Saturday, December 31, 2005
2005 in review!
For all of the noise made this year about rising mortgage interest rates, when economists look back to review the trends of the time years from now, they'll wonder at the hue and cry: for 2005, theannual average for the overall 30-year FRM was a flat 6%, just afour-basis point increase from 2004's final yearly average. Infact, the average for all of 2003 was just about the same, too:5.99%. Truly, we have enjoyed a remarkable run for interest rates,and there are no current signs that the end of low rates is near.However, the public perception of what constitutes a "low" ratehas changed measurably this year. Short-term interest rates, whilestill favorable, aren't as low as in recent years, but long-termrates have shown little determination to rise even to levelsdeemed 'reasonable' just a few years ago.As home buyers know full well, the nominal rate on a mortgage isan indicator of how much money a given income stream will be ableto manage. Along with other factors, the lower the rate, the moremoney can be borrowed; conversely, a given income can afford tofinance a wider price range of homes. This improves affordability,and many wanna-be homebuyers jump into the fray, until such demandcauses home prices to begin rising faster than interest rates arefalling. At some point, a balance is reached; after that, themomentum of one (prices, in this case) outweighs the other (effectof lower rates) and affordability begins to suffer, followed bysales numbers, followed by prices. To what degree all these willoccur (and at what speed) is unknowable, since real estate marketstend to be very localized; the so-called 'real estate bubble' isin fact a froth made up of many smaller bubbles.
Mixed use Development. Pro`s and Con`s.
One of investors wrote me the other day regarding mixed use developments. Here is the question along with our answer. As always your questions will be answered in a timely manner. Please email to realestatefla1@hotmail.com
Q: Why all the talk and new interest in mixed use developments, and why would government push for and allow these higher density projects?
A: History has a way of repeating itself, even in real estate development patterns and trends. Many of you reading this column can remember when towns were developed, not gated subdivisions off busy highways in the suburbs. These towns allowed residents to work, shop and enjoy recreation within walking distance of their homes. A mixed use development is just that, a simpler lifestyle which, in turn, helps reduce traffic congestion and urban sprawl.With mixed use developments, a higher density is needed (more living units per acre) to support the retail and office component of the development. With high density comes lower land costs for each residential unit, meaning lower home prices or rents for the residents. Let me say that again, a simpler lifestyle that more people can afford.
In light of the fact that more than 50 percent of Florida`s work force cannot afford to buy a home in the county they work in and our road congestion is not getting better, mixed use developments make a great deal of sense. I applaud the people in government who understand the concept and are looking for ways to make mixed use development work in our market.The problem with mixed use development is not allowing more density, which is required for its success, and, ultimately, helps the entire community. Many developers are afraid to design mixed use developments, which can cost well over $1 million just to design, because they can be turned down by government agencies, not allowing them to move the project forward. This generally occurs when neighboring residents or the government agencies themselves do not understand the benefits of mixed use land planning and deny approval of the concept.
Q: Why all the talk and new interest in mixed use developments, and why would government push for and allow these higher density projects?
A: History has a way of repeating itself, even in real estate development patterns and trends. Many of you reading this column can remember when towns were developed, not gated subdivisions off busy highways in the suburbs. These towns allowed residents to work, shop and enjoy recreation within walking distance of their homes. A mixed use development is just that, a simpler lifestyle which, in turn, helps reduce traffic congestion and urban sprawl.With mixed use developments, a higher density is needed (more living units per acre) to support the retail and office component of the development. With high density comes lower land costs for each residential unit, meaning lower home prices or rents for the residents. Let me say that again, a simpler lifestyle that more people can afford.
In light of the fact that more than 50 percent of Florida`s work force cannot afford to buy a home in the county they work in and our road congestion is not getting better, mixed use developments make a great deal of sense. I applaud the people in government who understand the concept and are looking for ways to make mixed use development work in our market.The problem with mixed use development is not allowing more density, which is required for its success, and, ultimately, helps the entire community. Many developers are afraid to design mixed use developments, which can cost well over $1 million just to design, because they can be turned down by government agencies, not allowing them to move the project forward. This generally occurs when neighboring residents or the government agencies themselves do not understand the benefits of mixed use land planning and deny approval of the concept.
Friday, December 30, 2005
Jacksonville, great area to invest in Real Estate.
With some finesse you can still buy into home market
So says a new study. And it's easier to do in Jacksonville than other parts of the state.
With traditional financing, Cece Harrigan might not have been able to afford a home. Last fall, the 26-year-old college student and first time home buyer had her eye on a $121,000 house, but knew that she couldn't keep up with the more than $1,000 monthly mortgage payments that her short credit history afforded her. It didn't help that median home prices in the Jacksonville area were more than 10 percent higher than a year before.
But like many home buyers, Harrigan, her Realtor and her lender were able to find crafty financing options that made the home affordable after all. She purchased it in October. Now, she's paying about $725 per month, less than $100 per month more than she was paying in rent before the move.
According to a recent study, Harrigan's story might be part of a national trend of offsetting high home prices with lower interest rates and creative financing that can allow people to buy higher-priced houses at rock-bottom monthly payments.
Home prices have shot up in recent years, but that doesn't necessarily mean that homes are less affordable. A report by The New York Times and Moody's Economy.com found that rising incomes and plummeting mortgage rates have made up for high home prices in most areas of the country, propping up the real estate market.
In the Jacksonville metropolitan area, the percentage of median income required to purchase a typical home is 19 percent, down from 20 percent in 1985, according to the study. The median is the point at which half of incomes are higher and half are lower. Nationwide, the average is 22 percent, down from 24 percent in 1985.
According to the report, First Coast housing costs hit their peak in 1982, when homeowners needed to use 27 percent of their income to pay for a home. Nowadays, Jacksonville is among the cheapest locations in the state, beaten by only the Tallahassee and Lakeland regions. But the area saw affordability fall three percentage points between 2004 and 2005. In Florida, Naples topped the list as the least affordable, with nearly 48 percent of a person's income needed to make house payments.
The study comes as many housing analysts portend the crash of the real estate market in the wake of sky-high home prices.
And on Thursday, the Florida Association of Realtors reported that statewide median home sales prices were up 31 percent to $250,500 in November from a year before. Jacksonville's median sales price was up 17 percent to $190,000. That's on top of steady increases throughout the year.
Despite the Moody's report, buying real estate on the First Coast is still tough for many families, said Millie Kanyar, a Realtor for Watson Realty's Fort Caroline office and the treasurer-elect of the Northeast Florida Association of Realtors.
"Low interest payments are keeping the prices affordable and allowing families to stick to a certain price range, but the real problem is finding houses in that range that aren't overpriced," she said. "I'm seeing many people stretching their income to the max in finding a house that they can afford."
Kanyar said that while some houses may be affordable for families at the moment, consistently rising interest rates will soon push those homes out of range, or worse, make payments unaffordable for a house that they've already purchased with an adjustable rate mortgage.
But, as a whole, new financing options have allowed home buyers to take out larger mortgages than they would have been able to do several years ago, said Tim Delp, the manager of the Northeast Florida region of HomeBanc Mortgage. That makes a higher-priced home appear more affordable by driving down monthly payments.
Although standard fixed-rate mortgages were prevalent in the 1980s, now homeowners can take out interest-only mortgages, adjustable-rate mortgages and mortgages with little to no down payment, he said.
"Over the last couple [of] years, we've seen a lot of innovative mortgage products," Delp said. "Options with a low down payment or even no down payment have made houses more affordable and increased homeownership in general."
And although interest rates will likely continue to rise, they probably won't reach the high levels that they hit in the mid-1980s, Delp said.
Local homebuilders also feel the mitigating effects of creative financing, said Mack Bissette, the CEO of SRG Homes and Neighborhoods, which builds about 35 homes per year in the Springfield area. Lower interest rates have allowed buyers to spend more money on a home than they used to, but that in today's real estate market, more money doesn't always mean more home, Bissette said.
"Prices for everything have gone up," he said. "Land costs have gone up. Labor costs are up. Materials costs are up. It costs more to build a home than it used to."
But even with broad mortgage options, real estate prices seem to greatly outpace rising incomes locally, said David Parker, a principal of Parker Associates, a Jacksonville-based real estate development marketing consultant.
"Mortgage options have certainly allowed a lot of people to go into a lot of debt," he said. "As interest rates rise, affordability will decline quite rapidly."
And while the Moody's index takes into account such things as financing options and average down payments, affordability indexes do not always agree with each other. For example, officials who manage the Housing Opportunity Index, conducted by the National Association of Home Builders and Wells Fargo, recently said that the third quarter of 2005 marked the least affordable U.S. market since they introduced the index in 1992.
So says a new study. And it's easier to do in Jacksonville than other parts of the state.
With traditional financing, Cece Harrigan might not have been able to afford a home. Last fall, the 26-year-old college student and first time home buyer had her eye on a $121,000 house, but knew that she couldn't keep up with the more than $1,000 monthly mortgage payments that her short credit history afforded her. It didn't help that median home prices in the Jacksonville area were more than 10 percent higher than a year before.
But like many home buyers, Harrigan, her Realtor and her lender were able to find crafty financing options that made the home affordable after all. She purchased it in October. Now, she's paying about $725 per month, less than $100 per month more than she was paying in rent before the move.
According to a recent study, Harrigan's story might be part of a national trend of offsetting high home prices with lower interest rates and creative financing that can allow people to buy higher-priced houses at rock-bottom monthly payments.
Home prices have shot up in recent years, but that doesn't necessarily mean that homes are less affordable. A report by The New York Times and Moody's Economy.com found that rising incomes and plummeting mortgage rates have made up for high home prices in most areas of the country, propping up the real estate market.
In the Jacksonville metropolitan area, the percentage of median income required to purchase a typical home is 19 percent, down from 20 percent in 1985, according to the study. The median is the point at which half of incomes are higher and half are lower. Nationwide, the average is 22 percent, down from 24 percent in 1985.
According to the report, First Coast housing costs hit their peak in 1982, when homeowners needed to use 27 percent of their income to pay for a home. Nowadays, Jacksonville is among the cheapest locations in the state, beaten by only the Tallahassee and Lakeland regions. But the area saw affordability fall three percentage points between 2004 and 2005. In Florida, Naples topped the list as the least affordable, with nearly 48 percent of a person's income needed to make house payments.
The study comes as many housing analysts portend the crash of the real estate market in the wake of sky-high home prices.
And on Thursday, the Florida Association of Realtors reported that statewide median home sales prices were up 31 percent to $250,500 in November from a year before. Jacksonville's median sales price was up 17 percent to $190,000. That's on top of steady increases throughout the year.
Despite the Moody's report, buying real estate on the First Coast is still tough for many families, said Millie Kanyar, a Realtor for Watson Realty's Fort Caroline office and the treasurer-elect of the Northeast Florida Association of Realtors.
"Low interest payments are keeping the prices affordable and allowing families to stick to a certain price range, but the real problem is finding houses in that range that aren't overpriced," she said. "I'm seeing many people stretching their income to the max in finding a house that they can afford."
Kanyar said that while some houses may be affordable for families at the moment, consistently rising interest rates will soon push those homes out of range, or worse, make payments unaffordable for a house that they've already purchased with an adjustable rate mortgage.
But, as a whole, new financing options have allowed home buyers to take out larger mortgages than they would have been able to do several years ago, said Tim Delp, the manager of the Northeast Florida region of HomeBanc Mortgage. That makes a higher-priced home appear more affordable by driving down monthly payments.
Although standard fixed-rate mortgages were prevalent in the 1980s, now homeowners can take out interest-only mortgages, adjustable-rate mortgages and mortgages with little to no down payment, he said.
"Over the last couple [of] years, we've seen a lot of innovative mortgage products," Delp said. "Options with a low down payment or even no down payment have made houses more affordable and increased homeownership in general."
And although interest rates will likely continue to rise, they probably won't reach the high levels that they hit in the mid-1980s, Delp said.
Local homebuilders also feel the mitigating effects of creative financing, said Mack Bissette, the CEO of SRG Homes and Neighborhoods, which builds about 35 homes per year in the Springfield area. Lower interest rates have allowed buyers to spend more money on a home than they used to, but that in today's real estate market, more money doesn't always mean more home, Bissette said.
"Prices for everything have gone up," he said. "Land costs have gone up. Labor costs are up. Materials costs are up. It costs more to build a home than it used to."
But even with broad mortgage options, real estate prices seem to greatly outpace rising incomes locally, said David Parker, a principal of Parker Associates, a Jacksonville-based real estate development marketing consultant.
"Mortgage options have certainly allowed a lot of people to go into a lot of debt," he said. "As interest rates rise, affordability will decline quite rapidly."
And while the Moody's index takes into account such things as financing options and average down payments, affordability indexes do not always agree with each other. For example, officials who manage the Housing Opportunity Index, conducted by the National Association of Home Builders and Wells Fargo, recently said that the third quarter of 2005 marked the least affordable U.S. market since they introduced the index in 1992.
Lee County.Prices still on the rise!
Lee County's home market is still sizzling.The median price of an existing home in Lee was $295,400 in November, up 49 percent from the same month a year ago.And sales bounced back in November following disruptions from Hurricane Wilma in October.
Sales were down 52 percent from October 2004 as insurance companies ceased writing policies with Wilma looming. That meant people couldn't close on their homes.Those limited sales may have also skewed October's median price: $322,000.
Nationally, the picture wasn't as bright. Existing home sales fell to an eight-month low in November, leaving the number of homes on the market at the highest level since 1986.Home sales dropped 1.7 percent to a 6.97 million annual rate, according to the National Association of Realtors. Purchases have been slowing since they reached a record pace of 7.35 million in June.Statewide, sales increased 1 percent over the same period last year and the median sales price was $250,500, an increase of 31 percent, according to data released Thursday by the Florida Association of Realtors.
The median is the number that falls in the middle of a list of prices, not the average.In Collier County, sales increased 5 percent, while the median price increased 37 percent to $479,800.
In Lee County, buyers purchased 810 existing homes in November, up 4 percent from November 2004, and more than triple that of October, when 264 homes sold, according to the state association.William Belden, 65, of Rutland, Vt., contributed to the November rebound, purchasing a three-bedroom house in central Cape Coral on Nov. 23.
Belden said he and his wife, Mary, had planned to buy a townhouse or condominium, but then opted for a single-family home."By the time you consider the monthly fees in a condo, a home was a better deal," he said.Belden said he looked for just a week before finding what he was looking for. At $300,000, his home was just above the median price.
While sales picked up from the previous month, buyer traffic was noticeably slower in November than just a few months ago, said Brett Ellis of RE/MAX Realty Group in Fort Myers."We did see a drop-off in buyer volume," Ellis said, adding that Wilma's impact reached into early November and increasing prices and interest rates contributed to the slowing.
If sales cool, the median price might climb even more sharply, Ellis said."As prices increase, the bottom part of the market drops out and that pushes the median price way up."However, he said the sales pace seems to have picked up in December, especially just before Christmas.
"There had been some pent up demand that seems to have entered the market," Ellis said. "I think people saw a respite in the market and decided to make a jump."But sales seem to have fallen off in the lower price ranges, said Beverly Gaymon, an agent with Sellstate Alliance Realty in Fort Myers.
"I have noticed a slowdown, but that isn't that unusual for real estate in this time of year around the holidays," Gaymon said. "Still, if you see something that's out there and it is reasonable, you had better jump on it because it won't be there for long."Nationally, the slowdown puts buyers in the driver's seat, said Thomas Stevens, president of the national association."As more listings of homes come on the market during this period of modestly declining sales, more home buyers will find themselves in a better position to negotiate," Stevens said.
Some analysts said the slow cooling of the housing market is a good sign for the economy, because it avoids a sudden crash."The pullback in the housing market is continuing at an orderly pace," said Joel Naroff, president of Naroff Economic Advisors.
Polk County Still Very Hot market!
County's Home Sales Continue Hot Trend22.7 percent jump in sales from last year bucks state, national trends.
By Jeremy MareadyThe LedgerLAKELAND -- Polk County continues to buck the nation's cooling real estate trend.Local home sales only heated up at a time that is typically frigid.The county's home sales jumped almost 23 percent in November from 405 in 2004 to 497 last month. The gains were far beyond those seen in the state and national market.The Ledger's home-sales figures include existing duplexes, condos, co-ops, manufactured and mobile homes, modular, single-family and townhomes as well as new home sales by Realtors."Things have changed so much in one year that it is shocking," said Realtor Betty Watson of Watson Lakefront Realty in Auburndale. "The value of homes has gone up, and people want to profit on that. Anything priced under $200,000 is going to fly off the market right now. You really can't hang onto them."The reason: "Good weather and a central location," she said.The median home sale price for homes in the Lakeland and Winter Haven market jumped 37 percent from $121,500 in November 2004 to $166,900 last month. But that was a 3.8 percent drop from last October's median price of $173,500.Lakeland's Realtors had a total of 266 home sales, up 5 percent from 253 last year."November has been extremely strong for us," said Sheri Jackson, a Realtor with Re/Max Paramount Properties in Lakeland. "And with the end of the year here, PLEASE SEE HOMES, PAGE E2December has been pretty strong too. Traditionally this would be the worst time of the year. But this year we have been busy."East Polk recorded 219 home sales, up 51 percent from 145 in November 2004. Bartow's sales increased from seven home sales a year ago to 12 last month -- a 71 percent jump.Statewide, a total of 17,219 homes were sold last month compared with 17,110 home sales that closed in November 2004. That is nearly a 1 percent increase in sales.Nationally, 6.97 million homes were sold in November, which is a 0.1 percent drop from 6.98 million a year ago."As more listings of homes come on the market during this period of modestly declining sales, more home buyers will find themselves in a better position to negotiate," said Thomas Stevens, president of the National Association of Realtors, in a press statement. "Most home sellers will see excellent returns on their investment but should understand that double-digit annual increases will become less common in the coming year."County's Home Sales Continue Hot Trend22.7 percent jump in sales from last year bucks state, national trends.By Jeremy MareadyThe LedgerLAKELAND -- Polk County continues to buck the nation's cooling real estate trend.Local home sales only heated up at a time that is typically frigid.The county's home sales jumped almost 23 percent in November from 405 in 2004 to 497 last month. The gains were far beyond those seen in the state and national market.The Ledger's home-sales figures include existing duplexes, condos, co-ops, manufactured and mobile homes, modular, single-family and townhomes as well as new home sales by Realtors."Things have changed so much in one year that it is shocking," said Realtor Betty Watson of Watson Lakefront Realty in Auburndale. "The value of homes has gone up, and people want to profit on that. Anything priced under $200,000 is going to fly off the market right now. You really can't hang onto them."The reason: "Good weather and a central location," she said.The median home sale price for homes in the Lakeland and Winter Haven market jumped 37 percent from $121,500 in November 2004 to $166,900 last month. But that was a 3.8 percent drop from last October's median price of $173,500.Lakeland's Realtors had a total of 266 home sales, up 5 percent from 253 last year."November has been extremely strong for us," said Sheri Jackson, a Realtor with Re/Max Paramount Properties in Lakeland. "And with the end of the year here.
