Florida Real Estate
With more waterfront districts then any other state in this
country, it is no wonder why Florida has been leading the
country in terms of new pre-construction real estate development
projects. These include luxury waterfront West Palm Beach
presales and beachfront condo towers in Sunrise and Englewood,
residences, homes, townhomes and master-planned communities
in places like, preconstruction Palm Beach, Sunrise, Fort
Lauderdale, Englewood and more. You can click on the 'Florida
Properties' links to your left for more information.

Hot Real Estate Buys for
Canadians in Florida!
Canadians may not want to touch the US real estate market
until they’re sure the worst in the subprime debacle
is over. But don’t shun it just yet because Florida
has some winning prospects right now! This is a great advertisement
investment article by Suzanne S for Canada’s leading
real estate property magazine. The US real estate market
might make many home buyers and property investors shudder
due tot eh sub-prime mortgage crisis, which the country
is striving to ov ercome. However, a closer look reveals
that there are still opportunities in real estate investing
for keen investors not afraid of risk. Untapped areas in
Florida State real estate could prove fruitful if you play
your cards right. It’s hard to predict just where
the bottom is when dealing with a mortgage meltdown such
as this we are encounterting at the moment. A real estate
investor could buy now and then regret it later if porices
continue to drop in Florida property market. On the flip
side, a home buyer could purchase now and then sit back,
relax and watch as the investment property appreciates through
long term. This is where the risk factor comes into effect
when you deal with the Florida property market situation.
Overall, Florida’s real estate market has experienced
about 50% price depreciation and currently sits at pre-contruction
costs, says Gary Michaels, Manager of the Resort Realty,
Pensacola, Florida. Consumer confidence in Florida real
estate is very gloomy. “Over the next few months,
it will probably stay at these very low levels, but is not
likely to go much lower,” says Chris McCarty, director
of UF’s survey Research Center at the Bureau of Economics
and Business Research, Gainesville, Florida. That said,
there is some good news when it comes to investing in the
Florida property market. Oil prices have slightly declined
in the Florida State due to lower demand. Also, there is
a tax credit now available that encourages first time Florida
home buyers to get into the lagging real estate market.
More about the perfect time to purchase
a new Florida real estate investment right now
According to Lawrence Yun, chief economist at the National
Assocaition of Realtors (NAR), Chicago, about 2.5 milion
first time Florida home buyers are expected to take advantage
of the US $7,500 tax credit between now and the middle of
2009. So what does all this mean for a Canadian real estate
investor in Florida’s property market? It suggests
you might want to get in now, as the economy and prices
are forecast to rise. “Prices have fallen sharply
and quickly in very distressed real estate markets in Florida
State, but most or all of the price declines may have already
occurred in these areas since home buyers have now returned
to those markets,” Yun said. Also, it’s key
to evaluate the real estate Florida market with a long term
scope, Richard Gaylord, NAR president and broker at Re/Max
Real Estate Specialists, in Long Beach California, says,
“Many homebuyers with long term expectations are getting
exceptional value in the current Florida market. Once the
inventory is drawn down, price pressure will return because
the cost of construction are rising – so today’s
home buyers are very well positioned to build wealth over
time.” Certain areas in Florida real estate market
are performing better than others, and are likely to give
Canadian investors the most bang for their buck. Cities
along the Florida northwest real estate communities have
some winning opportunities since they are vacation hot spots
that can maximize rental returns. These areas in Florida
real estate market are more accessible for tourists from
surrounding states such as Louisiana, Mississippi, Alabama
and Georgia since they can drive there. Southern regions
of the Florida property market have had a more difficult
time bouncing back from the downturn because they’re
further for visitors to commute, and many real estate markets
in Florida south have yet to experience the conditions found
along the Gulf Coast. “All of south Florida real estate
relies on permanent residents and vacationers to fly down
to Florida,” says Michaels. “Obviously in a
down economy not as many people are travelling and they
are opting for a closer vacation experience.
Considerations for Canadians Investing
in Florida Real Estate
While the Canadian dollar and plummeting US housing market
might make US rental real estate properties an appealing
notion, make sure you know all the details before jumping
into an investment in Florida property. Although it’s
possible for Canadians to purchase inexpensive Florida properties
in the US, stricter lending guidelines are making it increasingly
difficult. Canadian home buyers are best served by having
at least 35% down payment, as many US lenders are often
offering only 65% LTV. While the original price tag for
the Florida real estate investment might be cheap, foreign
residents are frequently dinged when tax season rolls around.
In florida State, for example, there is no state income
tax and as a result higher property taxes are abound in
any property that you invest in Florida. Permanent Florida
residents are also given exclusive tax breaks, including
an automatic US $50,000 reduction on the assessed value
of the principle residence for people aged over 65 (US $25,000
for all other residents) and annual property tax increases
in the Florida real estate property market are capped at
3% or the rate of inflation, whichever is lower. On the
flip side, non-Florida residents purchasing investment property
or homes to live in have been known to pay property taxes
that are three times greater than those of permanent residents
living nearby. Michael MacKenzie, research and communications
officer at the Canadian Snowbird Association said he knows
of non-Florida residents paying $9,000 in annual property
taxes while their Florida resident neighour is paying just
$3000. He added that he same disparity didn’t apply
in other US states and highlighted Arizona as one state
that is now marketing this very fact to Canadian property
investors. However, there may be relef in sight for non
residents with investment property in the Florida real estate
market, in terms of the amount of property tax that can
be increased each year. According to Mackenzie, the rate
of increase of Florida property tax may be capped at 5%
in November this year. Importantly, all of these factors
must be added tot eh cost of maintaing a distance investment
property in Florida real estate – as well as employing
the services of a property management company, which can
be around 30% of your gross rental income. |