Posts Tagged ‘Florida’

Miami Beach Condo: Gaining Popularity During Troubled Times

May 13, 2008

Miami Beach has always been a favorite vacation spot for many of the locals and foreign individuals. The tropical climate is perfect for those who wish to enjoy the white, sandy beach the Miami is known for. The sights and sounds around the area, as well as the commercial and entertainment areas also add to its popularity.

This is one of the reasons why Miami Beach condo is a big hit, and is till is despite the current status of its real estate market. Ever since 2006, the market declined as the number of foreclosed units increased. This is practically due to the devaluation of the U.S. currency, as well as the soaring interest rates during the mortgage bust that hit the nation.

The Popularity Of Condominiums

As expected from being a city of tourists, the condos in Miami Beach can only be described as luxurious. Each suite has its own balcony that overlooks the beauty of Miami Beach, Florida.

The interior of the condos are fully furnished, ranging from beds to kitchen utensils and from entertainment systems to laundry – everything is provided for the convenience and comfort of its occupant. Also, the building itself is never without its additional services for their tenants. Swimming pools, 24-hour service desk, security, fitness and entertainment lounges, restaurant, and so on, are readily available for use.

The South Beach district of the city holds high-rise condos, which is quite famous for expatriates and corporate individuals. The area around these high-rise, expensive condos offers recreational areas and commercial facilities, such as boutiques, fine-dining restaurants, entertainment complex, and, of course, the amazing Art Deco district.

The Mortgage Bust

It is true that there has been a major decline in condo acquisition in Miami Beach, unlike the time during market boom in 2005. Foreign investors are now taking the lead in condo acquisition, as the locals are backing out due to the rising prices and the high interest rates of many financial loans in the city.

Ever since the mortgage bust, many financial lenders are become stricter in their mortgage policies, and coupled with high interest rates, made it almost impossible for the locals to get their hands on a decent loan for condo acquisition. The devaluation of the U.S. currency is not helping the matter out either.

But despite these hindrances in the real estate market, condo acquisition is still on the rise due to foreign customers. The Europeans are enjoying the inflation of their currency value, thus finding these Miami Beach condos quite cheap for the taking. And since they have their own financial aid in their specific countries, they are not affected by the soaring interest rates that gripped Miami Beach.

It is true that the condominium market in Miami Beach is not as good as what the area experience in 2005, but the rising popularity and the increasing, yet low, real estate market is a sign of recovery in the next few months.

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Investing In Florida Real Estate

May 13, 2008

Even if the real estate market in Florida is in total decline due to the mortgage bust the gripped the nation in 2006, the popularity of the area is still enough to make ends meet.

Residential properties in different locations around Florida suffered tremendous decline as the number of foreclosure rose to unimaginable heights, which added to the number of unsold home that further deteriorated the market. The overbuilding of condo to address the previous year’s market boom made matters even worse.

Why Invest In Florida?

Despite the market problem in real estate, the city is still famous for what it is – a tourist destination. The tropical climate coupled with white, sandy beaches; as well as the entertainment destinations found in each city is enough reason to settle down and enjoy a quality life.

The number of visitors flocks to different areas every year to enjoy the sights and sounds Florida is famous for. Despite market value, Florida real estate is considered as prime goods for many foreign and local investors. Ranging from single-family homes to luxurious condominiums, the acquisition of these units is rising, even if the market is still in a bust.

Consult A Professional

If you don’t have any idea on what real estate properties you would like to invest on, as well as the current value of the market, then it is best that you consult a professional regarding the matter.

Real estate agents and brokers in Florida have in-depth knowledge on the different residential units being sold in the market today. Not only that, they can also give you some advice and consideration according to your budget in acquiring one.

Whether you are selling or buying a property for investment or use, real estate agents can evaluate the condition of your homes and suggest a price for it. They can also provide assistance in pointing out possible improvements necessary to further improve the quality of your home.