December has been pretty strong too. Traditionally this would be the worst time of the year. But this year we have been busy."East Polk recorded 219 home sales, up 51 percent from 145 in November 2004. Bartow's sales increased from seven home sales a year ago to 12 last month -- a 71 percent jump.Statewide, a total of 17,219 homes were sold last month compared with 17,110 home sales that closed in November 2004. That is nearly a 1 percent increase in sales.Nationally, 6.97 million homes were sold in November, which is a 0.1 percent drop from 6.98 million a year ago."As more listings of homes come on the market during this period of modestly declining sales, more home buyers will find themselves in a better position to negotiate," said Thomas Stevens, president of the National Association of Realtors, in a press statement. "Most home sellers will see excellent returns on their investment but should understand that double-digit annual increases will become less common in the coming year."
By Jeremy MareadyThe LedgerLAKELAND -- Polk County continues to buck the nation's cooling real estate trend.Local home sales only heated up at a time that is typically frigid.The county's home sales jumped almost 23 percent in November from 405 in 2004 to 497 last month. The gains were far beyond those seen in the state and national market.The Ledger's home-sales figures include existing duplexes, condos, co-ops, manufactured and mobile homes, modular, single-family and townhomes as well as new home sales by Realtors."Things have changed so much in one year that it is shocking," said Realtor Betty Watson of Watson Lakefront Realty in Auburndale. "The value of homes has gone up, and people want to profit on that. Anything priced under $200,000 is going to fly off the market right now. You really can't hang onto them."The reason: "Good weather and a central location," she said.The median home sale price for homes in the Lakeland and Winter Haven market jumped 37 percent from $121,500 in November 2004 to $166,900 last month. But that was a 3.8 percent drop from last October's median price of $173,500.Lakeland's Realtors had a total of 266 home sales, up 5 percent from 253 last year."November has been extremely strong for us," said Sheri Jackson, a Realtor with Re/Max Paramount Properties in Lakeland. "And with the end of the year here, PLEASE SEE HOMES, PAGE E2December has been pretty strong too. Traditionally this would be the worst time of the year. But this year we have been busy."East Polk recorded 219 home sales, up 51 percent from 145 in November 2004. Bartow's sales increased from seven home sales a year ago to 12 last month -- a 71 percent jump.Statewide, a total of 17,219 homes were sold last month compared with 17,110 home sales that closed in November 2004. That is nearly a 1 percent increase in sales.Nationally, 6.97 million homes were sold in November, which is a 0.1 percent drop from 6.98 million a year ago."As more listings of homes come on the market during this period of modestly declining sales, more home buyers will find themselves in a better position to negotiate," said Thomas Stevens, president of the National Association of Realtors, in a press statement. "Most home sellers will see excellent returns on their investment but should understand that double-digit annual increases will become less common in the coming year."County's Home Sales Continue Hot Trend22.7 percent jump in sales from last year bucks state, national trends.By Jeremy MareadyThe LedgerLAKELAND -- Polk County continues to buck the nation's cooling real estate trend.Local home sales only heated up at a time that is typically frigid.The county's home sales jumped almost 23 percent in November from 405 in 2004 to 497 last month. The gains were far beyond those seen in the state and national market.The Ledger's home-sales figures include existing duplexes, condos, co-ops, manufactured and mobile homes, modular, single-family and townhomes as well as new home sales by Realtors."Things have changed so much in one year that it is shocking," said Realtor Betty Watson of Watson Lakefront Realty in Auburndale. "The value of homes has gone up, and people want to profit on that. Anything priced under $200,000 is going to fly off the market right now. You really can't hang onto them."The reason: "Good weather and a central location," she said.The median home sale price for homes in the Lakeland and Winter Haven market jumped 37 percent from $121,500 in November 2004 to $166,900 last month. But that was a 3.8 percent drop from last October's median price of $173,500.Lakeland's Realtors had a total of 266 home sales, up 5 percent from 253 last year."November has been extremely strong for us," said Sheri Jackson, a Realtor with Re/Max Paramount Properties in Lakeland. "And with the end of the year here.
December has been pretty strong too. Traditionally this would be the worst time of the year. But this year we have been busy."East Polk recorded 219 home sales, up 51 percent from 145 in November 2004. Bartow's sales increased from seven home sales a year ago to 12 last month -- a 71 percent jump.Statewide, a total of 17,219 homes were sold last month compared with 17,110 home sales that closed in November 2004. That is nearly a 1 percent increase in sales.Nationally, 6.97 million homes were sold in November, which is a 0.1 percent drop from 6.98 million a year ago."As more listings of homes come on the market during this period of modestly declining sales, more home buyers will find themselves in a better position to negotiate," said Thomas Stevens, president of the National Association of Realtors, in a press statement. "Most home sellers will see excellent returns on their investment but should understand that double-digit annual increases will become less common in the coming year."
Wednesday, December 28, 2005
Device helps renters keep strangers away!
The Key-P-Out fits over most door locks and makes it almost impossible for anyone to enter your apartment.
Joe Lubrant and Ron Kent were tired of other people having access to their apartments.
Be it maintenance men, landlords or pest control, Lubrant and Kent didn't feel safe knowing that they weren't the only ones able to get into their place.
"I would work long days and I'd come home and the maintenance guys would walk in my door," Lubrant said. "I started thinking that when I go to bed at night, I might not be so safe with someone else having a key, or that there's a master key floating around with ex-tenants and so forth."
Putting their concerns for safety into action, the 40-year-olds decided to create a way to stop unwanted intruders. They call it the "Key-P-Out."
The Key-P-Out is a product that fits over 90 percent of all door locks and deadbolts, and makes it virtually impossible for anyone to enter the unit without the Key-P-Out being removed.
"It can only be used while you're at home," Lubrant said.
Though many apartment complex owners and maintenance crews have the right to enter a unit for specified reasons, Kent said the Key-P-Out allows the tenant to control who comes in while they are home.
"These teams that come in to maintain rented spaces have the right to come in and do their job," he said. "Because of the conditions they are under, they rarely give notice and rarely knock. They just come in. This is a device that forces them to give you control if they are going to come into your space."
Lubrant and Kent, both residents of the greater-Jacksonville area, have been working on the Key-P-Out for about five years and said they have had nearly 10 different prototypes along the way.
Currently on the Key-P-Out Web site, www.Key-P-Out.com, the product is selling for $14.95. The business venture cost Kent and Lubrant nearly $50,000, including patent and creation.
The first shipment of the Key-P-Out arrived in June to the Jacksonville warehouse and Lubrant said current sales of the product are close to 5,000 units. Though the device has been sold primarily from the Web site, Lubrant said he's working on a national campaign to market the Key-P-Out .
The two discussed the possibility of having the Key-P-Out as part of a teaming agreement, or a package deal that would include several home-security items similar to the Key-P-Out.
According to the American Housing Survey of 2003, there are approximately 33.6 million Americans renting housing units. Although those numbers equal potential customers, Kent said he is looking past the idea of focusing primarily on apartment renters.
"When you combine that [survey figures] with the condominiums, the dormitories and the retirement homes, it just keeps going," Kent said. "It's a pretty large number that we are going to hit."
Though the Key-P-Out seems like it would be a welcomed product by most renters, the idea that landlords and housing owners would take well to the product is something Lubrant and Kent have wrestled with.
"Their 10-second response is, 'No way. We don't want that on our tenant's door.'" Kent said. "The two minute response, after they think it through, is they would love to protect their tenants from unruly maintenance members or key holders."
Considering many landlords and apartment complex owners are typically aware of liability insurance, Lubrant and Kent said the Key-P-Out will offer more safety to the renter and could potentially lower liability.
"What we are trying to prevent is unwanted entry," Lubrant said. "I was in the shower many times and I'd hear somebody walking through the door and I'd jump out and there was the maintenance guy. This little personal security device can turn into an overnight security device as well.
"You've got to think, when you go to bed, somebody still has a key when you lock that door."
The Key-P-Out fits over most door locks and makes it almost impossible for anyone to enter your apartment.
Joe Lubrant and Ron Kent were tired of other people having access to their apartments.
Be it maintenance men, landlords or pest control, Lubrant and Kent didn't feel safe knowing that they weren't the only ones able to get into their place.
"I would work long days and I'd come home and the maintenance guys would walk in my door," Lubrant said. "I started thinking that when I go to bed at night, I might not be so safe with someone else having a key, or that there's a master key floating around with ex-tenants and so forth."
Putting their concerns for safety into action, the 40-year-olds decided to create a way to stop unwanted intruders. They call it the "Key-P-Out."
The Key-P-Out is a product that fits over 90 percent of all door locks and deadbolts, and makes it virtually impossible for anyone to enter the unit without the Key-P-Out being removed.
"It can only be used while you're at home," Lubrant said.
Though many apartment complex owners and maintenance crews have the right to enter a unit for specified reasons, Kent said the Key-P-Out allows the tenant to control who comes in while they are home.
"These teams that come in to maintain rented spaces have the right to come in and do their job," he said. "Because of the conditions they are under, they rarely give notice and rarely knock. They just come in. This is a device that forces them to give you control if they are going to come into your space."
Lubrant and Kent, both residents of the greater-Jacksonville area, have been working on the Key-P-Out for about five years and said they have had nearly 10 different prototypes along the way.
Currently on the Key-P-Out Web site, www.Key-P-Out.com, the product is selling for $14.95. The business venture cost Kent and Lubrant nearly $50,000, including patent and creation.
The first shipment of the Key-P-Out arrived in June to the Jacksonville warehouse and Lubrant said current sales of the product are close to 5,000 units. Though the device has been sold primarily from the Web site, Lubrant said he's working on a national campaign to market the Key-P-Out .
The two discussed the possibility of having the Key-P-Out as part of a teaming agreement, or a package deal that would include several home-security items similar to the Key-P-Out.
According to the American Housing Survey of 2003, there are approximately 33.6 million Americans renting housing units. Although those numbers equal potential customers, Kent said he is looking past the idea of focusing primarily on apartment renters.
"When you combine that [survey figures] with the condominiums, the dormitories and the retirement homes, it just keeps going," Kent said. "It's a pretty large number that we are going to hit."
Though the Key-P-Out seems like it would be a welcomed product by most renters, the idea that landlords and housing owners would take well to the product is something Lubrant and Kent have wrestled with.
"Their 10-second response is, 'No way. We don't want that on our tenant's door.'" Kent said. "The two minute response, after they think it through, is they would love to protect their tenants from unruly maintenance members or key holders."
Considering many landlords and apartment complex owners are typically aware of liability insurance, Lubrant and Kent said the Key-P-Out will offer more safety to the renter and could potentially lower liability.
"What we are trying to prevent is unwanted entry," Lubrant said. "I was in the shower many times and I'd hear somebody walking through the door and I'd jump out and there was the maintenance guy. This little personal security device can turn into an overnight security device as well.
"You've got to think, when you go to bed, somebody still has a key when you lock that door."
Tuesday, December 27, 2005
Clay County economic boom!
Official: Heavy Clay traffic may be an economic boon
He proposes using it as an advantage
By BRAD SCHMIDT, The Times-Union As officials contemplate routes for a billion-dollar outer-beltway project connecting Interstate 10 to Interstate 95, Clay County's planning department is pitching a theory promoting regional traffic as a means toward improving the local economy.
Right now it's just an idea, and the Clay County Commission is not ready to adopt any particular line of thought. In fact, at least one commissioner already is scoffing at the notion.
But, boy, it sure would make for a great bumper sticker:
Clay's suggestion: More congestion!
In a memo to county commissioners this month, Planning Director Thad Crowe explained that increased congestion "may actually be a tool that helps create jobs in the county." He said congestion either forces residents to move closer to jobs or motivates employers to relocate toward the workforce.
Either scenario would benefit Clay, the only county in the region lacking a major limited-access highway. Although completion of the beltway is expected to take 20 to 30 years, the project could be the first real step toward ending Clay County's bedroom-community mentality.
The Florida Department of Transportation is reviewing four possible routes for the beltway, which will be needed to ease future congestion along the Shands Bridge in Green Cove Springs and Jacksonville's Buckman Bridge. In Clay County, the beltway would run one of two courses -- either a northern or southern route.
Both corridors begin where Branan Field-Chaffee Road meets Blanding Boulevard. The northern route runs parallel to Russell Road and crosses the St. Johns River near County Road 315. The other route jots past Lake Asbury and runs south of Green Cove Springs before looping northeast and crossing the river near the Shands Bridge.
Present-value costs for the project continue to increase and are now estimated between $1.26 billion and $1.68 billion. Depending on funding sources for the beltway, its path could be decided by the federal government, a state turnpike association or through collaborative decision-making between private businesses and Clay and St. Johns counties.
For Clay County, officials need to promote the route that best advances economic development, the planning director said. In his comparison of the beltway's two paths, Crowe called the northern option a "true commuter route" that hurts the county by providing easy access to Jacksonville jobs.
By contrast, the southern route "does not go from point A to point B in the quickest manner," and that could be a good thing for the county, he noted. Residents fed up with regional traffic could look for employment nearby -- and the beltway would be the road to take them there.
A different philosophy
In a study this year for the Clay County Chamber of Commerce, a consultant found that the county has "severe economic dependence" on Duval County, with 51 percent of its workforce traveling to Jacksonville for employment.
Clay's residents were willing to endure the state's third-longest commute -- averaging 33.5 minutes each way -- because jobs in Duval paid much more, according to the study by Florida-based POLICOM Corp.
Examining data from 2002, the consultant found the average salary in Duval was almost $40,000 -- $15,000 more than in Clay, where 65 percent of all jobs were in retail or services.
But with the lure of office and industrial jobs at business centers proposed near Branan Field, Lake Asbury, Peters Creek and Green Cove Springs, Clay County's planning director said officials should consider enhancing internal travel rather than the Jacksonville commute.
"We have to be careful about how we deal with capacity and congestion," Crowe said. "When you're in a high-growth environment, if you put too much emphasis on opening up new routes to more distant areas, then you're moving growth out to the periphery."
Connecting proposed business centers locally would appeal to county residents sick of fighting rush-hour congestion to and from Jacksonville.
"It pulls the cars off the road and gets people going in different directions," Crowe said. "Our roadways are then utilized more efficiently because our job centers are decentralized."
Weighing many factors
Not everyone is buying so readily into Crowe's theory.
County Commissioner George Bush, who sits on the First Coast Metropolitan Planning Organization, said the region would be better served by a beltway that crosses the river between already existing bridges in Jacksonville and Green Cove Springs.
Bush said the northern route also would better accommodate northeastern Clay County, home to the vast majority of county residents. He warned that voters will not be pleased with a county government eager to promote congestion.
"Any elected official that supports that position isn't going to be elected for very long," said Bush, a 13-year commission veteran who cannot seek re-election because of term limits. "I think [Crowe's] theory is washed up."
Bush's concerns about regional impacts are shared by the Florida Department of Transportation, which is now conducting the third stage of the beltway study.
Project manager Imran Ghani said that before the department can make its recommendation in 2007, many components must be considered, some of which include: commuters' needs; the concerns of residents and politicians; congestion along Interstate 295; and the impacts to local roads, wetlands, conservation, trucking patterns, business development and residential housing.
According to state projections, the northern route would accommodate between 80,500 and 95,500 vehicles per day in 2025, while roughly 60,000 vehicles would use the southern route.
Ghani said he understands Clay's potential to economically benefit from the southern route but added that it's hard to ignore statistics.
"You can't just say the commuter interest is of no interest to us."
Hundred-year decision
Neither the Clay County Commission nor the St. Johns County Commission has voiced formal support for a particular route. Commissioners are expected to hold public hearings and meet in late January for the first of three sessions where they will begin discussing options.
St. Johns County Commissioner Cyndi Stevenson said business development and economic impacts are clearly key interests along both sides of the river. Stevenson said she favors the southern route because it would link commuters to commercial centers near International Golf Parkway.
"I think it's really important with St. Johns County that the bridge [route] touch with I-95 so that we're not just a doormat for Clay County traffic going north," she said.
Future growth also must be considered when planning for the beltway, said Clay County Commissioner Christy Fitzgerald, who prefers the southern route. Communities such as Orange Park and Fleming Island have filled out, she said, and the beltway needs to accommodate the 100,000 residents who are expected to enter the county by 2030.
Another Clay commissioner, Patrick McGovern, said officials know they are under the gun.
A route must be chosen before costs rise any higher, he said. But because of the long-lasting effects, the process can't be rushed.
"This is a billion-dollar decision, and it's really more than that because it will determine what Clay County looks like for the next hundreds of years."
He proposes using it as an advantage
By BRAD SCHMIDT, The Times-Union As officials contemplate routes for a billion-dollar outer-beltway project connecting Interstate 10 to Interstate 95, Clay County's planning department is pitching a theory promoting regional traffic as a means toward improving the local economy.
Right now it's just an idea, and the Clay County Commission is not ready to adopt any particular line of thought. In fact, at least one commissioner already is scoffing at the notion.
But, boy, it sure would make for a great bumper sticker:
Clay's suggestion: More congestion!
