My Real Estate Articles:
Save Your Money By Being Your Own Handyman added 1-24-2012
Remodeling a home can be a huge burden, or it can solve many lifestyle dilemmas; it all depends on how you go about it. Researching home improvement is essential for executing projects safely and successfully. Use this advice to make every home improvement project a success.
When doing projects in the bathrooms or kitchen, make sure the water main is turned off. Using shutoff valves is an important step in any project that involves plumbing. By doing this, you will prevent flooding from occurring.
A well-executed landscaping project can make your home and your property more attractive and pleasant. Add nice flowers, shrubs, plants, vines, mulches and other nice stones to make your landscape look better. Not only will a nice landscaping job make your property stand out in a nice way, it will also improve home value.
Try switching out all of the light bulbs in your house for energy efficient ones. This will help to save money on your electricity and also help the environment. The bulbs tend to last much longer than other bulbs and use less energy to emit more light. So replace standard light bulls with energy efficient ones.
If you want major work done to your house, hire someone who has plenty of experience. Architects, designers, and contractors are skilled and that is why they do their jobs. The work is complicated, and they are professionals in their field. It may seem tempting and rewarding to tackle a big job yourself. However, by turning to the professional you will know that it will be completed properly from the start.
Sort your tools by project, in multiple tool boxes. If you have a plumbing project, keep all tools related to plumbing in a separate box. Likewise, you could set aside a box for electrical projects, and it could contain tools and items needed to accomplish electrical work. By doing this, you will be able to locate specific tools whenever you need them.
Cleaning your carpets on a regular basis helps your house feel cleaner and cuts down on dust and dirt in the air. Particularly in the places where your family often walks, use shampoo and a deep cleaning treatment. Doing so will engender an atmosphere of freshness and cleanliness throughout your home.
Home improvement is not as hard as most people believe. You will have to study and work hard if you want the best results, but the savings and the fun will be extremely rewarding. If you use these tips you'll start successfully completing jobs.
A six step plan for what to look for when buying a home-added 11-22-11
Purchasing a home can be a difficult process, whether you have done so before or not. However, if you create a plan and stick it, you can end up with your dream home in no time.
1. Do not feel ashamed to ask your Realtor as many questions as you want
2. Make sure that the potential home is an a good neighborhood
3. Do not pay more for a home than what it is worth
4. Visually check the home is up to speed
5. Have an inspection on the home before anything is finalized
6. If the home needs repairs, have the home owner agree to pay for them.
For help finding the perfect Key West homes for sale contact Tina Masters
Buying a home can be easy if you have a plan set in motion. By using the plan above, you will find that you do not have to settle for less when home purchasing.
Simple Steps to Beautiful House Staging for Securing High Resale Value added 10-26-11
Home Staging is something more than cleaning and decorating a house. It is about bringing complete perfection to homes so as to make them look cleaner, brighter and attractive for home buyers. Potential buyers decide for their decision to buy a home within few minutes and it is these minutes only when staging works. Want to know how to do it? Here it comes in simple steps:
• Clean, de-clutter and organize all rooms of a home – First of all, remove all waste products from your drawers, cabinets and other areas in order to make a house look well balanced and clean. Put up all things which you require in a well organized manner so that it does not conflict with the beauty of a house.
• Address all repairs which require attention – Small cracks, gaps or holes in house walls, drawers or any such area can resist home buyers from buying it. Check out for squeaky doors, leaky cracks, burnt – out light bulbs and all such means so as to give a home a clean and fresh appearance.
• Give special attention to cupboards and kitchen counters – Shelves and counter top, especially of kitchen areas must be cleaned properly. This is because it is one such place which can make home buyers realize wonderful living experience in this region. Remove all eatable items, dishes from these counter tops in order to make kitchen area appear cleaner, wider and functional.
• Try to make the bathroom as bare as could be – Try removing all your personal items from bathroom area before allowing home buyers to peek in. It is essential to pack up all collectible items, children’s artwork, trophies, holiday souvenirs and family photos.
• Take professional photographs of your house – You can also provide professionally clicked photographs for a house which can be carried away with home buyers. This will provide them a healthy image of house.
