Category: Investment Real Estate

The difference between home ownership and investment real estate

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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 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 Investment Real Estate Selling

Multifamily Properties Are Still The Commercial Properties In Highest Demand

Lofts at Mayfair Bulk Sale - Listed by Levine Realty
Lofts at Mayfair Bulk Sale – Listed by Levine Realty

With South Florida rentals in high demand, increasing rents, and available rentals low, investors are searching for multifamily properties. According to LoopNet, 9 out of the Top 10 Most Popular South Florida Properties were multifamily.

Here are some multifamily properties for sale in Miami areas with high rent demand.

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Commercial Real Estate Investment Real Estate

So The Topic Of The Day Seems To Be Taxes!

Going through my Google Alerts this morning, I came across so many articles that mentioned Florida and taxes that I decided I needed to blog about it.  Although it is not the only consideration to take when making a move, either as a business or an individual, taxes appear to be taking on a great degree of importance in terms of luring both companies and individuals to a state.

According to an article in the Detroit Free Press, The most tax friendly states for business, Florida ranks 5th.  The states who ranked higher were Wyoming (No. 1), South Dakota (No. 2), Nevada (No. 3), and Alaska (No. 4).  Based on that analysis, it is ironic that business interest groups are trying to reduce a 6% tax on commercial leases.  Supposedly Florida is the only state to charge a tax on leases.

Fox Business News’, Do you live in a bad tax climate state, listed New York and New Jersey as the worst states for businesses when it comes to taxes.

Even luxury yacht owners fare better in Florida than other states, based on KUOW’s, Luxury Yachts Set Out To Sea To Dodge State Taxes.

Since we don’t have a state income tax, and are obviously pretty low on other tax criteria, we need to be careful not to overdue the race to be the lowest tax state across the board.  It is taxes that pay for education and infrastructure, which are extremely important in keeping our state a place where both individuals and businesses want to move.

 

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Buying Investment Real Estate

Tax Implications For Foreigners Buying Real Estate in Miami, Florida

I work with a lot of international clients who buy and sell real estate in Miami and often recommend they speak to a local attorney and/or CPA to discuss the tax implications of owning property here.  I came across a great article from Bilzin Sumberg Attorneys that addresses tax planning for foreigners buying real estate .

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Buying Foreclosures Investment Real Estate Selling

Home Values Up But Still Off 43% From 2006 Peak

Many of my clients have been calling me, shocked at how rapidly home prices have risen over the last year and questioning whether the South Florida real estate market is entering a new bubble.  Although this graph confirms that prices have gone up, we are a long way off from the peak.  Given that we arrived at inflated pricing due to speculation, easy and bad mortgages, and fraud, I think we will stay off the peak for quite a while.

The reason for our current rise in prices is due to a lack of inventory.  Many homeowners who bought at the peak are still under water and will be for quite some time; foreclosures and short sales have been slow to work through the backlog; there are investors with large amounts of cash looking at real estate; mortgages are still difficult to get; and appraisals have been off of what buyers with mortgages are offering thereby keeping owner/occupiers out of the housing market.  Now that builders have started to construct new homes and buildings, inventory should start to creep up again.

Based on the Miami Herald’s Economic Time Machine in the July 1 Business Monday, at the current pace of value increases, we won’t hit a new peak until July of 2018.

Miami Herald's July 1, 2013 Economic Time Machine
Miami Herald’s July 1, 2013 Economic Time Machine

 

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Buying Investment Real Estate Miami Beach

1542 Drexel #205 – Perfect Miami Beach Pied-A-Terre

You know what they say about real estate, location, location, location, and boy does 1542 Drexel Avenue #205  have it.  Location:  2 blocks from Lincoln Road.  Location:  1 block from Espanola.  Location: 3 blocks to the Ocean.  In the heart of Miami Beach, yet on a quiet, low traffic street, this fully furnished unit is the perfect Miami Beach Pied-A-Terre.  Rarely available one bedroom.  The last one bedroom for sale in this boutique building was in 2011!

If you are looking for an investment property instead of a weekend get-a-way, the last fully furnished unit that rented in this building was a studio that rented for $1500 per month!  Listed for sale, fully furnished (minus the art work) for $170,000.