In a memo to county commissioners this month, Planning Director Thad Crowe explained that increased congestion "may actually be a tool that helps create jobs in the county." He said congestion either forces residents to move closer to jobs or motivates employers to relocate toward the workforce.
Either scenario would benefit Clay, the only county in the region lacking a major limited-access highway. Although completion of the beltway is expected to take 20 to 30 years, the project could be the first real step toward ending Clay County's bedroom-community mentality.
The Florida Department of Transportation is reviewing four possible routes for the beltway, which will be needed to ease future congestion along the Shands Bridge in Green Cove Springs and Jacksonville's Buckman Bridge. In Clay County, the beltway would run one of two courses -- either a northern or southern route.
Both corridors begin where Branan Field-Chaffee Road meets Blanding Boulevard. The northern route runs parallel to Russell Road and crosses the St. Johns River near County Road 315. The other route jots past Lake Asbury and runs south of Green Cove Springs before looping northeast and crossing the river near the Shands Bridge.
Present-value costs for the project continue to increase and are now estimated between $1.26 billion and $1.68 billion. Depending on funding sources for the beltway, its path could be decided by the federal government, a state turnpike association or through collaborative decision-making between private businesses and Clay and St. Johns counties.
For Clay County, officials need to promote the route that best advances economic development, the planning director said. In his comparison of the beltway's two paths, Crowe called the northern option a "true commuter route" that hurts the county by providing easy access to Jacksonville jobs.
By contrast, the southern route "does not go from point A to point B in the quickest manner," and that could be a good thing for the county, he noted. Residents fed up with regional traffic could look for employment nearby -- and the beltway would be the road to take them there.
A different philosophy
In a study this year for the Clay County Chamber of Commerce, a consultant found that the county has "severe economic dependence" on Duval County, with 51 percent of its workforce traveling to Jacksonville for employment.
Clay's residents were willing to endure the state's third-longest commute -- averaging 33.5 minutes each way -- because jobs in Duval paid much more, according to the study by Florida-based POLICOM Corp.
Examining data from 2002, the consultant found the average salary in Duval was almost $40,000 -- $15,000 more than in Clay, where 65 percent of all jobs were in retail or services.
But with the lure of office and industrial jobs at business centers proposed near Branan Field, Lake Asbury, Peters Creek and Green Cove Springs, Clay County's planning director said officials should consider enhancing internal travel rather than the Jacksonville commute.
"We have to be careful about how we deal with capacity and congestion," Crowe said. "When you're in a high-growth environment, if you put too much emphasis on opening up new routes to more distant areas, then you're moving growth out to the periphery."
Connecting proposed business centers locally would appeal to county residents sick of fighting rush-hour congestion to and from Jacksonville.
"It pulls the cars off the road and gets people going in different directions," Crowe said. "Our roadways are then utilized more efficiently because our job centers are decentralized."
Weighing many factors
Not everyone is buying so readily into Crowe's theory.
County Commissioner George Bush, who sits on the First Coast Metropolitan Planning Organization, said the region would be better served by a beltway that crosses the river between already existing bridges in Jacksonville and Green Cove Springs.
Bush said the northern route also would better accommodate northeastern Clay County, home to the vast majority of county residents. He warned that voters will not be pleased with a county government eager to promote congestion.
"Any elected official that supports that position isn't going to be elected for very long," said Bush, a 13-year commission veteran who cannot seek re-election because of term limits. "I think [Crowe's] theory is washed up."
Bush's concerns about regional impacts are shared by the Florida Department of Transportation, which is now conducting the third stage of the beltway study.
Project manager Imran Ghani said that before the department can make its recommendation in 2007, many components must be considered, some of which include: commuters' needs; the concerns of residents and politicians; congestion along Interstate 295; and the impacts to local roads, wetlands, conservation, trucking patterns, business development and residential housing.
According to state projections, the northern route would accommodate between 80,500 and 95,500 vehicles per day in 2025, while roughly 60,000 vehicles would use the southern route.
Ghani said he understands Clay's potential to economically benefit from the southern route but added that it's hard to ignore statistics.
"You can't just say the commuter interest is of no interest to us."
Hundred-year decision
Neither the Clay County Commission nor the St. Johns County Commission has voiced formal support for a particular route. Commissioners are expected to hold public hearings and meet in late January for the first of three sessions where they will begin discussing options.
St. Johns County Commissioner Cyndi Stevenson said business development and economic impacts are clearly key interests along both sides of the river. Stevenson said she favors the southern route because it would link commuters to commercial centers near International Golf Parkway.
"I think it's really important with St. Johns County that the bridge [route] touch with I-95 so that we're not just a doormat for Clay County traffic going north," she said.
Future growth also must be considered when planning for the beltway, said Clay County Commissioner Christy Fitzgerald, who prefers the southern route. Communities such as Orange Park and Fleming Island have filled out, she said, and the beltway needs to accommodate the 100,000 residents who are expected to enter the county by 2030.
Another Clay commissioner, Patrick McGovern, said officials know they are under the gun.
A route must be chosen before costs rise any higher, he said. But because of the long-lasting effects, the process can't be rushed.
"This is a billion-dollar decision, and it's really more than that because it will determine what Clay County looks like for the next hundreds of years."
Gambles in dicey neighborhoods pay off for homeowners Urban pioneers
Gambles in dicey neighborhoods pay off for homeowners Urban pioneers who placed a bet on their futures when they bought homes in dicey neighborhoods are cashing in as property values soar.
Tony Velazquez and his girlfriend grabbed their wine glasses and strolled out the front door of his house to the seawall at the end of Northeast 25th Street for a moonlit capper to their dinner date.
As they enjoyed the bay view, two neighborhood crackheads started harassing them and threatened to rob them. Velazquez got in their faces. Cursed them out. Invited them to follow him to his house so he could drop off his girlfriend and get his gun. He dialed the police on his cellphone.
The thugs took off.
''It's easy to be an urban pioneer when you have a badge,'' said Velazquez, 41, a federal law enforcement agent who has seen the market value of his property in the 400 block of Northeast 25th Street nearly triple since he bought it in 2000 for $255,000. He encountered the thugs a month after he moved in. It didn't make him think twice about his investment. Now he's reaping the benefits. He took the equity out of the house to buy a half-million-dollar home in Morningside, which he rents out, and a condo for his father.
As Miami remakes itself, reclaiming once-stately neighborhoods lost to neglect, poverty and crime during the '70s and '80s, such pioneers as Velazquez -- often thirty-something professionals with decent salaries and no kids -- are starting to cash in on bets they made when they moved into dicey areas with drug dealers, prostitutes and petty thieves. The payoffs come in rejuvenated neighborhoods and soaring property values.
For many at the lower end of the socio-economic scale, the trend is simply accelerating a loss of affordable housing. But for others, buying into transitioning areas is the only way they can afford to crack the South Florida housing market, where midpoint prices for a single-family home have doubled in the past few years.
People already priced out of the first wave of such gentrified urban neighborhoods as Morningside, Belle Meade and Buena Vista find urban pioneering is the only way to afford the lifestyle they want. They trade security for the appeal of living near such emerging urban centers as the Upper Eastside and what many hope will become a bustling Performing Arts Center district.
EDGY EDGEWATER
Velazquez, a bachelor who describes himself as ''a kid from New York City who wants to be in the middle of everything,'' settled in Sunrise when he arrived in South Florida in 1992.
''That lasted four months,'' he said. ``Too suburban.''
Then it was North Bay Village for six years. He found himself craving the grittier urban streets of his childhood. He discovered Edgewater, a neighborhood in striking distance of South Beach, Brickell and the Design District.
The house on Northeast 25th Street was being transformed from a chopped up, partitioned maze of a rooming house into a charming three-bedroom with a fireplace, wood floors and a second-story deck with a view of Biscayne Bay. And it had two detached apartments out back. One for his dad. One to rent out.
He didn't flinch when he learned two people had been murdered in the house. Or when he saw the drugs and prostitution at either end of the block.
The neighborhood has cleaned up nicely. People aren't afraid to go outside anymore. Crime is still a problem -- thieves broke into Velazquez's house last year. Last month, someone broke into one of the apartments while his tenant slept. They stole her car.
It's still worth it, he said.
''I think this house was a steal,'' he said. ``I knew the value would increase, but I had no idea what was about to happen.''
What happened was that South Florida's real estate market went berserk, and values skyrocketed. Developers discovered Velazquez's neighborhood. His house sits in the middle of a high-rise building boom. Owners on either side are selling. Builders have offered him as much as $800,000 for his property. For now, he's staying.
``You don't want to get boxed in by the high-rises, though. If this house is ever sold and knocked down, I will have a shot of tequila and four or five tears.''
Then he'll move to Morningside.
SOYKA'S AREA
Robert Holland bought the rundown rooming house on the 5900 block of Northeast Fourth Court -- a few blocks north of Soyka's restaurant -- in 2001. He wanted a renovation project that would test his skills and keep his mind off the end of a relationship.
His friends thought he was crazy. He already had a home in Miami Lakes. A nice home. Why bother with the broken house, they asked. One friend, a police officer from Hialeah, told him to get a gun and stay inside at night.
''I knew property values would go up,'' he said. ``The area had already started to turn over. You had Soyka's. And the Performing Arts Center was coming.''
Holland paid $73,000 for the two-level house. He gutted it and spent about $40,000 on renovations. He converted the second-floor bedroom into a law office. The first floor has dark wood floors, a swanky bar and a striking fireplace.
The house became his ''city home,'' where he stays part of the week. Early on, he had to chase away vagrants who slept in the backyard. His shed got broken into. So did his car. Someone kept stealing the garden hose.
But the neighborhood has turned around.
Holland, 41, is planning to put the house on the market soon for $700,000. There's a million-dollar dream home on the Intracoastal not far from his neighborhood that he wants to buy.
The house in Miami Lakes is up for sale, too. If he doesn't get the Intracoastal house, he'll move into the house on Fourth Court full time.
''I got bored out in the suburbs,'' he said. ``The more nights I stayed at the city house, the more I knew this is where I want to be.''
PALM GROVE
The urban core is where artist Noel Suarez wants to be, too. In 2002, he grew tired of living in South Beach and started searching in Palm Grove. It roughly runs from 54th Street north to 80th Street and from Northeast Fourth Court east to Biscayne Boulevard.
The neighborhood has enjoyed a rebirth in the past four years, and it's still a good buy, real estate agent Patrick McCoy said.
''You can still get into a house here for $350,000 to $450,000,'' he said. ``Five years ago, they were going for the high $60s.''
The houses are fixer-uppers built in the '20s and '30s. Beach condo refugees have flocked to Palm Grove, McCoy said.
Suarez, 47, found his Mediterranean-style home with Art Deco flourishes just as a developer had started to renovate it. He paid $195,000 for the funky house that's filled with Dade County pine, Art Deco arches and glass block. He turned the carport into an art studio. And he and his partner nurtured the backyard into a tropical haven.
''It's beautiful and peaceful, and we're still right in the middle of everything,'' he said. He loves being able to walk to his gym and the restaurants that have popped up along Biscayne. And he can ride his bike to the beach.
He's never had a problem with the crime, he said; he grew up in Havana and lived in New York City's Meatpacking District before it went urban chic. It's all relative.
Like other pioneers, Suarez marvels at how the neighborhood has turned around. He could probably get half a million for his house now. But he's not going anywhere.
``I never want to leave here. This is just perfect.''
Tony Velazquez and his girlfriend grabbed their wine glasses and strolled out the front door of his house to the seawall at the end of Northeast 25th Street for a moonlit capper to their dinner date.
As they enjoyed the bay view, two neighborhood crackheads started harassing them and threatened to rob them. Velazquez got in their faces. Cursed them out. Invited them to follow him to his house so he could drop off his girlfriend and get his gun. He dialed the police on his cellphone.
The thugs took off.
''It's easy to be an urban pioneer when you have a badge,'' said Velazquez, 41, a federal law enforcement agent who has seen the market value of his property in the 400 block of Northeast 25th Street nearly triple since he bought it in 2000 for $255,000. He encountered the thugs a month after he moved in. It didn't make him think twice about his investment. Now he's reaping the benefits. He took the equity out of the house to buy a half-million-dollar home in Morningside, which he rents out, and a condo for his father.
As Miami remakes itself, reclaiming once-stately neighborhoods lost to neglect, poverty and crime during the '70s and '80s, such pioneers as Velazquez -- often thirty-something professionals with decent salaries and no kids -- are starting to cash in on bets they made when they moved into dicey areas with drug dealers, prostitutes and petty thieves. The payoffs come in rejuvenated neighborhoods and soaring property values.
For many at the lower end of the socio-economic scale, the trend is simply accelerating a loss of affordable housing. But for others, buying into transitioning areas is the only way they can afford to crack the South Florida housing market, where midpoint prices for a single-family home have doubled in the past few years.
People already priced out of the first wave of such gentrified urban neighborhoods as Morningside, Belle Meade and Buena Vista find urban pioneering is the only way to afford the lifestyle they want. They trade security for the appeal of living near such emerging urban centers as the Upper Eastside and what many hope will become a bustling Performing Arts Center district.
EDGY EDGEWATER
Velazquez, a bachelor who describes himself as ''a kid from New York City who wants to be in the middle of everything,'' settled in Sunrise when he arrived in South Florida in 1992.
''That lasted four months,'' he said. ``Too suburban.''
Then it was North Bay Village for six years. He found himself craving the grittier urban streets of his childhood. He discovered Edgewater, a neighborhood in striking distance of South Beach, Brickell and the Design District.
The house on Northeast 25th Street was being transformed from a chopped up, partitioned maze of a rooming house into a charming three-bedroom with a fireplace, wood floors and a second-story deck with a view of Biscayne Bay. And it had two detached apartments out back. One for his dad. One to rent out.
He didn't flinch when he learned two people had been murdered in the house. Or when he saw the drugs and prostitution at either end of the block.
The neighborhood has cleaned up nicely. People aren't afraid to go outside anymore. Crime is still a problem -- thieves broke into Velazquez's house last year. Last month, someone broke into one of the apartments while his tenant slept. They stole her car.
It's still worth it, he said.
''I think this house was a steal,'' he said. ``I knew the value would increase, but I had no idea what was about to happen.''
What happened was that South Florida's real estate market went berserk, and values skyrocketed. Developers discovered Velazquez's neighborhood. His house sits in the middle of a high-rise building boom. Owners on either side are selling. Builders have offered him as much as $800,000 for his property. For now, he's staying.
``You don't want to get boxed in by the high-rises, though. If this house is ever sold and knocked down, I will have a shot of tequila and four or five tears.''
Then he'll move to Morningside.
SOYKA'S AREA
Robert Holland bought the rundown rooming house on the 5900 block of Northeast Fourth Court -- a few blocks north of Soyka's restaurant -- in 2001. He wanted a renovation project that would test his skills and keep his mind off the end of a relationship.
His friends thought he was crazy. He already had a home in Miami Lakes. A nice home. Why bother with the broken house, they asked. One friend, a police officer from Hialeah, told him to get a gun and stay inside at night.
''I knew property values would go up,'' he said. ``The area had already started to turn over. You had Soyka's. And the Performing Arts Center was coming.''
Holland paid $73,000 for the two-level house. He gutted it and spent about $40,000 on renovations. He converted the second-floor bedroom into a law office. The first floor has dark wood floors, a swanky bar and a striking fireplace.
The house became his ''city home,'' where he stays part of the week. Early on, he had to chase away vagrants who slept in the backyard. His shed got broken into. So did his car. Someone kept stealing the garden hose.
But the neighborhood has turned around.
Holland, 41, is planning to put the house on the market soon for $700,000. There's a million-dollar dream home on the Intracoastal not far from his neighborhood that he wants to buy.
The house in Miami Lakes is up for sale, too. If he doesn't get the Intracoastal house, he'll move into the house on Fourth Court full time.
''I got bored out in the suburbs,'' he said. ``The more nights I stayed at the city house, the more I knew this is where I want to be.''
PALM GROVE
The urban core is where artist Noel Suarez wants to be, too. In 2002, he grew tired of living in South Beach and started searching in Palm Grove. It roughly runs from 54th Street north to 80th Street and from Northeast Fourth Court east to Biscayne Boulevard.
The neighborhood has enjoyed a rebirth in the past four years, and it's still a good buy, real estate agent Patrick McCoy said.
''You can still get into a house here for $350,000 to $450,000,'' he said. ``Five years ago, they were going for the high $60s.''
The houses are fixer-uppers built in the '20s and '30s. Beach condo refugees have flocked to Palm Grove, McCoy said.
Suarez, 47, found his Mediterranean-style home with Art Deco flourishes just as a developer had started to renovate it. He paid $195,000 for the funky house that's filled with Dade County pine, Art Deco arches and glass block. He turned the carport into an art studio. And he and his partner nurtured the backyard into a tropical haven.
''It's beautiful and peaceful, and we're still right in the middle of everything,'' he said. He loves being able to walk to his gym and the restaurants that have popped up along Biscayne. And he can ride his bike to the beach.
He's never had a problem with the crime, he said; he grew up in Havana and lived in New York City's Meatpacking District before it went urban chic. It's all relative.
Like other pioneers, Suarez marvels at how the neighborhood has turned around. He could probably get half a million for his house now. But he's not going anywhere.
``I never want to leave here. This is just perfect.''
Sunday, December 25, 2005
Flipping seems to be over!
Real estate market shows signs of cooling
Investors pulling back from deals
Bill Gerow bought a lot of houses in Lehigh Acres when prices were low — but now he thinks the market has peaked.
"A few months ago I saw it coming," said Gerow, of Fort Myers, who makes his living trading in real estate. "People were changing, the frenzy was over. It just got to a point where everybody had bought all these houses with 100 percent or 125 percent financing. I started selling some of my properties off before the market started to change."
He succeeded by buying when prices were low. "I was buying the houses for $30,000, $40,000, $50,000 and now they're a lot more. I was buying fixer-uppers for $17,000 to $20,000 many years ago."
Experts say Gerow's not the only one: In Southwest Florida and around the country, individuals are pulling back from buying homes and condos as an investment, in a move that could accelerate the cooling of the housing market.
