You might think that real estate action lulls as people shop, handle holiday commitments and host visitors from near and far this time of year. The truth is that many buyers want to get settled in the New Year and start 2009 in a new home.
If you are a seller, consider that many buyers might be off from work this week and have plenty of time to visit for-sale properties -- maybe even yours. Be a smart seller. A smart seller will be prepared and accommodate each showing requested. The more people who visit, the more likely your home is to sell.
This is the time when families visit their Florida relatives and enjoy this beautiful weather, thus creating the desire to move South to our beautiful Brevard County. Local people shop real estate over the holidays and our northern friends think again that this may be the year to buy their dream home or condo in Florida . . . and it is.
With prices low, investment returns in the stock market volatile, interest rates low and a great deal of inventory from which to choose, there is no better time to buy. Think investment. Think about the returns on this long-term investment: condos on the ocean and river, townhomes and single family homes of every price range.
What more could a buyer ask for? Interest rates at a 27-year low are hard to pass up. Consider discussing with your financial planner your options on how to take advantage of these opportunities. Ask if real estate makes sense for you as a long-term investment in addition to a place to live. Conservative and comfortable is the only way to buy.
As I sit writing, I am visiting family in Washington D.C. Needless to say, I am freezing as I reflect on the Florida sun and the cool but comfortable winter breeze over the oceans and rivers.
Yes, it is nice to visit the busy city. It is exciting and tempting to stay, but me, I am a native Floridian and the call of Florida sunshine is always near even as I travel.
Sunday, December 28, 2008
Sunday, December 21, 2008
Consider benefits of Fla. residency.
As the snow falls in the north and the winter winds begin to blow, the beautifully calm rivers of Brevard County this time of year often reflect the images of spectacular boats adorned with Christmas decorations. What community can boast nearly as many holiday boat parades as land parades?
Northerners migrate to our beautiful climate and calm waters to escape the weather in their home state. Many come just for the season, but many are swayed by our windows-open winters and stay much longer. And beyond the climate, there are other reasons to stay.
Take income taxes, for example.
Look at the benefits of buying here, establishing residence here and saving the income tax that was paid to the state that one came from. A great neighbor and friend related his positive experience on becoming a Florida resident but keeping his home in Rhode Island. Some states, for instance, have expensive state income taxes and laws that define residency as six months a year.
That may mean that one could live there for 5 1/2 months, establish residency in Florida and pay no state income tax. What a way to retire. All that money you save on state income tax up north could be applied to paying for your new home in Florida. My friend has discovered something very valuable in Florida residency.
Speak to a Florida accountant and verify the residency requirements in your state as compared to Florida. This may be an opportunity that you do not want to miss. While real estate is low, buying now may be the right move.
I urge each and every one of you who need help keeping your home to contact your legislators and give them the details of your plight. I am shocked by the stories of homeowners that need a counselor or a "real person" to speak to regarding escalating mortgages and homeowners who face foreclosure due to job loss or medical bills. If the bailout was only used to help the banks to survive and not the people, this is a sad state of the nation.
Northerners migrate to our beautiful climate and calm waters to escape the weather in their home state. Many come just for the season, but many are swayed by our windows-open winters and stay much longer. And beyond the climate, there are other reasons to stay.
Take income taxes, for example.
Look at the benefits of buying here, establishing residence here and saving the income tax that was paid to the state that one came from. A great neighbor and friend related his positive experience on becoming a Florida resident but keeping his home in Rhode Island. Some states, for instance, have expensive state income taxes and laws that define residency as six months a year.
That may mean that one could live there for 5 1/2 months, establish residency in Florida and pay no state income tax. What a way to retire. All that money you save on state income tax up north could be applied to paying for your new home in Florida. My friend has discovered something very valuable in Florida residency.
Speak to a Florida accountant and verify the residency requirements in your state as compared to Florida. This may be an opportunity that you do not want to miss. While real estate is low, buying now may be the right move.
I urge each and every one of you who need help keeping your home to contact your legislators and give them the details of your plight. I am shocked by the stories of homeowners that need a counselor or a "real person" to speak to regarding escalating mortgages and homeowners who face foreclosure due to job loss or medical bills. If the bailout was only used to help the banks to survive and not the people, this is a sad state of the nation.
Sunday, December 14, 2008
Options exist for struggling owners.
We've been hearing a lot about foreclosures and short sales lately. A foreclosure takes place when the owner of a property stops making mortgage payments, and a bank or lending institution takes legal action to take ownership of the property. Those properties are frequently sold by the lender to recover a portion of the original investment. A short sale is when a lender allows a property to be sold for less than what is owed on the mortgage.
Both instances can devastate a homeowner's future and lenders' bottom lines, and both should be avoided if at all possible. Realtors can help walk buyers (and sellers) through the process on either side of the transactions. Before you let a foreclosure proceeding take your home, try to negotiate with your lender. Before you lose your property, communicate with the lender and possibly negotiate a short sale.
If you are capable of making lower payments, there is help for you and you may be able to keep your home. Right now, the cards are stacked in your favor if you are a homeowner facing foreclosure or a short sale. To receive the serious attention of your lender, you should be an owner occupant. Investor owners might not receive the same consideration.
If you are strapped with an excessively high interest rate, one that has escalated from an affordable rate to an unreasonable or unaffordable rate, you must get to your lender and plead your case for a lower rate or longer terms. Either way, you're looking for a lower payment.
In my opinion, you are the victim if you qualified for the loan at the teaser rate and then suffered when the rates adjusted upward. If I were in your shoes, I would make it my top priority to correct this injustice.
