Florida Real Estate Condos – Market Update

It seems that Florida real estate condos are making a comeback this year. Ever since the housing crisis disaster, real estate in many parts of the state is coming to life again. Fort Lauderdale. Boca Raton, and even pricey South Beach are reporting healthy sales.

The Cycle

The real estate market is a cycle. There are periods of growth accompanied by periods of decline. It is a never-ending circle of events influenced by the economy, immigration, and government policy among others. Back in 2006 when the real estate market reached its peak levels, the prices of Florida real estate condos recorded their best value in 30 years. Demand was high, fueled mostly by sub-prime borrowing. Many people were actually waiting for their chance to purchase a condo of their own. In some areas there was a waiting list. When 2010 came around, most, if not all of those events, were a fable. Most of the people that were lured by the promise of sub-prime loans lost their properties when foreclosure after foreclosure hit the state.

Empty Units

All of a sudden there was an abundance of empty condo units, as their value dwindled with each passing year. By 2011, the market value was already half of what they were during their peak in 2006. Many of the new units and buildings that were recently finished after a year when the market collapsed stood unoccupied. Lack of buyers led to an oversupply of units, which led to more price cuts.

Market Comeback

As of today, many of the prime waterfront properties and condominium units have been sold to foreign buyers, mostly Canadians. Signs of the recovery were first seen in the latter part of 2010, and picked up momentum in 2011 and finally 2012. For people that are keen on looking to get in, there are still a number of units left – mostly from foreclosures that have just gone through. Many experts believe that the state is in the very early stages of recovery. It is estimated that about 49,000 condo units are being constructed to keep up with the increasing demand. The inventory of condos priced under a million dollars is now down to a few units.

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Florida Real Estate for Canadians – The Bargain Hunting is Still On

For Florida real estatefor Canadians, the search for the perfect property is still out there. There are still a number of properties up for grabs in the Sunshine state. Many of these properties are being sold off as short sales as the tax deadline expires on Dec 31^st this year.

Best Deals are Still Out There

J.W., a Canadian man got the best bargain of his life when he was able to acquire a three-bedroom property just below $120,000. It is a 1700 square foot condo in Fort Myers. What is great about this location is that it is a mere fifteen minutes from the best beaches in the state and a very pleasurable drive from the best that Miami can offer. However, J.W. and his family have no immediate plans of moving into the property. They are part of a growing number of foreign investors that are purchasing large swaths of property in Florida with the intent of renting them out to Americans that could not yet afford to purchase a home of their own. Canadians represent a growing number of foreign real estate investors who have realized that they are in the best position now to purchase a home.

Great Investment Opportunity

The good performance of the Canadian dollar against the US greenback coupled with depressed housing prices and a big demand for renters is fueling the drive for snowbirds to check out the investment options south of the border. It is worthy to note that this is not another get rich quick plan. In fact, many Canadians believe that they are in for the long haul. There are signs that the US real estate market is beginning to recover. However, it may still take a long time before they get back to their pre-crisis levels. At the moment, the bargain hunting is still on for new investors to get in while there are still properties waiting to be had.

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Proposed New Visa Category for Canadians Buying US Real Estate

Canadiansbuying US real estate must know that there is a bill filed on the US senate floor. This bill, introduced by Sen. Charles Schumer a Democrat from NY and Mike Lee a Republican from Utah, is called the VISIT-USA Act. If made into law, it will establish a new visa category for foreign purchasers of US real estate called the “homeowner visa.” Foreigners need to make a minimum purchase of 500,000 US dollars in order to qualify.

Beneficial to Canadians

At present, Canadians can enter the United States without any visa requirements but only for a maximum of one hundred and eighty days. If this Bill becomes a law, it would establish a Canadian “retiree visa” that allows Canadians aged 50 and above the privilege of staying in the US and live there for two hundred and forty days each year and can be renewed every three years. The Act will also affect wealthy Chinese investors who want to purchase US real estate giving them more room to be able to do this minus the present visa restrictions.

More Opportunities for Canadians

This means that Canadians wishing to invest in US real estate will have more reasons to do so given the larger time allotment to stay in the country. This could not have come at a better time with the US needing a fresh influx of foreign investment in order to supplement the sluggish economy still reeling from the recent financial and real estate crisis.