"The investment frenzy is over," said John McWilliams, a real estate broker with Coldwell Banker Preferred Properties.
Prices for lots in Lehigh Acres have actually dropped in recent months after a red-hot market that lasted about three years, he said. "There are so many out there trying to flip and at these new prices, they're becoming a diminishing buyer."
The phenomenon is being seen around the country in markets such as Las Vegas, Miami, Phoenix, San Diego and Washington, D.C., where investor activity had been heated, fewer people are competing to buy properties as an investment, real-estate brokers and housing analysts say. Some investor-owned properties are returning to the market for sale. With the pace of price appreciation slowing, some investors who were betting on quick profits are instead being squeezed.
But Southwest Florida is especially over-sold, according to two recent surveys of property values.
The Office of Federal Housing Enterprise Oversight reported that Lee County showed a 33.2 percent increase in home prices, No. 2 in the nation. Phoenix, Ariz., was first at 34.4 percent.
In a separate study, Global Insight/National City Corp. listed Collier County as 84 percent overvalued, the worst in the country. Lee County was 28th at 51.9 percent overvalued.
Dave Owens of 1031 Tax Free Strategies LLC in Fort Myers said he's seen a slowdown in the number of people investing in real estate. "We have a lot of clients buying real estate with their IRAs and that has flattened."
But longer-term real estate players are still in the market doing "1031 exchanges," named after the section of the federal tax rules that allow people selling real estate to defer paying capital gains taxes if they buy another property with their profits.
"Our clients are real estate investors, they rarely get out of the markets," Owens said. "They're just being more cautious on buying right now."
Gerow said he's not getting out of real estate either although "I'm done with residential."
Now, he said, "I'm going on to the next level, which is commercial with me. I'm getting ready to build commercial buildings." The apparent pullback by investors is recent and just beginning to show up in national data. Evidence of the development can also be seen in a number of markets that had until recently been a hotbed of investor activity. As speculators withdraw from the market in San Diego, for instance, the number of investors buying property has fallen by nearly half, estimates Russ Valone, president of MarketPointe Realty Advisors, which tracks the San Diego housing market.
In the Phoenix area, as many as 30 percent of properties for sale are currently owned by investors, says Jay Butler, director of the Arizona Real Estate Center at Arizona State University. Six months ago, most investors were buying rather than selling, he said. The shift has helped to drive up inventories of homes for sale in the Phoenix area, which climbed to 22,340 in October from 8,600 in April, according to data from the Arizona Regional Multiple Listing Service.
In the latest sign that the housing market is cooling, the National Association of Realtors said recently that its index of pending home sales dropped 3.2 percent in October. The reading is the lowest since March.
It's too early to tell just how a pullback by investors will affect the broader housing market. One concern is that investors will be quicker to sell if prices soften, accentuating any downturn, particularly in areas where speculation has been most prevalent. Some of the most vulnerable markets include Daytona, Las Vegas, Phoenix and Fresno and Bakersfield, Calif., according to Credit Suisse First Boston analyst Dennis McGill.
Last year, Mike Morgan, a real estate broker in Stuart, set up a Web site designed to attract investors scouring the Internet for pre-construction properties. But with the market softening, Morgan has cut back on promoting his site. Now, he works only with investors seeking "buy and hold" properties. "I haven't sold an investor a property to flip since June," he said.
Investors pulling back from deals
Bill Gerow bought a lot of houses in Lehigh Acres when prices were low — but now he thinks the market has peaked.
"A few months ago I saw it coming," said Gerow, of Fort Myers, who makes his living trading in real estate. "People were changing, the frenzy was over. It just got to a point where everybody had bought all these houses with 100 percent or 125 percent financing. I started selling some of my properties off before the market started to change."
He succeeded by buying when prices were low. "I was buying the houses for $30,000, $40,000, $50,000 and now they're a lot more. I was buying fixer-uppers for $17,000 to $20,000 many years ago."
Experts say Gerow's not the only one: In Southwest Florida and around the country, individuals are pulling back from buying homes and condos as an investment, in a move that could accelerate the cooling of the housing market.
"The investment frenzy is over," said John McWilliams, a real estate broker with Coldwell Banker Preferred Properties.
Prices for lots in Lehigh Acres have actually dropped in recent months after a red-hot market that lasted about three years, he said. "There are so many out there trying to flip and at these new prices, they're becoming a diminishing buyer."
The phenomenon is being seen around the country in markets such as Las Vegas, Miami, Phoenix, San Diego and Washington, D.C., where investor activity had been heated, fewer people are competing to buy properties as an investment, real-estate brokers and housing analysts say. Some investor-owned properties are returning to the market for sale. With the pace of price appreciation slowing, some investors who were betting on quick profits are instead being squeezed.
But Southwest Florida is especially over-sold, according to two recent surveys of property values.
The Office of Federal Housing Enterprise Oversight reported that Lee County showed a 33.2 percent increase in home prices, No. 2 in the nation. Phoenix, Ariz., was first at 34.4 percent.
In a separate study, Global Insight/National City Corp. listed Collier County as 84 percent overvalued, the worst in the country. Lee County was 28th at 51.9 percent overvalued.
Dave Owens of 1031 Tax Free Strategies LLC in Fort Myers said he's seen a slowdown in the number of people investing in real estate. "We have a lot of clients buying real estate with their IRAs and that has flattened."
But longer-term real estate players are still in the market doing "1031 exchanges," named after the section of the federal tax rules that allow people selling real estate to defer paying capital gains taxes if they buy another property with their profits.
"Our clients are real estate investors, they rarely get out of the markets," Owens said. "They're just being more cautious on buying right now."
Gerow said he's not getting out of real estate either although "I'm done with residential."
Now, he said, "I'm going on to the next level, which is commercial with me. I'm getting ready to build commercial buildings." The apparent pullback by investors is recent and just beginning to show up in national data. Evidence of the development can also be seen in a number of markets that had until recently been a hotbed of investor activity. As speculators withdraw from the market in San Diego, for instance, the number of investors buying property has fallen by nearly half, estimates Russ Valone, president of MarketPointe Realty Advisors, which tracks the San Diego housing market.
In the Phoenix area, as many as 30 percent of properties for sale are currently owned by investors, says Jay Butler, director of the Arizona Real Estate Center at Arizona State University. Six months ago, most investors were buying rather than selling, he said. The shift has helped to drive up inventories of homes for sale in the Phoenix area, which climbed to 22,340 in October from 8,600 in April, according to data from the Arizona Regional Multiple Listing Service.
In the latest sign that the housing market is cooling, the National Association of Realtors said recently that its index of pending home sales dropped 3.2 percent in October. The reading is the lowest since March.
It's too early to tell just how a pullback by investors will affect the broader housing market. One concern is that investors will be quicker to sell if prices soften, accentuating any downturn, particularly in areas where speculation has been most prevalent. Some of the most vulnerable markets include Daytona, Las Vegas, Phoenix and Fresno and Bakersfield, Calif., according to Credit Suisse First Boston analyst Dennis McGill.
Last year, Mike Morgan, a real estate broker in Stuart, set up a Web site designed to attract investors scouring the Internet for pre-construction properties. But with the market softening, Morgan has cut back on promoting his site. Now, he works only with investors seeking "buy and hold" properties. "I haven't sold an investor a property to flip since June," he said.
Home building hits record 4,000 mark
A robust development pace combines with demand for higher-end homes to bring a home value total that surprises even the county's development director.
By DAN DeWITT, Times Staff Writer
Published December 25, 2005
--------------------------------------------------------------------------------
BROOKSVILLE - It's hard to imagine anyone with a closer view of the ongoing building boom in Hernando County than Grant Tolbert, director of the county's Development Department.
His plan examiners have had to work overtime to cope with the crush of permit applications; inspectors have strained to meet thousands of requests to check out roofs, frames and concrete slabs.
But even Tolbert was stunned to see the county pass a new milestone last week, issuing the year's 4,000th permit for a single-family home.
"When I saw the numbers, I was shocked," Tolbert said.
His reaction is based on historical perspective.
The previous record came in 1987, when Hernando County was one of the fastest-growing areas in the state and it issued 2,787 single-family permits.
That frantic pace of development was followed by a relative lull in the 1990s that ended with the completion of the Suncoast Parkway in 2001; the year before that, the county issued only 1,148 permits.
When the number climbed back up to 2,787, in 2004, it was seen as evidence of a remarkably robust housing market.
"In 2003, everyone was happy to have such a vibrant market," said Gary Schraut, a Brooksville real estate broker.
"I don't think too many people expected what followed the next year. And then 2005 was just unbelievable. It was the greatest real estate market anyone has ever seen, and I think that's an understatement."
Rising even faster than the number of homes is their value.
The estimated worth of the new houses permitted in 1987 was $119-million, compared to $712-million for 4,013 houses this year, according to development department statistics.
That is partly due to skyrocketing home prices, said Robert Buckner, a Brooksville real estate broker; another factor, though, is that more of the builders and developers working in Hernando are seeking the high end of the market.
"I would say that the average newcomer's salary and/or annual income is higher, even taking into account inflation, than in 1987," said Buckner, who began working in Hernando that year.
Another noticeable change, he said, is that Hernando now attracts fewer true snowbirds than it once did.
"I think there are more folks transferring from Pinellas, Hillsborough and Pasco (counties) now versus the 1980s, when it was predominantly folks from the northern part of the country."
Some signs show a slowing housing market; other indicators, however, suggest that the rapid pace of new construction will continue through 2006.
"From what I'm hearing from the builders, they're not expecting any major slowdown in 2006, though probably not a continued increase like we had this year," Tolbert said.
One factor that may indicate a declining market for new homes, real estate agents have said, is the cooling market for existing ones. The inventory of unsold homes in the county dipped below 1,000 when market activity peaked in the middle of the summer. That number has risen steadily - a sign of slowing sales - to about 2,300, according to the Hernando County Association of Realtors.
Brokers have also noticed a flattening of prices for new homes and lots.
"I don't think you're going to see a home appreciate in value 20 percent from January to July (as many properties did in 2005)," Schraut said.
But applications for permits for new houses have continued to pour into the development office, Tolbert said. Buckner and others said the number of national and statewide builders - and their well-funded marketing departments - will encourage continued strong new-home sales.
In the 1990s, only one large, national builder - US Home (now part of Lennar Corp.) - was selling a subdivision in Hernando County, Timber Pines. Not coincidentally, Schraut said, Timber Pines was the only development that saw steady growth through the leanest years.
Now a long list of prominent developers and builders are at work in Hernando, including LandMar Group LLC, a subsidiary of Duke Energy; Levitt and Sons; Avatar Homes; Pulte Homes, and Kitson and Partners LLC, which recently negotiated the largest purchase of environmentally sensitive lands in the state. Kitson now has a contract to develop land around the World Woods Golf Club in northern Hernando County.
LandMar and Levitt, especially, are expected to bring dramatic change to Brooksville's market. The number of permits for single-family homes in the city was below 50 for 2005. With LandMar marketing 999 lots in its Southern Hills Plantation development, and Levitt with nearly that number in the nearby Cascades development, that number is expected to increase rapidly next year and even faster the year after that.
Bill Geiger, the city's community development director, said the sales will contrast sharply from some recent years, when 10 or fewer homes have been built in the city.
"We've already seen some increase in monthly activity, but it hasn't hit in full force yet," Geiger said.
Though the marketing and sales techniques are different now, today's booming market reminds Schraut of the stories from the 1970s, when the owners of the Deltona Corp. sold lots by the hundreds in Spring Hill to groups it flew down from northern cities.
"We're getting national exposure like we haven't gotten since the Mackle brothers were selling houses to people in New York and Detroit," Schraut said.
A robust development pace combines with demand for higher-end homes to bring a home value total that surprises even the county's development director.
By DAN DeWITT, Times Staff Writer
Published December 25, 2005
--------------------------------------------------------------------------------
BROOKSVILLE - It's hard to imagine anyone with a closer view of the ongoing building boom in Hernando County than Grant Tolbert, director of the county's Development Department.
His plan examiners have had to work overtime to cope with the crush of permit applications; inspectors have strained to meet thousands of requests to check out roofs, frames and concrete slabs.
But even Tolbert was stunned to see the county pass a new milestone last week, issuing the year's 4,000th permit for a single-family home.
"When I saw the numbers, I was shocked," Tolbert said.
His reaction is based on historical perspective.
The previous record came in 1987, when Hernando County was one of the fastest-growing areas in the state and it issued 2,787 single-family permits.
That frantic pace of development was followed by a relative lull in the 1990s that ended with the completion of the Suncoast Parkway in 2001; the year before that, the county issued only 1,148 permits.
When the number climbed back up to 2,787, in 2004, it was seen as evidence of a remarkably robust housing market.
"In 2003, everyone was happy to have such a vibrant market," said Gary Schraut, a Brooksville real estate broker.
"I don't think too many people expected what followed the next year. And then 2005 was just unbelievable. It was the greatest real estate market anyone has ever seen, and I think that's an understatement."
Rising even faster than the number of homes is their value.
The estimated worth of the new houses permitted in 1987 was $119-million, compared to $712-million for 4,013 houses this year, according to development department statistics.
That is partly due to skyrocketing home prices, said Robert Buckner, a Brooksville real estate broker; another factor, though, is that more of the builders and developers working in Hernando are seeking the high end of the market.
"I would say that the average newcomer's salary and/or annual income is higher, even taking into account inflation, than in 1987," said Buckner, who began working in Hernando that year.
Another noticeable change, he said, is that Hernando now attracts fewer true snowbirds than it once did.
"I think there are more folks transferring from Pinellas, Hillsborough and Pasco (counties) now versus the 1980s, when it was predominantly folks from the northern part of the country."
Some signs show a slowing housing market; other indicators, however, suggest that the rapid pace of new construction will continue through 2006.
"From what I'm hearing from the builders, they're not expecting any major slowdown in 2006, though probably not a continued increase like we had this year," Tolbert said.
One factor that may indicate a declining market for new homes, real estate agents have said, is the cooling market for existing ones. The inventory of unsold homes in the county dipped below 1,000 when market activity peaked in the middle of the summer. That number has risen steadily - a sign of slowing sales - to about 2,300, according to the Hernando County Association of Realtors.
Brokers have also noticed a flattening of prices for new homes and lots.
"I don't think you're going to see a home appreciate in value 20 percent from January to July (as many properties did in 2005)," Schraut said.
But applications for permits for new houses have continued to pour into the development office, Tolbert said. Buckner and others said the number of national and statewide builders - and their well-funded marketing departments - will encourage continued strong new-home sales.
In the 1990s, only one large, national builder - US Home (now part of Lennar Corp.) - was selling a subdivision in Hernando County, Timber Pines. Not coincidentally, Schraut said, Timber Pines was the only development that saw steady growth through the leanest years.
Now a long list of prominent developers and builders are at work in Hernando, including LandMar Group LLC, a subsidiary of Duke Energy; Levitt and Sons; Avatar Homes; Pulte Homes, and Kitson and Partners LLC, which recently negotiated the largest purchase of environmentally sensitive lands in the state. Kitson now has a contract to develop land around the World Woods Golf Club in northern Hernando County.
LandMar and Levitt, especially, are expected to bring dramatic change to Brooksville's market. The number of permits for single-family homes in the city was below 50 for 2005. With LandMar marketing 999 lots in its Southern Hills Plantation development, and Levitt with nearly that number in the nearby Cascades development, that number is expected to increase rapidly next year and even faster the year after that.
Bill Geiger, the city's community development director, said the sales will contrast sharply from some recent years, when 10 or fewer homes have been built in the city.
"We've already seen some increase in monthly activity, but it hasn't hit in full force yet," Geiger said.
Though the marketing and sales techniques are different now, today's booming market reminds Schraut of the stories from the 1970s, when the owners of the Deltona Corp. sold lots by the hundreds in Spring Hill to groups it flew down from northern cities.
"We're getting national exposure like we haven't gotten since the Mackle brothers were selling houses to people in New York and Detroit," Schraut said.
Friday, December 23, 2005
Florida Outlook looks bright!
Economic outlook brighter for Jacksonville, nation
Analysts voice optimism and uncertainty about jobs, rising prices in 2006.
By MARK BASCH, The Times-Union
A better unemployment picture in November improved the overall economic outlook, both nationally and in Jacksonville, according to indexes of future economic activity.
The U.S. Composite Index of Leading Economic Indicators rose 0.5 percent in November, following a 1 percent increase in October, the Conference Board reported Thursday.
In Jacksonville, an index of leading indicators compiled by the University of North Florida's Local Economic Indicators Project rose moderately in November, after falling in October.
The indexes are designed to project economic activity several months in advance.
"With three of the last four months implying positive movements in the Leading Economic Indicators, the outlook for the first half of 2006 looks positive" for the Jacksonville economy, said UNF economist Paul Mason, who coordinates the LEIP project.
Mason said energy prices and the outlook of consumers will drive the direction of the Jacksonville economy.
The main reason for the October decrease in the local index was a rise in initial claims for unemployment insurance. But the number of new unemployment claims fell in November, sending the index higher.
Overall, the leading index for the Jacksonville area rose 0.26 points to 109.69 in November, after dropping 0.73 points in October. Despite the October fall, the index has increased by 2.03 points so far this year.
The Conference Board, a New York research group that compiles the national index, also said that a decline in new unemployment claims to levels seen before the hurricane season was the main reason for the increase in its index of leading indicators. But Conference Board economist Ken Goldstein said in a statement that the outlook is uncertain, despite the gains in the index the last two months.
"The Leading Economic Indicators have been anything but consistent -- flat to declining from July through September and recovering in October and November," he said.
Goldstein said rising energy prices could affect the outlook, not only because of the hits to consumers' wallets but also because high energy prices are affecting prices for raw materials.
The Conference Board also said its index of coincident indicators, which measures current economic activity, rose 0.2 percent for the third straight month. Its index of lagging indicators rose 0.6 percent in November after rising 0.7 percent in October.
Analysts voice optimism and uncertainty about jobs, rising prices in 2006.
By MARK BASCH, The Times-Union
A better unemployment picture in November improved the overall economic outlook, both nationally and in Jacksonville, according to indexes of future economic activity.
