Summer is officially over, children are back to school and as we welcome Fall, many of us are already planning for the upcoming holiday season and ways to diversify our assets in this tied economy.
Whether you are a savvy investor, a young professional or an active retiree, this time of the year is also perfect to look for business opportunities in real estate and make your dream of owning a property under the Floridian sun, a reality! Finding an enjoyable place to retire, sending your children study in a renowned American university or coming back for vacations to your beloved second home year-round has never been easier! Comparing to Europe, the “Sunshine State” still offers lower cost of living, cheaper housing solutions no matter the investment (residential, commercial or land) as well as some of the world’s most beautiful beaches and boating spots.
According to the Miami Association of Realtors® and the local Multiple Listing Service (MLS) systems “the total number of listings, including single-family homes and condominiums, that pended in Miami-Dade County during the month of July 2012 increased 31 percent, from 2,593 to 3,393, year-over-year and two percent compared to the previous month*”.
We, at KSI Realty, forecast that this trend will intensify gradually especially with lower level of housing inventory available on the market as Canadians and Brazilians - closely followed by Europeans, Argentineans, Venezuelans and Russians - have quickly absorbed the stock of highly discounted homes in the Southeast Florida market for the past 2 years. This “micro” boom is not only seen in the Greater Miami area (Dade and Broward counties) but also in the Orlando, Tampa Bay and Sarasota-Bradenton-Venice areas. In addition, according to a recent survey by the University of Florida, consumer confidence in the Sunshine State hit five year high in September**.
In light of the upcoming U.S. Presidential Elections, many domestic buyers have withheld their home purchase based on expected tax benefits, cuts or increases depending on who will be in office in 2013. Regardless of the victorious party, we will most certainly see more budget cuts and tax increases under a form or another. Rental demand has been stronger than ever and gives the necessary flexibility and financial freedom to low income Americans. It is a good old game of wait and see – it has always been easier to rent during difficult times than to buy. Nowadays, it has become harder to obtain a loan despite historically low US interest rates. Thus, this is great news if you own a property and want to rent it out for monthly revenues!
The main difference between domestic buyers with foreign buyers (who are responsible for a fifth of Florida home sales***) is that locals still heavily rely on leveraged financing whereas stronger foreign currencies relative to the US dollar and a liquid cash mind-set have greatly benefited international investors in Florida.
Daniel Kijner, KSI Realty’s senior broker-owner and French wealth manager reminds our clients that the key to a successful acquisition resides in strong yields from rental income and future capital gains in the mid to long-term horizon. Well-prepared and organized investors make such plans. Emotional vs. rational is an ancestral battle between the mind and the heart that is usually reconciled by financial rationales.
The golden rules remain as follow:
1) Plan ahead with a US tax or real estate attorney and a CPA (we will introduce you to our ancillary network of local partners who are legally competent to assist you in Florida)
2) Retain the right specialists to conduct all due diligences prior to putting all your eggs in one basket – go for the one-stop shop solution
3) Make sure you get a Realtor® who represents your interests and not those of the seller (either an individual or a financial institution for distressed properties) or those of the transaction - basically someone who’s neither working for your nor the seller
By following this clear and simple strategy, many satisfied clients of KSI Realty have saved thousand of dollars in the long run. Making the false economy of $3,000 on a $250,000 transaction may very well turn out to be a $10,000 unplanned expense to salvage for unforeseen bumps in the road.
The litigious and liability driven system in the USA is certainly very different from the one of your home country and this should never be discarded when one takes such an important decision as purchasing a home.
A successful property acquisition is one that is stress free, well planned out and, most importantly, well executed by a reliable and dedicated real estate professional such as a Realtor®.
When the need for excellence arises in sourcing your next income-producing property, primary or secondary residence with relocation and wealth management concerns, KSI Realty is your lifeline partner.
Questions or comments? Contact us at email@example.com
* Miami Association of Realtors®, " Miami Pending Home Sales Continue to Rise " by Lynda Fernandez on August 30th, 2012: http://www.miamire.com/news/2012/08/30/miami-pending-home-sales-continue-to-rise
** Sunshine State News, " Rick Scott: Florida Consumer Confidence 'Moving in the Right Direction' " by Jim Turner on September 26th, 2012: http://www.sunshinestatenews.com/story/rick-scott-Florida-consumer-confidence-moving-right-direction
*** The Miami Herald, " Foreigners responsible for a fifth of Florida home sales " on August 28th, 2012: http://www.miamiherald.com/2012/08/27/2970956/foreign-buyers-still-love-Florida.html