Florida Real Estate News

 If you weren’t aware, the federal government has been offering a first time home buyer credit of $8,000  when you buy your first place.  Unfortunately, if you aren’t already actively involved in looking and making offers, the time to get that credit is soon to run out.  “Act Now” as they say on TV.

More good news may be on the horizon though.  We’re hearing word and seeing more evidence that some legislators are considering extending the $8,000 first time home buyer credit and adding a provision for existing homeowners to get a $6,500 credit for moving up.  Though it’s clear that many others are now buying in Florida and elsewhere, an extension and the new provision would be a welcome helping hand to the upticking economy. Whether you are a first time home buyer or an existing homeowner, it would be hard to argue that the we aren’t already seeing rock bottom prices for real estate in Florida so take advantage of the tax credit, low mortgage rates and the great deals now because buying and investing in real estate in Florida doesn’t get much better than what we’re seeing right now.

Here’s a quote supporting the possibility:

“We would help first-time home buyers, and we would also help homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus…”

Read more about it here.

UPDATE:  The proposal passed in the Senate and the House may be voting on it today (Thursday).

 According to a new report from the Florida Association of Realtors (FAR), September sales of existing condos in Florida increased a whopping 77% over last year’s numbers.

Confidence in buying is back in a big way and not just for first time home buyers getting the $8,000  tax credit either. 

” (Anita) Williams, broker-owner of The Realty Firm Inc. in Destin, observed that buyers were a mix of traditional first-timers and move-ups, as well as seasoned investors and cash purchasers looking to invest in a rental or vacation home.

“There’s a lot more people coming in from out of state to buy condos here,” she noted. “Once they visit, they want to come back. And they want to buy a place of their own to come back to.” ”

There are a number of luxury and near luxury condos available throughout the state at bank minimum prices and buyers have already started to take advantage.  The clock is ticking on the tax credit and certainly many are rushing to get in but others, particularly those who have watched the market for some time, are buying now because they recognize the market will soon only be going up.

 Read this article for more.

“Starwood Sees Payoff in Patience” – Wall Street Journal 10/7/09

A Starwood Capital Group led consortium is buying the Florida condo assets of the broken up Corus Bank.  In this depressed market Starwood sees opportunity for  real investment return in Florida condos in the near future.

Starwood’s Barry Sternlicht makes their motivation clear:

“In years three, four and five, there won’t be any more new condos being built in these markets and you’ll be one of the few guys with new inventory.”

This is what recovery looks like.  A bubble bursts, consumer confidence understandably goes down, distressed properties accumulate and then, after a bit of time, people remember that unusually low prices, bank approved unusually low prices, are a good investment.  We’re now seeing some of the lowest prices in the Florida condo market than we’ve seen in almost a decade.  It’s especially good for first time home buyers considering the federal incentives now being offered for first time homebuyers in Florida.  Not to mention that that three, four year timeline also works particularly well for students in Jacksonville because of the variety of well built, affordable condos. Parents can invest in both their child’s future through tuition AND in a money maker by investing in Florida property their child can live in as student housing while it accumulates profit and provides real tax benefits.  In Jacksonville’s Riverside Historic District, The Chelsea Lofts has seen a spike in sales as prices were reduced to bank minimums and buyers “waiting for the bottom” found the award winning project attractive.

Read the whole article HERE

It’s a buyer’s "make an offer" market. Everyone knows that.

What a lot of buyers don’t know is that if cash out of pocket at closing is one of their impediments to buying, that they can solve that issue in the price negotiation with a seller.

Most lenders will allow a seller to contribute up to to 6% in "seller incentives" to a buyer for approved line items at closing. If a buyer is going to offer a seller a lower purchase price, part of the offer can involve the seller contributing up to the full 6% to the buyer’s costs at closing. In addition to standard closing costs on the transaction the items picked up by the seller could also include points to buy down the interest rate or even a decorating allowance.

If the buyer has not yet selected a lender, a contract addendum could read something to the effect that the seller will contribute 6% of the sales price to buyer’s closing costs in a manner acceptable to buyer’s lender. When the buyer settles on a lender, the lender will tell them what can be paid by the seller per their guidelines, and the closing statement is prepared accordingly.

So just what is Property Tax Portability? Recent Florida legislation allows residents that are moving from one primary residence to another to bring the accrued property tax savings on the taxable value of their existing homestead property with them to their new primary residence. This can mean up to a $500,000 decrease in the taxable value of the new home, which translates into a significantly lower property tax bill. Under the old "Save Our Homes" legislation, Florida homestead residences are protected to a maximum 3 percent increase in the assessed value each year. Without the portability provision, if you moved from one homestead to a new one, you lost all of the assessed value savings created by Save Our Homes and your new home was assessed at current market value. The Portability Amendment makes that accrued tax savings "portable" so you can transfer up to $500,000 of your accrued Save Our Homes benefit to your new home. EXAMPLE: You sell your current Florida Homestead that has an Assessed Value of $200,000 and a Just (Market) Value of $350,000. $350,000 – $200,000 = $150,000 in Tax Benefit. You buy a new home for $400,000. The $150,000 SOH tax benefit is applied to the new homes Just (Market) Value to creates a lower Assessed Value. So if you own a home in Florida and are considering buying a new home while market prices are at historical lows, a dramatic change in property taxes may not be something to influence your decision. Homeowners who sell one home in order to move into another full time, will find that the taxes on their new property are adjusted to reflect the savings from their old home.