Get A Loan

If you are interested in acquiring luxury homes like condominium in prime areas around Florida, then you might want to consider getting a loan for such an endeavor. It is true that mortgage loans might be quite heavy on your end right now considering the high interest rates on different mortgage types. But acquiring a real estate property at this point in time might be more lucrative than you may think.

The current state of Florida real estate is improving, and there might come a time that the prices will soar to levels that it might be almost impossible to get one. So since the property value is still low, it might be worth your time to get financial assistance and get your own property real quick.

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The Upside Of Florida Real Estate

May 8, 2008

With the bounty of tourist attractions, the beaches and everything else that Florida has to offer, it is indeed a great place to invest in real estate. Investing in properties require a lot of good decision making since it entails a really big amount of money to shell out coupled with all the risks associated with this investing business. However, Florida has a way to attract so many investors and here are just a few of the reasons why this is so.

Long Term Economic And Demographic Trends

It is believed that by the year 2010, Florida will be the state that will rank third in terms of its population and it is expected that it will increase just about 75% of the total population today by 2030. Being one of the ten fastest growing states in the country for the last seven decades, Florida is just the place to invest in properties because of the good foundation for economic growth such as a growing number of new jobs as well as higher income for the investors provided by the continuous growth in population.

Relocation To Florida

Florida has also been one of the states that a lot of people consider relocating into. With an estimated number of nine hundred people flocking the state to find a home and based on the recent trends of relocation that add about 300,000 residents per year for the next couple of years, Florida is just the place to buy and sell real estate properties.

Low Unemployment

Florida is also known for its low unemployment rate. For the past two years, it was able to provide thousands of jobs for the people living in the state. For a long time, the state was able to go below or at least maintain the 4% unemployment rate putting it well below the unemployment average of the country. Also among the populous states in America, it has the lowest unemployment rate.

Weather

Despite the natural disasters that hit Florida, the real estate market here is not that much affected and these disasters such as hurricanes or earthquakes do not have a lasting impact on the performance of the real estate market in the state.

Experts show that these natural calamities do not generally affect the values of the properties in the place in fact, an event where a hurricane hit Florida led to the home values rising a year later after the disaster. This proves to show that despite the unfavorable circumstances regarding the weather that strike the state, it is still a good place to invest in real estate due to the short term effect that these calamities have on the real estate market.

Investing in real estate may mean a big risk for you however, you should also consider that even if it takes a lot of risk to do so, finding the right location where you should invest on properties is the best way to achieve a good return on your investment and one of the best places to invest in is Florida.

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Florida Commercial Real Estate: The Fastest Way For A Return Of Investment

May 7, 2008

Florida is a well known place because of the bountiful tourist spots that the place offers and for that reason, the city’s real estate market has been at its peak for the last couple of years and is continually growing strong paving way for the commercial real estate market of Florida to also boom.

With a huge variety of 5-star hotels and resorts that are opening and continuously growing in number across the state, the economy of Florida is greatly stimulated and along with the entry of a lot of convention goers, tourists and most especially investors, the Florida commercial real estate market is becoming more and more successful just like the residential neighborhoods.

Florida — The Spot For Commercial Real Estate Investment Opportunities

Florida is now known to be a place where you can invest your own money and expect that you will be earning a large return on your investment. With the rise of preconstruction opportunities in the city, you will be sure that you are putting your money in a safe property that will give you the highest return for only a short amount of time.

The properties in Florida are also attractive to many investors because of the range in the location, size and amenities that make these properties excellent for even an average investor to take a risk in the real estate business.

However, investing in commercial real estate properties entails more money than investing in any other type of investment property. But if you are someone who has the resources and a born risk taker, you should know that despite the greater need for money in this area of real estate, the returns would really be greater and can be flipped in as little as days especially in Florida as compared to the several months that it usually takes for residential properties.