• Provide brightness and good smell to your home – Open all drapes and blinds so as to allow natural light to come in. Give good fragrance to your house by putting up fresh flowers and candles in dining or bedroom area.
• Hide appliances which you don’t wish to sell – If there is any antique or special thing which you don’t want to sell then keep it aside from eyes of home buyers.
These steps can perfectly do staging for a home which you wish to sell.
For Help Selling Your Key West Homes for sale contact Tina Masters
Variable Payment House loans added 9-27-11
With many mortgage loans, your repayment is the same monthly amoiunt.
But imagine if your paycheck isn’t so standard? Would you like to manage
to vary your mortgage payment depending on your cash flow? An option
ARM -- also called a flex-ARM or pick-a-payment mortgage loan -- allows
you to do exactly that.
So how exactly does it function?
An option ARM is an adjustable-rate house loan having a twist. You don’t
pay a set amount each and every month. Rather, the mortgage lender sends
a month-to-month report with as many as four payment possibilities. You
simply choose the sum of money you would like to compensate that month
and then send in your check.
The options differ, but here ís the most common menu:
Least repayment: This is often calculated utilizing an initial interest
that can start off just 1.25 percent. Since this payment is really low,
it’s helpful for months whenever you don’t have much cash on hand, perhaps
because you are waiting for a commission or bonus check. But virtually
any outstanding interest gets deferred, or added to the principal of
the loan, so your principal increases.
Interest only: You pay all the interest due, but none of the principal.
This doesn’t decrease your mortgage balance, but it means that you can
steer clear of deferring interest.
30-year amortized: This matches the monthly installment of a mortgage
loan amortized over 30 years for your current interest rate. It provides
both principal and interest.
15-year amortized: Just like above, but amortized over 15 years. This
is actually the highest monthly installment. Deciding upon it helps you
decrease your principal faster than any option.
The fine print
The greatest warning with option ARMs is that these tempting initial
costs are short-lived. The lower minimum repayments that will make these
mortgages so enticing can go up significantly. In addition, every five
years, the financing is recast -- that is, a brand new amortization schedule
is written to ensure that the remainder balance is going to be paid back
by the end of the loan’s term. When that occurs, the minimum payment
could be pushed even higher.
What ís more, in case you delay payments on too much interest, it is
possible to reach what ís referred to as negative amortization. In case
your balance grows to 10 percent to 25 percent (depending on state law)
higher than the original principal, the loan is automatically recast
and you have to start make payment on fully amortized rate,that can increase
your monthly payments.
Another possible issue with option ARMs is that they’re more complicated
than most other mortgages. House buyers could possibly be seduced without
fully discovering how much the minimum obligations will increase over
the long-term. In case the monthly amounts go up, these people can experience
payment shock.
Florida Real Estate – Buying & Selling Properties added
8-30-11
Florida is considered as a Sunshine state. It experiences warm weather
throughout the year and is known for its striking landscaping which
surrounds all its cities. The lifestyle of the residents of Florida
differs greatly, depending on the part of the state they are in. It
is essential to keep some points in thought when selling or buying
a residential property in Florida.
Buying Florida Real Estate
When moving to Florida, one needs to keep several things in mind. First
of all, an individual has to understand that all areas of Florida stare
are not same. The choice of location to reside will determine how comfortably
and happily one lives in this state. Finding an agent who is specialized
in buying Florida properties is desirable. Even for second or third time
buyers, assistance of real estate agents is must. Follow these tips before
buying Florida real estate:
• Look at all available real estate options carefully.
• If one is considering purchasing a newly built home, he or she needs
to check the repute and standing of the builder.
• Regarding house, check out whether there is proper drainage system,
ventilation, availability of water and others.
• Sign any documents only after careful examination of the property.
Selling Florida real estate information
An individual may wish to sell his or her home finding that it is not
big enough or it is very far from job location. There can be many reasons
behind it. For selling an old domicile, an individual should first determine
its total worth. To make most out of any property, it is necessary to
carry out some alterations in order to enhance its look and feel. By
making slight improvements, the value of that house or property gets
increased to a certain extent.
Employing a professional real estate agent for selling any Florida property
is very beneficial. These agents would list one’s property on MLS. In
this way, the property is made available to see on many websites. People
can easily find it and contact the owner immediately.
