Tag: buying real estate

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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.

 

Categories
Buying Florida Life Hurricanes

New Insurance Factors To Consider When Buying Your Home

A couple of weeks ago, I wrote a post about how cheap flood insurance is if you don’t live in a flood zone.  After last Wednesday’s heavy rains, even many of us who do not live in flood zones witnessed flooded streets and front yards.  Before you go out and buy  flood insurance, you need to be aware that on Tuesday, October 1, federal flood insurance rate hikes kicked in.  That does not mean you should not get the insurance, since it is still affordable compared to other forms of insurance, but depending in what flood zone you live or are buying, in, the rate hike could increase nearly tenfold.  If you purchased prior to July 6, 2012, the increases will be at 25% per year until you reach the new non-subsidized rate.  Many states, including Florida, are trying to delay the federal hikes until the impact on the real estate market can be taken into consideration, but the current congressional stalemate has tied up the bill.

The second insurance factor to consider when buying your home is hurricane insurance.  By now everyone has heard that Citizen’s, our insurer of last resort, wants to get out of the insurance business and is giving incentives to smaller insurance companies to take over windstorm insurance.  Although wind mitigation discounts are still given, there is a good chance that insurance premiums are going to increase fairly significantly.  Both of these insurances should be taken into consideration in your financial calculations when you are purchasing your home.  Phil Lyons, at Insource Insurance, can assist you in determining how much properly insuring what is most likely your biggest asset will cost.

 

Categories
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 .

Categories
Buying Selling

New Requirements For Listing Short Sales

In order to give short sale properties an opportunity to receive “highest and best” offers, new Fannie Mae guidelines state that each new short sale listing must remain active in our MLS system for a minimum of 5 days and must include at least one weekend.  If you are a buyer making an offer on a short sale, realize it may be a while before you receive an answer from the seller.

 

 

Categories
Buying

What Will Your Closing Costs Be On The Purchase Of Your New Home?

 

Congratulations!  You either have the cash, or have been approved for a mortgage, to buy a home or investment property.  Now that you have determined how much you can afford, remember to keep in mind your closing costs, which will run between 3-4% of your purchase price for closings with a mortgage and less than 1% for a cash deal.  Closing costs typically include the following  “Out of Pocket” expenses:

 

Appraisal

 

Courier (federal express)

 

Credit Report

 

Digital Imaging/Archiving Fee

 

Documentary Stamps on the Note: $.35 per $100.00 of note amount

 

E-recording fee: $4.00 per instrument to be recorded

 

Flat Fee Commission if company you use charges one.  Usually $200-$300

 

Inspection Fees and other lender’s fees

 

Intangible Tax on the Mortgage: $.20 per $100.00 of mortgage amount

 

Mortgage Points

 

Title Insurance: Lender’s Policy

 

Endorsements

 

Owner’s Policy

 

Recording Fees: $10.00 first page, $8.50 each additional page

 

Settlement Fee

 

Survey / Termite Report / Roof Report (if required)

 

Prepaids:

 

2 to 13 months property taxes (changes depending on time of the year closing takes place)

 

14 months hazard insurance

 

14 months flood insurance (if required)

 

14 months of windstorm insurance (if required)

 

P.M.I. Premium (if loan to value ratio is higher than 80%)

 

Prepaid Interest (from closing date to the end of the month)

 

 

Categories
Brickell/Downtown Miami Buying

New Condos Going Up Without Parking Garages

In today’s Miami Herald, there was an article about the new Centro Lofts that are going up in downtown Miami.  This building will not have a parking garage and will instead opt for a Car2Go, bike racks, and public transportation to get it’s residents around.  I moved from San Francisco and love the idea of not needing a car, but I am not sure Miami is quite ready for buildings without parking.  First of all, it is hard enough to park downtown without all of the residents that are moving down there and this will only work if residents don’t have cars, not if they have cars and just park them elsewhere.  The second thing is that it will work for people who work downtown or in an area with Metrorail service, but south Florida’s discombobulated public transportation system is not conducive for no car.  How would someone who works in Doral get there?  Don’t get me wrong, I love the idea, I am just asking do you think Miami is ready to go carless?

 

Centro rendering

Categories
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.

 

Categories
Buying Coral Gables Luxury Real Estate Miami Beach

Preservation vs Private Property Rights

Ceiling In Alfred Browning Parker designed home

Several recent  articles have highlighted the issue of preservation vs private property rights.  I want to clarify that I am for historic preservation of relevant buildings but I think if it is done retroactively, it infringes on private property rights.

Both the Miami Herald building, sold to Genting Malaysia, and a Robert Browning Parker home in Gables Estates, currently listed for sale by Helen Nicastri of Coldwell Banker, have come before preservation boards with different outcomes.

A home in north Gables on Minorca and another in Miami Beach on Star Island are further examples of preservation boards trying to designate properties as historic when new owners purchased the property and applied for demolition permits.

If a property is designated as historic, it cannot be torn down and there are restrictions on the amount and type of  renovations that can be done.  You can check with local preservation boards to see if the property you are purchasing is on their list prior to purchasing, but if it is not on the list should a local board be able to designate it when you apply for permits to demolish or refurbish?  To protect your investment, if you are planning to purchase a property built in the 1920’s-1960’s (Old Spanish, Art Deco and MiMo architectural styles) and want to renovate or demolish it, contact the local historic preservation board during your due diligence/inspection period.

 

 

Categories
Buying Mortgage information

Considering An FHA Loan? Better Hurry…Cost Going Up

FHA loans are the largest source of low-down payment mortgages.  A buyer with less than stellar credit can purchase a property with as little as 3.5% down.  Starting April 1st, the FHA will institute it’s third increase since 2011 when it raises it’s premiums by 1/10 of a percent, or 10 basis points.

Then, on June 3, FHa loans will be harder to qualify for whenthe debt to income ratio is is increased to 43% for individuals with a credit score of 620 or less.  In addition, a minimum of 5% down will be required on loans over $625,000 and borrowers will no longer be able to eliminate the PMI insurance when the balance reaches 78% of the loan value.  Instead, an FHA borrower will pay PMI over the entire life of the loan.  A recent analysis of the upcoming changes was conducted by Steven R. Maizes, with Mortgage Capital Partners Inc. in Los Angeles.  He concluded that an FHA applicant with a 720 FICO score and 3.5% down payment would pay $144.66 more per month on a $250,000 fixed rate 30 year mortgage than if he took out a conventional mortgage with 5% down and paid PMI.

If you are a buyer with a lower credit store and a low down payment, you may want to jump into the market before April 1.  And this isn’t an April Fools joke.

Categories
Buying Selling

Christmas Came Early To EWM’s Coral Gables Office

Miami Real Estate In High Demand

All I can say is “wow”.  Our Coral Gables EWM office had an AMAZING week, with a grand total of $39,733,888 in sales and leases.  There were 25 sales, 8 of which sold at asking price and 3 of which sold over asking, and 21 leases.  Still doubt that Miami is a place where people want to move and invest?  Doubt no more.  With all of the cultural activities, port expansion, addition of more cruise ships, technology start ups, and the relatively low prices, Miami real estate is in high demand.