Category: Buying

Tips to make your real estate buying experience a smooth one

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Buying Luxury Real Estate Neighborhood News Pinecrest Selling

Buying Or Selling A Home In Pinecrest?

If you are buying or selling a home in Pinecrest, why would you use anyone other than the #1 brokerage in Pinecrest?  I am a Realtor with EWM and a Pinecrest resident.  I have lived here for over 27 years and can’t imagine living anywhere else.  Want to learn more about this wonderful neighborhood?  I would be happy to meet with you and tell you all about it.

 

ewm.com

EWM Realty International’s #1 ranking is based on total sales transactions and total dollar volume sales. Data was supplied by the Miami Association of Realtors, The Greater Fort Lauderdale Association of Realtors, and the Southeast Florida Regional MLS for single-family homes and condos sold within the Village of Pinecrest for the period beginning 1/1/2018 and ending 6/30/2018.

 

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Buying Commercial Real Estate Investment Real Estate

Is South Florida Real Estate Still Affordable?

Affordability has become a real estate hot topic over the last several years and is going to continue to be one for at least the next 5 years.  As both millennials and baby boomers age, their demand on residential and commercial real estate are driving up prices at a time when incomes are close to stagnant and definitely not keeping pace with rising construction and real estate prices.

With boomers living longer and opting to age in place and millennials’ ability to work remotely due to advances in technology, cities and states that remain affordable to these two age groups should fare well and be considered for potential investment properties.

In Florida, some of the cities that have made “affordable best of” lists include:

In South Florida Miami and Hialeah:  made Quicken Loans’ list of Most Affordable Big Cities in America

Tallahassee:  on Realtor.com’s  America’s Most Affordable Outdoorsy Cities 2018

Palm Bay and Port Saint Lucie both made Realtor.com’s list of America’s Most Affordable Beach Towns 2018 edition

According to Livability.com, the six most affordable places to live in Florida are Kissimmee, Palm Coast, Cape Coral, Palm Bay, Orlando, and Gainesville.

Cape Coral was also picked as one of the cheapest places where you’ll want to retire.

Although not all of Miami is affordable, according to Zillow the median home price in Miami-Dade County is $296,400, so there are pockets where both residential and commercial real estate is more affordable than in the higher priced areas, better known areas of the county.  These pockets still have room for appreciation over the next 5-10 years.

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Buying Commercial Real Estate

Is TAMI Coming To A Town Near You?

Google Puchase
Google’s Latest NYC Purchase

All of the large tech companies appear to be on a buying spree. Google’s $2.4 billion purchase of the Chelsea Market Place building shows how insatiable these large companies can be. Loaded with cash and apparently feeling bullish about how recent tax reform will affect them, they are on a purchasing and/or expansion binge.  This is great news for the economy as it keeps real estate and employment on an upward trend.

As reported last week by Lara O’Keefe of Bisnow the top tech companies are planning the following:

Google – open offices in 9 states throughout the U.S
Facebook – open five data centers over the next year.  Redevelop 3.45 M SF at the former Menlo Science & Technology Park
Apple – spend approximately $10 billion adding onto existing data center facilities.  Adding another campus at a yet to be determined location
Amazon – opening a second headquarter

So, what does this mean?  Both commercial and residential real estate prices in the areas where these companies put their offices, data centers, operation centers and warehouses are going to increase as will the employment rate and demand for skilled workers.  Since tech companies like to be with other tech companies as well as creative ones that focus on advertising, media and information, there will be an increased presence of these companies wherever Google, Facebook, Apple and Amazon locate their offices.  The effect that these companies, collectively referred to as TAMI (tech, advertising, media, information) have on an area’s real estate should not be underestimated.  Just take a look at the prices of real estate in Silicon Valley, the San Francisco Bay Area and Manhattan.

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Buying Commercial Real Estate Investment Real Estate Selling

Florida Is The Top Destination For Foreign Buyers

Photo Credit - Rusty Diaz ProImage
Photo Credit – Rusty Diaz ProImage

In  a sign of Florida’s continued attraction as a place to visit, live, work and invest, the National and Miami Association of Realtors 2017 Profile of International Activity states that foreign buyers purchased $153 billion of residential properties last year, approximately $50 billion more than in 2016.  Though purchases were made throughout the U.S., Florida, Texas, California, New Jersey and Arizona accounted for 54% of the sales.