In conclusion, the key point for selling and buying Florida real estate
is the location. The real estate agent chosen should know everything
about the area where the house or other property is to be bought or sold.
This will greatly influence the deal because prices of the property and
factors to be considered are different for different Florida locations.
Live and retire Down into a better quality of life by Downsizing-added
7-21-11
Residing in the larger family house as the home owner ages practically
ensures that this property or home gets to be more and much more a real
undertaking to deal with. Looking at retirement life via that huge home
together with the large property just isn't a great standpoint for many
of us, and that is exactly where going smaller is needed. Even during
retirement living, your property is probably going to be a person's largest
expenditure. Downsizing makes it possible for senior citizens to enjoy
much more time with regards to their family members, take part in leisure
time pastimes and private advancement, as well as their particular neighborhoods
much better areas to reside in.
Altering the method that you are living throughout retirement living
through downsizing does not have to generally be unpleasant. In reality,
many senior citizens that have much more free time as compared to much
more things discover their particular senior yrs full of satisfaction,
one of the numerous benefits pertaining to senior citizens and people
soon to stop working. This is especially valid these days, because seventy
seven million Baby Boomers go to retirement living, only to discover
the fact that conventional concept of retirement living have been turned
on its head. Almost 2 / 3 of individuals fifty-five and slightly older
have less than $100,000 set aside with regards to senior yrs, as outlined
by research conducted recently through the Employee Benefit Research
Institute.
And fifty six % of these employees who're currently retired have less
than $50,000 to last them for the remainder of their own existence.
Rather than the senior yrs symbolizing full-time leisure time, the great
majority of senior citizens will discover "2nd act" jobs during
this time period. Numerous elderly employees give up work from 1 career
merely to undertake yet another, frequently some time before age 65,
or maybe transfer to a new job within unpaid civic engagement.
This "gradual retirement" may also be deliberate, since action
has become considered much more virtuous than all-out leisure time, however
the great need of having the capacity to select one above the other remains
to be a higher goal assuming you have acquired this spanning a lifetime
of employment.
Is buying a Home a realistic Prospect for you? added 6-20-11
You may have ultimately made a decision to buy your own residence and
you're in the act of considering precisely what your finances can pay
for. Prior to looking for a property, you should schedule time and energy
to consider precisely what your financial budget is going to be with
regards to home loan repayments.
To assist you in making the determination about exactly how much you
really can afford pertaining to home mortgages, you will need to seek
the advice of a home loan provider. Really, the very best 1st step to
complete would be to focus on the entire mortgage loan procedure prior
to the stage expected to acquire a pre-qualification notice. And this
is what notifies you and also the owner regarding just how much the mortgage
lender is able to set up to suit your needs.
Once you obtain the mortgage loan in your hands, does that really mean
this is the selling price within your budget? That is worth equally a
yes along with a no. The pre-qualification letter depends upon a number
of things for example your earnings along with your credit rating. This
is simply not an image regarding just how your life appears like and
this could connect you with difficulties should you consider it in this
way.
Among the worst type of issues you may go through is buying a property
and also realizing it is not easy to pay your home loan repayments each
month. This can come about should you completely rely on a pre-qualification
notification you obtain and / or if you don't check out the complete
procedure very carefully. It is likely you were able to purchase your
dream home although the repayments now have transformed this in to a
living bad dream.
Whenever considering what you might manage to pay out when purchasing
a property, you have to consider the all round image of your respective
financial situation. Will there be upcoming expenditures that you plan
to experience? Some of these might be having children soon, sending youngsters
to a college or perhaps requiring extra funds for the company. If you
are an worker for an organization, are you currently really without doubt
their particular company is succeeding or perhaps are you currently fearful
of checking out the consequences?? In case your household has only a
single wage earner, precisely what options will be in place in the event
the main wage earner just isn't able to doing work for several months
as a result of a health condition?
These are the basic concerns you'll want to pay close attention to before
going and finding a home loan. Everybody are typically in an alternative
scenario and so be sure that you just very carefully analyze where you're
at to make sure that you happen to be investing in something you can
certainly have the funds for in the long term.
