SOUTH BEACH INVESTMENT REALTY

YOU LEARN SOMETHING NEW EVERYDAY!!

sbirealty — Fri, 28 Mar 2008 16:01:01 +0000

Real Estate is reinventing itself these days! Alot of the sales involve a short sale and sometimes I wonder if the rules aren’t being invented as we go. Each sale is different and the banks are difficult to work with due to the overload! To sell a property under these conditions, all parties involved need to exercise a great deal of patience. Also keep talking to other people about their experiences with the short sale and keep ahead of the knowlege curve. Being proactive in a short sale is a challenge!

Short Sales in Miami

karenkafin — Wed, 19 Mar 2008 16:00:07 +0000

I’ve been in Real Estate through the tough times of the eighties, the great times of the past 5 years, and now. Now is actually quite exciting! You can really find some fantastic deals here. If you are European, forget about it!! You really get the deals because of the value of the Euro in comparison to our dollar.

This time is exciting to me because more and more of the unprofessional realtors who are a bane to this profession are leaving in droves!! Yeah! Good riddance and please don’t return anytime soon.

Miami Confidential by NAR Chief Economist Lawrence Yun

sbirealty — Wed, 19 Mar 2008 15:41:04 +0000

Miami has a glut of homes for sale. Skylines are dotted with cranes and construction of high-rise condominiums just keeps continuing - guaranteeing an even a bigger glut. In five years, do not be surprised if home prices in Miami are 20 to 30 percent higher than the current levels.

Current homes priced at $200,000 could sell for $250,000; a current million dollar home for $1.2 to $1.3 million, in five years. If a buyer is successful in price negotiation - which can be done in the current buyer’s market - the return on price purchase will be much higher.

The median home price in Miami was $80,500 in 1985 and $105,800 in 1995 and $363,900 in 2005 at the peak of the market. Since then, prices have come down a bit. Prices fell by 5.7% for single-family homes and 6.0% for condos over a one-year period to the 4th quarter of 2007 according to NAR data. Prices grew 0.3% for single-family homes over the same period according to the government agency OFHEO. In some neighborhoods, the price declines are no doubt much more significant.

Even with recent price declines, home prices have grown much faster than income. Some, therefore, surmise that home prices will fall or perhaps even crash. I conjecture that this fear is the principal reason why there is excessively low sales activity in Miami. Soft sales makes months’ supply ridiculously high and therefore pressures home prices to fall.

There are a few key factors not being accounted for in the simple analysis using home price in relation to income or rent. First, low interest rates, as any person with a mortgage calculator will be able to show, permit a lower monthly payment. In early 1980s, mortgage rates averaged in excess of 15%. In early 1990s, it was hovering at 10%. In 2000, the average rate was 8%. Today, a 30-year fixed rate can be locked at 5.5%.

What is more important in a home price analysis is not the home price to income measurement, but rather the mortgage obligation to income measurement, because the latter accounts for the positive impact of lower interest rates. In Miami, mortgage obligation to income is currently at about 30%, if a middle-income person was to buy a median priced home. That 30% obligation is above the historic norm for Miami, but is much lower than the 40% conditions of San Diego and San Francisco, or that of New York. (Many were shouting in the early 1990s that home prices in San Francisco were way over valued because of “out-of-whack” conditions based on simple price to income or rent ratios. In 1990, San Francisco prices were treading at near $200,000. Today, prices are touching $800,000)

Another factor not considered in the simple home price to income ratio is wealth accumulation. There is no reliable wealth or life time savings information at the local metro level. A financially stable retiree may have a rather low yearly income from social security checks and pension income, but that same person may have a cool million dollars or two sitting in the bank. Yet, because there is no reliable published wealth data, many analysts just use the income measure and totally ignore wealth info. Trust me, New Yorkers and other snowbirds who are moving to Florida will have a thicker bank account than others.

Miami Confidential By NAR Chief Economist Lawrence Yun

If Miami was a sleepy southern city as it had been considered as recently as 1990s, then home prices in Miami could be considered as being “out-of-whack.” However, if Miami is transitioning itself into a major global cosmopolitan city, then a comparison should be made to markets like Honolulu and Los Angeles. Then, prices in Miami suddenly look attractive.

In five years, Miami’s housing market will be doing quite fine. What are the factors that will drive the Miami market?

• U.S. Baby Boomers. This massive group of people is just turning 60 and the more financially successful ones are on the verge of retirement. Over the next 20 years, a steady flow of wealthy retirees will be flowing into sunny warm weather destinations. Ocean views will be particularly sought after and people will be willing to pay high premiums for that privilege.

• Foreign Baby Boomers. The Second World War finished at the same time for Japan and Europe as in America. Peace brought a spike in baby births. The financially successful baby boomers from abroad will demand a piece of the American Dream. It is a status symbol.

• Nouveau Rich. There is no one who likes to show off more than the people who lived through equality in income and consumption. Former communist countries like Russia and Kazakhstan are creating newly minted oil barons. Entrepreneurs are springing up en masse in Eastern European countries. Business probability says a few of them will be wildly successful. A property in London and Miami is the ultimate conspicuous consumption.

