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The National Association of Realtors Rallies Congress on Real Estate Issues
Today the National Association of Realtors will be in Washington DC to address several real estate issues that Congress is contemplating to address the federal deficit. Some of the issues being addressed include:
- Mortgage Interest Deduction: long enjoyed by homeowners, this deduction has been recommeded to be eliminated as part of large tax reform proposal
- Capital Gains – Exclusion on Sale of Residence: reducing or limiting the capital gains exemption ($250,000/$500,000) on the sale of a home is also being discussed.
- Property Tax Deduction: possibilty that current deduction would be reduced or eliminated.
NAR is tackling other issues as well via their 2012 Federal Public Policy Priorities.
Miami Real Estate: Prices on the Rise
Miami and Phoenix are seeing a rise in asking prices, based on a Trulia Price Monitor Report. There are still a lot of good buys out there, but many buyers are frustrated when a new property comes on the market and goes under contract almost immediately. Decreasing inventory and aggressive pricing by listing agents, mean you have to act fast if you are serious about making a purchase. If the property is priced right, don’t try to negotiate it down too much, if at all. I listed two properties last week that both had multiple offers within the first two days. The first property had all offers at asking price and we went to a multiple offer situation where we asked for highest and best. Total time on market was 6 days.
The second property had several offers on the second day. One agent had his buyer offer slightly over asking and put down 10% as an initial deposit, upon acceptance. The seller accepted his offer. Two days later, a higher offer came in from a buyer who was desperate because she had just lost out on a short sale and needs to move fast.
If you are a buyer, be ready to put your best offer forward early on. If you are a seller and get multiple offers, don’t second guess your pricing or hold out for something even better. The reality is that you get the most activity on a listing when it first goes on the market. The longer you wait, the less you are likely to get.
Riviera Drive Gets A Facelift
I drive Riviera every day on my way to and from work and love all of the renovations that have been going on on that street between Hardee and U.S.1.
Whether on a waterfront lot, like the house below, or a dry lot, over 6 homes have recently had major remodeling done.
I love the new look!
Miami Real Estate: Believe Warren Buffet
I listed a rental in Cutler Bay last week and had over 150 phone calls! I had three offers the first day, even though there wasn’t single picture listed yet, the yard was over grown and the house had not been cleaned out from previous tenant. If you are an investor, buy more properties. The demand for rental housing is huge, which is probably another reason why Warren Buffet said he’d buy a couple hundred thousand single family homes!
7601 E Treasure Drive – Bank Approved Short Sale
This bank-approved short sale at The Grandview Palace in North Bay Village has water views from every room. Other features include:
- crown molding
- baseboards
- updated kitchen with stainless steel appliances, granite counters & a pantry
- two full baths
- two good-size balconies
All this for $136 per squar foot!
Miami Real Estate: Rent vs Buy? That Is The Question…
During a Sunday get together, the rent vs buy question came up and a lively discussion ensued. The individuals who were pro-renting argued that renting provided:
- cash flow/opportunity cost: not having money tied up in a mortgage, taxes, and insurance, allowed more money for investing, travelling, miscellaneous purchases
- flexibility: if they wanted to move into different neighborhood, change size , or relocate for a job, their choice is not dependent on first having to sell their home
- better lifestyle: they argued that they could rent a nicer place in a nicer area than they could afford to purchase
- maintenance-free living: don’t have to worry about repairs, yard work, pool cleaning
The pro-buyers argued that buying was better because:
- it builds equity: which helps build your net worth. It is basically a forced way of saving money.
- tax benefits: interest on a mortgage is currently tax deductible, thereby reducing taxes you owe
- gives you control over finances: you are not subjected to rental increases
- stability: since home ownership is fairly long term, owning a home creates a sense of security and community
- maintenance: don’t have to wait for landlord to change or repair something. Have control over quality of work of repairs and type of work done (i.e wood floors vs changing carpet)
Obviously both renting and buying have their pros and cons. The New York Times rent vs buy analysis says that overall, if you stay in a place for 5 years or more, you are better off financially buying. This analysis assumes that the landlord pays utilities, which for the most part in Miami-Dade is not the case. The tenant usually pays all utilities, except for those that are provided by, and included in, the condominium’s maintenance fee.
So what side of the fence are you on and why?
7925 SW 55 Ave, High Pines
Location, Location, Location! This house is walking distance to South Miami plus:
- Updated kitchen with stainless steel appliances, gas stove, granite counters,
- Newer roof and septic tank
- Hurricane shutters
- 3bedroom/2 bath/1 car garage
$450,000. 7925 SW 55 Ave., details
Miami Real Estate: Sales Are Up and Inventory is Down
Home prices in Florida are up according to Florida Association of Realtors January Housing report. The same holds true for the Miami real estate market. Inventories have been decreasing steadily, as can be seen in the graph below.
Decreasing inventories & increasing pending sales
Miami Real Estate: The Jade
The Jade is a beautiful, modern, waterfront building that is walking distance to all of the activity on Brickell Avenue. Built in 2004, the Jade has amazing resort-like amenities including a spectacular infinity pool, state-of-the-art gym, entertainment rooms, private elevators to your residence, and views galore.
The Jade was one of the first luxury buildings completed during the boom and provides a great historical perspective of the boom, bust and now rebound of Miami real estate. There are currently 23 units listed for sale out of a total of 326 units. The average price listing price per square foot is $629. In 2004 the average price per square foot of units sold was $540 and at the height of the market ini 2007 it was $805.
Approximately one-third of the building is still owned by original buyers who purchased in 2004 and 2005. That fact, coupled with the fact that the majority of the sales that took place in 2008 and 2009 were cash purchases, results in a very stable condominium association.
Homestead Exemption Deadline is March 1
If you purchased a primary residence in 2011, you may qualify for homestead exemption. The homestead exemption may reduce the amount of property tax you pay, but the deadline to apply is approaching and if you do not apply by March 1, you will have to wait until January of next year. You can even file online
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