Vacation Real Estate in the Florida Keys added
5-25-11
We're all aware of the fact that real estate values are falling, yet
buying a vacation home now maybe the best investment one can make. Just
be sure that when you buy a vacation home, you buy it in the Florida
Keys. This is a year round vacation investment that pays you every week!
The conventional wisdom is that, now in today's unstable economic times,
is the worst of all times to buy vacation real estate. And this may be
true, for real estate investments in most areas… Yet, if one considers
that a vacation home, in the right area, the Florida Keys, is an investment
that can almost always shows a positive cash flow. The major side benefits
of owning a vacation condo, or even a home, in the Florida Keys outweighs
most potential downside risks. That side benefit is that when the owner
wishes to use it, he can. It's not like owning a parking garage or warehouse.
Investing in Real Estate in the Florida Keys, the Whys
Obviously for someone that hates the sun, the tropics or clear blue waters,
the Florida Keys is not a place to invest. But for those that love
water sports, world class fishing and year round sun, there's almost
no other place that compares in both physical beauty and a potential
continuing source of income. Year round, The Keys is a vacation destination.
Those from the northern states during the winter, flock to the southeast
and especially the Keys, as a welcome escape from the cold.
Deep sea fishing, sailing, diving, spear fishing, underwater exploration,
flats fishing, sailing, water skiing are just a few of the many sports
and past times people enjoy during the rest of the year. There's almost
no limit to the water sports that are available. While it's possible
to do many of these sports year round, the spring, summer and fall have
the warmest and calmest coastal waters. Vacationers, a rental property
owner's target market will pay high weekly rental rates to stay at a
condo or home in the Keys to enjoy and experience these sports.
If a vacationer has a yen for history and interesting surroundings,
the Keys also provides interesting tours and sights to see in Key West,
as well as other places like Big Pine Key, where a state sanctuary exists
to preserve the Keys Deer species. With its history and its beauty, the
Florida Keys is an incredibly interesting place to invest. With tourists
year round, owning a vacation home in the Keys makes a lot of sense.
High Returns Result from Short Term Vacation Rentals, but There's a
Catch
Some communities, townships, homeowner and condo associations in the
Florida Keys have placed restrictions on short term rentals. If an investor
decides to purchase a home or condo, it is imperative that one checks
to see if there are any rental limitations concerning weekly rentals.
The 'key' to rental profits in the Keys is the owner's ability to rent
the property year round on a short term, weekly basis. If that's not
the case, look elsewhere where no such restrictions exist.
Depending upon the type, size and location of the unit, weekly rentals
and purchase prices can vary tremendously. For instance, there are waterfront
mobile home villages that offer rentals as low as $300-$400 per week.
In contrast, there are homes that may be rented for well over $5000 per
week or more. Obviously, the cost of purchasing a mobile home, condo
or luxury home will vary tremendously and one may be an order of magnitude
higher in price, than the other.
During the summer, with diving and water sports the big attraction,
weekly rentals are easy to line up using only the internet and perhaps
some of the vacation rental internet sites. Many of the locals in and
around South Florida, as well as other parts of the country will come
to the Keys, sometimes several times per summer. Even in the fall, while
a bit slower, is a time that people might come down for a week or so
for a quick vacation. Of course, the onrush of vacationers, typically
staying a month or longer occurs during the winter months. Obviously,
this season offers the Keys property home owner the highest rental rates.
Although even this has been changing within the last 10-15 years.
Vacation Rental ROI & Rate of Return
The first year or two of actually owning a vacation getaway in the Keys
typically shows a near break even cash flow. If one aggressively pursues
the marketing on the internet travel sites, cash flows may become positive
even during the first year of ownership. A positive cash flow in terms
of mortgage versus rentals will usually show itself after the third
or fourth year. There are many factors determining ROI, most notably
are:
. The condition of the rental property
. Number of return renters
. Water view and facilities
. Location and ease of travel from the airport
What to watch out for when buying a foreclosure. added 4-11
When considering buying a foreclosure there are several issues you need to explore before you sign on the dotted line. It is ever so easy to be caught up in the excitement of getting a bargain but time, patience and investigation are needed to ensure that you are safe from problems created by previous tenants. Putting a little effort into this research will mean that you do not fall victim to the problems other people do when rushing into purchasing a foreclosure. You will save yourself a great deal of money and you won`t experience sleepless nights either!
