My Real Estate Articles

How To Control Your Finances And Not Vice Versa! added 1-24-2012

There is no escaping personal finances, they touch every aspect of your life. Even the little ones need to figure out how to allocate their allowances. The older you get, the more complicated your finances become, until it seems impossible to deal with. The following article has some effective ways to take control of your finances with confidence.

Be very skeptical about any guarantee that your credit history can be improved. Lots of credit repair companies want you to think that they can fix any situation of bad credit. This isn't accurate since there is no similarity to how your credit score is affected to how another deals with credit issues. To guarantee success would be a fraud and no one should make this promise.

One way to get your finances in shape is to plan purchases and debt paydowns, far ahead of time. This plan will encourage you to stay on track, and stop you when you become a spendthrift.

You may not know it, but when you pay full price, you are paying too much. Don't feel like you need to be loyal to specific brands, and concentrate on buying only when you have a coupon handy. As an example, if you usually purchase Tide laundry detergent, but presently have a money-saving coupon for Gain, purchase the Gain and save some money.

If you search online, you can find coupons that you could not find in other places. Looking for coupons only takes a few minutes and you could save a lot of money.

These tips will help anyone understand and shape their personal financial situation into a healthier, more productive situation. No matter whether you're starting with five dollars in the bank or with five thousand in investments, the same principles apply, and you can use tips like these to boost yourself into a new, better way of life.

Increase Your Home's Worth With These Recommendations-added 12-12-11

The home improvement process can either be a huge benefit to your lifestyle or a major irritant to your pocketbook. The suggestions ahead can provide you with some additional perspective to apply to your next job. This should help you meet with success in home improvement.

There may have been times you considered buying a house, but realized it did not have enough bathrooms to live in comfortably. One of the most essential things about a household are how many bathrooms it has. A proven way to increase the resale potential of your house is to add on another bathroom.

An easy home improvement job is installing a new mailbox. A newly replaced mailbox is a nice looking addition that gives your home instant curb appeal. Many cities have codes that dictate how far off the road and how high a mailbox should be; therefore, check your city's codes before installing your mailbox. Putting in a new mailbox should only take a couple of hours, and will make a big difference.

Almost any material you purchase to make home improvements might tempt a thief. You should be sure to secure them when they are not being used. If the home itself is secure, with windows and doors that lock, it is fine to leave the supplies inside. If you have a open home try putting them in a storage place that is able to be locked.

When you are remodeling your home, do your plumbing and electrical projects first. These repairs usually require holes to be drilled into walls and floors, so it is best to do these repairs before others such as wallpapering or laying new flooring. Additionally, it's much easier and less costly to get your plumbing and electrical maintentance done when walls are already torn open.

Be certain of safety precautions from the outset of a home improvement project. Taking the right safety steps will help make sure no one is hurt. Make sure consult a project guide and learn how to use all power tools involved in the project before you start.

Save money on home improvements by joining with your neighbors and setting up a 'community toolbox'. You won't have to spend money renting or buying expensive tools and the owner will also become an expert at operating the item. Not only that, the two of you can trade tips.

It should be clear by now that home improvement can be complex. You will find that your research and effort make the projects you take on worth every moment invested. By following the tips listed above, you will be able to successfully complete the jobs that you start.

Pricing a Home to Sell added 11-21-11

If you are considering selling your home, one of the most important things you can do to enhance its sales potential is to price it right. Pricing a home to sell requires a good deal of research as well as being realistic when it comes to the true current value of your property. Let’s discuss this further.

The current real estate slump has certainly hit many people very hard. Properties have dropped in value significantly and sales have certainly been affected as well. However people are still buying homes so if you decide to sell yours, there should certainly be a good opportunity for you to do so. However as indicated earlier, you should set a realistic and attractive price on the home in order to generate interest, traffic, and ultimately a sale.

It is certainly natural that one would want to get as high a price for his/her property as possible. Many would also say that it couldn’t hurt to set a high price and then consider lower offers. The problem is that it has been shown that there are certain price ranges which potential buyers look at when considering different properties. This is especially true when reviewing listings.

If a buyer decides that their budget allows them to spend up to $200K, they will set search parameters within that range. If your home is listed at say $225K, they may not even consider your home because it falls outside of their desired range. So even though you may be willing to accept a price below $200K, many buyers in that range will never know about your home or consider it.

When many real estate markets went through a great deal of turmoil, a lot of sellers listed their houses close to the original high prices they were getting. The limited number of buyers did make offers far less than those listed prices.

However it does appear that a home can move more quickly if it is priced very realistically based on the current market conditions. If you are working with a realtor, he/she can provide you with a lot of assistance and resources in determining the best price to list your home. And many homes now sell for close to the asking price if it is indeed set at a realistic level. So if you do price your home at a level which is appropriate for the current market conditions, it should have a better chance of selling much faster and at a price which is much closer to the listed selling price.