The Rules Involved

Canadians need to know that they need to live in the home for at least 180 days a year in order to retain the visa. They also need to comply with disclosure rules regarding their foreign income as well as accounts. Finally, they also must reveal any interest they have in any foreign trusts, corporations, mutual funds, as well as any pension and retirement arrangements.

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Opportunities for Fort Lauderdale Real Estate

Fort Lauderdale realestate contains some of the best properties you can find in the state of Florida. Before the housing bust, this market’s values were through the roof. It is no wonder that there are many opportunities for foreigners like Canadians looking to invest in US real estate to snap up a prime property here.

Purchasing is Cheaper than Renting

Based on a recent report, purchasing a home located on Fort Lauderdale real estate is more affordable than renting one. This is based on an analysis of average home prices compared with that of rental prices in Miami. While it is still very much widely expected that home prices in this part of the state will continue to fall until the end of 2012, discovering the perfect real estate property while supply is still high and mortgage rates are at an all time low should be the priority of any real estate investor looking for a place here. It makes more practical sense to purchase real estate property because of the present economic conditions.

Opportunities for Investors

It does not matter if it is your first time purchasing US real estate in Florida; the prices right now on Fort Lauderdale properties are at their lowest values. As a matter of fact, all throughout southern Florida this has been the prevailing trend. There are a number of variables that will affect what the average price of property will be in this area of Florida come next year. It is a definite fact that short sales are dominating many real estate transactions as homeowners hurry up to beat the deadline on the Debt Relief Act set to expire at the end of this year. Likewise, it is also widely accepted that more foreclosed properties will appear, pumping up inventory for existing homes for sale. Purchasing properties that are or near their lowest possible levels is the best way to see your investment grow over time as there is no place left to go but up.

For more on how you can successfully invest in Fort Lauderdale real estate visit: http://www.stevemartel.com/workshop

What’s Happening in Las Vegas Real Estate?

LasVegas real estate was one of the hardest hit by the recent housing market crunch. Literally thousands of homes ended up on the foreclosure chopping block as many Vegas residents found themselves reeling from the effects of the worst housing market disasters since the Great Depression. For Canadians looking to invest in the US real estate market, there is no shortage of properties in the state.

Signs of Improvement

Recently, there have been signs that the real estate market in Las Vegas is showing signs of recovery. Housing prices for properties in southern Nevada have improved for the sixth straight month in July. However, total sales are still below what they were a year ago. This is from data released by the Vegas Association of Realtors.

The Numbers Don’t Lie

The average price of a condominium unit and townhouses in July of this year is $66,500. Compared to the same time a year ago, it is up by 12.7% but just down by 3.6% in June. There are a lot of opportunities for foreign buyers to snap up amazing properties in this entertainment and vacation hub.

The total amount of home sales including condo units and townhouses was 3,572, still lower compared to June, which is pegged at 3,945 and 4,037 when compared to June of 2011. At least 16,944 single unit family properties were listed for sale in July. This data represents a one-tenth of a percent bump compared to June but is still below average compared to the same time a year ago. There are currently 3,758 condominium units and town homes for sale. Those numbers are up by 1.2% but are still low compared to last year’s values.

More Short Sales

It is reported that banks, which now own the vast majority of existing properties, are limiting the number they are putting on the market in order to help drive the current market values up. There are also more people doing short sales in order to get their properties off the market quickly. This is because the Mortgage Forgiveness Debt Relief Act will expire by year’s end. Therefore, any money that a bank considers to write off when allowing a short sale may become taxable income and will put more strain on the finances of the sellers.

For more info on how you can take part in investing in real estate visit: http://www.stevemartel.com/workshop

US Foreclosures – A Step to Invigorate the Property Market

Initial phases of US foreclosures have increased by six percent in the second quarter when compared to statistics from the previous year. Ever since the housing bust of 2006, the bank repossessed millions of homes because property owners were no longer able to afford their mortgage payments. This is the product of the whole sub-prime mess when people with little or no ability to maintain a mortgage were immediately granted home loans.

Boon or Bane for the Market

It depends on what your views are regarding the entire foreclosure process. Of course, during the preliminary phase, the sight of foreclosed signs in US neighborhoods signified that the economy was in a state of depression. It did not help very much that when compared with the Great Depression of 1929, more people today were in worse conditions than they were back then. On the other hand, clearing the back log of available properties is helpful for the housing market on the long term because it can act as a catalyst to speed up the recovery of the US real estate market.