The U.S. Composite Index of Leading Economic Indicators rose 0.5 percent in November, following a 1 percent increase in October, the Conference Board reported Thursday.
In Jacksonville, an index of leading indicators compiled by the University of North Florida's Local Economic Indicators Project rose moderately in November, after falling in October.
The indexes are designed to project economic activity several months in advance.
"With three of the last four months implying positive movements in the Leading Economic Indicators, the outlook for the first half of 2006 looks positive" for the Jacksonville economy, said UNF economist Paul Mason, who coordinates the LEIP project.
Mason said energy prices and the outlook of consumers will drive the direction of the Jacksonville economy.
The main reason for the October decrease in the local index was a rise in initial claims for unemployment insurance. But the number of new unemployment claims fell in November, sending the index higher.
Overall, the leading index for the Jacksonville area rose 0.26 points to 109.69 in November, after dropping 0.73 points in October. Despite the October fall, the index has increased by 2.03 points so far this year.
The Conference Board, a New York research group that compiles the national index, also said that a decline in new unemployment claims to levels seen before the hurricane season was the main reason for the increase in its index of leading indicators. But Conference Board economist Ken Goldstein said in a statement that the outlook is uncertain, despite the gains in the index the last two months.
"The Leading Economic Indicators have been anything but consistent -- flat to declining from July through September and recovering in October and November," he said.
Goldstein said rising energy prices could affect the outlook, not only because of the hits to consumers' wallets but also because high energy prices are affecting prices for raw materials.
The Conference Board also said its index of coincident indicators, which measures current economic activity, rose 0.2 percent for the third straight month. Its index of lagging indicators rose 0.6 percent in November after rising 0.7 percent in October.
Thursday, December 22, 2005
Study predicts twice as many people in Fort Lauderdale 20 years from now!
Study predicts twice as many people in Fort Lauderdale 20 years from now
By Jean-Paul Renaud
Staff Writer
Posted December 21 2005
Fort Lauderdale -- There is no more land in this city. No more large swaths of space can be redeveloped.
But the people keep coming.
In 20 years, Fort Lauderdale's population will almost double in size, with another 130,000 people using its streets, playing in its parks and drinking its water, according to a housing study presented to commissioners Tuesday.
As leaders consider next month allowing 3,000 more housing units to be built downtown, a clearer picture is emerging as to how the city will look in the future, who will be able to afford to live in it and what needs to be changed before anyone else moves in.
Massive high-rises and chic townhouses will continue to go up in the downtown, as well as in the loft-dotted communities of Progresso Village and Flagler Heights in the city's northwest, if leaders have their way.
Fort Lauderdale officials propose major changes in order to make the city feel more like an urban center. If the sketches presented to commissioners Tuesday become reality, main arteries into downtown -- Andrews Avenue and Northeast Third Avenue -- will be narrowed. New bike paths and turning lanes will be added, and on-street parking will be welcomed.
"It's a huge step forward for the downtown," said Charlie Ladd, chairman of the Downtown Development Authority. "If we can do this, this is the biggest thing that could shape this downtown."
Even Federal Highway will receive a face lift, with large sidewalks, lush canopies hanging from medians, and new streetlights to illuminate cars and people.
As the population grows, city services need to keep up.
On Tuesday, commissioners signed off on several changes proposed by city planners to accommodate the boom.
Water treatment plants will be expanded; well fields will be upgraded; and water pipes, heavily damaged by Hurricane Wilma, will be improved.
Also in the future: parks. Lots of them. To make sure Fort Lauderdale stays green, commissioners are considering a special fee for new developments. Funds would go directly into building and maintaining parks.
But for all the changes coming to Fort Lauderdale, it appears that only wealthy newcomers will be able to enjoy them.
The median price of a home was more than $340,000 between July and September, according to the study. The median price of a condominium was more than $320,000.
The median income is $58,100.
"There is a great need for an attainable reality," said Commissioner Carlton Moore. "I just had a son graduate from school, and I want him out of my house. ... I want him to have a piece of the American dream. I really want he and my [other] children to live, work and play in Fort Lauderdale. I'm afraid that that American dream is slipping in this city."
And although the study showed that one- and two-bedroom rental apartments are affordable to the average resident, high-end condominiums and oversized houses on small lots are quickly replacing them.
"The vast majority of rental apartments are under 100 units," said Robert Gray of Strategic Planning Group, which conducted the study. "They're not on the ocean, and they're not on the river, but they're out in the community. Rental is not in that bad of a situation, assuming more will be built in the future."
Commissioners agreed to conduct an affordable housing roundtable to discuss the solutions proposed by the study, including a more rigorous demand for some units to be set aside as affordable housing each time a project is built.
"I must stress this is not only a Fort Lauderdale issue, this is not just a Broward County issue, this is a South Florida issue," Gray said.
By Jean-Paul Renaud
Staff Writer
Posted December 21 2005
Fort Lauderdale -- There is no more land in this city. No more large swaths of space can be redeveloped.
But the people keep coming.
In 20 years, Fort Lauderdale's population will almost double in size, with another 130,000 people using its streets, playing in its parks and drinking its water, according to a housing study presented to commissioners Tuesday.
As leaders consider next month allowing 3,000 more housing units to be built downtown, a clearer picture is emerging as to how the city will look in the future, who will be able to afford to live in it and what needs to be changed before anyone else moves in.
Massive high-rises and chic townhouses will continue to go up in the downtown, as well as in the loft-dotted communities of Progresso Village and Flagler Heights in the city's northwest, if leaders have their way.
Fort Lauderdale officials propose major changes in order to make the city feel more like an urban center. If the sketches presented to commissioners Tuesday become reality, main arteries into downtown -- Andrews Avenue and Northeast Third Avenue -- will be narrowed. New bike paths and turning lanes will be added, and on-street parking will be welcomed.
"It's a huge step forward for the downtown," said Charlie Ladd, chairman of the Downtown Development Authority. "If we can do this, this is the biggest thing that could shape this downtown."
Even Federal Highway will receive a face lift, with large sidewalks, lush canopies hanging from medians, and new streetlights to illuminate cars and people.
As the population grows, city services need to keep up.
On Tuesday, commissioners signed off on several changes proposed by city planners to accommodate the boom.
Water treatment plants will be expanded; well fields will be upgraded; and water pipes, heavily damaged by Hurricane Wilma, will be improved.
Also in the future: parks. Lots of them. To make sure Fort Lauderdale stays green, commissioners are considering a special fee for new developments. Funds would go directly into building and maintaining parks.
But for all the changes coming to Fort Lauderdale, it appears that only wealthy newcomers will be able to enjoy them.
The median price of a home was more than $340,000 between July and September, according to the study. The median price of a condominium was more than $320,000.
The median income is $58,100.
"There is a great need for an attainable reality," said Commissioner Carlton Moore. "I just had a son graduate from school, and I want him out of my house. ... I want him to have a piece of the American dream. I really want he and my [other] children to live, work and play in Fort Lauderdale. I'm afraid that that American dream is slipping in this city."
And although the study showed that one- and two-bedroom rental apartments are affordable to the average resident, high-end condominiums and oversized houses on small lots are quickly replacing them.
"The vast majority of rental apartments are under 100 units," said Robert Gray of Strategic Planning Group, which conducted the study. "They're not on the ocean, and they're not on the river, but they're out in the community. Rental is not in that bad of a situation, assuming more will be built in the future."
Commissioners agreed to conduct an affordable housing roundtable to discuss the solutions proposed by the study, including a more rigorous demand for some units to be set aside as affordable housing each time a project is built.
"I must stress this is not only a Fort Lauderdale issue, this is not just a Broward County issue, this is a South Florida issue," Gray said.
Wednesday, December 21, 2005
Floridians Confident Home Values will Increase!
Wealthy Floridians Confident Home Real Estate Values Will Continue to Increase, PNC Survey Finds.
NAPLES, Fla., Dec. 21 /PRNewswire/ -- While there are signs the runaway real estate market is slowing down across the country, three out of four wealthy Floridians remain optimistic their homes will continue to appreciate in value, according to survey findings released today by The PNC Financial Services Group.
The level of optimism among the wealthy in the Sunshine State is much higher compared to their peers in the rest of the United States, PNC's survey found. Nearly three quarters (73 percent) of South Floridians expect to see double-digit increases in the value of their primary homes over the next five years, with half anticipating an increase of 20 percent or more. By comparison, just over one in four of the wealthy outside the area expects a 20 percent hike in value.
"Florida's residential real estate market is more complex with its heavy influence from three sources of buyers and sellers -- domestic, Latin America and Europe," said Nicholas Buss, Ph.D., senior vice president and PNC's real estate economist. "As a result, there are factors beyond U.S. interest rates and other domestic issues, such as geopolitical matters and the strength of the U.S. dollar overseas that are outside the wealthy consumer's control and, thus, less likely to restrain their continued optimism."
He added: "Over time, market conditions and global factors will tell us whether or not the wealthy in Florida have been lulled into a false sense of security."
Survey Highlights
Results of the nationwide survey, including a sample of more than 200 wealthy South Floridians, were released today by PNC, which has wealth management offices in Naples and Vero Beach, as the first in a series of reports to identify attitudes about wealth among high net worth individuals, how it affects their lives and their needs in managing wealth.
"We believe that South Florida real estate remains a good investment," said Robert Saltarelli, regional president of PNC Advisors in Naples. "Depending upon the individual client's income and liquidity needs, we believe that a portfolio with 20-25 percent invested in real estate in this region is appropriate and should continue to deliver solid returns."
Highlights of the real estate findings in Florida include:
- Nearly three quarters of Floridians surveyed said they expect to see
double-digit increases in the value of their primary homes over the next
five years.
- Just one in 20 wealthy South Floridians (5 percent) expects any decline
in the value of their primary homes over the next five years.
- Just one in five South Floridians say they got rich through real estate,
but those who did are twice as likely to expect their real estate values
to continue to increase. Nearly nine in 10 (89 percent) who say
residential real estate is a major source of their wealth are expecting
double-digit increases over the next five years, and 81 percent are
expecting an increase of 20 percent or more, compared with 42 percent
nationally.
- Four in 10 (39 percent) South Floridians surveyed said that a major
decline in housing prices would pose no threat to their family's wealth.
One in five (19 percent) said it would pose a threat.
- Sixty percent of those surveyed strongly or somewhat disagreed said that
even if housing prices were to decline by as much as 20 percent within
the next two to four years, they would be concerned about the long-term
effect on their overall wealth. An equal number (60 percent) strongly
or somewhat disagreed that they would delay major purchases, and only
one in five strongly or somewhat agreed that there would be a need to
make lifestyle changes to reduce household expenses.
Homes Away from Home
Of the 38 percent of wealthy South Floridians who own a second vacation home or condo, more than half (53 percent) said they made their last purchase more than five years ago, though 47 percent purchased more recently. Nearly two-thirds (62 percent) note they purchased their second home or condo simply for their ongoing personal use. Only 20 percent said they bought property as an investment. Another 19 percent indicate they own residential rental property, such as an apartment or condo for rent.
Thirty-five percent of those Floridians who said residential real estate is a major source of their financial assets, own rental properties -- slightly more than twice residential rental ownership of people who don't list real estate as a source of their wealth (15 percent).
Survey Methodology
These real estate results are the first in a series of findings from The PNC Financial Services Group's wealth and values survey. The survey was conducted by Harris Interactive online this fall among 1,485 adults (age 18 or over), including a statewide cross section of 205 adults (age 18 or over) in South Florida with annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (if employed) or at least $1 million of investable assets (if retired). Figures for age, sex, race, education, region, income, asset level and propensity to be online were weighted where necessary to bring them into line with the actual proportions in the population. Overall results for the national sample of 1,485 respondents have a sampling error of +/- 2.5 percentage points, and sampling error for results from regional sub-samples and asset groups is higher and varies. For the South Florida sample of 205, the sampling error is +/- 7 percentage points.
The wealth and values survey was designed and managed by HNW, Inc. (www.hnw.com), a leading provider of wealth marketing software and solutions to financial services companies and intermediaries seeking to capture and serve the high net worth market.
Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, N.Y., is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value.
The PNC Financial Services Group, Inc. is one of the nation's largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
This report has been prepared for general informational purposes only and is not intended as specific advice or recommendations. Information has been gathered from third party sources and has not been independently verified or accepted by The PNC Financial Services Group, Inc. The PNC Financial Services Group, Inc. makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. The PNC Financial Services Group, Inc. cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Any reliance upon the information provided in the report is solely and exclusively at your own risk.
NAPLES, Fla., Dec. 21 /PRNewswire/ -- While there are signs the runaway real estate market is slowing down across the country, three out of four wealthy Floridians remain optimistic their homes will continue to appreciate in value, according to survey findings released today by The PNC Financial Services Group.
The level of optimism among the wealthy in the Sunshine State is much higher compared to their peers in the rest of the United States, PNC's survey found. Nearly three quarters (73 percent) of South Floridians expect to see double-digit increases in the value of their primary homes over the next five years, with half anticipating an increase of 20 percent or more. By comparison, just over one in four of the wealthy outside the area expects a 20 percent hike in value.
"Florida's residential real estate market is more complex with its heavy influence from three sources of buyers and sellers -- domestic, Latin America and Europe," said Nicholas Buss, Ph.D., senior vice president and PNC's real estate economist. "As a result, there are factors beyond U.S. interest rates and other domestic issues, such as geopolitical matters and the strength of the U.S. dollar overseas that are outside the wealthy consumer's control and, thus, less likely to restrain their continued optimism."
He added: "Over time, market conditions and global factors will tell us whether or not the wealthy in Florida have been lulled into a false sense of security."
Survey Highlights
Results of the nationwide survey, including a sample of more than 200 wealthy South Floridians, were released today by PNC, which has wealth management offices in Naples and Vero Beach, as the first in a series of reports to identify attitudes about wealth among high net worth individuals, how it affects their lives and their needs in managing wealth.
"We believe that South Florida real estate remains a good investment," said Robert Saltarelli, regional president of PNC Advisors in Naples. "Depending upon the individual client's income and liquidity needs, we believe that a portfolio with 20-25 percent invested in real estate in this region is appropriate and should continue to deliver solid returns."
Highlights of the real estate findings in Florida include:
- Nearly three quarters of Floridians surveyed said they expect to see
double-digit increases in the value of their primary homes over the next
five years.
- Just one in 20 wealthy South Floridians (5 percent) expects any decline
in the value of their primary homes over the next five years.
- Just one in five South Floridians say they got rich through real estate,
but those who did are twice as likely to expect their real estate values
to continue to increase. Nearly nine in 10 (89 percent) who say
residential real estate is a major source of their wealth are expecting
double-digit increases over the next five years, and 81 percent are
expecting an increase of 20 percent or more, compared with 42 percent
nationally.
- Four in 10 (39 percent) South Floridians surveyed said that a major
decline in housing prices would pose no threat to their family's wealth.
One in five (19 percent) said it would pose a threat.
- Sixty percent of those surveyed strongly or somewhat disagreed said that
even if housing prices were to decline by as much as 20 percent within
the next two to four years, they would be concerned about the long-term
effect on their overall wealth. An equal number (60 percent) strongly
or somewhat disagreed that they would delay major purchases, and only
one in five strongly or somewhat agreed that there would be a need to
make lifestyle changes to reduce household expenses.
Homes Away from Home
Of the 38 percent of wealthy South Floridians who own a second vacation home or condo, more than half (53 percent) said they made their last purchase more than five years ago, though 47 percent purchased more recently. Nearly two-thirds (62 percent) note they purchased their second home or condo simply for their ongoing personal use. Only 20 percent said they bought property as an investment. Another 19 percent indicate they own residential rental property, such as an apartment or condo for rent.
Thirty-five percent of those Floridians who said residential real estate is a major source of their financial assets, own rental properties -- slightly more than twice residential rental ownership of people who don't list real estate as a source of their wealth (15 percent).
Survey Methodology
These real estate results are the first in a series of findings from The PNC Financial Services Group's wealth and values survey. The survey was conducted by Harris Interactive online this fall among 1,485 adults (age 18 or over), including a statewide cross section of 205 adults (age 18 or over) in South Florida with annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (if employed) or at least $1 million of investable assets (if retired). Figures for age, sex, race, education, region, income, asset level and propensity to be online were weighted where necessary to bring them into line with the actual proportions in the population. Overall results for the national sample of 1,485 respondents have a sampling error of +/- 2.5 percentage points, and sampling error for results from regional sub-samples and asset groups is higher and varies. For the South Florida sample of 205, the sampling error is +/- 7 percentage points.
The wealth and values survey was designed and managed by HNW, Inc. (www.hnw.com), a leading provider of wealth marketing software and solutions to financial services companies and intermediaries seeking to capture and serve the high net worth market.
Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, N.Y., is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value.
The PNC Financial Services Group, Inc. is one of the nation's largest diversified financial services organizations providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
This report has been prepared for general informational purposes only and is not intended as specific advice or recommendations. Information has been gathered from third party sources and has not been independently verified or accepted by The PNC Financial Services Group, Inc. The PNC Financial Services Group, Inc. makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. The PNC Financial Services Group, Inc. cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Any reliance upon the information provided in the report is solely and exclusively at your own risk.
Monday, December 19, 2005
Investment recap for 2005.We should have a great 2006!
Dear Friends and Fellow Investors,
I would like to take the time and recap 2005 and the direction we`re heading in for 2006.
When I started in this business 10 years ago, there was a small group of realtors and investors who specialized in identifying investment opportunities. We rarely advertised properties, communicated by word of mouth, collected deposits for VIP investors, waited in lines at launches and held seminars. During this period, the Florida market was not considered a good investment, as it was regarded as a retirement and seasonal destination where our northern and midwestern neighbors escaped the frigid winters.
We mainly sold foreclosures, HUD homes, and acreage properties throughout South Florida. To give you an indication of how much the market has changed over the past years, a lot in Southwest Ranches was selling for $85,000 an acre, and, foreclosures required only a $1000 deposit, closing were less than 4 weeks, and the 3% seller contributions were paid by the bank at closing to the buyer.Unheard of in today`s market place!