The Keys: Get there Before the Next Boom - added 3-28-11

The real estate market throughout Florida as in many other area of the country, looks like a dangerous place with the potential that prices may continue to fall…with the possible exception of the Florida Keys. Yes, it is true that during the incredibly oversold market commencing in 2003 and on, prices within Florida spiked only to come tumbling down during 2007 which continues to this day. This was the inevitable consequence of bad lending decisions coupled with buyers lacking the wherewithal to carry the home. This happened virtually everywhere else in the country.

The Florida Keys are Exceptional and an Exception
One of the main strengths of that market protecting the Keys from some of the dangers in the current real estate market is the fact that the vacation rental market environment is a life preserver to the real estate investor, despite the fact that many have chosen to reside there on a permanent basis. In other words, many of the properties whether condos or homes, are still attractive vacation destinations.

As long as a property can be rented, the investment is self-sustaining. The Keys can always be rented, depending upon the area, on a weekly or monthly basis. This makes them more attractive for investment purposes than the typical home purchased by the home owner as a primary residence anywhere else in the country. In other words, the Florida Keys real estate market was never in a "bust" situation.

The facts bear this out. According to Standard and Poors.com, aggregate real estate prices throughout the U.S., comparing 2000 with 2010 were only 2.6% greater in 2010 than during 2000. While actual sales price in the Florida Keys were 52.1% higher in 2010 than in 2000 ($274,995 vs. $418,209)! Certainly there were declines in Keys real estate prices on a comparative basis during the last half of the decade. This only serves to point up the fact that Keys real estate is very high priced and even when it had declined, prices remain at levels significantly above 2000.

Moreover, this data includes all Keys "residential" real estate, which also takes in vacation rental property, such as homes or condos that are rented out. If that data were available for comparison, it is highly likely that the historical prices would even have exceeded 52%. However, it is important to point out that certain other areas such as New York City and Washington, DC also fared very well over the decade because of explosive Wall Street wealth and the growth of the federal government which affected real estate in the greater Washington DC area.

Short Term Rentals are Key
Despite the overall weakening in the economy and the unsteadiness in the real estate market, vacation rentals in the Keys are strong and this will of course, maintain housing prices within the Florida Keys. However, to the joy of potential real estate investors, the current market rating for buyers is now resting at 1.0 indicating that it's an excellent market in which to purchase. Certainly, if one's intentions are to make a property a business investment and pursue the short term (1 week to 1 month) rental route, the investment will pay for itself in the short term. In fact, the shorter the duration of rentals, the higher the rent and thus, the better ROI the investor enjoys.

There are other advantages that work for the investor. If the property is set up as a business and incorporated, many of the normal housing expenses incurred can be deducted as a business expense. This has the result of decreasing an investor's personal income and taxes, overall. Also, an investor is permitted to make trips to the property for "business purposes" which also permit the investor to use the house or condo and mix business with pleasure, with all expenses being tax deductible.

The longer term real estate outlook for the Florida Keys is exceptional. Because Monroe County has a moratorium on building and because of obvious geographic reasons, the amount of homes and condominiums is finite and for all intents and purposes, capped. Therefore, the market will dictate that the only place for prices to head is up. Even if a recovery is slow, the fact that a property can maintain itself through short term rentals makes the Florida Keys an incredible year round vacation/business destination investment.

Distressed, Depressed Florida Vacation Properties with Potential added 1-19-2011

Buying a home, whether for investment or actually planning to live there is challenging in today’s real estate market. And with current economic conditions, you may be hesitant to take the plunge, always thinking in the back of your mind, “Maybe the price will drop further!” Well, sometimes it does and sometimes it doesn’t. One general way to guard against the unthinkable price drop is by purchasing a home that has already taken a deep plunge due to its condition. Maybe the prospective investment home could be described as “shabby” and maybe there area few “rocks” under the surface, yet to be discovered by a hapless investor. At the same time, such properties may also present a real estate investor with tangible opportunities and many of these can be found down in Florida.

The Florida Market is Depressed...but Depression Sometime Spells Opportunity
While depressed values in Florida may be true, there are still attractive opportunities to be found. Among the most promising are homes and condos located in desirable vacation areas, especially in parts of Florida, like Vero Beach and the Florida Keys. We’re considering homes and condominiums that might be defined as ‘distressed properties’. Many of these could be near the beaches or waterfront areas and normally could be rented out on the weekly or monthly basis during most of the year, if they were in presentable condition.

