payments in the event they are suddenly out of work. It allows co-habitation of couples without the difficulties of a mortgage if there is a split. Divorce rates have become much higher in recent years and with an ageing population where people are living longer, there is more demand for homes for people living alone. Getting onto the property ladder for first time buyers has become more difficult than ever, leaving some young buyers with no other option but to rent.
Reasons for Rental Popularity among Landlords.
For landlords, investing in property can provide a secure and steady income alongside an existing job or an alternative to other forms of savings and investment. Property rental in the UK has steadily become more accepted in the last few years, catching up with places with more established industries like Europe and the US. The demand for rental property is strong and with the guarantee that the landlord can have the property back at any time, as well as charge reasonable rent is very appealing. The option of Buy To Let mortgages has provided a profitable alternative to building societies, stocks and shares with far less chance of losing your money.
More Properties
Many landlords start their property rental investment with one property as a sideline income while keeping another job. However, this has led many to take on more properties, with some eventually owning a full portfolio, which can support them financially. Another area of investment which is rapidly gaining popularity is commercial property. Property management and Buy To Let is generally associated with flats and homes but with towns and cities full of shops and offices, the opportunity for investment in these areas is also being noticed.
With property investment comes a level of risk. The risk with property however, compared to the reward is far lower than the stock market, with a higher return than savings and building societies.
www.youlet.co.uk
You Let – Glasgow letting
agent and property management specialists in Glasgow.
Assessing the Commercial Real Estate Market
Wednesday, May 20th, 2009There are many important factors that effect the price of commercial real estate, but perhaps few are as important as that of the local job market. Without a strong and growing job market, it’s nearly impossible for an area to support the retail establishments, restaurants and businesses that sustain neighborhoods.
It’s important for any would be commercial real estate investor, whether they specialize in retail, office, industrial, or warehouse properties, to thoroughly research the health of the local job market before making an investment decision. You have to look at the local unemployment rate and compare it to the averages for the state and the nation as a whole. Those areas of the country with lower than average unemployment rates are likely to enjoy future growth, while those with higher than average unemployment may suffer from such associated problems as high crime, long listing times, and depressed lease rates.
Of course, the raw numbers for unemployment don’t tell the whole story. It’s important for would be commercial real estate investors to look not only at unemployment rates, but at income levels, as well. Those neighborhoods with higher than average salary levels should be far better at sustaining the high end shops that often form the backbone of commercial and retail real estate investment.
Further, real estate investors need to make the distinction between local salary levels and levels of disposable income. If the average salary is $100,000 per year, but that person can only afford a 2 bedroom apartment in the local city (think West Los Angeles or Manhattan), these people won’t be shopping at the local high-end fashion boutiques! How much residents have left at the end of each month is a key economic factor in evaluating a neighborhood for commercial real estate activity. This means you have to look at such factors as the local cost of food, rental housing, utilities and other factors that can influence the lifestyle of those in a particular neighborhood.
Fortunately these kinds of statistics are increasingly available and in many cases this information can be found free of charge on the Internet, your local library, or through a good commercial broker. Even if income, unemployment and job growth figures are not available online, chances are good they will be available with only a minimum of effort. Given the importance of this information to real estate investors, it is certainly worth a bit of effort to ferret it out!
Real Estate Sales Training – Five Proven Techniques To Get More Real Estate Listings
Wednesday, May 20th, 2009s vendors call an average of three real estate professionals before they list their home. You face serious competition for the best listings. If you want to all the real estate listings you can, you need to call on lots of potential vendors and when you get to meet with them, you need to have an edge over your competitors.
One of the gripes vendors have against Realtors is that many offer the same old listing service. Come out with a few comps, get the listing, put up a sign, throw it on the Multiple Listing Service and maybe try a few open houses. Then the vendor hears very little until there is a showing or sale. Our real estate sales training offers ideas for advantages and exclusive programs that you can offer prospective vendors that will give you an advantage over the same old listing procedures. Here are a few examples:
Google Local Pay Per Click
You can use Google Pay Per Click campaigns to generate local interest. Local ads cost very little but provide you with an exclusive advantage you can offer a homeowner over your competitors for a listing. A very small investment will get the home on the front page of Google and other search engines when people search for similar homes in the area.
You Tube Home Tour
Take a video of the home and edit it down into a nice video tour. Then, you can post it for free on YouTube and many other video hosting sites. These sites get lots of hits and it is very possible you will generate good leads for your vendor. best of all, it is an additional marketing tool that takes very little time to do but one that may sway the homeowner to list with you since you are not offering the same old song to get the listing.
Automated Phone Calls
There are several good voice broadcasting services available to make calls automatically for you. You can call thousands of people and tell them about your listing, about open houses and more. If you use these packages it allows you to offer your vendor a powerful service that your competitors probably do not offer and one that will help in selling the property.
Email Reports
Vendors want to know what is happening throughout the sale. In your listing presentation, let the vendor know that you stay in touch by email every time you do any promotion on their property and every time there is a showing with a complete report on the reaction of the potential buyers as well as any comments on the property by other real estate agents.
Let Them Know You Respect Their Property
Vendors give listings to agents who stand out in terms of respecting their property. Let them know that you investigate everyone who asks for an appointment to show before one is given. Let them know that you provide paper booties at the door for open houses and you will protect their home. Let them know that you stop by after every showing (for vacant properties) to make sure the doors and windows are locked and everything is set as it should be.
These are just a few of the exclusive advantages you can offer to vendors who list with you. Stop offering the same old, same old and you will be able to get many more listings.