Foreign investors are expected to bolster housing sales in Florida in 2011, with many looking to take advantage of the "undervalued" property that is on the market.
Florida home prices are bottoming out and international property buyers look like they are reviving the Florida housing market this year, Stirling Sotheby's International Realty has claimed.
Roger Soderstrom, chief executive of the company, forecast that there would be much more optimism in the sector and many prospective investors are beginning to move to secure a bargain home in a good neighbourhood.
"There is a segment of real estate in Florida that is undervalued today," Mr Soderstrom says. "Real Estate remains a neighbourhood business, and some neighbourhoods that have experienced fewer casualties in the housing market are performing much better than neighbourhoods with a large number of foreclosures."
Thursday, February 24, 2011
Friday, February 18, 2011
Pinellas home sales jump nearly 28 percent in January
Pinellas County home sales jumped nearly 28 percent in January.
Real estate agents closed deals on 957 homes and condos, the best January since 2006, according to figures released by the Pinellas Realtor Organization.
Closings for single-family homes jumped nearly 36 percent to 595 last month from 438 in January 2010. Condo sales were 15 percent higher for the same time period. January is typically one of the slowest months for closings, the group said.
St. Petersburg Times, By Mark Puente, Staff Writer
Tuesday, January 25, 2011
Pinellas Home Sales Soar
Pinellas County home and condo sales jumped 29 percent in December.
Closings for single-family homes jumped to 754 in December from 586 in December 2009, according to figures released by the Pinellas Realtor Organization.
When combining condo sales with single-family home sales, closings jumped 24 percent last month compared to one year ago.
Source: St Petersburg Times
Monday, January 3, 2011
Buy vs. Rent: An Update
NY Times by DAVID LEONHARDT
Below is an updated list of rent ratios — the price of a typical home divided by the annual cost of renting that home — for 55 metropolitan areas across the country.
A good rule of thumb is that you should often buy when the ratio is below 15 and rent when the ratio is above 20. If it’s between 15 and 20, lean toward renting — unless you find a home you really like and expect to stay there for many years.
| Metro area | Ratio |
| East Bay, Calif. | 35.9 |
| Honolulu | 34.4 |
| San Jose, Calif. | 32.7 |
| San Francisco | 27.9 |
| Seattle | 27.3 |
| Charlotte, N.C. | 27 |
| Orange County, Calif. | 27 |
| New York (Manhattan) | 26.7 |
| Raleigh, N.C. | 26.2 |
| Portland, Ore. | 25.9 |
| North – Central New Jersey | 25.2 |
| Nashville | 24 |
| Denver | 22.6 |
| San Diego | 22.1 |
| Long Island, N.Y. | 21.4 |
| Milwaukee | 21.4 |
| Austin, Tex. | 20.5 |
| Norfolk, Va. | 19.9 |
| Richmond | 19.7 |
| Memphis | 19.3 |
| Bridgeport, Conn. | 18.5 |
| Hartford | 18.4 |
| Boston | 18.4 |
| Washington – Northern Virginia – Maryland | 18.3 |
| Oklahoma City | 18.2 |
| Baltimore | 17.6 |
| Columbus, Ohio | 17.6 |
| Palm Beach County, Fla. | 17.6 |
| Salt Lake City | 17.6 |
| Sacramento | 16.7 |
| San Antonio | 16.7 |
| Chicago | 16.6 |
| New Orleans | 16.2 |
| Philadelphia | 16.1 |
| Houston | 15.9 |
| Fort Lauderdale, Fla. | 15.7 |
| Miami | 15.6 |
| New York | 15.4 |
| Los Angeles | 15.4 |
| Kansas City, Kan. | 15.3 |
| Inland Empire, Calif. | 15.1 |
| National average for metro areas | 15.1 |
| Indianapolis | 15.1 |
| Jacksonville, Fla. | 15 |
| Minneapolis | 14.9 |
| St. Louis | 14.6 |
| Las Vegas | 14.3 |
| Atlanta | 14.3 |
| Orlando, Fla. | 14.1 |
| Tampa Bay, Fla. | 14 |
| Cincinnati | 13.9 |
| Dallas – Fort Worth | 13.8 |
| Phoenix | 13.3 |
| Detroit | 12.4 |
| Cleveland | 11.7 |
| Pittsburgh | 11.4 |
It’s pretty amazing when you think about it. The country has suffered through a terrible crash in home prices, yet buying iffy in many markets.