I recall taking our clients to preview property in a community such as Emerald Springs located in Weston, where 3 bed / 2 bath / 2 car garage single family homes were selling at pre-construction pricing starting at $125,000. Clients complained about those prices as they felt that there was no real value in purchasing a pre-construction unit higher than what a resale home was selling for. Presently, those homes are selling for over $420,000.
The point of comparing yesterday's and today's prices is simple. During the past months, many of you have realized that housing prices have declined throughout Florida from their peak in July and August of this year. Interest rates have gone up 1.25 basic points since the low 13 months ago, upon the decision of the Federal Reserve Chairman.
The "bubble effect" has been lingering for almost 1 year. If you study reports as I do, please take notice. The state of Florida continues to have a shortage of man power, employment is at record highs, and housing prices which are considered to be high, are comparative with the rest of the country. Relocators continue to flock to the state and foreign investors are aggressively buying in the region. The Euro is higher than the dollar, with the Yen not far behind. China continues to purchase our dollar on the open market, gold continues to rise, and the price of oil has recently settled, yet remains high. Given these factors, investing in Florida continues to be a profitable opportunity for those who understand the market trends.
During the past 3 years, our group has been purchasing properties in Central Florida, the Southwestern region of the state, and the treasure coast north of Palm Beach. The panhandle has presented itself as an exciting new territory. This year, our clients experienced unprecedented profits, which outpaced the S&P 500.
In 2006, I believe that we'll continue to view the same pattern, but expanded to a broader assortment of regional areas. As many of you are aware, The Scott Daniels Real Estate Group is known for our conservative approach in investment strategies. We consistently weigh the risk reward and research each perspective investment community prior to alerting our clients. I strongly feel that this formula sets us apart from our competitors. My philosophy remains steadfast: as our clients, our company is making long term commitmentss, without the short term expectations. We attempt to locate properties that require minimal deposits up front, with completion dates of up to 18-24 months. Our track record over the past few years has translated to double digit earnings for our clients.
In the coming year, we anticipate futher expansion into regional areas, reminiscent of the opportunistic times in South Florida. Enclosed are a list of projects that we're presently researching:
1-Panama City, Florida,over 41 miles of Beaches, new Condo`s overlooking the Gulf of Mexico starting in the low $300`s. No restrictions only 10% required, units come fully furnished.The Panhandle must be placed on your radar.Plans for a new Intl Airport are in the works, completion date is 2009. In our opinion this area is a throwback to the days of Fort Lauderdale circa 1960-1979! This area will have tremendous value for investors. Currently, people from Atlanta, Alabama, Dallas and New Orleans make this their vacationdestination. In the next few years that will all change!
2-Myrtle Beach, South Carolina, land and preconstruction community on a golf course. Near Beaches, requires only 5% deposit. Again, we`re looking at a 3 year investment.Land is undervalued.
3- Las Vegas, Nevada,Condo Conversions in the heart of the Vegas strip. Looks like a Coconut Grove type of area! New cafes, malls and restaurantsopening in this area. Very Chic!
4- Phoenix Arizona, Condo Conversions and preconstruction the next Florida! This area has tremendous long term growth potential with a huge demand for jobs! Many business are leaving California for Arizona due to less tax restrictions for businesses! Land is very inexpensive at the moment ,but will change in the next 2-4 years!
5- Arkansas, resort locations near Little Rock. Near lake 1/4 acre lots starting @ $12,000. Buildable lots for under $20,000 must be looked at because this region is realizing huge growth as demand for affordable housing as well as jobs continue to leave the Northeastern States.Baby boomers are starting to see the potential in purchasing a second home in this area. Low Tax base, similar to Florida.
I would like to take this opportunity to thank all of our subscribers who have responded to our updates. I hope that 2005 was a profitable year for you, as we anticipate further successes in 2006. As some of you are aware, due to necessary expansion, we have opened a new office which is located in Cooper City, FL. Our full service real estate agency now has the opportunity to make a presence throughout the state. Our second office, located in Fort Myers, Fl, will be opened shortly.
Given our present growth, we are in the process of hiring realtors to join our organization. If you're a realtor subscriber and are interested in seeking employment information regarding our company, please contact Scott Daniels for a confidential interview.
Happy Holidays.
Scott Daniels
9900 Stirling Rd. Ste 104
Cooper City, Fla. 33024
954-680-4404
954-874-3600
1-866-274-2274
954-874-3601 (Fax)
I would like to take the time and recap 2005 and the direction we`re heading in for 2006.
When I started in this business 10 years ago, there was a small group of realtors and investors who specialized in identifying investment opportunities. We rarely advertised properties, communicated by word of mouth, collected deposits for VIP investors, waited in lines at launches and held seminars. During this period, the Florida market was not considered a good investment, as it was regarded as a retirement and seasonal destination where our northern and midwestern neighbors escaped the frigid winters.
We mainly sold foreclosures, HUD homes, and acreage properties throughout South Florida. To give you an indication of how much the market has changed over the past years, a lot in Southwest Ranches was selling for $85,000 an acre, and, foreclosures required only a $1000 deposit, closing were less than 4 weeks, and the 3% seller contributions were paid by the bank at closing to the buyer.Unheard of in today`s market place!
I recall taking our clients to preview property in a community such as Emerald Springs located in Weston, where 3 bed / 2 bath / 2 car garage single family homes were selling at pre-construction pricing starting at $125,000. Clients complained about those prices as they felt that there was no real value in purchasing a pre-construction unit higher than what a resale home was selling for. Presently, those homes are selling for over $420,000.
The point of comparing yesterday's and today's prices is simple. During the past months, many of you have realized that housing prices have declined throughout Florida from their peak in July and August of this year. Interest rates have gone up 1.25 basic points since the low 13 months ago, upon the decision of the Federal Reserve Chairman.
The "bubble effect" has been lingering for almost 1 year. If you study reports as I do, please take notice. The state of Florida continues to have a shortage of man power, employment is at record highs, and housing prices which are considered to be high, are comparative with the rest of the country. Relocators continue to flock to the state and foreign investors are aggressively buying in the region. The Euro is higher than the dollar, with the Yen not far behind. China continues to purchase our dollar on the open market, gold continues to rise, and the price of oil has recently settled, yet remains high. Given these factors, investing in Florida continues to be a profitable opportunity for those who understand the market trends.
During the past 3 years, our group has been purchasing properties in Central Florida, the Southwestern region of the state, and the treasure coast north of Palm Beach. The panhandle has presented itself as an exciting new territory. This year, our clients experienced unprecedented profits, which outpaced the S&P 500.
In 2006, I believe that we'll continue to view the same pattern, but expanded to a broader assortment of regional areas. As many of you are aware, The Scott Daniels Real Estate Group is known for our conservative approach in investment strategies. We consistently weigh the risk reward and research each perspective investment community prior to alerting our clients. I strongly feel that this formula sets us apart from our competitors. My philosophy remains steadfast: as our clients, our company is making long term commitmentss, without the short term expectations. We attempt to locate properties that require minimal deposits up front, with completion dates of up to 18-24 months. Our track record over the past few years has translated to double digit earnings for our clients.
In the coming year, we anticipate futher expansion into regional areas, reminiscent of the opportunistic times in South Florida. Enclosed are a list of projects that we're presently researching:
1-Panama City, Florida,over 41 miles of Beaches, new Condo`s overlooking the Gulf of Mexico starting in the low $300`s. No restrictions only 10% required, units come fully furnished.The Panhandle must be placed on your radar.Plans for a new Intl Airport are in the works, completion date is 2009. In our opinion this area is a throwback to the days of Fort Lauderdale circa 1960-1979! This area will have tremendous value for investors. Currently, people from Atlanta, Alabama, Dallas and New Orleans make this their vacationdestination. In the next few years that will all change!
2-Myrtle Beach, South Carolina, land and preconstruction community on a golf course. Near Beaches, requires only 5% deposit. Again, we`re looking at a 3 year investment.Land is undervalued.
3- Las Vegas, Nevada,Condo Conversions in the heart of the Vegas strip. Looks like a Coconut Grove type of area! New cafes, malls and restaurantsopening in this area. Very Chic!
4- Phoenix Arizona, Condo Conversions and preconstruction the next Florida! This area has tremendous long term growth potential with a huge demand for jobs! Many business are leaving California for Arizona due to less tax restrictions for businesses! Land is very inexpensive at the moment ,but will change in the next 2-4 years!
5- Arkansas, resort locations near Little Rock. Near lake 1/4 acre lots starting @ $12,000. Buildable lots for under $20,000 must be looked at because this region is realizing huge growth as demand for affordable housing as well as jobs continue to leave the Northeastern States.Baby boomers are starting to see the potential in purchasing a second home in this area. Low Tax base, similar to Florida.
I would like to take this opportunity to thank all of our subscribers who have responded to our updates. I hope that 2005 was a profitable year for you, as we anticipate further successes in 2006. As some of you are aware, due to necessary expansion, we have opened a new office which is located in Cooper City, FL. Our full service real estate agency now has the opportunity to make a presence throughout the state. Our second office, located in Fort Myers, Fl, will be opened shortly.
Given our present growth, we are in the process of hiring realtors to join our organization. If you're a realtor subscriber and are interested in seeking employment information regarding our company, please contact Scott Daniels for a confidential interview.
Happy Holidays.
Scott Daniels
9900 Stirling Rd. Ste 104
Cooper City, Fla. 33024
954-680-4404
954-874-3600
1-866-274-2274
954-874-3601 (Fax)
Sunday, December 18, 2005
Residential Real Estate News.
Residential Real Estate News.
Despite the record median sales price of a Broward,Dade,Palm Beach and Lee County Single-family home rising between$322,000 to $345,000 in October, other factors must be considered. By Following the Multiple Listing Service it revealed the following — there were a lot more price reductions hitting the market as compared to price increases.
Over the past two months, there was an average of 13 asking price increases and 85 reductions for residential units per day. There were also 14 price increases and 96 reductions for vacant residential lots. Combined, that is an average total of 27 price increases and 196 price reductions within a 48-hour period.
Most likely, the owners of these residential properties had them listed under the assumption that price appreciation was going to continue at the same rate as experienced in the past couple of years. Most of these price reductions were from MLS-listed properties for sale in the Boca Raton,Pembroke Pines, Weston,Miramar, Cape Coral and Lehigh Acres markets. While these price reductions are an alarming trend to many, further study must be concluded before any future sale comparable predictions are made.
This recent MLS price activity in the pipeline shows our market may have reached a pricing threshold. But it is far too early to say that local housing prices will actually decline. One must remember there is a difference in a declining future appreciation rate, and actual housing prices coming down.
Despite the record median sales price of a Broward,Dade,Palm Beach and Lee County Single-family home rising between$322,000 to $345,000 in October, other factors must be considered. By Following the Multiple Listing Service it revealed the following — there were a lot more price reductions hitting the market as compared to price increases.
Over the past two months, there was an average of 13 asking price increases and 85 reductions for residential units per day. There were also 14 price increases and 96 reductions for vacant residential lots. Combined, that is an average total of 27 price increases and 196 price reductions within a 48-hour period.
Most likely, the owners of these residential properties had them listed under the assumption that price appreciation was going to continue at the same rate as experienced in the past couple of years. Most of these price reductions were from MLS-listed properties for sale in the Boca Raton,Pembroke Pines, Weston,Miramar, Cape Coral and Lehigh Acres markets. While these price reductions are an alarming trend to many, further study must be concluded before any future sale comparable predictions are made.
This recent MLS price activity in the pipeline shows our market may have reached a pricing threshold. But it is far too early to say that local housing prices will actually decline. One must remember there is a difference in a declining future appreciation rate, and actual housing prices coming down.
Saturday, December 17, 2005
Good Bye Mr. Greenspan.
For the 13th consecutive FOMC meeting since mid-2004, the close ofthe policy-setting meeting featured a lift in the key FederalFunds rate. The cumulative increase over the past 17 months is now325 basis points (3.25%); the Fed Funds rate stands at 4.25%, thehighest level since 2001. Interestingly, we have reached a pointof symmetry of sorts: the Fed's last campaign of lowering ratessaw 13 downward (albeit larger) steps, taking the Fed Funds ratefrom 6.5% to 1% over a 30-month period. We've now retraced abouttwo-thirds of that decrease, and probably have a little more yetto endure.The Fed did make a meaningful change to its characterization ofthe likely course and level for interest rates. While again notingthat "some further measured policy firming is likely to be needed"to balance inflation and growth, the Fed no longer thinks that thecurrent level of interest rates is "accommodative" or providingadditional support to the economy. If it's no longeraccommodative, then policy must be closer to a non-stimulative"neutral" level, which suggests that the process of raisinginterest rates will soon come to a close -- happily, for holdersof short-term ARMs and equity lines of credit, the products mostprofoundly affected by the Fed's campaign. Currently, it isexpected that one or perhaps two more increases are due, startingwith the January 31 1 meeting, which will be Mr. Greenspan's last asChairman.Based upon recent data, it would appear that the economy has beendoing just fine even though monetary stimulation has been fading.Growth has been solid, price pressures have risen but seem to beleveling, and the economy has bested several significantchallenges this year. Data for November points to a resumption ofthe growth patterns prior to devastating hurricanes.Retail Sales for November rose a solid but unspectacular 0.3%, alittle below forecasts. "Core" retail sales, a figure whichexcludes sales of automobiles and gasoline, moved higher by 0.5%for the month. That sales pace seems strong enough to continue tokeep levels of unsold goods low for the month, as they were inOctober, where broad measures of stockpiled goods rose by 0.3%,but strong sales served to absorb all that increase and even more.Low levels of goods mean more orders, and more orders will keepfactories humming and imports flowing.
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Condo conversions putting renters in a bind.
Condo conversions putting renters in a bind
Some tenants priced out as profitable trend for owners creates apartment shortage.
MIAMI -- Diana Perez got the letter a few months ago: The apartment complex where she and her family live was converting into condominiums. They had to leave if they couldn't make a 20 percent down payment on their two-bedroom apartment, now selling for $185,000.
Hot concept: The Montecello apartments in Miami will become condominiums, part of a trend driven by rising property taxes and low rents. - LYNNE SLADKY / Associated Press
That's $37,000 up front on the apartment they now rent for $900 a month -- too much for the 36-year-old, who works in a nail salon, and her car salesman husband, so they're looking for someplace else. But in the red-hot Florida real estate market, they're having trouble finding anything comparable nearby.
"What I want to find is a place where I can stay and they're not going to kick me out" if the owners decide to convert into condos, she said.
As apartment building owners face rising property taxes and rents lower than home prices in certain areas, many are deciding to convert them into condos. That can generate large profits for owners, but the dwindling supply of apartments makes it harder for renters like Perez to find a place to live.
But developers say they help people who can't buy single-family homes by providing more affordable condos.
Problems finding apartments are more due to population growth and the difficulty for building owners to stay afloat with lower rents, said William Friedman, chief executive of Tarragon Corp., a New York-based urban homebuilder and condo converter.
Converted condos offer first-time buyers an affordable option to build up equity and live in more desirable locations with fewer responsibilities than if they owned a home, he said.
So far this year, the value of apartments sold to become condos is $22.6 billion, or about 152,655 units, according to Real Capital Analytics.
And the benefit for developers to convert is clear. So far in 2005, apartments converted into condos sold for an average of $154,000, compared with an average of $88,000 for units in buildings that were sold as rentals, according to the research firm.
Rents have been creeping back up as the market gets tighter after falling from 2001 to 2003, when more people were buying homes and avoiding renting. In the third quarter of this year, the national average rent for a 1,000-square-foot apartment was $1,258 a month, up from $1,195 in the fourth quarter of 2003, according to Global Real Analytics, another research firm.
And rents have increased faster than wages, making it increasingly difficult for poorer families to afford even modest apartments, according to a report from the National Low Income Housing Coalition.
South Florida has been a pioneer in the condo conversion craze. Last year, 17,000 units were converted into condos, and that could surpass 30,000 this year, said Jack McCabe, chief executive of McCabe Research in Deerfield Beach.
There were 176,000 apartment units in large complexes with unrestricted rental rates in South Florida at the start of 2004, but that is down to about 128,000 now, he said. Wait lists for affordable apartments in the Miami and Fort Lauderdale areas stretch for up to two years in places.
"We have a lot of renters who whether by choice or necessity can't find another rental that's comparable in price. We're seeing a lot of displaced people in Florida," he said. "We're not getting companies relocating because their work force is not willing to lower their standard of living to move to southeast Florida and other expensive areas."
And Florida is not alone anymore. The craze has spread across the country to other hot spots like Washington and San Diego, and even to less in- demand areas like Charleston, S.C., Dallas and St. Louis.
But the trend likely will be temporary because, once the real estate market slows down, the incentive to convert will decrease, said Scott MacIntosh, senior economist of commercial investment real estate at the National Association of Realtors.
Some tenants priced out as profitable trend for owners creates apartment shortage.
MIAMI -- Diana Perez got the letter a few months ago: The apartment complex where she and her family live was converting into condominiums. They had to leave if they couldn't make a 20 percent down payment on their two-bedroom apartment, now selling for $185,000.
Hot concept: The Montecello apartments in Miami will become condominiums, part of a trend driven by rising property taxes and low rents. - LYNNE SLADKY / Associated Press
That's $37,000 up front on the apartment they now rent for $900 a month -- too much for the 36-year-old, who works in a nail salon, and her car salesman husband, so they're looking for someplace else. But in the red-hot Florida real estate market, they're having trouble finding anything comparable nearby.
"What I want to find is a place where I can stay and they're not going to kick me out" if the owners decide to convert into condos, she said.
As apartment building owners face rising property taxes and rents lower than home prices in certain areas, many are deciding to convert them into condos. That can generate large profits for owners, but the dwindling supply of apartments makes it harder for renters like Perez to find a place to live.
But developers say they help people who can't buy single-family homes by providing more affordable condos.
Problems finding apartments are more due to population growth and the difficulty for building owners to stay afloat with lower rents, said William Friedman, chief executive of Tarragon Corp., a New York-based urban homebuilder and condo converter.