Florida vacation properties will always be in demand by tourist regardless of the economy:

• In a weak real estate or economy, people will still take vacations, but rather than drop thousands for lavish destinations in Europe or elsewhere, Florida is still a great vacation destination.
• In a strong economy, many will still opt for Florida as a fill in or second vacation. It’s easy to get to Florida from anywhere in the U.S. and airfares to and from are typically reasonable

The Florida Vacation Connection
The areas we’re considering are located mostly on the east coast of Florida, such as Vero Beach and the Keys. Although parts of the west coast are also desirable and quite obviously this approach will certainly work there, as well. Single family homes or condos near the beach or the shore front areas will command high prices, but in today’s real estate markets, what is high anymore? This investment strategy is intriguing, but there are a few factors that must be considered.

Averting a Home Purchase Disaster
Obviously, there are dangers inherent in purchasing distressed properties. Sometimes the previous home owners never maintained the properties very well and sometimes they’ve moved out because of foreclosure and actually vandalized their own homes, rendering them unlivable. Other times, a home is just so old that modernization is absolutely mandatory. There are many reasons why a home is in substandard condition. Should this deter you from making a purchase? No, not if appropriate precautions are taken prior to finalizing on the purchase. And the price can be adjusted downward, if possible.

Also, keep in mind that real estate in Florida vacation areas will always be in relatively high demand because of its income generating potential. Unlike typical residential locales, the land in vacation areas will always have a high value relative to other areas in the sunshine state Even if a home must be practically rebuilt, this renovation will further enhance the value of the investment. Caution is the name of the game and making sure that the price is consistent with your minimum income generation expectation is your ultimate goal.

However, there are fundamental issues that must be explored and answered to your satisfaction in order to avoid a catastrophic mistake, prior to finalizing on this type of real estate transaction.

1. Question the neighbors as to what type of person the previous home owner was. If your sense after speaking with the neighbors was that the previous occupant was erratic and possibly negligent about maintaining his home, you might avoid the purchase or at least you’ll be on guard.

2. Always, always, always check out the zoning. If short term rentals are prohibited, don’t expect to obtain a zoning variance. The property, under these circumstances, can not typically generate enough revenue to justify the purchase.

3. Always use an expert home inspector that has been recommended. He should be able to sort out and identify major problems from minor problems. Once problems are identified, then they must be quantified and whether you perform the renovation yourself or use outside contractors, the cost of repair and renovation must be realistic. You should factor in a 10%-20% cost over run in determining your cost basis, to account for unforeseen circumstances.

4. If the home you’re considering purchasing is a VA repossession, attractive price and mortgage opportunities are available, including obtaining financing directly through the VA. The VA however doesn’t guarantee home condition and therefore inspection is still mandatory.

5. An alternative approach might be to use the FHA HUD program section 203(k) which will assist you in rehabbing a property. The only limitations are with condos for investment which is prohibited under HUD regulations.

6. Whenever possible, consider an investment vacation home in an area where the property you’re considering is one of the lesser expensive properties in a more expensive area. This will offer some upward potential, as opposed to buying a more expensive property in a lower priced area.

7. Now, once you have established realistic and conservative costs, you will need to run a rate of return analysis to see if your potential weekly/monthly rentals can afford you the ability to purchase the home and enjoy a positive or at least break even cash flow after all relevant costs, realistic expenses and revenues are taken into consideration.

Assuming that the number work, you can begin the price negotiation process. Also keep in mind that if the property is now salable and economic conditions have substantially improved, you can always sell and cash out your investment for a profit. Of course, having a vacation property in a sought after location gives you a place to go and relax from the stresses of life.

Florida Beach Towns Beat Big City Stresses added 12-2010

Living in a big city doesn't always mean instant advantages. Traffic noise and pollution, deadlines set for yesterday, rising crime and insurance rates, and the cost of living index, to name a few: Stresses in today's cities can overwhelm the senses and well-being of even the strongest. The negative effects of city life can impact all facets of life.

Health
Extended exposure to constant stress reduces one's ability to withstand disease and permanently damage one's physical health:
1. High Blood Pressure
2. Heart Attacks
3. Strokes
4. Ulcers
5. Natural Immunity
6. Sleep
7. Teeth and Gums
8. And many more.

But the negative effects don't stop with just the body. One's mental health often suffers, as well:
1. Depression
2. Desperation
3. Night Sweats
4. Nightmares
5. Road Rage
6. And so much more.

Friends, family, co-workers, bosses, customers, and even strangers can both affect and be affected by common stresses found in the city. Unless one completely sequesters him- or herself from exposure, there's really no way to avoid city life stress. But that presents it’s own stress factor list.

What might be done to reduce those stresses? Move to a quiet, beautiful beach town in Florida!

Calmer Living
Reduction or elimination of major stress factors plays a huge part in improving both physical well-being and mental and emotional outlook. Changing living locations to a slower, calmer, more pleasant environment, such as smaller beach towns on the Florida coastline can vastly improve physical and mental health.