• Improving Insurance. Miami is artificially being harmed because of high property insurance rates. After the unprecedented number of destructive hurricanes (those with category 3 and higher wind speeds) in 2004 and 2005, the insurers jacked up insurance rates. I foresee some retreat in regards to insurance rates in upcoming years because insurance companies have been getting fat profits over the past two years. Profits draw new entry and competition will lower rates. Several legislative measures will further help on insurance rates. The high insurance premium, in my estimate, knocked about $30,000 off housing values in Miami. An improvement in insurance will mean a boost to home prices.

• Improvement in Property Tax. The very high property tax on second homes that is placed on non-residents of Florida has hurt this important housing segment. A good bet is that the populace will demand of legislators some measure to alleviate this tax, which appears to hurt non-residents, and has also harmed home values of primary homeowners in the state.

As I’ve mentioned before, Warren Buffet’s investment philosophy is to be scared when everyone is greedy and be brave when everyone is scared. The current high inventory conditions may be that perfect window of opportunity for some astute homebuyers to take advantage. Though it is difficult to call the precise bottom because of so much interplay between confidence and fear factors in today’s housing market, one can be comfortable in predicting a measurably higher price prices in Miami five years from now.

I used Miami as an example. Interchanging Miami with other similar warm weather “internationally” well-known cities would follow the same logic. Flashing signs are beginning to appear in Las Vegas and San Diego as well.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®.

NAR Chief Economist Named Among Top Forecasters for Accuracy

The National Association of Realtors® Chief Economist Lawrence Yun has been named among the top 10 economic forecasters by USA Today. Yun is ranked fifth on the list and is responsible for NAR’s real estate statistics and economic forecasting. The annual list recognizes accuracy in forecasting.

Miami-Dade Homestead exemption

sbirealty — Mon, 18 Feb 2008 16:23:26 +0000

March 3rd - Deadline to Apply

Homestead Exemption &

Portability to 2008 Taxes

Did your client sell (or vacate) their homestead property on or after January 1, 2007?

Were they living in a new residence on January 1, 2008?

Will they be filing a homestead exemption for the new residence in Florida? If you answered “YES” to all of the above questions, you need to advise them to visit www.miamidade.gov/pa and download the homestead exemption and portability application. If they moved to another county in Florida, please tell them to visit the property appraiser’s website for that county ( http://dor.myflorida.com/dor/property/appraisers.html).Monday, March 3rd, 2008 is the deadline to apply homestead exemption and the portability savings to the 2008 taxes. If you had a homestead exemption in 2007 and have not moved, there is no need to submit an application for the new $50,000 homestead exemption. It will automatically apply. Below is information for satellite offices of the Miami-Dade Property Appraiser’s Office.

Monday, March 3rd is the deadline for property owners to submit applications for property tax exemptions. To facilitate this process the Miami-Dade Property Appraisal Department will receive applications at special satellite offices across the county.

DATES: January 2 - March 3, 2008

TIME: 9:00 a.m. - 4:00 p.m. Mondays - Fridays

SITES: Stephen P. Clark Center (Ground floor lobby)

111 NW 1st Street, Downtown Miami, FL 33128

South Dade Government Center (2nd Floor)

10710 SW 211th Street, Miami, FL 33189

DATES: January 7 - February 22, 2008

TIME: 9:00 a.m. - 4:00 p.m. Mondays - Fridays

SITES: Miami-Dade Permitting & Inspection Center (2nd Floor)

11805 SW 26 Street, Miami, FL 33175

Hialeah District Court

11 East 6th Street, Hialeah, FL 33010

North Dade Justice Center

15555 Biscayne Boulevard, Miami, FL 33160

All offices will be closed on Monday, February 18, Presidents’ Day.

Miami Beach

karenkafin — Mon, 18 Feb 2008 16:22:44 +0000

The lumping of Miami Beach with Miami drives me crazy! Especially when it comes to the buying and selling of Real Estate! Yes, we are in Miami-Dade county but we are not Miami!

Miami Beach doesn’t have thousands of new condos coming on to the marketplace now and through the next two years. (Our company of agents has sold a lot of those-we look forward to a close!) Miami Beach has it’s infrastructure is in place. The city is bustling with people with plenty of places to go and things to do. You can find plenty of adventures 24/7 and some for free such as people watching on the boardwalk, Española Way, Lincoln Road etc. (Oh the people you will see!!) There are major events like Art Basel, The Boat Show, Wine & Food Festivals, Beach Volleyball that attract people from all over the country and the world. All of which you can pretty much walk, ride your bike, and Rollerblade to get there. It is a fantastic lifestyle that attracts many to our city. We as residents can always be ”where it’s at” or not! There are plenty of quiet spots where families can live and grow. Something for everybody.

Miami, if you are reading this please don’t be offended. You will be absolutely beautiful & irresistable in about 5 years! You too will be bustling at all hours of the day and night. The point is today you are not. Miami Beach is! We at South Beach Investment Realty are in the business of representing buyers and sellers and are just trying to get the point out there that today-here and now Miami Beach offers the whole package and much more! Values and lifestyle prevail. So buyers! come on down,up over-whatever!