The data comes from Mark Zandi of Moody’s Analytics and covers the second quarter of this year. Home prices haven’t changed very much since then, so I would expect ratios in most places to be quite close to the numbers you see here.
December 22, 2010, 11:01 am
Monday, December 20, 2010
Bank of Montreal Increases U.S. Presence
The Bank of Montreal is buying a Milwaukee-based bank, the latest example of Canadian banks using their muscle to snap up U.S. financial institutions battered by the economic crisis.
Canada's fourth-largest bank announced Friday that it was acquiring Marshall & Ilsley Corp. for $4.1 billion in stock, doubling its presence in the U.S. from 321 branches to 695.
Canadian banks, ranked the soundest in the world by the World Economic Forum, weathered the economic crises far better than their counterparts in other countries.
Sunday, October 31, 2010
What Canadian and Other Foreign Nationals Need to Know About Buying Florida Real Estate
The U.S. credit crunch and the flood of homes and condominiums for sale in Florida has created some outstanding opportunities for foreign nationals. Many "snowbirds" from Canada and the United Kingdom are taking advantage of this opportunity flocking to the warmer climate. The relative weakness of the dollar and dramatically reduced prices has given many visitors an opportunity to fulfill their vacation home dreams.
If you are a Canadian citizen, you would be well-advised to understand the differences between Canadian and U.S. home buying processes, as well as the tax implications of owning a second home south of the border.
Focus on Existing Properties in Established Developments
Real estate consultants have been advising foreign nationals to give preference to existing properties in established developments. This avoids the problems associated with unsuccessful developments where things can change quite dramatically if the original developer goes into default and the property is taken over by a different developer. While this may mean that you the buyer miss the opportunity to buy at so-called "pre-construction" bargain prices, the reduction in risk may prove well worth the slightly higher price you'll pay.
One of the great things about BeachWay is that we are a 100% completed and established development with no pre-construction or incomplete development uncertainties. We are 70% sold out and are very financially sound. You can feel secure knowing that what you see is what you are purchasing! Our developer has been in business for over 30 years in Florida. – Sharon Hunt
Qualifying to Buy
Since it is more difficult to track down foreign nationals in case of a mortgage default, Florida lenders may require more up-front evidence of financial stability. Some lenders require that buyers place closing costs plus 12 months of principal, interest, taxes, and insurance (PITI) in a U.S. bank account. They may also require you to put more money down, as much as 25 - 30% and demonstrate that you have liquid reserves available to cover three to six mortgage payments. Of course, if you pay cash, you don’t have to worry about these details.
Here at BeachWay, we are extremely proud to have the seal of approval from the Government. We are Fannie Mae approved which means we have passed all the tests! This approval allows our buyers the opportunity to obtain a mortgage to purchase a condo at BeachWay through one of our preferred lenders. – Kim Martinson
Financing and Closing Costs
Begin the loan pre-approval process before you begin searching for a home or condo in Florida. This way, when you find that dream second-home, you will be negotiating price with the seller from a position of strength. The seller will know upfront that you are fully prepared and "qualified" to buy.
Expect the length of your mortgage loan to differ from what you may be used to. For example, rather than the Canadian standard of one to ten-year mortgages, U.S. mortgages are typically written for 15 or 30 year terms.
It may take more time to complete a real estate sale in the U.S. Be prepared to wait three to five weeks or more to close on your Florida real estate property once you have a signed purchase contract. During that period, all of the third-parties involved (inspectors, appraisers, insurance companies, title companies, etc.) will be conducting their transaction responsibilities.