Categories For Commercial Real Estate Properties

Investing in commercial real estate property in the state of Florida is a very huge decision to make thus it needs a very good amount of studying about the business that you would want to engage in as well as the perfect location where your business should be located. In Florida, there is a wide variety of commercial properties available for a real estate investment. Ranging from office spaces to retail establishments, all you need is to choose the kind of business that you want to be into.

The categories of commercial properties available in Florida include retails properties, investment properties, land brokerages and hotel and resort properties. Retail properties cover shopping malls, chain stores, retail sites, franchise locations and other shops in the town. Investment properties normally include offices, residential properties, rental properties as well as business parks. Industrial parks, waterfront properties and those land tracts fall under the category of land brokerages while convention centers, motels and theme park sites are those that which hotel and resort properties cover.

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Timing in with Miami Real Estate Market’s Boom and Bust

May 6, 2008

The year is 2005 and it was all the way living, it was some good years for the overall real estate market and it was a fun time for investors, developers and the buyers as well. Looking back when this was Boomtown in 2005, when ABC News did that first story, it met a young real estate lawyer and speculator named Richard DeNapoli. He’d bought four condos worth $1 million with a $200,000 down payment. DeNapoli was banking on a $400,000 profit for his four condos. And according to him it was on of his business highlights.

But today, those condos are nearing completion, and his expectations are more modest. DeNapoli has flipped his four units to other Florida home mortgage loan applicants, but for less than he’d hoped. Because he bought in early enough he’ll make a $275,000 profit and that is a big maybe. The worst-case scenario, he said, would be to break even or have to buy and then rent the units he speculated on. That is what this high-low movement of the real estate market is going. “It’s a stalemate right now,” DeNapoli said, “between buyers who have a lot of supply to look at and sellers who don’t want to budge on their asking prices.” Obviously he can’t believe the movement either.

Ok looking back in 2005 again, “The equation is that you have speculators buying units, and they’re trying to flip their contract to other speculators who in turn are trying to flip their contract to other speculators,” Jack Winston, an analyst with Goodkin consulting, saw a boom based on shaky foundations.” He also said at the time. “Somewhere along the line, you are going to run out of speculators.” Now, Winston is saying: I told you so. And I think that is fact considering the market’s state right now. It is unavoidable thus reality strikes in.

He continue saying that “Basically, we predicted at that time it was pretty close to a Ponzi scheme.” And adds, “And the last person is the one who gets hurt. And that’s basically what happened here.” Winston and others estimate that 70 percent of the Miami condo market was driven by those speculators in search of quick profits. “Probably some time around
September or November of 2005, it was as if someone turned off the spigot,” he says. “Since that time, new sales at condominium projects have come to a halt, practically a stand still.” It is more to a fault that the market is in a stand still mode and has been there for some reasons as well. The lesson on this is learned for sure. Analyzing the past few years of the market and its state now, it is hard to compare but the difference is obviously seen.

Jron Magcale
http://miamirealestatetrends.com/

Feeling Potential for South Beach and Miami Real Estate Market

May 3, 2008

How does the real estate market of Miami look like now and for its future? It is hard to guess but there are concerns that it will be a case of boom or bust, depending on what can happen in the future. There are predictions that in time, due to the high costs of insurance and taxes there will be a mass exodus of people from Florida, in which means that potential can boom the housing market upon anything else, in the contrary the people would likely shy away because of the negative results of it s market but nevertheless it will go places. But the trends show that while that may be happening on some scale, Florida is not at risk of negative population growth by any means. To start with, Florida’s population still grew at a net rate of about 180,000 in 2007, which according to experts is common for a recessionary cycle.

Although, Florida is the main and key retirement destination, there is still some competition throughout the nation. Yes, there is more competition for retirement destinations from other states like North Carolina, South Carolina, Tennessee, Georgia, Colorado and other states all over the U.S. but the number of U.S. retirees is growing at a rapid rate, and that means a much bigger pie for everyone. Even if that declines as inter-state competition increases, there is more than enough growth in the total number of retirees to continue positive growth in Florida.

