The Real Estate Mango

Archive for June, 2009

Four Important Principles To Follow When Remodeling A Room Or The Entire House

People Aren’t Moving As Often As They Were Because It Is More Difficult To Sell Their Homes!!  The Result Is A Surge In Remodeling.

The following are some tips to follow to avoid very expensive mistakes:

• Engage a designer to execute a plan for all the changes you want to make
• Hire a contractor who will be able to read the plans and most importantly be able to hire the licensed and insured sub contractors who will work in the various parts of the job, like the plumbing, electrical, tile, glass etc.
• Be sure to have a legal contract between you and the contractor and have that contract examined and approved by an attorney
• When writing the contract, be sure to include a date certain for completion with penalties for over run.

• Before you go out and buy appliances and tiles, confer with the contractor and if possible, have him go with you to the suppliers to be sure you are buying the proper materials.

• Last, but not least, make sure permits are pulled for the work that requires it.  When you sell in the future, you will be asked if the work had been permitted by the county.

Lately, I have seen some homes that were remodeled and in the process, expensive mistakes were made.  Many people, that I spoke to, did not hire licensed and insured workers and had no recourse when the work was inferior.

Most people hired each worker separately and had no contractor to coordinate the work.  This is time consuming and fraught with potential problems since the average homeowner has no practical knowledge of the work involved.

You can contact me for more information and resources.

The Economy Will Rebound When Home Prices Stabilize

Home Prices Impact The Economy In Many Ways!

When homes prices are falling and they are continuing to fall, builders don’t start new projects. All industries related to home building are at a stand still. Lumber mills, steel mills, window manufacturers, etc. are all doing much less business and laying off workers.  I believe the housing industry is the most important industry in the country.   People feel less wealthy and spend less, therefore less cars are bought and other big ticket items.

Your home is the largest purchase you will ever make and if its’ value is declining if effects everything else in the economy. Confidence in the future is eroded.  People tend to travel less, plan for the future in more conservative ways, save more money.

It will take time to reduce inventories so that prices can stabilize.  Right now there are multiples of like properties that are available to potential buyers.  These have to be reduced considerably before we can see price stabilization.

If you are currently thinking of selling, you should price your home ahead of the market.  In other words, price your home less than the last sale.  It is the only way to sell and control the market. 

If you are thinking of buying, check out my property search and see the actual great deals which will be even better when you make your offer!!

The Hurricane Season Is Here Whether We Like It Or Not

SOME THINGS TO DO SO YOU CAN LOWER YOUR STRESS LEVEL WHEN YOU HEAR  WEATHER REPORTS!!    

Put your family plan together now, so that there will be less chaos when a storm heads our way.

This plan should include emergency telephone numbers placed by your telephones, supplies for 14 days, a disaster kit and important family documents stored in a  waterproof container.

Early in the season, install safety features in your house, such as smoke detectors and fire  extinquishers .  Inspect your home for potential hazards ( like items that can move, fall, break or catch fire) and correct them.

Have your family learn basic safety measures, such as CPR and first aid; how to use a fire extinguisher; and how and when to turn off water, gas and electricity in your home.

Remember…EVACUATION ORDER ….is the most important instruction you will receive.  Once issued, it is mandatory.

 

          

What Are Investors Looking For In Aventura Real Estate and Can We Supply That Need

After spending countless hours looking at condos in Aventura with ready and willing investors, certain facts remain as obstacles to seeing our inventories eaten up by eager investors.

First, maintenance costs.  Compared to other cities, our maintenance costs are very high.  This is due to some real factors, insurance that condos have to carry, shrinking reserves in the buildings, necessary repairs and landscaping expenses, salaries of service employees on the site and management fees from the management companies.

Second, property taxes.  Our property taxes are very high.  For instance on a property in Parc Central, a high rise right near the William Lehman Causeway, an 1100 square foot apartment with a sale price of $160k has more than a $5000 a year tax bill.

Rental Market Competition…Many apartments that are not selling, are renting and with many being offered for rent, the investor has to compete in this market, too.  In order to rent quickly, he has to offer a cheaper rent than the next guy so that he gets the renter quicker.  This also cuts into his monthly profit margin.