Since we have already sold a substantial number of condos to foreign buyers, at BeachWay our sales staff is very knowledgeable in assisting you through the process. We make sure you have all of your questions answered and feel confident in your purchase decision. The goal is to make this as smooth a transaction as possible for all involved.- Sharon Hunt
Minimizing Your Taxes and Protecting Your National Health Benefits
Understand that even though you are a citizen of another country, you may be treated as a U.S. citizen for tax purposes if you spend too much time at your Florida get-away. In general, limiting your time in Florida to less than six months each year minimizes your tax implications and may not compromise your national health care benefits.
If you rent your vacation property for the portion of the year that you spend at home, you will need to file a federal U.S. income tax return. You will have to declare your rental income, but you may be able to deduct expenses such as maintenance, utilities or mortgage interest. Since Florida doesn’t have a state income tax, income from your property will only be taxed by the federal government.
Property Taxes
Be aware that non-residents do not get all of the property tax advantages granted to permanent Florida residents, so be sure to inquire about the difference this will make in your on-going costs. A competent Realtor or developer’s representative can explain these restrictions to you.
We can offer local referral recommendations to assist you in getting financial answers regarding taxes, etc. – Kim Martinson
Property Insurance
Property insurance in Florida can be expensive. One way to limit this expense is to look for properties built after the most recent set of building code updates, which mandated that structures be able to withstand higher winds. Insurance companies charge less to cover properties that meet the latest code requirements. Homes and condos that are not located directly on or adjacent to the waterfront or in designated "flood zones," cost less to insure.
We are always upfront about expenses you will incur to carry the condo annually. These costs are very low at BeachWay compared to most other communities. Newer construction and low monthly maintenance fees are a big plus for us!
BeachWay is a newer development built in 2001. We are not in a Flood Zone as most beachfront properties are. This greatly reduces your cost of insurance.- Sharon Hunt
Avoiding Estate and Probate Taxes
Foreign nationals can reduce their exposure to U.S. estate taxes. For example, one of the best ways for Canadians is by placing a non-recourse mortgage against the property. A non-recourse mortgage gives the mortgage-holder recourse only against the property itself, not against any other assets of the borrower.
The probate process of transferring property to beneficiaries can be lengthy and costly. Putting the deed to your Florida home in the name of a Cross Border Revocable Living Trust (CBRLT) rather than in an individual's name may offer several advantages. Properties held by a CBRLT are exempt from Florida probate and thus have no filing requirements for U.S. or Canadian tax authorities, for example.
There may be other benefits under U.S. or your own country's rules to avoid estate and probate costs. Check with a Florida-based attorney to see what benefits may be available to you.
We can help you identify a competent attorney who deals with cross-border property investments. – Kim Martinson
In summary, as a foreign national considering buying a home or condominium in Florida, there are things you need to understand, but overall, there has never been a better time to buy a seasonal or second home you've been dreaming about, especially along Florida’s Gulf Coast.
Credit Andree Huffine 4/17/09
Updated by BeachWay sales staff 10/14/2010
If you are a Canadian citizen, you would be well-advised to understand the differences between Canadian and U.S. home buying processes, as well as the tax implications of owning a second home south of the border.
Focus on Existing Properties in Established Developments
Real estate consultants have been advising foreign nationals to give preference to existing properties in established developments. This avoids the problems associated with unsuccessful developments where things can change quite dramatically if the original developer goes into default and the property is taken over by a different developer. While this may mean that you the buyer miss the opportunity to buy at so-called "pre-construction" bargain prices, the reduction in risk may prove well worth the slightly higher price you'll pay.
One of the great things about BeachWay is that we are a 100% completed and established development with no pre-construction or incomplete development uncertainties. We are 70% sold out and are very financially sound. You can feel secure knowing that what you see is what you are purchasing! Our developer has been in business for over 30 years in Florida. – Sharon Hunt
Qualifying to Buy
Since it is more difficult to track down foreign nationals in case of a mortgage default, Florida lenders may require more up-front evidence of financial stability. Some lenders require that buyers place closing costs plus 12 months of principal, interest, taxes, and insurance (PITI) in a U.S. bank account. They may also require you to put more money down, as much as 25 - 30% and demonstrate that you have liquid reserves available to cover three to six mortgage payments. Of course, if you pay cash, you don’t have to worry about these details.