It might not be what you think. The $8,000 first time homebuyer tax credit provided for home purchases in 2009 has a few definition wrinkles that include more people in the incentive than I originally thought. According to the IRS newsroom website, a first time homebuyer is anyone that has not owned a home in the last three years or had a home destroyed by a natural disaster. Its confusing. Maybe they should have called it "the $8,000 recent homebuyer tax credit". Anyway, there are quite a few terms and qualifications. Here is a link to some information that I pulled from the IRS newsroom site: LINK TO IRS NEWSROOM. Anyone making a purchase might want to check it out.

As many people know, there is a lot of potential in the Florida real estate market right now. All the experts are predicting everything from the luxury lofts in Jacksonville to the lovely beachfront properties in Ponce Inlet will rebound to their former market value. With that in mind, people considering investing in one of these Florida waterfront communities should make up a list of the features they will need to look at.

1. Price. Of course the first question is what the property costs. You can even narrow down this aspect to what you need for a down payment. The experts suggest that you look at the price not just for the isolated property but in relation to what people are asking in the immediate area. Remember that real estate agents won’t always show you the bargains only. You’ll need to do some sleuthing on your own as well. 2. Location. And of course it should be no surprise that location is a central issue. Remember that although the immediate neighborhood is critical to the appreciation value of the property, there are other factors that should be considered, including the availability of amenities nearby and what kind of noise disturbances are possible in the immediate location.

When you’re looking at Florida real estate, neighborhoods in transition are another aspect that you want to consider before investing. In a positive transition area older properties are being upgraded to accommodate a new generation of owners.

When you’re looking for the best in exquisite style and luxury, there are few places in America that can beat what Cranewoods Developments has put together in Jacksonville. These people have taken great pride in maintaining the best of their Florida real estate properties through this economic downturn, and their commitment and dedication to exquisite craftsmanship and amazing location is evidenced by one home they have for sale in particular.

This intracoastal West waterfront home has over 160 feet of waterfront. This is truly the house for the person who loves the water and wants to be near it while enjoying the luxury of a well built and exquisitely appointed house. And when you are not outside enjoying the waterways, you will certainly be able to enjoy the inside of this home that is located at 13840 Four Winds Court in Jacksonville.

This is the place that has a wide open concept and high ceilings for your enjoyment and, as well, there are other appointments that include a guest cottage, games room, and gourmet kitchen so that you’ll always be able to enjoy the best of life in Jacksonville, inside or outside.

It’s important to remember that places like Cranewoods Development have not let their commitment and dedication to quality slide during this economic downturn. On the contrary, they have been able to maintain their usual high degree of excellence in the homes and other properties that they represent, including this lovely one in Jacksonville.

If you’d told people just a few years ago that St Augustine waterfront lots would be some of the most affordable properties in Florida real estate, the chances are they would have laughed at you right on the spot. People would have thought they were lucky enough to visit one of these Florida waterfront communities or maybe even rent out one of the condominiums or luxury beachfront homes that dot the landscape in St. Augustine, but they would’ve never thought that waterfront lots would be within their price range. Affordable Waterfront Believe it or not there are six of these prime St. Augustine waterfront lots that are being sold at a drastically reduced price. This is the opportunity of a lifetime for the investor who has the ability to buy at these low prices and wait for Florida real estate to rebound or perhaps even build on the lot themselves. It’s good to know that there are still top-notch professionals doing business with these Florida waterfront communities. Cranewoods Development has taken the lead to ensure that all of their richly appointed waterfront properties, as well as the lots, have been kept in pristine shape waiting for the right buyers to come along. This is the development company that has been working quietly behind the scenes through the economic downturn to ensure that Florida real estate is still as luxurious and well appointed as it has always been historically.

Not everyone involved in Florida real estate believes that the bad economic outlook will affect the state’s properties negatively. All through the various Florida Waterfront Communities there are people who have a positive attitude and are moving forward with their plans and ambitions despite the economic downturn.

Take the Jacksonville-based PARC Group, for example. They are doing their part to see that Florida real estate stays on top for the best amenities by forging ahead and starting construction on a 2,400-acre Nocatee Preserve. And this isn’t the only group that is supplying a positive attitude in the hopes of turning things around for the Sunshine State.

There are a few noteworthy developers as well that are taking the bull by the horns and making sure that the properties they are offering, even though they have dropped in price, are still in the pristine shape that they were built in. Cranewoods Developments is one of these companies.

These are the people that have interests all the way from St. Augustine to Ponce Inlet and their properties have the best amenities and the most luxurious style that often comes with things like personal sand dunes and beautiful waterfront beaches that are sure to be in high demand once the economy turns around.

It’s important to remember that when Florida real estate bounces back, as it will, the people who had the foresight to invest and buy these properties now will be in a position to make their money back and then some.