Florida Keys Articles:

The Keys: Get there Before the Next Boom - added 3-28-11

The real estate market throughout Florida as in many other area of the country, looks like a dangerous place with the potential that prices may continue to fall…with the possible exception of the Florida Keys. Yes, it is true that during the incredibly oversold market commencing in 2003 and on, prices within Florida spiked only to come tumbling down during 2007 which continues to this day. This was the inevitable consequence of bad lending decisions coupled with buyers lacking the wherewithal to carry the home. This happened virtually everywhere else in the country.

The Florida Keys are Exceptional and an Exception
One of the main strengths of that market protecting the Keys from some of the dangers in the current real estate market is the fact that the vacation rental market environment is a life preserver to the real estate investor, despite the fact that many have chosen to reside there on a permanent basis. In other words, many of the properties whether condos or homes, are still attractive vacation destinations.

As long as a property can be rented, the investment is self-sustaining. The Keys can always be rented, depending upon the area, on a weekly or monthly basis. This makes them more attractive for investment purposes than the typical home purchased by the home owner as a primary residence anywhere else in the country. In other words, the Florida Keys real estate market was never in a "bust" situation.

The facts bear this out. According to Standard and Poors.com, aggregate real estate prices throughout the U.S., comparing 2000 with 2010 were only 2.6% greater in 2010 than during 2000. While actual sales price in the Florida Keys were 52.1% higher in 2010 than in 2000 ($274,995 vs. $418,209)! Certainly there were declines in Keys real estate prices on a comparative basis during the last half of the decade. This only serves to point up the fact that Keys real estate is very high priced and even when it had declined, prices remain at levels significantly above 2000.

Moreover, this data includes all Keys "residential" real estate, which also takes in vacation rental property, such as homes or condos that are rented out. If that data were available for comparison, it is highly likely that the historical prices would even have exceeded 52%. However, it is important to point out that certain other areas such as New York City and Washington, DC also fared very well over the decade because of explosive Wall Street wealth and the growth of the federal government which affected real estate in the greater Washington DC area.

Short Term Rentals are Key
Despite the overall weakening in the economy and the unsteadiness in the real estate market, vacation rentals in the Keys are strong and this will of course, maintain housing prices within the Florida Keys. However, to the joy of potential real estate investors, the current market rating for buyers is now resting at 1.0 indicating that it's an excellent market in which to purchase. Certainly, if one's intentions are to make a property a business investment and pursue the short term (1 week to 1 month) rental route, the investment will pay for itself in the short term. In fact, the shorter the duration of rentals, the higher the rent and thus, the better ROI the investor enjoys.

There are other advantages that work for the investor. If the property is set up as a business and incorporated, many of the normal housing expenses incurred can be deducted as a business expense. This has the result of decreasing an investor's personal income and taxes, overall. Also, an investor is permitted to make trips to the property for "business purposes" which also permit the investor to use the house or condo and mix business with pleasure, with all expenses being tax deductible.

The longer term real estate outlook for the Florida Keys is exceptional. Because Monroe County has a moratorium on building and because of obvious geographic reasons, the amount of homes and condominiums is finite and for all intents and purposes, capped. Therefore, the market will dictate that the only place for prices to head is up. Even if a recovery is slow, the fact that a property can maintain itself through short term rentals makes the Florida Keys an incredible year round vacation/business destination investment.

Benefits of Owning a 2nd Vacation Home added 1-19-2011

Looking for a tropical get-away that does not require a passport? Look at the Florida Keys. Stretching from around fifteen miles south of Miami to less than one hundred miles from Cuba, the Florida Keys offer a multicultural living and vacation experience to fit every budget.

Financing a Tropical Dream

Once reserved for the rich and the famous, a second vacation home can now be part of a smart investment portfolio. Mortgage rates are low, making financing a home in the Florida Keys more affordable than ever. Also, unlike the rich and the famous, the average individual is likely to rent his vacation home out to tourists when he is not using it himself.

Waterfront property is especially popular as a vacation spot. It offers the amenities of the local community – restaurants, attractions, transportation, security – and the beauty of communing with nature. The income from these rentals often covers the entire mortgage, enabling the owner to enjoy a free vacation in the Keys whenever he pleases.
Waterfront property also tends to appreciate in value over the long term due to its lasting popularity. The savvy homeowner of a Florida Keys waterfront vacation home is also building equity while he vacations there and rents it out – equity that can either be cashed in at retirement or lived in on a full-time basis.