Out of Florida’s $24.2 billion of residential purchases by international buyers, South Florida accounted for $7.1 billion.  Although the majority of these buyers were from South America, France and Italy were also in the top buying countries followed by Canada, Israel, Mexico, Russia and Switzerland.  Increasing the diversity of South Florida’s population is great news and great for business!  The top purchasing country in Miami-Dade was Venezuela 12%, in Broward it was Canada also with 12%, and in Palm Beach County Canada accounted for 31% of all international purchases.

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Buying Commercial Real Estate Selling

Why Amendment 2 Matters To YOU!

Amendment 2 Is For Everybody photo credit: Brian Sharpe- Sharpe Properties
Amendment 2 Is For Everybody photo credit: Brian Sharpe- Sharpe Properties

Although this year’s elections aren’t until November and every one is pretty tired of politics, I have to take this opportunity before all of the other campaigning starts to talk about Amendment 2 and why it matters to you.

Amendment 2 is not a tax cut, it would make a current 10% cap on non-homesteaded property tax increases permanent.  If Amendment 2 does not pass in November, the current cap will expire and property owners may see their taxes increase significantly.  If you own commercial or non-homesteaded residential property, such as an investment property or second home, I think you can see how this would affect you.  Even if you don’t own any property, significant tax increases on property will affect you.  How?  Your rent and the costs of goods and services may go up significantly.

First approved by voters in 2008 as part of the Save Our Homes portability constitutional amendment, the 10% cap on non-homesteaded properties was a non-partisan issue in the Florida Legislature last year.  In order to get Amendment 2 got on 2018’s ballot, the Florida Senate passed it unanimously and the House passed it with 97% voting for it.  As the Amendment tag line states:  “Amendment 2 is for Everybody”.

Now that you know why Amendment 2 matters to you, please help get the word out to your neighbors, tenants, friends, business associates, and every Florida resident you know.  Need more information or material to share?  Check out www.EverybodyIsFor2.com

 

 

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Buying Selling

What Do The Election Results Mean For Real Estate?

 

langer-front

The long election  is finally over and the question I am getting asked a lot is, “What does it all mean for the real estate market?”  A recent video put out by the National Association of Realtors sums up the election as follows:

  • In Congress, not much has changed.  Republicans controlled the House and the Senate before the election and they control the House and the Senate after the election.  This will help NAR moving forward on flood insurance, tax reform, and the re-invention of Fannie Mae and Freddie Mac, since Realtors® had been working on these issues with the previous Congress, thereby providing continuity.
  • Flood Insurance:  The National Flood Insurance Program is $24 Billion in debt, which needs to be addressed.  States vary on the importance they give this program and how flood insurance should be covered.  Nevada has a different view than New Orleans and Florida and NAR is active in trying to negotiate a solution so that insurance is available and real estate transactions can continue taking place.
  • Tax Reform:  The mortgage interest deduction, property tax deduction, capital gains exemption and 1031 Like Kind Exchanges are all under consideration for reform.  No bills have been filed yet, but there are different proposals that have been floated by a variety of legislators.
  • Fannie Mae and Freddie Mac:  Their future is totally up in the air and NAR will keep an eye on any new proposals that are put forth.
  • Dodd Frank and the Consumer Protection Bureau:  These will be revisited.  Under Dodd Frank, regulations that affect smaller banks will probably be relaxed.  Since approximately half of current mortgage lending is being done by non-bank banks (on-line lenders), regulations may start addressing them.  Overall, the view is that federal regulations will be loosened and state and local regulations will increase.

Another topic that will be looked at is refinancing student loans, which would help get young people with a lot of student debt into mortgages and homeownership.  This is obviously a national overview.  I will go into more detail as to what the elections mean for us locally and for commercial real estate in future blogs.  Stay tuned!