Firstly, find out the regulations applicable to your state as there can be differences depending upon where you live. Do a title search at your local town hall to discover if there are any back taxes or fines on the property. If you purchase the house without getting these discharged you will be liable to pay them. Also check for liens on the property. Liens are legal claims or holds on the property which can prevent it from being sold. Examples of this would be where previous tenants are in the process of separating and one partner is resisting the sale of the house. Messy situations like this can complicate the buying process to such an extent you may find it prudent to look for another purchase.
Inspect the property thoroughly and get advice from the necessary experts including
a qualified realtor and experienced builder. Properties that are sold at auction
are termed "sold as seen." This means whatever the property`s condition at the
moment of purchase, that is what you buy and you have no right of comeback or
complaint. Whether you buy at an auction or in the regular way, once you have
signed for ownership you are liable for the property. Therefore, if you discover
any serious defects with the house, they are now your responsibility and you
will have to pay to have them fixed. This has led to some nasty shocks for people
in the past so be warned!
As you inspect the property do not take anything at face value. Remember that the previous owners have been foreclosed on for a reason and may not have had the time or money to invest in the house. A patch of fresh paint may be covering up mould and a rug may be covering up woodworm in the floorboards, so investigate carefully. Many houses, whether they are the subject of foreclosure or not, have problem areas though so this doesn`t mean it is the end of the world. Find a reputable builder and ask for a detailed quote of how much it would cost to fix the problem. You can then have your representative tell the sellers that these costs should be taken off the asking price of the house. This happens frequently and the sellers will normally agree if they see the estimate from the builder in writing.
Buying a foreclosure can be a way of getting a nicer house for your budget and with these simple tips you should find the process goes much more smoothly. Then you can book your removals company, pack your moving boxes and
start your new life in your dream home. Enjoy!
The Advantages of Buying Key West Waterfront Property
Now! added 1-20-2011
With prices where they are right now, there's never been a better time
to buy waterfront property in the Key West area.
Anyone who has ever been to Key West has at one point in their lives
considered a life of relaxation with only the sound of the sea and the
ocean breeze to worry about. While this may sound like an unobtainable
form of paradise, with the current pricing, it is actually much more
realistic than it seems. Here are several reasons.
1. A second home that generates income. For those who already own a
home and are happy living where they are, waterfront property in Florida's
popular Lower Florida Keys area can be a lucrative investment. Each year,
thousands of tourists flock to Key West to soak up the sun. Because of
this, waterfront rental properties generally take in good rental income.
In fact waterfront properties are always the first to get rented.
So, by purchasing a piece of waterfront property and renting it out,
you can have all or certainly part of your home payments made plus enjoy
it as a vacation home. The goal being, that eventually, you'll be in
a position to retire and live the relaxing life you've worked so hard
to attain or the property will simply be a good investment for the future.
2. Waterfront properties have historically always had the best appreciation.
If you’re on the fence regarding whether or not to purchase property,
remember that.
I’m sure you’ve all heard the phrase, there is only so much waterfront
property available-which is absolutely true.
3. Buying vacant land. Another consideration is purchasing a waterfront
lot and then even if you don't build on it, the property can still grow
in value over time or you can build your dream home later. Lots of investors
have made their careers out of purchasing multiple vacant lots.
4. The current pricing. Waterfront property in the Key West area has
never been cheaper than it is now and likely never will be again. The
result is that people of all walks of life and nationalities are currently
taking advantage of the Key West area housing market.
The only way to make sure you can even get your hands on a piece of
waterfront property in the Key West area (and for less money than ever
before) is to start looking now, while there are still excellent property
investments available.
In summary, if you're in the market for waterfront property in the Key
West area, there's no better time than now to buy. For more information
please contact me
Benefits of Owning a 2nd Vacation Home added 12-2010
Looking for a tropical get-away that does not require a passport? Look
at the Florida Keys. Stretching from around fifteen miles south of Miami
to less than one hundred miles from Cuba, the Florida Keys offer a multicultural
living and vacation experience to fit every budget.