This is my suggestion: Call and speak with your former loan officer or equivalent person in the lending institution that holds your mortgage. Move up to the top supervisor if you don't make progress. Keep a good record in your calendar of who you spoke to and what help is offered. Keep moving up to the highest person with whom you can speak. Follow your conversation with a certified letter.
If you receive no encouragement or help, then it is time to talk to your elected representatives. Your local, state, and federal government representatives should be ready to listen and offer suggestions for help. Helping homeowners to keep their homes . . . isn't this what part of the "bailout" monies were designated for?
Both instances can devastate a homeowner's future and lenders' bottom lines, and both should be avoided if at all possible. Realtors can help walk buyers (and sellers) through the process on either side of the transactions. Before you let a foreclosure proceeding take your home, try to negotiate with your lender. Before you lose your property, communicate with the lender and possibly negotiate a short sale.
If you are capable of making lower payments, there is help for you and you may be able to keep your home. Right now, the cards are stacked in your favor if you are a homeowner facing foreclosure or a short sale. To receive the serious attention of your lender, you should be an owner occupant. Investor owners might not receive the same consideration.
If you are strapped with an excessively high interest rate, one that has escalated from an affordable rate to an unreasonable or unaffordable rate, you must get to your lender and plead your case for a lower rate or longer terms. Either way, you're looking for a lower payment.
In my opinion, you are the victim if you qualified for the loan at the teaser rate and then suffered when the rates adjusted upward. If I were in your shoes, I would make it my top priority to correct this injustice.
This is my suggestion: Call and speak with your former loan officer or equivalent person in the lending institution that holds your mortgage. Move up to the top supervisor if you don't make progress. Keep a good record in your calendar of who you spoke to and what help is offered. Keep moving up to the highest person with whom you can speak. Follow your conversation with a certified letter.
If you receive no encouragement or help, then it is time to talk to your elected representatives. Your local, state, and federal government representatives should be ready to listen and offer suggestions for help. Helping homeowners to keep their homes . . . isn't this what part of the "bailout" monies were designated for?
Sunday, December 7, 2008
Starker exchange has some benefits.
A recent article in FLORIDA TODAY highlighted the importance of happiness and its contagious nature. I believe the same is true with our attitude in this economy. Isn't it just as easy to believe in a positive future instead of a negative past or present?
This contagious epidemic of optimism could spread to the retail community, the new employees relocating to this area, the community leaders, our snow birds and each and every person living or visiting in Brevard County.
The facts are encouraging.
Brazilian jet maker Embraer is set to take off with the promise of 200 new positions, threads of possibilities for enhanced scientific research in space exploration are appearing daily, giving hope for the continued employment at Kennedy Space Center.
The optimism is perpetuated as the activity in real estate continues to emphasize fewer listings coming on the market and the volume of sales continuing to increase. Long-time investors are seeking more in the way of capitalizing on this market: that is "sell low, buy low." The long-time investor who has real estate holdings that have been depreciated for tax benefits are selling through what is called the "1031 exchange" method. The 1031 or Starker Exchange provides for buying replacement properties to enhance the tax-deferred purchase.
The investor should verify with their accountant that the depreciation process can now begin again. The wise investor meets with a good accountant and creates a plan to enhance wealth through government sanctioned write-offs. A 1031 allows a seller of like/kind investment property to defer taxes on the gain after the sale, if very specific rules are followed. One can then, purchase similar properties while an intermediary holds the funds from the first sale prior to the reinvestment in the next purchase.
An experienced Realtor can assist and direct the investor to the proper closing agent/attorney for procedural requirements to assure the investor of the 1031 exchange as allowed by the government.
New investors entering this market should be conservative in their investment purchases. New investors should be well advised as to the pros and cons of their investment. The tax benefits are great for those who can afford this purchase. Let the optimism continue as we all look at the positive sides of this very different economy. Smart people look at the benefits.
This contagious epidemic of optimism could spread to the retail community, the new employees relocating to this area, the community leaders, our snow birds and each and every person living or visiting in Brevard County.
The facts are encouraging.
Brazilian jet maker Embraer is set to take off with the promise of 200 new positions, threads of possibilities for enhanced scientific research in space exploration are appearing daily, giving hope for the continued employment at Kennedy Space Center.
The optimism is perpetuated as the activity in real estate continues to emphasize fewer listings coming on the market and the volume of sales continuing to increase. Long-time investors are seeking more in the way of capitalizing on this market: that is "sell low, buy low." The long-time investor who has real estate holdings that have been depreciated for tax benefits are selling through what is called the "1031 exchange" method. The 1031 or Starker Exchange provides for buying replacement properties to enhance the tax-deferred purchase.
The investor should verify with their accountant that the depreciation process can now begin again. The wise investor meets with a good accountant and creates a plan to enhance wealth through government sanctioned write-offs. A 1031 allows a seller of like/kind investment property to defer taxes on the gain after the sale, if very specific rules are followed. One can then, purchase similar properties while an intermediary holds the funds from the first sale prior to the reinvestment in the next purchase.
An experienced Realtor can assist and direct the investor to the proper closing agent/attorney for procedural requirements to assure the investor of the 1031 exchange as allowed by the government.
New investors entering this market should be conservative in their investment purchases. New investors should be well advised as to the pros and cons of their investment. The tax benefits are great for those who can afford this purchase. Let the optimism continue as we all look at the positive sides of this very different economy. Smart people look at the benefits.
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