Thursday, May 24, 2012

Current Opportunities In Real Estate

Real Estate Matters
Interinvestments Realty® bi-weekly newsletter
Newsletter dated: 5/24/12.
Editor: Melly Guasch

Current Opportunities in Real Estate: All economic indicators are showing that now is the best time to buy a real estate property.

Let’s review the facts: The lowest home prices recorded in the last 12 years, interest rates near an all-time low, and inventory starting to deplete, the moment to buy is now. Yet with all these encouraging signs, why are so many buyers sitting on the sidelines? What are they waiting for? Why aren’t they acting swiftly? Procrastination is usually the culprit. Procrastination is “the opportunity assassin.” “Someday,” actually is not a day of the week… we all have procrastinated and have paid dearly for our lack of action.

“Twenty years from now you will be more disappointed by the things you don’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”-Mark Twain.

Smart Choices:

Real estate transactions can become real winners or real losers. It can be a smart move, but only when you make the right choices.

1.Use an attorney. No matter what type of investment you buy, always use an attorney when purchasing a property. Attorneys will investigate liens, title, back taxes and other encumbrances that could jeopardize the future value of your investments, and will indicate you how are the best way to take title.

2.Run the numbers. Don’t assume that the property will always have a tenant. Investigate the vacancy rate in the area and apply it accordingly. Don’t assume either that your tenant will pay rent timely; consider loss of money for eventualities. If you don’t have sufficient reserves to cover the mortgage payment for a 3-4 month period, you might be stretching yourself too thin. Always consult your C.P.A. regarding the property’s revenue projections and tax implications.

3.Consider the neighborhood. Location is the most important factor when investing in real estate. If the neighborhood has been changing for the better, investing can be a smart move; but if the neighborhood is in decline, the potential for appreciation is very slim.

4.Select a real estate company/agent that specializes in your area and the type of property that you’re buying. Ask your agent to provide you with a comparative market analysis (CMA) on the subject property. If the property is an investment property your agent should provide you with the property’s analysis and you should review the different rates of return, before determining your offering price.

5.Always secure the services of an inspection company and conduct all the necessary inspections to assure that your purchase is worthy.

6.If you’re buying a condo or a property within a homeowner association, familiarize yourself with the association documentation and regulations. Read the documents within the due diligence time allowed by the contract.

7.Shop-around in order to select the best lender, but always comply timely with the contract deadlines.

8.When buying new construction, select a Realtor® that specializes in this sector, like Interinvestments Realty®. We will guide you to the most reputable Builders and best current deals. Always investigate the Builder, visiting their previous developments and asking previous homeowners.

9.Write the contract subject to appraisal, especially if it’s a cash-deal.

10.If you are not familiar with the area where the property is located, you must investigate further. SMSA (Standard Metropolitan Statistical Area) data will give you, area population trends, housing market information, income levels of area residents, traffic counts on major highways, location and size of shopping centers, etc. You can also get this information from the local zoning board and/or Chamber of Commerce.

(Editor’s note: Any type of real estate can be considered an investment property, including residential homes. What determines that a property be considered an investment is the final use that the owner gives to the real property).


Fannie Mae’s latest Quarterly National Survey focused on the homeownership aspirations of Americans. Despite the housing crisis, most Americans continue to believe that homeownership is better than renting. Fannie Mae’s data indicates that financial and employment concerns may keep potential homeowners on the sidelines, but that can change if employment picks-up and the economy grows stronger. Stabilizing home prices may entice Americans to buy a home in the coming years.

Other survey findings:
•70% of renters think owning a home makes more sense.
•Across of all education levels and across all demographic groups, Americans say owning makes more sense than renting.
•Non-financial factors, such as safety and quality of local schools are top reasons for buying a home.
•African-Americans and Hispanics cite the benefit of homeownership as a way to build wealth, and a symbol of success.
•Groups with higher levels of education and higher incomes are more likely to think that buying a home is a safe investment.

The Florida Association of Realtors® reported on April 4, 2012:

Will housing prices soar by 2014?

Real estate economists and analysts are increasingly optimistic that the housing market will have a dramatic recovery in the next two years. According to results of a new semi-annual survey of 38 real estate economists and analysts conducted by the Urban Land Institute Center for Capital Markets and Real Estate.

The economists predict that the national average for home prices will stop falling by this year and a consequent turnaround will occur. By the next year, they projected that homes prices will begin to rise by 2%, and then get a larger boost of 3.5% by 2014. The economists also predict that housing starts will nearly double by next year. They also foresee rental prices continuing to increase for all property types, ranging from 0.8% to 5%.

The economists’ predictions were based on the assumption that the economy would continue to strengthen including a larger drop in unemployment. “While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for a significant improvement over the next three years,” says Patrick L Phillips, ULI chief executive officer. “These results hold much promise for the real estate industry.”

Realtors® Corner:

The Miami Association of Realtors® reported on March 28, 2012:

The total number of residential listings in Miami-Dade County that pended in February rose 29% compared to the same period in 2011, according to a report from the Miami Association of Realtors®. There were 3,685 listings that pended last month. “Despite the significant decline of housing inventory in the Miami real estate market, we continue to see rising demand,” said Martha Pomares 2012 Chairman of the Board of the Miami Association of Realtors®. “Rising pending sales point to increased future demand locally, as Miami continues to attract U.S. migration, in addition to substantial international buyers and investors and second and vacation homebuyers.” The February totals represented an increase of 14% compared to January 2012.

(Editor’s note: Pending sales are properties that are under contract, but haven’t close yet).

Recent sales- How does your home compare?

Balmoral at Doral

11268 NW 43rd Terrace, Miami, FL 33178
4 bed 3 bath, 2,500 sqft
Sold $450,000 Closed in May 2012
Selling agent: Helen Cecol, Interinvestments Realty

Vizcayne – Downtown Miami
253 NE 2nd Avenue #334, Miami, FL 33132

Studio 563 sqft

Sold $219,900 Closed in May 2012

Selling agent: Melanie Rutkin, Interinvestments Realty

1111 SW 1st Avenue #1025 N, Miami, FL 33130

2/2 Condo, City view, 1,174 sqft
Sold $307,000 Closed in May 2012
Selling agent: Alicia Ramirez / Cecilia Zurraco, Interinvestments Realty

Interinvestments Realty® Headquarters:

730 NW 107th Ave., Suite #120

Miami, Fl., 33172

Broward Branch:

2806 Weston Road

Weston, Fl. 33301.

Telephone: (954) 330-9786

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