Converted condos offer first-time buyers an affordable option to build up equity and live in more desirable locations with fewer responsibilities than if they owned a home, he said.
So far this year, the value of apartments sold to become condos is $22.6 billion, or about 152,655 units, according to Real Capital Analytics.
And the benefit for developers to convert is clear. So far in 2005, apartments converted into condos sold for an average of $154,000, compared with an average of $88,000 for units in buildings that were sold as rentals, according to the research firm.
Rents have been creeping back up as the market gets tighter after falling from 2001 to 2003, when more people were buying homes and avoiding renting. In the third quarter of this year, the national average rent for a 1,000-square-foot apartment was $1,258 a month, up from $1,195 in the fourth quarter of 2003, according to Global Real Analytics, another research firm.
And rents have increased faster than wages, making it increasingly difficult for poorer families to afford even modest apartments, according to a report from the National Low Income Housing Coalition.
South Florida has been a pioneer in the condo conversion craze. Last year, 17,000 units were converted into condos, and that could surpass 30,000 this year, said Jack McCabe, chief executive of McCabe Research in Deerfield Beach.
There were 176,000 apartment units in large complexes with unrestricted rental rates in South Florida at the start of 2004, but that is down to about 128,000 now, he said. Wait lists for affordable apartments in the Miami and Fort Lauderdale areas stretch for up to two years in places.
"We have a lot of renters who whether by choice or necessity can't find another rental that's comparable in price. We're seeing a lot of displaced people in Florida," he said. "We're not getting companies relocating because their work force is not willing to lower their standard of living to move to southeast Florida and other expensive areas."
And Florida is not alone anymore. The craze has spread across the country to other hot spots like Washington and San Diego, and even to less in- demand areas like Charleston, S.C., Dallas and St. Louis.
But the trend likely will be temporary because, once the real estate market slows down, the incentive to convert will decrease, said Scott MacIntosh, senior economist of commercial investment real estate at the National Association of Realtors.
Friday, December 16, 2005
Tourism in Florida +3.2%!
Florida tourism expected to jump 3.2 percent in '06.
About 3.2 percent more visitors are expected to come to Florida next year, but worries about busy hurricane seasons are keeping some travelers away, the state's tourism marketing agency said Thursday.
Next year's outlook is higher than the national forecast of up to 2 percent more visitors to the U.S. next year, Visit Florida said at its board meeting. Tourism is Florida's biggest industry, with revenues of about $57 billion last year.
Last year, 79.7 million people visited Florida, the most ever and a 6.8 percent increase from 2003. Florida should surpass the 80 million visitor mark this year for the first time, said Barry Pitegoff, the agency's vice president of research. The state may have already exceeded that, but results won't be in until Feb. 15.
If that figure holds, and the forecast is correct, that would mean at least 2.5 million more people would visit the state in 2006.
''If we did not have the challenge of hurricanes, our visitor numbers could be higher,'' said Bud Nocera, president and chief executive of Visit Florida.
The prediction for next year includes the possible effects of more hurricanes hitting the state, Pitegoff said. Hurricanes are the single biggest factor affecting tourists' decision to visit Florida, he said.
The agency is noticing that some tourists are planning to avoid Florida during the peak hurricane months of August, September and October, said Dale Brill, chief marketing officer. That is a change from the past, when Florida's balmy climate attracted visitors during all seasons of the year, he said.
He said the agency will focus more on advertising to the meeting and convention market and less on leisure travelers to counter negative effects from hurricanes
''The reason we're so cautious is that it's very, very difficult to attract the amount of leisure vacations that you need to make up for what one [convention] group delivers,'' he said.
Apart from the hurricanes, economic factors like gasoline and heating oil prices and rising interest rates will also impact travel plans, but they shouldn't keep people away, Pitegoff said. They mostly will make visitors adjust how long they stay and how much they'll spend while here, he said.
''The first thing that we saw when gas prices went to close to $3 a gallon ... was that visitors coming here wanted to spend less on eating out,'' he said.
Still, he expected tourist spending to increase more than the predicted 3.2 percent jump in visitors.
Another concern is that other states and destinations are catching up to Florida in the amount they spend on tourism marketing, Brill said. Oregon spends just $1 million less than Visit Florida on advertising, he said.
The bulk of Visit Florida's $24.7 million annual public budget comes from rental car surcharges. The budget will probably be the same next year, Nocera said.
About 6.6 million people visited northeast Florida in 2004, up about 27 percent from 2003, according to the Jennifer MacPhee, spokeswoman at the Jacksonville & the Beaches Convention and Visitors Bureau. The group estimates more than $7 million visitors may have traveled to the First Coast this year.
The Super Bowl and other events have raised the Jacksonville area's profile which is driving additional tourist traffic, MacPhee said.
Tourists spent about $2.5 billion in 2004 on area hotels, shopping, and attractions. The ripple effect of that spending on the local economy was estimated at $4.3 billion. About 82 percent of travelers in the region were here on leisure and 18 percent on business, MacPhee said.
About 3.2 percent more visitors are expected to come to Florida next year, but worries about busy hurricane seasons are keeping some travelers away, the state's tourism marketing agency said Thursday.
Next year's outlook is higher than the national forecast of up to 2 percent more visitors to the U.S. next year, Visit Florida said at its board meeting. Tourism is Florida's biggest industry, with revenues of about $57 billion last year.
Last year, 79.7 million people visited Florida, the most ever and a 6.8 percent increase from 2003. Florida should surpass the 80 million visitor mark this year for the first time, said Barry Pitegoff, the agency's vice president of research. The state may have already exceeded that, but results won't be in until Feb. 15.
If that figure holds, and the forecast is correct, that would mean at least 2.5 million more people would visit the state in 2006.
''If we did not have the challenge of hurricanes, our visitor numbers could be higher,'' said Bud Nocera, president and chief executive of Visit Florida.
The prediction for next year includes the possible effects of more hurricanes hitting the state, Pitegoff said. Hurricanes are the single biggest factor affecting tourists' decision to visit Florida, he said.
The agency is noticing that some tourists are planning to avoid Florida during the peak hurricane months of August, September and October, said Dale Brill, chief marketing officer. That is a change from the past, when Florida's balmy climate attracted visitors during all seasons of the year, he said.
He said the agency will focus more on advertising to the meeting and convention market and less on leisure travelers to counter negative effects from hurricanes
''The reason we're so cautious is that it's very, very difficult to attract the amount of leisure vacations that you need to make up for what one [convention] group delivers,'' he said.
Apart from the hurricanes, economic factors like gasoline and heating oil prices and rising interest rates will also impact travel plans, but they shouldn't keep people away, Pitegoff said. They mostly will make visitors adjust how long they stay and how much they'll spend while here, he said.
''The first thing that we saw when gas prices went to close to $3 a gallon ... was that visitors coming here wanted to spend less on eating out,'' he said.
Still, he expected tourist spending to increase more than the predicted 3.2 percent jump in visitors.
Another concern is that other states and destinations are catching up to Florida in the amount they spend on tourism marketing, Brill said. Oregon spends just $1 million less than Visit Florida on advertising, he said.
The bulk of Visit Florida's $24.7 million annual public budget comes from rental car surcharges. The budget will probably be the same next year, Nocera said.
About 6.6 million people visited northeast Florida in 2004, up about 27 percent from 2003, according to the Jennifer MacPhee, spokeswoman at the Jacksonville & the Beaches Convention and Visitors Bureau. The group estimates more than $7 million visitors may have traveled to the First Coast this year.
The Super Bowl and other events have raised the Jacksonville area's profile which is driving additional tourist traffic, MacPhee said.
Tourists spent about $2.5 billion in 2004 on area hotels, shopping, and attractions. The ripple effect of that spending on the local economy was estimated at $4.3 billion. About 82 percent of travelers in the region were here on leisure and 18 percent on business, MacPhee said.
Wednesday, December 14, 2005
Slowdown in 2006?
Sharp price declines not generally expected.Expert predicts housing slowdown
Southwest Florida's housing market is in for a slowdown in 2006 as interest rates and inflation continue to rise.That's the message Orlando-based economist Hank Fishkind presented Tuesday at the 18th annual Regional Economic Conference by the Chamber of Southwest Florida. About 300 people attended the event at the Barbara B. Mann Hall at Edison Community College."We're talking about a housing market that's peaked," he said. "There clearly is a housing bubble."
In recent months, he said, the number of housing permits issued in Lee County and around the state has outpaced the increase in population statewide.In Lee County, for example, 1,410 permits were issued in October compared with 1,095 in November 2004.
That can't last forever, he said. "We are going to see the volume of activity come down."The median price of an existing home sold in the county was $322,000 in October 2005 — up 65 percent in a year.But real estate broker Denny Grimes of Denny Grimes & Co. in Fort Myers said he's already seeing signs of a slowdown and said August may have been the peak. In Lehigh Acres, for example, lot prices are declining.
"Activity is down tremendously. The average price of a lot is below $50,000 for the first time since June."October's high median price may have been a result of a decline in sales in the lower end of the market because of rising interest rates, he said.
Like Fishkind, Grimes said he doesn't expect a sharp drop in prices. "There are some unrealistic buyers out there thinking there's blood in the water."But, he said, "I really am a believer this might be one of the better years to buy. It's not going to go in the tank, it's going to take a breather. Now's the time to step up and get a fair deal, not a steal."
Southwest Florida's housing market is in for a slowdown in 2006 as interest rates and inflation continue to rise.That's the message Orlando-based economist Hank Fishkind presented Tuesday at the 18th annual Regional Economic Conference by the Chamber of Southwest Florida. About 300 people attended the event at the Barbara B. Mann Hall at Edison Community College."We're talking about a housing market that's peaked," he said. "There clearly is a housing bubble."
In recent months, he said, the number of housing permits issued in Lee County and around the state has outpaced the increase in population statewide.In Lee County, for example, 1,410 permits were issued in October compared with 1,095 in November 2004.
That can't last forever, he said. "We are going to see the volume of activity come down."The median price of an existing home sold in the county was $322,000 in October 2005 — up 65 percent in a year.But real estate broker Denny Grimes of Denny Grimes & Co. in Fort Myers said he's already seeing signs of a slowdown and said August may have been the peak. In Lehigh Acres, for example, lot prices are declining.
"Activity is down tremendously. The average price of a lot is below $50,000 for the first time since June."October's high median price may have been a result of a decline in sales in the lower end of the market because of rising interest rates, he said.
Like Fishkind, Grimes said he doesn't expect a sharp drop in prices. "There are some unrealistic buyers out there thinking there's blood in the water."But, he said, "I really am a believer this might be one of the better years to buy. It's not going to go in the tank, it's going to take a breather. Now's the time to step up and get a fair deal, not a steal."
Tuesday, December 13, 2005
Starbucks arrives in Sarasota.
Starbucks, make that Sarasota, has arrived
Java's version of King Kong drops in on city's 'valley of the large buildings'
By MIKE SAEWITZ
mike.saewitz@heraldtribune.comSARASOTA -- For years, downtown Sarasota has been missing an urbane trademark: Starbucks.Instead, Main Street was dotted with locally owned coffeehouses like Sarasota News & Books and Pastry Art.But in the past few months, a Starbucks has become a new and quiet part of a downtown that is so clearly trying to balance its small-town qualities with an emerging urban feel.In this one coffee shop, hidden behind a mess of construction, brews a latte-infused preview of where the city is going -- for better or worse."It really signals we're a true urban core," said Mayor Mary Anne Servian. "It signals Sarasota has come of age."But Starbucks is a different sort of icon for those worried that the city will lose its unique charm to development."I have mixed emotions," said 19-year-old Lauren Leib, who has lived in Sarasota all of her life. "Sarasota is becoming really chic now. I guess it was only a matter of time before a Starbucks and whatever else is coming down here."Yet Leib was in the new store Friday, sipping on a coffee frappuccino and reading a Harry Potter book. The Starbucks, next to the Selby Public Library, is just so convenient, she said.Others had to walk on the grass to get to Starbucks from Main Street, dodging construction at the massive-looking Plaza at Five Points."In places that are growing, Starbucks is always right around the corner," said consultant Daisy Saunders, who was in Starbucks Friday for her usual: a tall, sugar-free vanilla, soy, no foam caffe latte.Starbucks, at the corner of First Street and Central Avenue, is at the base of the 100 Central building, which is topped by condominiums and a short walk from the Whole Foods Market.Jodie Yeakel, who has lived in Sarasota since 1979, said she feels like she's in a completely different place when she walks from Whole Foods to Starbucks -- through the "valley of the large buildings," she said. It's as if she's in a much bigger city."I felt like I was on vacation," said Yeakel, who popped by the Starbucks on Friday.There will likely be more urban staples to come. Just this week, a developer included a bunch of big names in plans for a project called Pineapple Square, including Brooks Bros., Cole Haan and Morton's Steak House."We're at the tipping point," Servian said.
Java's version of King Kong drops in on city's 'valley of the large buildings'
By MIKE SAEWITZ
mike.saewitz@heraldtribune.comSARASOTA -- For years, downtown Sarasota has been missing an urbane trademark: Starbucks.Instead, Main Street was dotted with locally owned coffeehouses like Sarasota News & Books and Pastry Art.But in the past few months, a Starbucks has become a new and quiet part of a downtown that is so clearly trying to balance its small-town qualities with an emerging urban feel.In this one coffee shop, hidden behind a mess of construction, brews a latte-infused preview of where the city is going -- for better or worse."It really signals we're a true urban core," said Mayor Mary Anne Servian. "It signals Sarasota has come of age."But Starbucks is a different sort of icon for those worried that the city will lose its unique charm to development."I have mixed emotions," said 19-year-old Lauren Leib, who has lived in Sarasota all of her life. "Sarasota is becoming really chic now. I guess it was only a matter of time before a Starbucks and whatever else is coming down here."Yet Leib was in the new store Friday, sipping on a coffee frappuccino and reading a Harry Potter book. The Starbucks, next to the Selby Public Library, is just so convenient, she said.Others had to walk on the grass to get to Starbucks from Main Street, dodging construction at the massive-looking Plaza at Five Points."In places that are growing, Starbucks is always right around the corner," said consultant Daisy Saunders, who was in Starbucks Friday for her usual: a tall, sugar-free vanilla, soy, no foam caffe latte.Starbucks, at the corner of First Street and Central Avenue, is at the base of the 100 Central building, which is topped by condominiums and a short walk from the Whole Foods Market.Jodie Yeakel, who has lived in Sarasota since 1979, said she feels like she's in a completely different place when she walks from Whole Foods to Starbucks -- through the "valley of the large buildings," she said. It's as if she's in a much bigger city."I felt like I was on vacation," said Yeakel, who popped by the Starbucks on Friday.There will likely be more urban staples to come. Just this week, a developer included a bunch of big names in plans for a project called Pineapple Square, including Brooks Bros., Cole Haan and Morton's Steak House."We're at the tipping point," Servian said.
Saturday, December 10, 2005
Concerns about Florida Real Estate Q&A~.
This was recently emailed to me from one of our clients. As real estate investors start to see subtle changes in the condition of the real estate market, our subcribers continue to look for answers.
Q: As a real estate investor, I am concerned with the current rising interest rate environment and properties for sale and lease remaining on the market longer. Should I consider holding off on making additional real estate investments until the market shows some signs of rebounding?A: It sounds like your question assumes that Florida real estate values are going to go down, and what I really think you are asking is should you buy at current price levels or wait for a bottoming out?
From current market conditions, it appears to me that Florida real estate is fairly valued, not overvalued. With the expectation of continued strong baby boomers in migration and with the resulting creation of local jobs, I do not foresee any dramatic declines in Florida real estate values. This would tell me that hoping to buy at a lower price point may not occur. However, it's very realistic to expect a sideways moving market with little or no appreciation until the balance of our local economy catches up with the full value of real estate.There are advantages when investing in real estate in a sideways market:
1. Many of the novice investors who bid up the price of real estate are no longer competing with your offer to purchase. In past slowdowns, I have noticed that the sophisticated investor understands this concept, while the naive investor retreats.2. People who have financially overextended themselves during the bull-run phase of the market become attractive sellers for the sophisticated investor. An example of this could be an investor who has put a line of credit on their home to purchase lots or raw land. Since most lines of credit tend to be adjustable rate mortgages, the investor finds it more difficult to service the debt on the land in a rising interest rate environment.3. You must remember that real estate is a long-term investment and trying to time the market can be very difficult for even sophisticated investors.
So in summary, it's more important to acquire real estate investments with sound fundamentals well positioned for future growth instead of trying to time the market in an effort to buy low and to sell high.
Q: As a real estate investor, I am concerned with the current rising interest rate environment and properties for sale and lease remaining on the market longer. Should I consider holding off on making additional real estate investments until the market shows some signs of rebounding?A: It sounds like your question assumes that Florida real estate values are going to go down, and what I really think you are asking is should you buy at current price levels or wait for a bottoming out?
From current market conditions, it appears to me that Florida real estate is fairly valued, not overvalued. With the expectation of continued strong baby boomers in migration and with the resulting creation of local jobs, I do not foresee any dramatic declines in Florida real estate values. This would tell me that hoping to buy at a lower price point may not occur. However, it's very realistic to expect a sideways moving market with little or no appreciation until the balance of our local economy catches up with the full value of real estate.There are advantages when investing in real estate in a sideways market:
1. Many of the novice investors who bid up the price of real estate are no longer competing with your offer to purchase. In past slowdowns, I have noticed that the sophisticated investor understands this concept, while the naive investor retreats.2. People who have financially overextended themselves during the bull-run phase of the market become attractive sellers for the sophisticated investor. An example of this could be an investor who has put a line of credit on their home to purchase lots or raw land. Since most lines of credit tend to be adjustable rate mortgages, the investor finds it more difficult to service the debt on the land in a rising interest rate environment.3. You must remember that real estate is a long-term investment and trying to time the market can be very difficult for even sophisticated investors.
So in summary, it's more important to acquire real estate investments with sound fundamentals well positioned for future growth instead of trying to time the market in an effort to buy low and to sell high.