Peace of Mind

Ask any therapist. The soothing sounds of the ocean provide the perfect background for relaxation. With a vacation home in the Florida Keys, no tapes or compact discs are needed.
Simply open the windows to enjoy the ocean’s relaxing sounds.

Also, as stress is a significant risk factor in elevated blood pressure, a vacation home in the Florida Keys benefits the homeowner physically as well as mentally.
Stress melts away with the ebb and flow of the tide, with the beauty of the sun rising or setting over the ocean, with the gentle ocean breeze.

One can almost feel his blood pressure lower with the laid back lifestyle. Or, if the need for some company arises, the Florida Keys offer a variety of restaurants, museums, parks, and attractions to amuse and entertain.

Add to the scenic view, soothing sounds, and peace of mind that comes with knowing that. No matter how stressful life becomes, a little slice of paradise awaits. It is a reward at the end of the summer, or at the end of a career.

 

Florida Beach Towns Beat Big City Stresses added 12-2010

Living in a big city doesn't always mean instant advantages. Traffic noise and pollution, deadlines set for yesterday, rising crime and insurance rates, and the cost of living index, to name a few: Stresses in today's cities can overwhelm the senses and well-being of even the strongest. The negative effects of city life can impact all facets of life.

Health
Extended exposure to constant stress reduces one's ability to withstand disease and permanently damage one's physical health:
1. High Blood Pressure
2. Heart Attacks
3. Strokes
4. Ulcers
5. Natural Immunity
6. Sleep
7. Teeth and Gums
8. And many more.

But the negative effects don't stop with just the body. One's mental health often suffers, as well:
1. Depression
2. Desperation
3. Night Sweats
4. Nightmares
5. Road Rage
6. And so much more.

Friends, family, co-workers, bosses, customers, and even strangers can both affect and be affected by common stresses found in the city. Unless one completely sequesters him- or herself from exposure, there's really no way to avoid city life stress. But that presents it’s own stress factor list.

What might be done to reduce those stresses? Move to a quiet, beautiful beach town in Florida!

Calmer Living
Reduction or elimination of major stress factors plays a huge part in improving both physical well-being and mental and emotional outlook. Changing living locations to a slower, calmer, more pleasant environment, such as smaller beach towns on the Florida coastline can vastly improve physical and mental health.

Commutes of minutes instead of hours, breathtaking scenery, and affordable living costs all present themselves in Florida beach towns. Sandy beaches, friendly neighbors and shopkeepers embrace peaceful living and incorporate serenity into the way of life along Florida's coastlines.

From Vero Beach to Jensen Beach, Florida coastal beach towns offer the potential of reductions in virtually every category--except, of course, increases in peace of mind, relaxation, and overall satisfaction.

Solution
Close to major metropolitan areas or more isolated locations, Florida beach towns gift visitors and residents, old and new, with revised outlooks and reduced stress with peaceful ways of life!

Want an Investment Property? How About a Florida Vacation Home?

With the mortgage melt down, the last thing on most people’s minds is buying real estate as an investment strategy. Right? Well, no, not right! At least, when it comes to buying the right kind of home or investment home. Right…translates into buying a Florida vacation home.

The Ideal Florida Vacation Home Investment
Certain areas in the Sunshine State are ideal for investment now in the current real estate market. Those areas are located mostly on the shorelines of Florida: the south east coast, the Florida Keys and the west coast from Tampa Bay and points south. There are three good reasons why investing in a vacation home now makes good economic sense:
1. Most Florida home prices are reduced.
2. Short-term rental prices for the most part, have not declined.
3. A Florida vacation home can generate rentals all year round.

One must keep in mind that not all Florida vacation properties are good economic bets. First, the Disney area is not particularly a good investment. It’s a bit over built. Second, areas north of Tampa Bay on the west coast and north of Daytona Beach on the east coast have winters that are a little too cool to attract vacationers the year round. Therefore, the best places for investment in vacation rental homes will usually be further to the south and especially the Upper Keys-Islamorada area and Key West. Also, the vacation real estate investor should only purchase in communities permitting short-term (weekly) rentals. Many of the advantages enumerated below will not materialize, if short-term rentals are prohibited.