How Did Investors Do It In The Past?  Before the downturn, investors absorbed all these expenses while keeping their eyes on the rising prices and when they rose to a profit, they sold.  We don’t know when these prices will start rising so investors have to be here for the long haul.

For owner users, there are many terrific deals out there.  Prices are lower than before and interest rates, although they have gone up some, are still low enough to give you a great mortgage rate.  The Interest rate today for a 30 year fixed mortgage is 5.5%.  A very good deal, indeed.

Where Are The Buyers In Aventura Coming From?

 Most of the buyers I met this year are planning to retire in Aventura and are much younger than retirees from earlier generations. They are coming from Long Island, New York, Connecticut and Michigan.  Some are just looking now but expect to buy in a year or two.  They are in the planning stage.  Most are in their late fifties, early sixties and are expecting to continue some of the work they did up north at a branch office down here or on line.

Some are disappointed at the price they had to sell their northern home and feel they should be able to make up for it, here by getting a great property for a low price.  Comparing vaalues in other areas is almost impossible.

These retirees want waterfront, activities nearby, and room for visiting children and grandchildren. They don’t want a sleepy atmosphere.  Most importantly, they want value for their money and a townhouse that is ready to move in and doesn’t need lots of work which is seen as aggravation. I say, townhouse, because we have so few single family homes that a townhouse is closest to the type of real estate they are accustomed to .

If they want a condo, it has to be light, airy, great views and maintenance that isn’t back breaking.  Many would be buyers are discouraged by high maintenance.  In fact, one of the major objections to condo life, is the expensive maintenance fees. 

Local people who have been renting for years are buying.   A family that lived in a rented townhouse in the waterways for more than five years, recently bought a waterfront townhouse at Mystic Point.  It was a great buy at $400k. 

This week, I have been reading about foreign investors coming back into the Florida market.  Foreign investors are now considering South Florida Real Estate a safe investment again and they will be a crucial player in helping the South Florida Real Estate Market recover.  Buyers from the UK are among those who are trickeling back into the market, looking for distressed and foreclosed properties.

The falling dollar is also attractive and international investors want to take advantage of the exchange rate.

There are bargains galore!  Go to my property search and see all that is available…

It’s Great Stuff! Aventura Real Estate Inventory Going Down Every Month…This Is A Trend…

NEW FIGURES ARE OUT FOR MAY 09 AND THEY ARE REASSURING….This chart shows a decrease in inventory,since April,  in Aventura, all properties, and that is a good sign.  As soon as these inventories get down to a manageable level, we will see prices start to stabilize. 

As of now,prices are still declining and in some cases, they are where they were in 2003.  This is important information for buyers and sellers.  For buyers, great opportunities, affordable housing. 

For sellers, it is information as to how to price your condo or home so you can sell and move on.

The average price of the properties selling is $316 down a little from last month at $324K. The price point of under 300k is the fastest growing price range in this market with 80% of sales being in this catagory.

Sometimes Statistics Can Be Fun And Can Show You Where the Real Estate Market Is Heading

We have some very encouraging news, here!  From 2/08 until 4/09 the inventory of condos, county wide, has shrunk.

 In February of 2008, Dade County had 53 months supply of condos of all prices and only 470 a month were selling.  Now in April of 2009, it has gone down to 27 months supply and we are selling 753 condos a month.  This shows an increase in sales of more than  60%.

Now, exactly what is selling?  Properties priced below 300k are the faster growing sales in Dade County.   These properties are driving the market.  But, eventually supplies will soon become limited and prices will go up.  This is a very promising trend.

In the market of condos priced between 300k and 999k, it is very slow going.  Only 128  condos are sold each month and the most competitively priced condos are the ones selling.

So, if you are looking for a real deal, there are condos priced under $100k available which was unheard of a few years ago.  Real Estate is more affordable now than many people realize.

Even on Country Club Drive In Aventura, there are apartments available, now, under $100k!!

Call me to take a look at what you are missing!!