Monday, December 05, 2005
Acre Lots for Sale in Compass Lakes
The Scott Daniels Real Estate Group, www.Floridalistforlessrealty.com is proud to present.
Acreage near I-10! Only 35 mins from Tallahassee.
Borders on both Georgia and Alambama. Rapidly exppanding. Zoned 1 home per acre.
Excellent for Investors!
Priced for a quick sale.
For additional information.
Contact us @ 954-680-4404
or scott@preconstructioninflorida.com.
Join our free newsletter and receive all updates on Preconstruction,Condo Conversions,acreage, distressed property and forclosures throughtout Florida.
"We`re pioneering the new age of Real Estate! "
COMPASS LAKE IN THE HILLS LOTS.
(JACKSON COUNTY)
Shelby Ave.
Unit 6 - Blk 263 - Lot 01
Acre + Lot
$ 27,900.00
Aster Cir.
Unit 3 - Blk 50 - Lot 55
Acre Lot - LG
$ 27,900.00
Monogahela Ave.
Unit 4 - Blk 88 - Lot 148
Acre Lot - LG
$ 27,900.00
Tequesta Drive
Unit 1 - Blk "K" - Lot 1
Acre + Lot
$ 27,900.00
Christiansted Dr.
Unit 5 - Blk 146 - Lot 20
Acre + Lot
$ 27,900.00
Laurel Drive (w/ptnr)
Unit 6 - Blk 206 - Lot 01
Acre Lg. CNR
$ 28,900.00
Woodland Road (w/ptnr)
Unit 2 - Blk AD - Lot 17
Acre LG. Pie
$ 28,900.00
Putnam Avenue (w/ptnr)
Unit 6 - Blk 246 - Lot 46
Acre LG. Pie
$ 28,900.00
Aster Cir.
Unit 3 - BLK 50 - Lot 52
Acre + Lot
$ 27,900.00
Ottawa Court
Unit 4 - Blk 88 - Lot 96
Acre Lot LG
$ 27,900.00
Acreage near I-10! Only 35 mins from Tallahassee.
Borders on both Georgia and Alambama. Rapidly exppanding. Zoned 1 home per acre.
Excellent for Investors!
Priced for a quick sale.
For additional information.
Contact us @ 954-680-4404
or scott@preconstructioninflorida.com.
Join our free newsletter and receive all updates on Preconstruction,Condo Conversions,acreage, distressed property and forclosures throughtout Florida.
"We`re pioneering the new age of Real Estate! "
COMPASS LAKE IN THE HILLS LOTS.
(JACKSON COUNTY)
Shelby Ave.
Unit 6 - Blk 263 - Lot 01
Acre + Lot
$ 27,900.00
Aster Cir.
Unit 3 - Blk 50 - Lot 55
Acre Lot - LG
$ 27,900.00
Monogahela Ave.
Unit 4 - Blk 88 - Lot 148
Acre Lot - LG
$ 27,900.00
Tequesta Drive
Unit 1 - Blk "K" - Lot 1
Acre + Lot
$ 27,900.00
Christiansted Dr.
Unit 5 - Blk 146 - Lot 20
Acre + Lot
$ 27,900.00
Laurel Drive (w/ptnr)
Unit 6 - Blk 206 - Lot 01
Acre Lg. CNR
$ 28,900.00
Woodland Road (w/ptnr)
Unit 2 - Blk AD - Lot 17
Acre LG. Pie
$ 28,900.00
Putnam Avenue (w/ptnr)
Unit 6 - Blk 246 - Lot 46
Acre LG. Pie
$ 28,900.00
Aster Cir.
Unit 3 - BLK 50 - Lot 52
Acre + Lot
$ 27,900.00
Ottawa Court
Unit 4 - Blk 88 - Lot 96
Acre Lot LG
$ 27,900.00
Sunday, December 04, 2005
Vero Beach Preconstruction only 5% down!
The Scott Daniels Real Estate Group is Proud to announce to ourInvestors!
This EXCLUSIVE Offer to our Investors!Purchase a Preconstruction Single Family Homes in Vero Beach within thenext 60 days, receive $3,500 Towards Closing Costs! Investors Only 5% down!Select Your Own Lender! No Restrictions! Built in equity of $5,000 atclosing! Closing on these units will commence in May of 2006! Purchase a 3bed,2ba,2Cg Starting @ $248,550.Model and Floor PlansAvailable.Contact our office today! Known as the "Gateway to the tropics", Vero Beach is a gentle,sophisticated and unpretentious town located North of Palm Beach onFlorida's Atlantic coast. The Vero Beach area offers a unique climatethat has generated an eclectic mix of ancient oak trees, pine forests,and swaying palms, and colorful flowers of the tropics. It's a placenew friends are easily met at the many and diverse area activities.Vero Beach and Indian River County attracts visitors and residentsbecause of thecultural wealth and inherent natural beauty of the area. Vero Beach hasreceived numerous marks of distinction, including being rated the "BestSmall Town in Florida & 12th in the Nation" and was named one of "The100 Best Art Towns in America." This area is also recognized as the'Citrus Capital of the World, ' producing the finest Indian River citrusfor domestic and worldwide consumption. While one of the fastest growingareas in the nation, Port St. Lucie remains affordable andun-congested. Monthly street festivals and events give the community anenergetic flair, while the range of activities from golf and tennis, toscuba diving and horseback riding make Stuart/Port St. Lucie a place youwon't want to leave.It is our pleasure assisting you in finding Your Investment Property.Call Scott C. Daniels to schedule an appointment at 1-866-268-2274Email Scott at: Scott@preconstructioninflorida.com
This EXCLUSIVE Offer to our Investors!Purchase a Preconstruction Single Family Homes in Vero Beach within thenext 60 days, receive $3,500 Towards Closing Costs! Investors Only 5% down!Select Your Own Lender! No Restrictions! Built in equity of $5,000 atclosing! Closing on these units will commence in May of 2006! Purchase a 3bed,2ba,2Cg Starting @ $248,550.Model and Floor PlansAvailable.Contact our office today! Known as the "Gateway to the tropics", Vero Beach is a gentle,sophisticated and unpretentious town located North of Palm Beach onFlorida's Atlantic coast. The Vero Beach area offers a unique climatethat has generated an eclectic mix of ancient oak trees, pine forests,and swaying palms, and colorful flowers of the tropics. It's a placenew friends are easily met at the many and diverse area activities.Vero Beach and Indian River County attracts visitors and residentsbecause of thecultural wealth and inherent natural beauty of the area. Vero Beach hasreceived numerous marks of distinction, including being rated the "BestSmall Town in Florida & 12th in the Nation" and was named one of "The100 Best Art Towns in America." This area is also recognized as the'Citrus Capital of the World, ' producing the finest Indian River citrusfor domestic and worldwide consumption. While one of the fastest growingareas in the nation, Port St. Lucie remains affordable andun-congested. Monthly street festivals and events give the community anenergetic flair, while the range of activities from golf and tennis, toscuba diving and horseback riding make Stuart/Port St. Lucie a place youwon't want to leave.It is our pleasure assisting you in finding Your Investment Property.Call Scott C. Daniels to schedule an appointment at 1-866-268-2274Email Scott at: Scott@preconstructioninflorida.com
Location is Key in SW Fla.
"Location, location, location" is the motto for many people who are house or property hunting. Often they consider neighborhood conveniences such as proximity to work, school or shopping centers when deciding where to buy or build.But their decision also involves another important resource: water. Though Lee County residents have preferences about city and well water, longtime real estate brokers said those tastes aren't influencing buying or building. Indeed, homes with city and well water are equally appealing because people ultimately thirst for the best deal.John McWilliams, a real estate broker with Coldwell Banker Preferred Properties in Lehigh Acres, called it a misconception that single-family homes with well water complicate or compromise sales.
"It might have been true 20 years ago," said McWilliams, who has been serving Lehigh for 25 years. "But there are still more buyers than there are properties for sale."Agents said Lehigh and Cape Coral are the notable local areas with open land tracts that likely will sell as individual lots and have homes built with well water. Michael Schneider-Christians of Century 21
Sunbelt Realty Inc. said less-populated northwest Cape Coral is one example.Well water is no deterrent for potential homeowners, particularly in a market where property and home values are climbing. "People go everywhere in Cape Coral," said Schneider-Christians, a Century 21 agent since 1986.Realty Executives of Cape Coral broker Chuck Nix, who has more than 20 years of real estate experience in the area, said prospective buyers usually know which water source they want before they start house hunting.
Although the people's choice is their own, city and well water considerations do exist.
Homes with city water
WATER QUALITYResidents have comfort in knowing city water is monitored. "In public water supplies, the water systems are operated by certified professionals," said Gary Maier, professional engineer for the Lee County Health Department. "The water is tested for different things at different times daily."
The detection of waterborne diseases results in notification of the public. Residents are advised of boil water notices, either by their utilities company or through the media, depending on how widespread the problem. In addition, they receive an annual water report identifying tests done and results. People should report any foul odor, taste or color.
COST
Homeowners, especially those with large families, may absorb a high monthly bill because of everyday tasks such as cooking, cleaning, showering and laundering. The bill contains a minimum monthly fee and usage cost.
CONVENIENCE
As McWilliams said, city water is "no fuss, no muss" to homeowners. During power outages, residents have access to running water, albeit cooler than normal.Irrigation use is limited during times of water conservation. For example, people on Cape Coral's dual water system have been restricted to watering landscape two days per week because high irrigation use reduced canal and aquifer levels.
Homes with well water
WATER QUALITY
Wells are not subject to stringent testing, unless homeowners take the initiative. "It is the homeowners' responsibility to make sure the water is safe to drink," Maier said.Maier recommends annual testing, and the health department provides technical assistance to test for waterborne diseases. Per instruction from the department, homeowners can collect a water sample themselves and bring it to the health department for evaluation. Or they can pay a $15 fee to have a health department official collect a sample, he said. Testing costs $10 to $15, he said, and results are back within days.
Maier said it is imperative that water be tested if rain or floodwaters cover the well at any time because the well may have a crack undetected by homeowners. "Then they (homeowners) should be boiling the water until it's tested," he said.And, he said, people should keep pollution sources, notably pesticides and dog waste, away from the well.
COST
Lehigh attracts many young, first-time homeowners because property and home prices are typically lower there than elsewhere. Well water is an additional savings per month. "Young couples are stretched so much that in some cases, they prefer a well and septic lot because they don't have a higher water bill," McWilliams said.During the past 12 years, Rene and Larry Mollineaux of Alva have owned two homes with well water, and well water hasn't been an issue to neighborhood residents. "In the area we're in, we're more rural," said Rene Mollineaux, 38, whose two children and her parents live in the home. "It doesn't bother them. They just think that's what you get."
"We prefer it," she said. "It's more convenient."Nonetheless, homeowners incur a fee when they live in an area that is being or will be converted to city water and sewer. Those in the midst of the Cape Coral utilities expansion are being assessed for the hookup.
"When the city puts pipes in, you have to connect," Schneider-Christians said. "You pay again. That's an additional expense."
CONVENIENCE
Cost for well installation varies yet is normally a low-maintenance investment.Paul Lawrence Well Drilling in Alva installs 30 to 40 residential wells — a package deal of domestic for the home and irrigation for the landscaping — per month, said office manager Kathleen Justham. She said installation at a home in a typical neighborhood costs from $2,000 to $3,800 and takes six hours to two days. A lot near State Road 82 in Lehigh is an example of' a job that takes longer because of the volume of rock in the ground. An inspector is on site during installation to verify the system is up to code.Some wells may go dry. Older wells, such as those at the Cape Coral Yacht and Racquet Club in southeast Cape Coral, have dried up in the past, Schneider-Christians said. Justham said Paul Lawrence replaced dry wells in Buckingham during the past year.
The septic tank that goes with the well at the average home costs $6,000 to $9,000, said JoAnn Williams, president of Alva Septic Source Inc. Tanks in high-end developments cost as much as $20,000, she said. If residents do not pour grease down drains, she said, tanks can be cleaned every three to five years and last 20 years.Of course, customers lose running water during power outages.
"It might have been true 20 years ago," said McWilliams, who has been serving Lehigh for 25 years. "But there are still more buyers than there are properties for sale."Agents said Lehigh and Cape Coral are the notable local areas with open land tracts that likely will sell as individual lots and have homes built with well water. Michael Schneider-Christians of Century 21
Sunbelt Realty Inc. said less-populated northwest Cape Coral is one example.Well water is no deterrent for potential homeowners, particularly in a market where property and home values are climbing. "People go everywhere in Cape Coral," said Schneider-Christians, a Century 21 agent since 1986.Realty Executives of Cape Coral broker Chuck Nix, who has more than 20 years of real estate experience in the area, said prospective buyers usually know which water source they want before they start house hunting.
Although the people's choice is their own, city and well water considerations do exist.
Homes with city water
WATER QUALITYResidents have comfort in knowing city water is monitored. "In public water supplies, the water systems are operated by certified professionals," said Gary Maier, professional engineer for the Lee County Health Department. "The water is tested for different things at different times daily."
The detection of waterborne diseases results in notification of the public. Residents are advised of boil water notices, either by their utilities company or through the media, depending on how widespread the problem. In addition, they receive an annual water report identifying tests done and results. People should report any foul odor, taste or color.
COST
Homeowners, especially those with large families, may absorb a high monthly bill because of everyday tasks such as cooking, cleaning, showering and laundering. The bill contains a minimum monthly fee and usage cost.
CONVENIENCE
As McWilliams said, city water is "no fuss, no muss" to homeowners. During power outages, residents have access to running water, albeit cooler than normal.Irrigation use is limited during times of water conservation. For example, people on Cape Coral's dual water system have been restricted to watering landscape two days per week because high irrigation use reduced canal and aquifer levels.
Homes with well water
WATER QUALITY
Wells are not subject to stringent testing, unless homeowners take the initiative. "It is the homeowners' responsibility to make sure the water is safe to drink," Maier said.Maier recommends annual testing, and the health department provides technical assistance to test for waterborne diseases. Per instruction from the department, homeowners can collect a water sample themselves and bring it to the health department for evaluation. Or they can pay a $15 fee to have a health department official collect a sample, he said. Testing costs $10 to $15, he said, and results are back within days.
Maier said it is imperative that water be tested if rain or floodwaters cover the well at any time because the well may have a crack undetected by homeowners. "Then they (homeowners) should be boiling the water until it's tested," he said.And, he said, people should keep pollution sources, notably pesticides and dog waste, away from the well.
COST
Lehigh attracts many young, first-time homeowners because property and home prices are typically lower there than elsewhere. Well water is an additional savings per month. "Young couples are stretched so much that in some cases, they prefer a well and septic lot because they don't have a higher water bill," McWilliams said.During the past 12 years, Rene and Larry Mollineaux of Alva have owned two homes with well water, and well water hasn't been an issue to neighborhood residents. "In the area we're in, we're more rural," said Rene Mollineaux, 38, whose two children and her parents live in the home. "It doesn't bother them. They just think that's what you get."
"We prefer it," she said. "It's more convenient."Nonetheless, homeowners incur a fee when they live in an area that is being or will be converted to city water and sewer. Those in the midst of the Cape Coral utilities expansion are being assessed for the hookup.
"When the city puts pipes in, you have to connect," Schneider-Christians said. "You pay again. That's an additional expense."
CONVENIENCE
Cost for well installation varies yet is normally a low-maintenance investment.Paul Lawrence Well Drilling in Alva installs 30 to 40 residential wells — a package deal of domestic for the home and irrigation for the landscaping — per month, said office manager Kathleen Justham. She said installation at a home in a typical neighborhood costs from $2,000 to $3,800 and takes six hours to two days. A lot near State Road 82 in Lehigh is an example of' a job that takes longer because of the volume of rock in the ground. An inspector is on site during installation to verify the system is up to code.Some wells may go dry. Older wells, such as those at the Cape Coral Yacht and Racquet Club in southeast Cape Coral, have dried up in the past, Schneider-Christians said. Justham said Paul Lawrence replaced dry wells in Buckingham during the past year.
The septic tank that goes with the well at the average home costs $6,000 to $9,000, said JoAnn Williams, president of Alva Septic Source Inc. Tanks in high-end developments cost as much as $20,000, she said. If residents do not pour grease down drains, she said, tanks can be cleaned every three to five years and last 20 years.Of course, customers lose running water during power outages.
Saturday, December 03, 2005
Home Sales mixed!
Home Sales, believed to be falling victim to higher rates andreduced affordability, printed a mixed bag of results for themonth of October. Existing Home Sales slipped by 2.7%, falling toa 7.09 million annualized rate of sale, still a very healthy clip,while sales of New Homes rocketed ahead by 13% to a new-record1.424m annualized sales rate. While it's true at the moment thatmortgages are somewhat more expensive than they've been for mostof the last three years, and prices are considerably higher,there's still enough demand (and mortgage liquidity) to keep homesales at very strong levels, even if records aren't likely tocontinue to fall. The Fed's regional survey of economic activity,called the "beige book" for the color of its cover, noted thatsome residential real estate markets had begun to cool somewhat inthe mid-October through mid-November period.On the topic of prices, the average price of a home is some 16%higher this October than last, according to the Federal HousingFinance Board. That figure is used to recast the conforming loanlimit each year, and single-family mortgages of up to $417,000 arenow eligible for purchase by Fannie Mae and Freddie Mac. Whilethis may help to improve Fannie and Freddie's market share,especially in coastal and other expensive markets, borrowers ofthat loan amount will find only about a $52 per month differentialin their mortgage payment from obtaining a conforming loan insteadof a jumbo loan. However, the $57,350 increase in the limit meansthere may be areas of the country where marginal jumbo mortgagemarkets will no longer need to exist, as loans can now beoffloaded to the traditional secondary markets.As October and especially November data begin to be revealed, it'sclear that the significant interruptions caused by HurricanesKatrina and Rita are fading into economic memory. Much of the mostrecent data points to a resumption of solid growth in the port-storm period. Estimates of GDP growth for 3Q05 were revisedconsiderably higher, where the preliminary estimate now has theeconomy running at a 4.3% clip, up from 3.8% in the advanceestimate.
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Understanding The Dade,Broward and Marion County Market report.
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