Commutes of minutes instead of hours, breathtaking scenery, and affordable living costs all present themselves in Florida beach towns. Sandy beaches, friendly neighbors and shopkeepers embrace peaceful living and incorporate serenity into the way of life along Florida's coastlines.

From Vero Beach to Jensen Beach, Florida coastal beach towns offer the potential of reductions in virtually every category--except, of course, increases in peace of mind, relaxation, and overall satisfaction.

Solution
Close to major metropolitan areas or more isolated locations, Florida beach towns gift visitors and residents, old and new, with revised outlooks and reduced stress with peaceful ways of life!

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. 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.

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.

The Importance of using an experienced Real Estate Agent

There is a lot of hard work that goes into buying or selling a house.
With today’s market and economy, that hard work has become even tougher.

That is exactly why it is critically important that you hire an expert to help you navigate through all the details and negotiations.

Yes, there are lots of Real Estate Agents, but not all of them may be looking out for your best interest. Therefore the first thing you need to do in this process is to find a real estate agent that you can trust, that has experience and importantly has great negotiation skills.

From the experience side of things.

A few things to ask a prospective agent?
How long have you been in Real Estate?
Do you do this full time?
What are your sales stats for the last couple years.
(These may seem like intrusive questions, but any top-producing agent will actually welcome them)

The importance of Negotiation.

Negotiating is probably the most important skill that an agent can possess. The agent could be an excellent salesperson, but without negotiating skills you might not be getting the best deal for your dollar.
A really great agent will listen to the concerns of both the buyer and the seller and then work on something that benefits both parties.
A great negotiator will ask the proper questions to find out exactly what those concerns are, and in addition what each side wants to ultimately accomplish.
The goal being, to turn your transaction into a win-win situation for both parties.

Area knowledge.

An agent should have in-depth knowledge of the area in which the property is located.
From a seller’s perspective, knowing the actual value of the property and how much the sellers could get for it is vital.
From the buyer’s perspective, the agent should know about schools, local amenities and even which local business are in the surrounding area. On the subject of tax rates, building codes, home repairs and insurance costs, an experienced agent can also point out exactly where to get the information.

In conclusion, picking an agent that has the experience and negotiating skills to help with selling or buying a home is an incredibly important step. Be careful to choose a strong partner in your pursuit of either selling or buying.

A World Away – Vacationing in the Florida Keys

The Florida Keys offer many of the same laid back characteristics as the Caribbean, without ever leaving the United States. Amazing sunsets and a free spirited attitude all contribute to the laid back atmosphere of the Keys.

There are many activities to do, like sport fishing, scuba diving and snorkeling, boating, sailing, kayaking and eco-tours. Each island destination has its own special features. These islands are also rich in culture and history with many galleries, restaurants, festivals, music and theater to visit and check out. Of course, just relaxing is always an option throughout the Keys as well.

The Keys span about 120 miles and are connected by bridges and causeways, running south west from Miami. This area has the only living-coral barrier reef in the United Stares and is approximately 5 miles off shore and runs the entire length of the Keys.

The first island in the Florida Keys is Key Largo. Being close to the Everglades National park, there is much wildlife to be seen here. It is a popular destination for kayakers and bird watchers. There are many amazing scuba diving or snorkeling sites in Key Largo as well, with many sunken wrecks in the area. The John Pennekamp Coral Reef State Park is located here and offers scuba and snorkeling tours, glass bottom boat tours and swimming in the Florida Keys National Marine Sanctuary. In 2002, the navy ship, the USS Spiegel Grove was sunk to provide a reef here and a sunken wreck for divers to explore.

The next island in the chain is Islamorada. It is comprised of six islands including Plantation Key, Windley Key, Upper Matecumbe Key, Lower Matecumbe Key and the offshore islands of Indian Key and Lignumvitae Key. This area is well known for its world class sport fishing. There are many fishing tournaments held here each season.

Marathon Key is in the middle of the Florida keys. It is famous for the Seven Mile Bridge, which links it to the Lower Florida Keys. You will find great shopping and many fine restaurants offering fresh seafood. At Crane Point Museum, there is one of the last untouched tropical hardwood hammocks in the Florida Keys.

Big Pine Key is known for its boating tours and for bird watching and fishing. The diving and snorkeling is great here too. It is a quiet region of small resorts, home-style restaurants, vacation homes and untouched natural areas.

The last of the Florida Keys is Key West. There are many festivals, shopping and restaurants. Boat tours provide a great way to view Key West from the water. The snorkeling and diving are renowned here to see a diverse array of marine life. Wrecks and reefs, both artificial and natural coral, are home to hundreds of species of tropical and game fish. Many visitors rent a bicycle or go on walking tours to explore the history and architecture of Old Town Key West.

So if you are into eco-tourism, scuba diving or snorkeling, shopping and dining, or just want to relax in a tropical paradise, the Florida Keys may be the destination for you.

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