The Mortgage Meltdown and Recession Has Created Gold for the Savvy Investor
While home purchase prices have declined in Florida, the allure of the weather, beaches and waters continue to attract vacationers. During the summer almost everywhere in coastal Florida is a good vacation choice. During the winter, the ‘snow bird’ crowd flies in for several weeks or months of temperate weather in the more southerly areas of the Sunshine State. During the rest of the year, short-term rentals are fewer, but still exist.

In line with the above, a weak economy means that many, who might normally opt for a vacation in Europe, have decided to spend their vacations in Florida. Also nowadays, people employed in corporate America are less apt to take long vacations fearing that they might not have a job after returning from a two-week junket. Further, because of excellent airline service throughout Florida, now almost anyone can easily squeeze in a few days of sun from almost anywhere in the continental U.S.

This translates to opportunity for those looking to purchase vacation properties in Florida for investment. There are some excellent advantages to owning vacation real estate, as well:

• A Florida vacation property doubles as an investment as well as a vacation escape
• With a fall in prices and rentals remaining at or near their previous levels, a property on a weekly rental basis can quickly show a net positive cash flow
• With basic depreciation and other out of pocket expenditures as deductible expenses, it is likely that an investor can show a “taxable” loss, thereby reducing federal income tax liabilities.
• Regardless of the future, a typical vacation home with its rentals can carry itself handily on into the future. This of course, assumes that the investor purchased the property at a reasonable level.

Assuming that a property can generate short tern rentals and also assuming that mortgage payments are not excessive, a property as stated previously will be a net positive investment.
As home prices start to regain their footing, vacation properties in Florida, obviously will also enjoy the same price increases. If an investor decides to sell his vacation property at a later date, history has proven that the net rate of return on his investment, including rentals should be equal to or greater than other investment alternatives that could have been undertaken and available at the same time. When taken in total, vacation properties in Florida in the right areas at the right price is an investment worthy of serious consideration.

What to be aware of in Buying a Condo

There are some important considerations to take into account before you make the final decision to purchase a condo. Too often, people overlook these critical issues and end up regretting their purchase down the line. Do your research carefully and you will make a sound investment. What should you be looking out for? Here are a few important questions to ask:

Is the condo complex professionally managed?
You should examine all HOA documents carefully. It is important to establish whether or not the complex is professionally managed. It is a good idea to speak with other owners to get their impressions of the complex management. Also, look at the turnover rate of elected HOA members. If there is a high turnover rate this may indicate that the HOA may be disorganized and ineffective. Analyze the minutes of previous HOA meetings to see what the issues are and if they have been dealt with effectively. This will also reveal any major projects that might be under way. What do the association dues cover? Are owners paying their association dues? If there is a significant amount of unpaid dues, it could be a sign that the HOA is ineffective as well as underfunded. Check the HOA’s accounting records. Is there sufficient money in the reserve account to cover any emergency repairs? If not, the HOA dues could be increased to cover these unforeseen circumstances. Lastly, check that the HOA is not currently involved in any litigation.

What insurance policy is in place?
Ask for a copy of the certificate of insurance to get more information on the association’s insurance policy. You need to know exactly what the policy covers. Is there sufficient cover to rebuild the complex should something happen? Are the replacement costs outlined in the policy an accurate reflection of the cost of rebuilding? Does the policy have a building-ordinance clause?

What are the HOA bylaws?
This is where buying a condo differs significantly from buying a single-family home. The HOA’s bylaws can be a minefield of information. They can be difficult to understand and interpret. It is a good idea to have a real estate attorney look over the bylaws on your behalf. You should know exactly what you will own and what you won’t own.

How many units are owner occupied and how many are rented?
Generally, owner occupied condos are maintained better than rented condos. If there is a high number of rented condos make sure that the HOA has a clear rental policy. Find out exactly what these policies are and if they manage the renting out of condos or not? Do they stipulate that you use their lease agreement? If so, have your real estate attorney look over their lease agreement. Also be aware that the HOA may prohibit the renting out of condo units. You should be aware of all these fine details before you make a final decision to purchase.

How often are units bought and sold in the complex?
A high turnover rate of units bought and sold could be a clear indication that something is not right in the complex. This could affect the value of all units. Talk to other people living in the complex and ask them about the high turnover rate. Current owners will probably be quite willing to reveal any major problems to you.

Buying a condo is a complex process. Make sure that you do your homework thoroughly to avoid disappointment later. As with any financial investment, a sound analysis and investigation will significantly reduce the risk involved.