Financing a Tropical Dream
Once reserved for the rich and the famous, a second vacation home can
now be part of a smart investment portfolio. Mortgage rates are low,
making financing a home in the Florida Keys more affordable than ever.
Also, unlike the rich and the famous, the average individual is likely
to rent his vacation home out to tourists when he is not using it himself.
Waterfront property is especially popular as a vacation spot. It offers
the amenities of the local community – restaurants, attractions, transportation,
security – and the beauty of communing with nature. The income from these
rentals often covers the entire mortgage, enabling the owner to enjoy
a free vacation in the Keys whenever he pleases.
Waterfront property also tends to appreciate in value over the long term
due to its lasting popularity. The savvy homeowner of a Florida Keys
waterfront vacation home is also building equity while he vacations there
and rents it out – equity that can either be cashed in at retirement
or lived in on a full-time basis.
Peace of Mind
Ask any therapist. The soothing sounds of the ocean provide the perfect
background for relaxation. With a vacation home in the Florida Keys,
no tapes or compact discs are needed.
Simply open the windows to enjoy the ocean’s relaxing sounds.
Also, as stress is a significant risk factor in elevated blood pressure,
a vacation home in the Florida Keys benefits the homeowner physically
as well as mentally.
Stress melts away with the ebb and flow of the tide, with the beauty
of the sun rising or setting over the ocean, with the gentle ocean breeze.
One can almost feel his blood pressure lower with the laid back lifestyle.
Or, if the need for some company arises, the Florida Keys offer a variety
of restaurants, museums, parks, and attractions to amuse and entertain.
Add to the scenic view, soothing sounds, and peace of mind that comes
with knowing that. No matter how stressful life becomes, a little slice
of paradise awaits. It is a reward at the end of the summer, or at the
end of a career.
Want an Investment Property? How About a Florida Vacation Home?
With the mortgage melt down, the last thing on most people’s minds is
buying real estate as an investment strategy. Right? Well, no, not right!
At least, when it comes to buying the right kind of home or investment
home. Right…translates into buying a Florida vacation home.
The Ideal Florida Vacation Home Investment
Certain areas in the Sunshine State are ideal for investment now in the
current real estate market. Those areas are located mostly on the shorelines
of Florida: the south east coast, the Florida Keys and the west coast
from Tampa Bay and points south. There are three good reasons why investing
in a vacation home now makes good economic sense:
1. All Florida home prices are depressed.
2. Short-term rental prices for the most part, have not declined.
3. A Florida vacation home can generate rentals all year round.
One must keep in mind that not all Florida vacation properties are good
economic bets. First, the Disney area is not particularly a good investment.
It’s a bit over built. Second, areas north of Tampa Bay on the west coast
and north of Daytona Beach on the east coast have winters that are a
little too cool to attract vacationers the year round. Therefore, the
best places for investment in vacation rental homes will usually be further
to the south, especially the Florida Keys. Also, the vacation real estate
investor should only purchase in communities permitting short-term (weekly)
rentals. Many of the advantages enumerated below will not materialize,
if short-term rentals are prohibited.
The Mortgage Meltdown and Recession Has Created Gold for the Savvy Investor
While home purchase prices have declined in Florida, the allure of the
weather, beaches and waters continue to attract vacationers. During
the summer almost everywhere in coastal Florida is a good vacation
choice. During the winter, the ‘snow bird’ crowd flies in for several
weeks or months of temperate weather in the more southerly areas of
the Sunshine State. During the rest of the year, short-term rentals
are fewer, but still exist.
In line with the above, a weak economy means that many, who might normally
opt for a vacation in Europe, have decided to spend their vacations in
Florida. Also nowadays, people employed in corporate America are less
apt to take long vacations fearing that they might not have a job after
returning from a two-week junket. Further, because of excellent airline
service throughout Florida, now almost anyone can easily squeeze in a
few days of sun from almost anywhere in the continental U.S.
This translates to opportunity for those looking to purchase vacation
properties in Florida for investment. There are some excellent advantages
to owning vacation real estate, as well:
• A Florida vacation property doubles as an investment as well as a
vacation escape
• With a fall in prices and rentals remaining at or near their previous
levels, a property on a weekly rental basis can quickly show a net positive
cash flow
• With basic depreciation and other out of pocket expenditures as deductible
expenses, it is likely that an investor can show a “taxable” loss, thereby
reducing federal income tax liabilities.
