Some Important Expenses for Homeowners after the Purchase

Many homeowner only see the purchase price and are happy when their transaction closes. However, after the closing they do not pay rent anymore but there are some expenses that they have to keep in mind.

Every property should be insured so that the financial and property damage is covered in case a disaster strikes. The homeowner insurance pays for the property damages and possession losses. Normally you as the homeowner have also a deductible amount and that is your obligation to cover. The insurance kicks in when the damage amount is higher than your insurance deductible.  

The homeowner insurance usually insures wind and fire but not earthquake and flood. For these disasters you need an additional insurance coverage.  It is also important where your home is located. When your home is for example close to coast lines with high storm risks, this insurance is significantly more expensive than in areas with low storm risk.

Additional obligations for you as the homeowner is the maintenance of your home and the annual property taxes as well as the trash removal. When your home is located in a homeowner association community the monthly association fees are a necessary expense too. You should not ignore these payments.

You want to know your obligations? Contact us at andrea@florida-informations.com

 

Why you should buy a home now!

Everybody who is renting right now, should really think hard if there is any possibility to purchase a property. The reason is that the rents are going up constantly and based on newest surveys the landlords have the intention to keep this pressure. The rental demand is there and many tenants are too afraid to look for their dream home.

However, as a tenant you should always keep in mind that you pay a landlord for the right to stay in a home and at the end of every month the lease money is gone from your pocket to the landlord's. Would it not be better that this money goes in your own pocket?

That is easily possible when you are a homeowner yourself. Even when the home inventory is low and you have to look harder to find what you want, your dream homes is out there. When you find it you have to act quickly and make an offer. Therefore you need to be prepared so that you get the best possible interest rates for your mortgage.

To be ready for your loan application you should put the following hints on your list. They will help you to get what you want: the loan for the purchase of your dream home.

1.      Get ready to show your lender your ability to pay back the loan. Your employment records and your monthly budget plan are a valuable information for the lender.

2.      Your home value is an important point because it will be the security for the loan. The closer the home value matches to your loan amount, the better.

3.      You should have as much money as possible for the down payment at your hands even when you do not intend to use the whole amount.

4.      Your actual credit score creates a clear picture how well you pay your bills and debts on time. Therefore do not miss a payment.

Start today on your way to your dream home and pay yourself rent and not the landlord.

You have questions how to start? Please contact us at andrea@florida-informations.com

Why You should consider Florida as Your Business Place

Every business owner is constantly on the hunt for the best tax and growth location and in Florida you will find both.

The State of Florida is very favorable because it has no state income tax, only federal income taxes need to be paid. The state has also reduced business taxes and that is a further benefit for the employers from other states and worldwide. With this initiative the Governor wants to attract new businesses and stimulate the employment market. During the recession was Florida one of the hardest hit states.

Florida is also a hub for international business opportunities and trade. The southeast ports and freight facilities are tight connected to the Caribbean and Latin American region as well as Europe and Africa. One of the most promising trade opportunity for the future is Cuba which is right in front of the door step of Florida.

The state of Florida is number five when it comes to foreign employees and many Floridians speak a second language besides English. Florida welcomes foreign investments especially in the EB-5 category and offers many business ventures to be successful.

You want to know more about your business opportunities in Florida? Let us assist you and contact us at info@florida-informations.com.

 

 

Extravagance on Waves in Miami

Luxury and extravagance is not only to find on dry land but also on the open waters in the form of a new cruise liner. This new cruise ship is still under construction in a ship yard in Italy. The name of this new cruise ship is Seven Seas Explorer.

The ship is scheduled for its first trip in July 2016 in the Mediterranean Sea followed by several additional trips in that region. In the early December 2016 this elegant cruise liner will come to Miami, from where it will start to Caribbean Cruises. It is planned that the Seven Seas Explorer will travel from Miami through the Panama Canal to Los Angles at the New Year 2016/2017.

The usual passenger capacity of a cruise ship is at least 2000. However, this luxury cruise ship has only a capacity of 750 passenger in 375 suites. All these suites are spacious with European design and oversized bathrooms. And the best part of all – every suite has its own little balcony to enjoy the cruise in privacy.

Are you interested to go on such a luxury trip? Then you should act quickly because the tickets for the above mentioned luxurious trips will go fast.

For information you can send us an email at info@florida-informations.com

The sustainable housing recovery brings motivates Buyers

It took a long time to get to this point. The new construction had to wait for this strong market for seven years. The hope for this market development was already expected in the last year but the economy was not there yet.

This year the economy has a strong growth trend and that boost the consumer confidence. The low gas price and the new created jobs make it much easier for the consumer to concentrate on their next big goal: the own home.

Not only the first time home buyer are looking for homes but also the home owners, that lost their former home in the financial crisis, are back. Both buyer groups have in the today’s mortgage market good chances to get mortgage. The lenders know that they need these customers to grow in their mortgage sector and make it easier to apply for a loan.

However, to make the buyers happy there are also sellers necessary who are willing to sell. To get such a transaction quick and easy closed potential seller have to keep in mind, they need buyers who are able to finish the deal.

Therefore the seller have to avoid the following mistakes in their sale process.

The pricing of a home is very crucial. When the house is overpriced it will sit on the market without an offer. The longer the house is on the market the chances are decreasing to get the asking price. In average such home are closing below 90 % of the listing price.

Before a house is put on the market it should be in clean and fixed condition because every little flaw of the house will impact the sale price. As a seller you either have to give a price reduction or you have to fix in the home inspection discovered defects.

For questions in this matter you can reach us at andrea@florida-informations.com

Buying New Construction Homes

Not everybody likes to buy a home that is pre-owned by a seller. For these buyers a new construction home is the better solution. However, when buying a new construction home you as the buyer have to keep some important details in your mind when going on house hunt.

