Ft. Myers, Naples, Florida MLS
Well it's finally here! The time has come to own and not rent real estate in Ft.Myers or Naples Florida. Recent studies are showing that with the decline in property values and low mortgage rates, it is now in your best interest to buy a home versus rent a home. There was a difference in average monthly payments of over 700. dollars on average and now it is more like 200. dollars and, since mortgage payments are tax deductible, you do the math.
Obama has recently stated that he is looking to do a rental program with foreclosures so as to keep people in their homes and have many home remain occupied. There are a glut of empty homes in Lee county and collier county Florida. This new program would help with that situation. It is unclear how or if this is even viable as Banks would now be in the real estate business as landlords and with lower values on homes, is this really sustainable. Do those folks who have had their homes taken from them really want to stay in them.
The mortgage modification programs and incentives that had been introduced seem to me dismal failures. With home values in Ft Myers and Naples MLS showing considerable declines in values, how can you re finance what you owe more on? You Cannot. There in lies the problem with loan mods.
Commercial real estate in Ft Myers and Naples is in horrible condition and to be truthful, there is not end in sight. REO Commercial Brokerage is now busy helping lenders to handle their commercial owners through major default rates and in turn are finding themselves trying to manage commercial buildings with multiple tenants and multiple property management issues as well.
Cape Coral Florida has just had a major defeat in trying to expand it's water and sewer efforts as the people of Cape Coral have voted no on a referendum that would have cost many people in the Cape over 17,000. per household. Good news for new buyers but what to do about water and sewer? Bad planning is a key word.
Homes sales in Ft Myers mls and Naples MLS have soared since this time last year and sales are up over 120 percent. A great sign for recovery albeit a slower recovery that what was thought initially. Any questions? Call us today and thank you..
Florida Real Estate Craze
I found an interesting article that explains some of the reasons we are where we are in the Florida Real Estate Market. I thought I would share it with everyone. . .
Market Crashes: The Florida Real Estate Craze
The amount the market declined from peak to bottom: Land that could be bought for $800,000 could, within a year, be resold for $4 million before crashing back down to pre-boom levels. The prices were so inflated that to buy a condo-style property in 1926, you would've had to pay the same as you would now have to pay for a luxury home in the guard-gated communities in Miami ($4,500,000) - without adjusting for inflation!
Synopsis: In the 1920s, the United States of America was chugging along like the British Empire of the 1700s, and it was only natural that people were beginning to believe such prosperity was infinite. But it wasn't the stock market that was the recipient of a bubble. It was the real estate market.
In 1920, Florida became the popular U.S. destination/residence for people who don't like the cold. The population was growing steadily and housing couldn't match the demand, causing prices to double and triple in some cases, which was not exactly unjustified at this point. But, news of anything doubling and tripling in price always attracts speculators. So, once people began pumping huge amounts of money into the real estate market it took off. Soon everyone in Florida was either a real estate investor or a real estate agent.
Unfortunately, the rules are the same whether you pay too much for a stock or for a piece of land: you have to make that much more to claim a profit. This did happen for awhile, and land prices quadrupled in less than a year. Eventually, however, there were no "greater fools" to buy the disgustingly overpriced land, and prices began to adjust ever so subtly. Speculators realized there was a limit to the boom, and began to sell their properties to solidify their profits while they could.Then everybody simultaneously saw the writing on the wall, and panic selling ensued. With thousands of sellers and very few buyers, prices came down with a sickening thud, twitched a bit, and then crawled down even lower.
Labels: 1920's, florida real estate, real estate
Coming Storm in Commercial Properties
The coming tsunami of commercial foreclosures is going to be larger than at any other time in
U S History. Is your commercial real estate / distressed property division ready.
I am taking the time to research the Commercial Market and studying how the owners along with the creditors are going to handle the huge rise in the vacancy rate not only in South West Florida but all over the US.
I feel we need to be in position to quickly and efficiently handle the large number of Commercial foreclosure deals that now seems inevitable. Through solid negotiation on the owners behalf; and a full-scale marketing plan, we are now coordinating efforts to assist many commercial investors.
Labels: commercial real estate, florida, florida real estate, foreclosure
Understanding the Three Percent Cap Law
The three percent cap is known as "Save Our Homes" (SOH) and was a constitutional revision that took effect January 1, 1995 which annually limits the increase in the assessment of homesteaded properties at 3% or the Consumer Price Index (CPI) which ever is less.
The three percent cap is not a limitation on taxes, but it is a cap on the assessement of the parcel, not the taxes paid. In other words, the assessment could stay the same or go down and yet the taxes through a millage increase could go up.
To qualify, you must have a property with a homestead exemption. All other properties are not subject to the cap. Approximately 1/2 of all residential properties do not have homestead and are not subject to the cap.
The difference between Market Value and Assessed Value is that Assessed Value is the capped value as limited by the Three Percent Cap. The base year is the first year that you file and receive a homestead exemption. For example: You buy a home in July, 2003 and file for homestead exemption in January or February 2004. The base year is 2004, the year your received the homestead exemption. The base value is the property assessment as determined by the property appraiser for the 2004 Tax Roll.