• Regardless of the future, a typical vacation home with its rentals
can carry itself handily on into the future. This of course, assumes
that the investor purchased the property at a reasonable level.
Assuming that a property can generate short tern rentals and also assuming
that mortgage payments are not excessive, a property as stated previously
will be a net positive investment.
As home prices start to regain their footing, vacation properties in
Florida, obviously will also enjoy the same price increases. If an investor
decides to sell his vacation property at a later date, history has proven
that the net rate of return on his investment, including rentals should
be equal to or greater than other investment alternatives that could
have been undertaken and available at the same time. When taken in total,
vacation properties in Florida in the right areas at the right price
is an investment worthy of serious consideration.
Destination Resort Spectacular: The Florida Keys
Real estate is now a shaky investment with plummeting prices, high unemployment
and enough uncertainty regarding the future to scare off even the most
stalwart real estate investor. This situation is precarious almost everywhere
except with respect to the ownership of vacation rentals, particularly
at destination resort locations.
Destination Resort Areas
Some shining example of real destination resorts are The Florida Keys,
particularly Key West, Nassau and ski vacation locales such as Telluride
and Aspen. What makes the Florida Keys a premier resort location is
the fact that it offers vacationers a year round destination. While
it’s true that Nassau, like Key West are cruise destinations, Key West
and to a lesser extent, the rest of the Keys have incredible vacation
attractions year round.
This is the key advantage that Florida Keys resort properties enjoy
over ski resort properties in Colorado, California or Utah. The winter
vacation season in Florida starts in late January and ends sometime in
April. Beginning in June, the summer season kicks in until Labor Day.
However, if you walked on the streets of Key West during the “off seasons”
you couldn’t fail to notice tourists taking snapshots, fishing off the
pier or enjoying the sights and sounds of old Key West. Cruise ships
typically make port year round in Key West, probably to a greater extent
than even in Nassau.
Other Keys Resort Areas
One shouldn’t overlook other Keys destinations such as Islamorada located
about 78 miles from Key West and 53 miles from Miami. That’s a one
hour drive to the airport. (Key West has its own airport, albeit somewhat
small with limited service). The major advantage that Islamorada offers
is its beauty, easy going life style and ready access to excellent
restaurants and even some funky night spots.
There are other locations worth mentioning in the Keys, especially Key
Largo, with its proximity to Miami, great diving and fishing. Certainly,
Marathon and some of the lesser known Keys are certainly worth considering
as investment opportunities which also offers an owner a great place
to stay while not rented. However, Key West will still be the major draw
in the Keys as an income producing vacation area.
Investment Points to Consider
It’s a fact that more than 50% of the vacation properties owned (condos
and private homes) are owned by Florida residents. Another interesting
fact about the Keys, is that more than 55% of the properties that are
sold in the Keys are sold to people that visited there loved and loved
what they saw. Therefore, the key point (no pun intended) is that the
Florida Keys are an important vacation choice for people wishing to
own their piece of paradise.
At the same time, the rentals on most of the properties can be used
to defray most, if not all of the costs of owning a vacation property.
In fact, after a few a years, the typical owner will have a net positive
income based on vacation rentals. Of course, there is a trade off: how
much does one wish to use their property versus how much income they
do wish to generate with their property?
A Contrast: Owning an Investment in a Non Vacation Area
One of the primary reasons people elect to rent properties in non vacation
locales versus vacation properties is the belief that those renting
an apartment or home are less likely to damage the property where they
reside. This is a specious argument, notwithstanding the problems that
might result from renting to college spring breakers. Typically, if
you judiciously rent your home or condo, carefully screening to whom
you rent, there is little chance of major damage occurring.
This raises the question: why? Those visiting vacation properties in
the Keys are spending most of their time outdoors sightseeing, fishing,
diving, swimming, etc. While those in non vacation areas in their homes,
spend the vast majority of their time (24/7, as it were) within that
property. Breakage and damage is statistically more likely to occur,
as a result of family problems and/or the wear and tear on a dwelling
occurring with daily use. Another factor is partially socioeconomic.