Nothing to do?

karenkafin — Mon, 11 Feb 2008 17:23:33 +0000

One really can not honestly say this in Miami Beach for the next few months. We’ve got 2 Art Festivals, the antique show, volley palooza, International Boat Show, the Food & Wine Festival- (Hello Bobby Flay!), a golf tournament and tons of smaller events in all the hotels and restaurants! Steve Madden will open his new store in the newly remodeled gorgeous Metropole Hotel at 6th & Collins. Oh and by all means never forget the white sandy beaches & swimming in the cooling calming blue ocean water.

To be a Real Estate Agent in Today’s World??

karenkafin — Wed, 03 Oct 2007 16:11:34 +0000

If you are a new agent in this Real Estate Market, you may think this is a bad time to get started but it really is a great time. You are going to learn what it takes to be successful in business and to be prepared and professional. There are a lot of agents who joined the real estate field in the last 2-3 years who are now struggling. Now you have to work to sell a property and to sell a buyer. You have to actually have knowlege about the market. This is your business baby! Lets be great! First thing you do is find and run fast to a company that understands this and provides the tools in which to do it right. 90% of nothing is just that. Your goal should be to build for the future. Why just think of today. Learn how to build your systems thereby building your foundations. Being in real estate, you should understand how important that one is. Check out www.sbirealty.com.

THE CHOICE IS YOURS?

sbirealty — Thu, 23 Aug 2007 15:21:45 +0000

Which agent is right for you?Choosing a REALTOR^® to help you buy or sell a home may feel like an arduous task. With so many REALTORS^® eager for your business, it can be difficult to know which one you can trust. One way to narrow the field is to look for a REALTOR^® with credentials that can help you feel at ease throughout the entire transaction. An agent who is a Certified Residential Specialist (CRS) is proven leader in residential real estate. CRS agents are in the top 4 percent of agents in the country. They offer years of experience, demonstrated success, and advice to help you make smart decisions about buying or selling a home. CRS agents have both a high volume of sales and a high number of transactions, as well as advanced training in areas such as business planning, real estate investing, marketing and technology. As additional peace of mind, CRS agents must maintain membership in the NATIONAL ASSOCIATION OF REALTORS^® and abide by its Code of Ethics. The real estate market is tough, fast-paced and competitive.

TIMING IS EVERYTHING

sbirealty — Wed, 22 Aug 2007 20:23:23 +0000

Selling your house quickly can be a blessing for many homeowners. But selling before your next house is lined up might be a frightening prospect. Luckily, there are a few easy ways to ensure you’re ready to put your house on the market before you place a For Sale sign in the front yard. Carefully consider whether you’re ready for your home to sell and discuss your options if it does sell quickly and you’re faced with a looming moving deadline. A CRS agent can help you make many of these decisions and give you insight into the real estate market. Are homes like yours selling quickly? Is there a lot of competition on the market? Likewise, look into the types of houses currently for sale. Are listings scarce or are there many to choose from? Is there a variety in house size and price? Assessing the buying aspect can also be important. If your house does sell before you’ve found another, how quickly will you be able to move? Discuss your expectations of a new house, from which neighborhood you desire to its size and number of rooms. Having specific goals will help you and your REALTOR^® find the house that best fits your needs and desires. Even though renting might not be your first choice, find out how much it would cost, and the availability of rentals. Determining whether to buy or sell your house first is never an easy decision. But educating yourself will make the process smoother and not leave you in the dark should your house sell sooner - or later - than you planned.

Miami Beach

sbirealty — Thu, 09 Aug 2007 20:33:54 +0000

I have lived in this city for over thirty years and it just keeps getting better and better. My first trek up Ocean Drive showed elderly people snoozing in rocking chairs. Wow! Has it ever changed! Now there are people of all ages and styles lounging in the cafes, walking the boardwalk, rollerblading, biking, you name it! It is sunny everyday here. I love the fact that I can stop for a cup of coffee and be standing behind Hulk Hogan! Order lunch at Epicure and sit next to David Caruso! I can’t even fathom what could happen if I actually humg out at all the “cool” spots around town. Every day holds many wonderful surprises!

One thing that bothers me somewhat is that we are constantly lumped with the city of Miami. Not that Miami isnt a great city also but when it comes to Real Estate sales there is very little to compare. We don’t have over 50,000 new condos coming on line in the next 2 years. We have beautiful infrastructure in place. We have pristeen beaches. We have shopping that is out of this world and technically within walking distance. We have the rich and famous who want to live here and are buying here everyday. Buying and selling of real estate has slowed here over the summer but it still is happening at a decent rate. Sellers are not being crazy about their asking prices which is great.

An amazing phenomenon is creeping in a big way to the profession of Real Estate and in my mind is long overdue. I train all the realtors in the South Beach Investment Realty’s 3 offices and we always have stressed professionalism and service which, to be honest I consider that a duh! Any one who is at the top of their business does exactly that, Right? Since we hold to this, any customer who engages in a real estate transaction with South Beach Investment Realty feels great about referring us to their friends, relatives, and acquaintences. We appreciate your referrals.