The first phase of the foreclosure process increased by 6% compared from last year. This is the first time since 2009 that an increase of this nature was noted. This can be explained by the fact that most banks during that period found alternative means to dispose of the properties before the final phase of home seizures commenced. These methods included partnering up with the affected homeowner for a short sale wherein properties were sold off for less than what was left on their mortgage.

Current Market Conditions

Based on available data, the US real estate market is now able to withstand some of the pressures that come from weak economic indicators. The only factor that has been restraining the market rebound is the aptly named shadow inventory of properties that have mortgages which are 90 days overdue. While foreclosures that stopped in 2010 due to abuse by banks in the robosigning scandal of falsified paperwork, the settlement amounting to $25 billion is helping provide a boost for the market to move in the right direction.

For more info on how you can profit from investing in the US real estate market 

visit: http://www.stevemartel.com/workshop 

What Florida Real Estate for Canadians Need to Know about Earnest Money Deposits

For Florida real estate for Canadians, having the correct knowledge about the laws and guidelines that govern earnest money deposits in Florida is very essential in their real estate investment ventures. If you are purchasing real estate property, it is pretty standard that you need to put down what is called an “earnest money” deposit. This is basically the amount of money that the buyer puts up in order to show genuine interest on the property while still awaiting the final closing details of the purchase agreement. This money is kept until the deal is finalized and is included in the final price as well as any closing costs. However, if the deal does not push through, the money is not released until both the seller as well as the buyer agrees. It is only important for Canadians to know what their rights are under Florida law when it comes to this aspect of the real estate transaction.

Where is the Earnest Money Deposited?

For Canadians purchasing US real estate, it is important to note that the sales contract will determine who actually will hold the earnest money. If we go by industry standards, it is usually the real estate agent of the property seller who will be entrusted to hold on to the earnest money. He or she will put the money in escrow or a trust until such time that the seller and buyer come to terms with the final details of the transaction. An uninterested party to the transaction, usually a title firm, manages this escrow or trust. However, the escrow holder possesses negotiation rights between the involved parties. Under the Florida Administrative Code, a broker is given permission to put escrow funds in an account that earns interest, but only with the expressed written authorization of the people involved in the sale. Real estate brokers are mandated by law to transfer the money quickly upon receipt of deposit from a possible buyer. The broker must deposit these funds into escrow no later than three business days as mandated by the code.

What Happens if there are Conflicts?

If, for some reason, the real estate deal does not push through as mentioned above, both the buyer and seller must give their consent for the money to be released. As a rule, the prospective buyer is the one entitled to refund the amount. However, the seller has the right to keep the funds if the prospective buyer did not comply with the time allotted for the contract terms. If there is a dispute, both seller and buyer may be entitled to the funds. The responsibility falls to the title company to resolve the issue on who should receive the money. Based on Florida law, a seller can proceed to offer the property to other prospective buyers and finish the sale even if there is still an escrow that has not been resolved.

The Florida Statutes

According to Florida Statute 475.25, the broker is instructed to return the escrow money at the agreed upon time or as mandated by law. However, if the broker in good faith suspects that the person receiving it is no longer entitled to the money, he can inform the Florida Real Estate Commission and can request for an order to determine who owns the funds in escrow or seek legal judgment from a Florida court. If it is for arbitration with the authorization of all involved, he can file for a mediation process that needs to be completed within ninety days.

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Florida Real Estate Condos – Market Update

For Canadians interested in investing their hard earned money on Florida realestate condos, there are a few things that they should know about when it comes to closing costs in the state of Florida. The standard closing fees when purchasing a condominium unit include attorney’s fee, commission of the broker, survey, inspection, appraisal, property taxes, and condominium unit association dues. If there are liens or a mortgage on the unit, the seller is also obligated to pay these as well.

Basic Setup of a Florida Condominium Unit

When compared to a single unit family property, condo unit owners do not own the interior of their properties, rather the property is owned as a whole by the condo community residents. These areas of communal ownership includes the land area, amenities such as swimming pools, lobbies, meeting rooms, exercise facilities, as well as the plumbing and electrical wiring as well. Based on the Florida Condominium Act, condominium unit owners need to elect a board of directors whose primary function is to manage the common property. All unit owners must strictly adhere to the rules and regulations set forth by their elected board representatives.