The Importance of using an experienced Real Estate Agent

There is a lot of hard work that goes into buying or selling a house.
With today’s market and economy, that hard work has become even tougher.

That is exactly why it is critically important that you hire an expert to help you navigate through all the details and negotiations.

Yes, there are lots of Real Estate Agents, but not all of them may be looking out for your best interest. Therefore the first thing you need to do in this process is to find a real estate agent that you can trust, that has experience and importantly has great negotiation skills.

From the experience side of things.

A few things to ask a prospective agent?
How long have you been in Real Estate?
Do you do this full time?
What are your sales stats for the last couple years.
(These may seem like intrusive questions, but any top-producing agent will actually welcome them)

The importance of Negotiation.

Negotiating is probably the most important skill that an agent can possess. The agent could be an excellent salesperson, but without negotiating skills you might not be getting the best deal for your dollar.
A really great agent will listen to the concerns of both the buyer and the seller and then work on something that benefits both parties.
A great negotiator will ask the proper questions to find out exactly what those concerns are, and in addition what each side wants to ultimately accomplish.
The goal being, to turn your transaction into a win-win situation for both parties.

Area knowledge.

An agent should have in-depth knowledge of the area in which the property is located.
From a seller’s perspective, knowing the actual value of the property and how much the sellers could get for it is vital.
From the buyer’s perspective, the agent should know about schools, local amenities and even which local business are in the surrounding area. On the subject of tax rates, building codes, home repairs and insurance costs, an experienced agent can also point out exactly where to get the information.

In conclusion, picking an agent that has the experience and negotiating skills to help with selling or buying a home is an incredibly important step. Be careful to choose a strong partner in your pursuit of either selling or buying.

A World Away – Vacationing in the Florida Keys

The Florida Keys offer many of the same laid back characteristics as the Caribbean, without ever leaving the United States. Amazing sunsets and a free spirited attitude all contribute to the laid back atmosphere of the Keys.

There are many activities to do, like sport fishing, scuba diving and snorkeling, boating, sailing, kayaking and eco-tours. Each island destination has its own special features. These islands are also rich in culture and history with many galleries, restaurants, festivals, music and theater to visit and check out. Of course, just relaxing is always an option throughout the Keys as well.

The Keys span about 120 miles and are connected by bridges and causeways, running south west from Miami. This area has the only living-coral barrier reef in the United Stares and is approximately 5 miles off shore and runs the entire length of the Keys.

The first island in the Florida Keys is Key Largo. Being close to the Everglades National park, there is much wildlife to be seen here. It is a popular destination for kayakers and bird watchers. There are many amazing scuba diving or snorkeling sites in Key Largo as well, with many sunken wrecks in the area. The John Pennekamp Coral Reef State Park is located here and offers scuba and snorkeling tours, glass bottom boat tours and swimming in the Florida Keys National Marine Sanctuary. In 2002, the navy ship, the USS Spiegel Grove was sunk to provide a reef here and a sunken wreck for divers to explore.

The next island in the chain is Islamorada. It is comprised of six islands including Plantation Key, Windley Key, Upper Matecumbe Key, Lower Matecumbe Key and the offshore islands of Indian Key and Lignumvitae Key. This area is well known for its world class sport fishing. There are many fishing tournaments held here each season.

Marathon Key is in the middle of the Florida keys. It is famous for the Seven Mile Bridge, which links it to the Lower Florida Keys. You will find great shopping and many fine restaurants offering fresh seafood. At Crane Point Museum, there is one of the last untouched tropical hardwood hammocks in the Florida Keys.

Big Pine Key is known for its boating tours and for bird watching and fishing. The diving and snorkeling is great here too. It is a quiet region of small resorts, home-style restaurants, vacation homes and untouched natural areas.

The last of the Florida Keys is Key West. There are many festivals, shopping and restaurants. Boat tours provide a great way to view Key West from the water. The snorkeling and diving are renowned here to see a diverse array of marine life. Wrecks and reefs, both artificial and natural coral, are home to hundreds of species of tropical and game fish. Many visitors rent a bicycle or go on walking tours to explore the history and architecture of Old Town Key West.

So if you are into eco-tourism, scuba diving or snorkeling, shopping and dining, or just want to relax in a tropical paradise, the Florida Keys may be the destination for you.