Right now Florida’s share of the U.S. retiree market is around 10%, which is a relatively big number if you sum it all up. According to experts, 22.59% of people over age 65 move each year. The population over age of 65 is set to grow by three to six million every 5 years or so. So that means that we are looking at a 10-15% increase every 5 years in the retiree population that is likely to move.

Let’s face it Latin America loves Miami, Let’s not forget that Miami, which is a bit different than the rest of South Florida seems to benefit from all the extra money from Latin Americans desiring second homes during their good times and from Latin Americans seeking permanent escape from their country’s problems during their bad times. Miami seems to win whatever the cycle is in Latin America. They have been reported numbers of them luring in Miami, basically because Miami for them is as close as home that could be, that is nice and for the business side, boom is where it’s at.

Let’s go now to Miami’s resources, we all know that tourism and conventions are 2 of Florida’s big industries, and Miami was one of the few cities in Florida that had strong positive growth in both categories. Many people tend to eventually buy where they vacation, and with so many visitors each year there are bound to be takers, both short-term and long-term trends are pointing to a healthy Florida real estate market for years to come. In the end, with all the sun, fun and international recognition, who could have any doubts? I think that what Miami need now is just time to set it all up and boom, they’ll be good in the market once again. You just watch.

Jron Magcale
http://miamirealestatetrends.com/

Florida Real Estate: Surviving The Mortgage Bust

May 3, 2008

The mortgage bust that hit the U.S. resulted in a major decline in the real estate market.

Florida and Miami were among those who were hit the hardest in the market decline of residential and commercial properties. Though compared to the state of the real estate market in 2006 and 2007, many analysts predicted that recovery is possible this year.

Mass Foreclosure Hit Florida

Due to the devaluation of the currency, as well as the high interest rates of many financial lenders, there has been a mass foreclosure going on in Florida. As the number of investors failed to pay their obligations, banks and other financial institutions were practically foreclosing properties left and right. These foreclosed residential units added to the rising number of unsold homes, which further depressed the current real estate market.

Failed Condo Projects Converted To Rental

Overbuilding of condominium units during the early market boom contributed to the decline of real estate market in Florida. At the moment, there’s a large supply of vacant condo units which was never acquired by any of the locals, and is converted into rentals to make ends meet.

But before that, the lack of market and acquisition of these condo units affected the rental income growth of Florida, which in turn made a negative impact on the overall percentage of the real estate economy.

Despite these problems, however, late months of 2007 ended in a positive result in the market. Since the conversion of these condos into rental residential units, the market seems to have stabilized and is projected to improve in the coming months.

Apartment Rental Booms

The downfall of condo acquisition sparked the current market boom for apartment units. According to the figures of REIS, there’s an approximate of more than 230,000 residential units available in the market since 2007, with an average monthly rent of $1,062 per unit.

Also, the increasing demands of new workforce in the state produced a higher demand of residential units in South Florida. Construction projects for apartments can be seen all around the area to address it. Analysts are now reporting that development for such real estate will continue to be seen in the next 24 months.

Foreign Acquisitions On Residential Properties

There has been an increasing number on acquisition of real estates, especially condos, from foreign investors. According to statistics, it seems that Canadians and Europeans are taking advantage of the currency devaluation by purchasing condo units in the city at a cheaper price. Since they are not affected with the mortgage crisis that is prevalent in the nation, the investments they put it are likely to be affordable on their end, in contrast to local investors.

Vanessa Arellano Doctor
http://miamirealestateinc.com

Florida Real Estate Trends: The Market For Townhouses Steadily Rises

May 2, 2008

Just when the prices of single-family homes have soared in Florida, the number of townhouses has multiplied throughout the state.

Usually defined as a cross between a condo and a single-family home, townhouses offer the best of both worlds, because they are detached units with private entrances, but do not have landscaping for the individual owner to take care of.