 

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Buying Investment Real Estate Luxury Real Estate Market Summary

South Florida Real Estate Continues To Gain Steam

A quick snapshot of the overall market for 2012:

Single Family home sales increased 21% in 2012.  Those listed between $300,000 to under $1 million increased 50%.  Home sales for those over $1 million increased 64%.

Condo sales increased by 6%.  Condos between $300,000 to under $1 million increased 45% and those listed over $1 million increased 62%

With that amount of activity, low inventory and cash still flooding our market, many buyers are frustrated.  If you are one of them, there are several things you can do to have your offer considered on a new listing.

1) The most important item to have clear is the financial aspect of your purchase.  If you are a cash buyer, make sure you have proof of funds ready to accompany an offer.  If you are going for financing, have your pre-approval letter from your mortgage company with as few contingencies as possible.

2) Have your real estate agent put you on a system where you are being notified the instant a property that meets your criteria hits the market.

3) Make the time to go see the property the first day.  There are a lot of buyers who are making offers the first day because they have been familiarizing themselves with the market and know that if the property is priced right, it will sell.

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Brickell/Downtown Miami Buying Coconut Grove Coral Gables Foreclosures Investment Real Estate Pinecrest Selling

Black Friday Buyers Are In Miami To Shop For Investment Real Estate

Black Friday brings out buyers looking for bargains and buyers looking for Miami real estate investment properties are here in droves.  While most people are enjoying time with family and friends, Realtors are busy selling properties.  Driven by news reports of increasing prices, decreased inventories, and increasing rents both local and foreign buyers continue to purchase Miami real estate for investment.

The top places where my buyers are looking, not in any particular order:

  1. Brickell:  Currently there are 526 condos for sale in the Brickell area.  They range from $146, 900 for 580 square feet to $16.8 million for 9080 square feet.
  2. Downtown Miami:  There are 567 condos for sale in Dowtown Miami.  Prices start at $124,900 for 400 square feet up to $4.4 million for 5650 square feet.
  3. Midtown, Wynwood:  The new “in” place to be does not have a lot of residential units.  There are currently 112 condos for sale in the Midtown/Wynwood area ranging in price from $82,000 for 872 square feet to $2.4 million for 3988 square feet.
  4. Downtown Dadeland:  There are 30 condos for sale in Downtown Dadeland with prices starting at $177,000 for 700 square feet and going up to $400,000 for 1,429 square feet.
  5. Coconut Grove:  Coconut Grove does not have a lot of condos and few were built during the boom.  There are currently 120 condos for sale in Coconut Grove that are either condos are town homes.  They range in price from $60,000 for 409 square feet up to $14.5 million for a 9110 square foot unit at the Grovenor House.
  6. Coral Gables:  There are only 100 condos for sale in Coral Gables.  They range in price from $91, 500 for a 994 square foot foreclosure with extensive fire damage to another foreclosure at $7.9 million for 11,402 square feet at the Gables Club.
  7. Pinecrest:  There are very few condos and town houses in Pinecrest, an area mostly comprised of single family homes, so it is not surprising that there are 13 condos for sale in Pinecrest.  The lowest price is $99,900 for a 574 square foot short sale at Monterey Gardens to a 2, 226 square foot unit at the Reserve at Pinecrest for $599,000.

These neighborhoods are all located near public transportation, restaurants, entertainment and shopping, and all of them are in demand with people looking to rent.

View Of Brickell From Coconut Grove

Categories
Buying Investment Real Estate Selling

Can This Happen To Your Vacant Property?

Tuesday night, CBS 4 reported on a homeowner whose house has been taken over by squatters.  According to the story, the house was sold and when the Realtor went to the final walk through before closing, she found people living in the house.  The people living there claim they were duped and rented the property.

During the height of foreclosures, many properties had sqatters move in.  This house, however, was not in foreclosure, was actively listed with a real estate agent and had probably had activity with showings and, most likely, inspections.  The owner had to hire an attorney.  The “tenants” have 40 days to move out.

Watch the video and let me know what you think.