Here at BeachWay, we are extremely proud to have the seal of approval from the Government. We are Fannie Mae approved which means we have passed all the tests! This approval allows our buyers the opportunity to obtain a mortgage to purchase a condo at BeachWay through one of our preferred lenders. – Kim Martinson
Financing and Closing Costs
Begin the loan pre-approval process before you begin searching for a home or condo in Florida. This way, when you find that dream second-home, you will be negotiating price with the seller from a position of strength. The seller will know upfront that you are fully prepared and "qualified" to buy.
Expect the length of your mortgage loan to differ from what you may be used to. For example, rather than the Canadian standard of one to ten-year mortgages, U.S. mortgages are typically written for 15 or 30 year terms.
It may take more time to complete a real estate sale in the U.S. Be prepared to wait three to five weeks or more to close on your Florida real estate property once you have a signed purchase contract. During that period, all of the third-parties involved (inspectors, appraisers, insurance companies, title companies, etc.) will be conducting their transaction responsibilities.
Since we have already sold a substantial number of condos to foreign buyers, at BeachWay our sales staff is very knowledgeable in assisting you through the process. We make sure you have all of your questions answered and feel confident in your purchase decision. The goal is to make this as smooth a transaction as possible for all involved.- Sharon Hunt
Minimizing Your Taxes and Protecting Your National Health Benefits
Understand that even though you are a citizen of another country, you may be treated as a U.S. citizen for tax purposes if you spend too much time at your Florida get-away. In general, limiting your time in Florida to less than six months each year minimizes your tax implications and may not compromise your national health care benefits.
If you rent your vacation property for the portion of the year that you spend at home, you will need to file a federal U.S. income tax return. You will have to declare your rental income, but you may be able to deduct expenses such as maintenance, utilities or mortgage interest. Since Florida doesn’t have a state income tax, income from your property will only be taxed by the federal government.
Property Taxes
Be aware that non-residents do not get all of the property tax advantages granted to permanent Florida residents, so be sure to inquire about the difference this will make in your on-going costs. A competent Realtor or developer’s representative can explain these restrictions to you.
We can offer local referral recommendations to assist you in getting financial answers regarding taxes, etc. – Kim Martinson
Property Insurance
Property insurance in Florida can be expensive. One way to limit this expense is to look for properties built after the most recent set of building code updates, which mandated that structures be able to withstand higher winds. Insurance companies charge less to cover properties that meet the latest code requirements. Homes and condos that are not located directly on or adjacent to the waterfront or in designated "flood zones," cost less to insure.
We are always upfront about expenses you will incur to carry the condo annually. These costs are very low at BeachWay compared to most other communities. Newer construction and low monthly maintenance fees are a big plus for us!
BeachWay is a newer development built in 2001. We are not in a Flood Zone as most beachfront properties are. This greatly reduces your cost of insurance.- Sharon Hunt
Avoiding Estate and Probate Taxes
Foreign nationals can reduce their exposure to U.S. estate taxes. For example, one of the best ways for Canadians is by placing a non-recourse mortgage against the property. A non-recourse mortgage gives the mortgage-holder recourse only against the property itself, not against any other assets of the borrower.
The probate process of transferring property to beneficiaries can be lengthy and costly. Putting the deed to your Florida home in the name of a Cross Border Revocable Living Trust (CBRLT) rather than in an individual's name may offer several advantages. Properties held by a CBRLT are exempt from Florida probate and thus have no filing requirements for U.S. or Canadian tax authorities, for example.
There may be other benefits under U.S. or your own country's rules to avoid estate and probate costs. Check with a Florida-based attorney to see what benefits may be available to you.
We can help you identify a competent attorney who deals with cross-border property investments. – Kim Martinson
In summary, as a foreign national considering buying a home or condominium in Florida, there are things you need to understand, but overall, there has never been a better time to buy a seasonal or second home you've been dreaming about, especially along Florida’s Gulf Coast.
Credit Andree Huffine 4/17/09
Updated by BeachWay sales staff 10/14/2010
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