When a vacationer throws down $1,000 or more per week for a vacation
rental in addition to a sizable security deposit, they are less likely
to damage a well maintained vacation rental and may typically be more
advanced in their career or job.
It’s Better in the Keys
In almost all ways, Florida Keys destination properties are certainly
on a par with Telluride or Nassau. However, the Keys offer the added
benefit of having an extended vacation season. Moreover, whether you’re
interested in the Upper Keys (Islamorada) or Key West (the Lower Keys),
property values have not depreciated nearly as much as they have within
the rest of Florida or the rest of the country. There are two good
reasons:
1. There is an overabundance of vacant properties throughout
the U.S. as homes go into foreclosure.
2. Key West or Islamorada are
vacation destinations and will perpetually produce income.
With an ongoing recession, vacations within Florida will be an even
more attractive alternative to vacations outside of the country. Thus,
a property purchased in the Keys will be an income producing property
(zoning permitting) in the foreseeable future. As an investment vehicle
and as a place to enjoy some ‘fun in the sun’, few vacation destinations
top Florida Keys real estate.
What to be aware of in Buying a Condo
There are some important considerations to take into account before
you make the final decision to purchase a condo. Too often, people overlook
these critical issues and end up regretting their purchase down the line.
Do your research carefully and you will make a sound investment. What
should you be looking out for? Here are a few important questions to
ask:
Is the condo complex professionally managed?
You should examine all HOA documents carefully. It is important to establish
whether or not the complex is professionally managed. It is a good
idea to speak with other owners to get their impressions of the complex
management. Also, look at the turnover rate of elected HOA members.
If there is a high turnover rate this may indicate that the HOA may
be disorganized and ineffective. Analyze the minutes of previous HOA
meetings to see what the issues are and if they have been dealt with
effectively. This will also reveal any major projects that might be
under way. What do the association dues cover? Are owners paying their
association dues? If there is a significant amount of unpaid dues,
it could be a sign that the HOA is ineffective as well as underfunded.
Check the HOA’s accounting records. Is there sufficient money in the
reserve account to cover any emergency repairs? If not, the HOA dues
could be increased to cover these unforeseen circumstances. Lastly,
check that the HOA is not currently involved in any litigation.
What insurance policy is in place?
Ask for a copy of the certificate of insurance to get more information
on the association’s insurance policy. You need to know exactly what
the policy covers. Is there sufficient cover to rebuild the complex
should something happen? Are the replacement costs outlined in the
policy an accurate reflection of the cost of rebuilding? Does the policy
have a building-ordinance clause?
What are the HOA bylaws?
This is where buying a condo differs significantly from buying a single-family
home. The HOA’s bylaws can be a minefield of information. They can
be difficult to understand and interpret. It is a good idea to have
a real estate attorney look over the bylaws on your behalf. You should
know exactly what you will own and what you won’t own.
How many units are owner occupied and how many are rented?
Generally, owner occupied condos are maintained better than rented condos.
If there is a high number of rented condos make sure that the HOA has
a clear rental policy. Find out exactly what these policies are and
if they manage the renting out of condos or not? Do they stipulate
that you use their lease agreement? If so, have your real estate attorney
look over their lease agreement. Also be aware that the HOA may prohibit
the renting out of condo units. You should be aware of all these fine
details before you make a final decision to purchase.
How often are units bought and sold in the complex?
A high turnover rate of units bought and sold could be a clear indication
that something is not right in the complex. This could affect the value
of all units. Talk to other people living in the complex and ask them
about the high turnover rate. Current owners will probably be quite
willing to reveal any major problems to you.
Buying a condo is a complex process. Make sure that you do your homework
thoroughly to avoid disappointment later. As with any financial investment,
a sound analysis and investigation will significantly reduce the risk
involved.
Let’s get going. Contact me Now
I am
a 29 year resident of Key West who loves and cares about our island.
I have seen alot of changes here but still am a believer of the Florida
Keys real estate market. Married to a wonderful man who shares in my
love of the water (both of us certified divers) and motorcycling (I
have a '73 Harley Davidson shovelhead). Lifetime member of ABATE, dog
owner and lover, real estate owner, foster parent.