In the South Florida region, as the housing industry continues to rise up from the damage brought about by the condominium boom, townhouses have become the replacement material for high-rise development, note local housing market observers. The same thing also happened in the city of Aventura in the 1980s after an earlier condominium boom,as the area’s original developer built townhouses near the Turnberry Isle golf course during the downturn in the condo market.

The Rise In Townhouse Development A Reaction To High Land And Construction Costs

Looking at the rest of the state, townhouse development is viewed not so much as a reaction to the condo boom gone bust, but as a reaction to higher land and construction costs, which have attributed to to the skyrocketing of prices in single-family homes.

In the Tampa/St. Petersburg region the overall housing market has weakened, however the developments in the townhouse market have gone in the opposite direction according to market watchers. At the end of June 2005, the area had a 2.4-month supply of townhouses in the Tampa/St. Petersburg market, but as of June 30, 2006, there was only a 1.6 month supply because of the rising demand for these units.

Housing analysts noted that as of June 30, 2006, the area had 4,433 townhouse closings during the previous 12 months, as compared to just 1,363 closings as of June 30, 2003; 1,834 closings as of June 30, 2004; and 3,131 as of June 30, 2005. These days, more families than ever are moving into townhouses in the Tampa/St. Petersburg area, and though much lower-priced condo conversions appeal to the same market, developers here have converted 15,000 apartments into condos in the last several years.

South Florida Also Sees A Rise In Townhouse Development

The South Florida region has also seen a huge increase in the development of townhouses in the past couple of years because of a shortage of land, notes housing market watchers.

The total number of townhouse development as a percentage of total housing production has rapidly grown for the past five or six years in South Florida, while in the Treasure Coast, the increase in townhouse development has only been apparent in the last three years. According to a local housing developer who specializes in townhouses and single-family homes, two years ago their firm built 100 townhouses at the Wyndham Park development in West Palm Beach. Then, a year and a half ago, began the Sail Harbour development, which has 473 townhouses.

All of those units sold out, notes local market watchers. Meanwhile, condominium conversions of mostly garden-style apartments compete with new townhouses here, since they are offered in the same price range, which are sometimes quite cheaper than new townhouse units, analysts add, because before these were converted, the apartments rented for $800 to $1,200 a month.

Vanessa Arellano Doctor
http://miamirealestatetrends.com

Why Activity Is Picking Up In Florida’s Property Auction Markets

May 2, 2008

In a depressed housing market, which is still reeling from the devastating mortgage meltdown, a lot of investors and brokers view auctions as a vital portfolio management tool, and like any other tool, it works wonders when used correctly for the right task.

The one thing all auction sellers in Florida, and probably elsewhere have in common is a desire or the need to sell within a shorter time frame than ordinary marketing methods or techniques would usually take.

Why The Auction Markets Are Good For Selling Homes These Days

Because of the slow activity in the housing market, here are among the most common reasons we hear about the perks of undertaking an auction. First, many view that these activities free up cash for alternative opportunities, and also eliminate “carrying” costs like interest, maintenance, utilities and taxes on property that is selling more slowly than anticipated in a business plan. Second, auctions enable home sellers and brokers to draw more attention to the property and set it apart in a crowded marketplace.

Third, auctions help cast a much wider net by drawing prospective buyers from a wider geographical area. And in addition, property auctions allow to establish the fair market value of a property that is difficult to appraise due to a lack of comparables. In reality, there are almost as many reasons as there are sellers. For those who are thinking of undertaking a property or home auction event, first ask yourselves, is the property suitable for an auction?

For instance, if you’re selling commercial land, the auction method is generally well-suited for locations near major cities, preferably with frontage on major roads and high visibility. For residential or commercial buildings, the auction method would most probably be best-suited to those that are high-quality, non-distressed, and in the growth market.