 

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Buying Investment Real Estate Selling

7 Of Forbes’ Top 20 Cities to Invest In Are In Florida

Forbes Ft Laud map pic

Forbes’ 2016 top cities to invest in is out and seven of the best investment cities are in Florida.  Two, West Palm Beach and Fort Lauderdale, are in South Florida.  The Fort Lauderdale Metropolitan Statistical Area and Divisions (MSAD), which includes Fort Lauderdale, Pompano Beach and Deerfield Beach, has a three-year home price growth forecast of 20%.  West Palm Beach’s MSAD, encompassing West Palm Beach, Boca Raton and Boynton Beach, has a  three-year home price growth projection of 23%.

Based on Florida’s employment recovery and the overall improvement in the national economy, Florida dominates the housing investment list for 2016.  Those are the “scientific” reasons given.  In my opinion the weather, water,  cultural diversity and favorable tax climate are also contribute to Florida being a great place to live and invest!

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Buying Commercial Real Estate Luxury Real Estate Selling

New FIRPTA Rules Take Effect February 17, 2016

 

1450 BrickellTwo changes made to the  U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17.  While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers of residential properties.

The change relating to ownership of U.S.  REITs is the doubling of the maximum amount of stock a foreign investor may have in REITs from 5% to 10% and allowing foreign pension funds to invest in REITs withoug having FIRPTA apply.  Ralph W. Holmen, associate general counsel for the National Association of Realtors® (NAR) states that these changes “… are conservatively estimated to boost foreign investment in U.S. commercial real estate by $20-$30 billion per year'”.

In order to cover the costs associated with the two commercial provisions, the withholding amount for residential properties will increase from 10% up to 15% on properties that are over $1 million, whether it is used as a primary residence or not.  For properties $300,000 or less or $300,000 to $1 million, the rules don’t change.  Under $300,000, no FIRPTA tax is paid if it is to be used as a primary residence.  From $300,000 – $1 million, the current 10% FIRPTA tax will not change as long as the property is used as a primary residence.

Buyers need to know that although most settlement agents do withhold the FIRPTA tax, if they do not, the buyer is the one that is legally responsible for the tax owed if it is not withheld.

 

 

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Buying Commercial Real Estate Investment Real Estate Renting in Miami

Majority of Millennials Cite Cost of Living as a Concern

Downtown Chicago - Chicago IL #24 of Forbes 25 top cities for Millennials

 

Downtown Chicago - Chicago IL #24 of Forbes 25 top cities for Millennials
Downtown Chicago – Chicago IL #24 of Forbes 25 top cities for Millennials

Bank of America/USA Today Better Money Habits® Millennial Report, provides great insight into the financial concerns of the millennial generation.  As the mother of three millennials, ages 21-25, and a Realtor I am always interested in what reports say drive this group of young adults.

Of great interest is the correlation between jobs and housing in areas where millennials like to live, which tend to be cities with plenty of cultural and social activities, strong public transportation, high percentage of others in their age group (18-34) and ethnic diversity.

According to the B of A study, “No matter where they live, the cost of living is a concern for a majority of millennials. More than half are also concerned about their ability to save based on where they live.”  This is also one of my concerns for my children.  My youngest is already thinking about where she is going to move once she graduates.  Although she realizes it will depend where she finds a job in film editing, she is looking at cities that have both a large film/television production industry and a lower cost of living than some of the big cities, such as Los Angeles and New York.

Given the top Forbes’ Best Cities for Millennials in 2015, it is not surprising that cost of living is such a large concern.  Eleven of the top 25 cities have rents at or close to $1300 per month.  If you go by the rule of thumb that no more than 30% of your annual income should go to rent, then millennials in these cities would have to make a minimum of $52,000 per year.  Miami rents have gone up significantly as well and though we didn’t make Forbes’ cut as top 25 cities, I think that is changing with the emergence of a strong tech entrepreneurial center.

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Buying

Florida Home Prices Projected to Increase 9.3% in 2016

CoreLogic, is projecting overall U.S. housing prices to rise 5.2% next year.  Florida is projected to increase by 9.3%, which is the second highest increase in the nation, just behind California at 10.8%.

Prices-KCM