The difference between home ownership and investment real estate
This updaated and well maintained office building is in the bustling medical and office district of 8th street, between Galiano and Ponce De Leon in Coral Gables. Hurricane shutters, 14 parking spaces, an automatic gate and great location, make this an ideal building for an owner-user. 6,535 square feet at $229 per square foot.
I first visited breathtakingly beautiful San Jose Island was two years ago. After arriving at the Tocumen airport in Panama City, less than a three hour flight from Miami, I jumped on an Air Panama flight for the short 20 minute flight to the island. As we were flying over the Gulf of Panama, I was amazed that I could see schools of fish from the air.
As we circled over the island and came down the 5,000 linear feet landing strip, I had the insane notion that Tatoo was standing on the island somewhere saying “De plane, de plane!”. We were picked up and driven through beautiful jungle canopy to the boutique resort, Hacienda del Mar
I spent four days there and can’t wait to go back! It is currently for sale and would make a spectacular world-class resort destination.
An article in today’s Wall Street Journal uses Miami as one example as to why 2011 may be the year to buy.
The article does a good job of differentiating between buying a home and investing in real estate. In terms of buying a home, Michael Larson, a real-estate analyst in Florida, is quoted, “Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own”.
If you are planning to buy for investment, the article returns to the old adage of “buy and hold”. They recommend at least a 10-year hold plan for investment real estate or suggest investing in funds that have real estate in the mix if you want to make real estate a part of your portfolio.
Remember to see what the numbers are in the area you are planning to purchase. While the affordability index was high in most areas, it is low in Washington D.C.
In case you missed my posts on the projected economic improvement of South Florida and Miami-Dade in particular, read today’s front page Miami Herald article, Forecast calls for robust rebound in Dade.
Previous posts I have written include a lot more detail if you want to read more:
Commercial Real Estate Starting To Pick Up
Still Doubt An Economic Recovery Is Taking Place In Miami?
Miami Real Estate – If You Are Looking To Invest, Miami Is Top Choice
In case you missed my posts on the projected economic improvement of South Florida and Miami-Dade in particular, read today’s front page Miami Herald article, Forecast calls for robust rebound in Dade.
Previous posts I have written include a lot more detail if you want to read more:
Commercial Real Estate Starting To Pick Up
Still Doubt An Economic Recovery Is Taking Place In Miami?
Miami Real Estate – If You Are Looking To Invest, Miami Is Top Choice
The Small Business Jobs Act that passed Congress last year requires all property owners that rent out properties to file a 1099 for each vendor who does $600 or more in work. Even if you only rent out a single property, you must collect the following for each vendor:
The details to the exceptions to this requirement have yet to be ironed out but the exceptions include:
If you are renting out a property, make sure you, your bookkeeper, and/or CPA have a way of tracking each vendor starting January 1, 2011.
The Small Business Jobs Act that passed Congress last year requires all property owners that rent out properties to file a 1099 for each vendor who does $600 or more in work. Even if you only rent out a single property, you must collect the following for each vendor:
The details to the exceptions to this requirement have yet to be ironed out but the exceptions include:
If you are renting out a property, make sure you, your bookkeeper, and/or CPA have a way of tracking each vendor starting January 1, 2011.
According to Mark Vitner, an economist for Wells Fargo, Miami is his top choice of a market poised for economic growth. How can that be? We have one of the highest unemployment, foreclosure and number of underwater homes in the country. However, Vitner stated that Miami is currently posting some of the highest taxable sales and number of jobs created in the state.
Miami has always been blessed with gorgeous weather, colorful landscapes, tourquoise waters, and beautiful beaches. One of the main reasons our economy has been chugging along better than most is due to our popularity with tourists, especially international ones, who have helped both our tourism and retail industries.
Shadow inventory is basically the number of properties that are projected to hit the market due to distressed owners, those who are behind 90 days or more on their mortgage, or because they will be or already have been taken back by the bank. There has been a lot of speculation lately about how this background inventory will affect the housing recovery, with many experts saying it will significantly delay it.
A CNNMoney.com article on Shadow Inventory states: “Of the 20 separate markets S&P analyzed, Miami was the only market of the 20 that S&P analyzed where shadow inventory did not did expand during the first three quarters of 2010.”
What does this mean for buyers? Record high affordability and a wide selection of properties to choose from.
For sellers, it means a continued suppression of prices, with prices either dropping further or bouncing along the bottom for a while. If you were thinking of selling your home within the next year or two, you may want to put it on the market now. Or, if you have equity in your home and have entertained the idea of owning investment property, turn it into a rental and buy your move-up, downsizing, or retirement home at the lowest prices we have seen in a long time.