Auction Activity For The Condo Market

As most would expect in a tough residential condo market, auction activity is on the rise as developers and individual owners seek to quickly dispose of units that otherwise might sit idle and empty for longer periods. According to CEO of Pompano Beach-based Fisher Auction, inquiries have risen by 30% to 40% from a year or two ago, mostly from developers or bankruptcy courts.

While at this point, sellers have been end-users who bought on speculation, or were developers who needed their money back, the inquiries are now coming mostly from financial institutions. Most buyers are investors who are looking for deals and are not worried about staying in the market, while some auction buyers are individuals, but most activity is coming from domestic investor groups, and foreign buyers are also coming in to the auction market as well.

Activity Is Peaking In The Auction Markets Despite Some Problems

According to the chairman of Sheldon Good & Company in Chicago, one problem with condo sales at auction is depth of market, which he views greatly varies across the state of Florida. According to the housing market analyst, leverage is everybody’s enemy, as in some markets, prospective buyers worry about a further drop in pricing.

In other property markets where the oversupply isn’t as severe, buyers perceive less value from the auction, however, there’s plenty of business right now in the auction markets, notes the head of Sheldon Good & Co., as they are negotiating as well with other companies in the eastern and western sides of Florida, and the total amount of real estate under consideration exceeds $100 million.

Vanessa Arellano Doctor
http://miami-realestate.net

Florida Luxury Housing Market: A Slow Market Offers Opportunities For Bargain Hunters

April 30, 2008

While the luxury residential markets in Florida continue to sell briskly because of the influx of overseas buyers, mainly Europeans and Canadians, who are buoyed by their strong currencies, housing analysts say that the market here may finally be showing signs of cracking.

News reports have made headlines of billionaire Donald Trump dropping the price on his Palm Beach property by 20 percent, which has led to market watchers saying that the U.S. housing crunch has finally made its way to the wealthy. While the oceanfront mansions and upscale condos here are surprisingly holding fort, one of the most toxic states in the nation’s housing meltdown may finally be showing some signs of wear and tear.

Waning Enthusiasm Or Activity Is Noted On The Luxury Market

In a recent luxury property auction in the city of Fort Lauderdale, the auctioneer took home after home off the block within moments after opening the bidding, since no one made an offer. In one high-rise condo development in the Miami enclave of Williams Island, a 3,100 square foot penthouse which before was listed at $5.6 million, the bidder opened bidding at $5 million, then lowered the price to $3.5 million, then $3 million and $2.5 million until he closed the the auction.

Some housing market observers noted that there’s just not that much enthusiasm or activity in the luxury market,and after the local real estate market peaked two years ago, local brokers noted that high-end real estate was the only aspect propping up the condo market in areas like Miami, which many consider to be one of the most overbuilt and overpriced in the country.

The Slow Market Is Providing An Opportunity For Bargain Hunters

Based on recent statistics, the median price of condos in areas like Miami gained 6 percent last year, while price drops of around 25 percent or more were seen elsewhere in the state amid the U.S. mortgage crisis, rising property taxes and hurricane insurance problems. The shoreline in Miami offers thousands of waterfront developments that have held their value better than cheaper houses and condos inland, where the foreclosure crisis has battered homeowners. In December, the condo markets in Miami had a bad month, when the median price fell 10 percent.

Auctioneers were also reported to have sold “north of 20” of the 50-plus properties on sale at the Fort Lauderdale auction, where the event offered an estimated $300 million worth of that ranged from a $2.45 million, one-bedroom unit located in Fisher Island, to mansions that soared past $15 million. Housing analysts note that the high end residential market is resilient, and certainly the residential market has corrected since the peak of 2005.

However, a lot of properties were quickly pulled from the auction when no one made an offer, and bargain hunters had an open field. One bargain hunter quickly snapped up two bayfront houses located in Miami Beach’s upscale Venetian Islands, getting one for $500,000 and the other for $1 million. These homes previously had prices of $2.75 million and $2 million respectively in mid-2005, based on county records.

Vanessa Arellano Doctor
http://miamirealestateinc.org