On the Part of the Buyer

Canadians that want to purchase Florida real estate condos need to understand that they have an obligation to pay the prorated share of the taxes of the property as well as all required condominium association dues. It is worthy to note that these property taxes must be paid each November of every year. The seller’s, as well as the buyer’s amount of taxes, depend on what month the closing commences. It is also noteworthy to say that buyers also are obligated to pay for the inspection.

On the Part of the Seller

For the seller, they must first pay off any outstanding mortgage dues before they can sell the property on closing. This money usually comes from the buyer of the property. Before the date of closing, the escrow officer would need to contact the mortgage company that handles the seller’s account, bank, or lender in order to corroborate the remaining amount that needs to be paid off. During the closing period, the seller pays off the rest of the loan before he receives the remaining payment for the property. The seller is also obligated to pay the prorated share of the taxes for the property, condo association dues, real estate transfer taxes, title insurance, commission of the broker, and the deed documentary stamps.

Closing Costs that can be negotiated

It is important for Canadians purchasing Florida real estate condos to know that they are not limited to the sale price of the property as the only parameter for negotiation; they can also bargain for the amount of closing costs. For instance, the seller may opt to pay all of the closing fees provided the buyer pays the full asking price of the property. If a buyer has issues about the facilities within the condo unit which are not part of the common property, the seller could offer to shoulder the inspection fees. While there seems to be a lot of leverage when it comes to who pays the closing costs, it should be emphasized that at the time of closing, each party must have intimate knowledge already on who pays for what aspect of the closing fees. All agreements, contracts, and terms must be properly documented and reviewed by all parties and their respective attorneys before closing is deemed final.

If you want to know more about purchasing Florida real estate condos visit: http://www.stevemartel.com/workshop

Why are there Canadians Buying US Real Estate?

Canadians buying US real estate look at properties not as vacation property, but rather as an investment opportunity. A Canadian man from Montreal, J. Riley, purchased a property in Florida even before he was able to visit the state. The property was a fixer upper. A two bedroom, two bathroom condominium unit located in a Florida suburb, the unit cost $175,000 during the height of the real estate bubble. However, due to the bottoming of real estate prices in recent years, he was able to buy it for only $75,000. All that mattered to him was that the price was right and he just dove in.

Not the Only One

 

J. Riley isn’t the only Canadian man looking to invest their hard earned Canadian dollars south of the border. Based on a recent survey, one out of five Canadians is interested in buying US real estate for personal or investment purposes. US property figures have fallen to about a third of their value since the bubble burst in 2006. In some hard hit foreclosure states like Arizona, Nevada, and Florida, many properties are for sale at rock bottom figures.

Best Time to Buy Property – NOW

Economic data from the United States suggest that now is the perfect time to grab the opportunity to buy US real estate. This is due to the fact that the price to rent ratio vs. the price to own has gone back to its pre-housing bubble price average. Likewise, the mortgage rates in Canada as well as the United States are at their all-time lows. Owning a piece of US real estate property is now more affordable than ever. Once you combine this with a stable Canadian currency, you now have the perfect invest opportunity storm to reap the benefits of real estate.

Price is not the Only Factor

When considering purchasing properties in the US, a savvy real estate investor must not rely on mere price alone as the only determining factor for buying. US real estate properties in sunny Florida are still on the market for a fraction of their values before the bottom dropped out. Just about anyone can find a condo unit at fire sale price values. However, affordable does not always equate to livable. Canadians must look for themselves if the foreclosed property is in a good neighborhood, need only a few repairs, and have access to amenities. This is essential because it will determine the property value once it is sent back to the market.

Work with an Experienced Real Estate Agent

Don’t get caught flat-footed in the complex world of real estate without someone guiding you. Obtain the services of an experienced real estate agent; someone that has years of experience and a level of success known in the real estate industry to help you find the property of your dreams. A realtor can act as your property inspector in order to inform you about the features of different units as well as the pros and cons involved in them.

A realtor can negotiate the price for you. They will also handle all the paperwork necessary for your purchase of the property. They have excellent knowledge on guidelines and other rules governing the purchase of real estate in the state you are interested in.

If you are interested to know more about how you too can invest in US real estate visit http://www.stevemartel.com for more details.