The developing company is the seller of the house and they offer their product – the home – based on the construction costs. That means that the material quality and the work that was put into to the construction dictates the price. This said it is highly unlikely that the builder will lower the home price when you -the buyer - enter into the contract. They will often give you some upgrades to the house and/or will pay some closing costs and that can be a good deal too.

When buying a new construction home you as the buyer make your decision based on the model home that you have visited. These homes often have upgrades that your house might not have because your house is not yet built and you decide during the purchase and building process what kind of upgrades and quality you want in your new home. Please do not forget, every upgrade comes with a new price tag and your starting purchase price may not be the end price of your new home.  Also make sure that every detail about your home upgrades and changes to the purchase contract are in writing so that you are on on the save side in case anything goes not straight during the construction period.

Sometime the home builder offers also the financing options in-house or with an associated lender. When taking the builder’s financing option into consideration, please make sure that you also check other lenders for affordable financing options. The builder's financing is not always the best for the buyer.

The most attractive deals in new construction housing sector you will get at the year's end or when the development is nearly fully finished because the developing company wants to close its books on this construction project and want to start a new project in a different neighborhood.

You want to buy a new construction home and do not know where to start, because these new construction developments are not on the internet? Contact us at andrea@florida-informations.com for assistance.

 

Tiny but not inexpensive

A condo needs not always to be spacious to cost more than a million when it is purchased. One of the priciest tiny condos is on the market in Miami. It has less than 800 sqft and the price tag for this little gem is $2.5 Million. That comes to a sqft price of $3,125.    

Maybe you ask yourself why would anyone pay such a high price for a tiny little condo like that? And you are right there are not so many buyers in the market for such a home. Only 1 % of all nationwide real estate transactions are in this category.

However, there are some benefits that come with these units. Often the condo community offers concierge services, housekeeping, cleaning and more. And the best of all – these units are located in condo complexes often in the middle of the vital city centers with shopping, healthy food and fitness options. The walkability and public transportation are often a further great plus.

You want to know where you can find such tiny little condos? Please contact us at andrea@florida-informations.com.  

 

Luxury in Every Detail

The newest and hottest trend in the Southeast Florida real estate market are the condominium towers in Miami and Miami Beach. The condominium complexes offer nearly everything you can dream of and you can pay for.

During the housing crisis Miami was heavily burnt by buyers who could not afford to close on their contracted condo and many complexes were abandoned at that time. These times are long gone and the today’s developers have learnt from their mistakes.

When entering in a contract for the new construction condominium the buyer has to make a deposit of at least 50 % of the purchase price or there is no contract. And these new rules are successful and work very well because many condo complexes are sold out very quickly even when the purchase price is beyond the million price range and the maintenance fee are in the high-end range.

The trend for these new constructed condominium complexes is to partner with design brands like Porsche, Giorgio Armani and Fendi. These brand names  promise luxury and extravagance and the designed buildings have nothing ordinary. Everything is special and satisfies the highest expectations. The condo buyer has only to choose the best matching condominium complex for his/her individual preferences.

All complexes come with a concierge services like dog walking, making reservations for restaurants or theater tickets and certainly with security. The complexes also offer over the top private fitness facilities and pools. Some condo communities even have an ice-skating ring or a soccer field on the rooftop.

But the hottest feature in some complexes is the private elevator for the owner's car. This elevator lifts the car to the private garage next to the condo unit. The second variance for the car parking is the smart phone directed robotic parking. The owner calls the car and meets the car at the front door. Valet parking or self-parking on the premises is today so outdated.

For more details about these condo complexes please contact us at andrea@florida-informations.com

This may be a financing option for a new small business

For every new business owner it is very hard to stay financially liquid because you often do not have the money to make upfront investments for a project and your customer is not willing to give you the money for his/her order before you deliver.

What should you as the small business owner do now? Let go and look for a customer who is willing to pay you upfront or contact one of the cash in advance financing companies?

To get your foot in the door and your business growing you may have only the option to go to these short term financing companies. The normal loan process will take too much time and at the end you often get the news from the lender that you are not qualified for a normal loan because your business is too young, has not yet filed tax returns, has not stable cash flow or your loan amount is too small.

The cash in advance financing companies are in such situation probably your only option. These companies are taking even small amounts like $1,000 and up without big paperwork requirements. They offer you such loans in exchange for invoices to your customer.

The time period for the repay of these small loans is generally 12 weeks and the fees are not cheap but acceptable. When you repay your loan quickly, the remaining charged fees are often reduced or forgiven.

Want to know more about this financing option? You can reach us at info@florida-informations.com

Do not forget the real estate deductions in your tax return filings

There are not only tax deductions for the new home owners but also for the existing home owners as well as foreign nationals. Which kind of tax deductions you will get depends on your  personal situation and on your resident status.

As an US citizens you can deduct from your annual income the mortgage interests and the mortgage insurance costs as well as the local real estate property. These tax reliefs are not to underestimate and you will get a tax return quickly from the government when you have timely filed your taxes before April 15 deadline. These tax refunds are certainly welcomed by everybody and sweetens the monthly tax payments that come with the pay check.

The before mentioned tax reliefs do not apply for foreign nationals when they do not earn income that is taxable in the US. However, for the foreign nationals there is a tax deduction available when they sell their home to buy a bigger one or liquidate their assets.

The seller, in this case the foreign national has to pay FIRPTA – tax on the capital gain that he/she makes in the sale process. But this owed FIRPTA tax amount can be reduced by the improvement costs that were done in the property and the legal costs that are related to the real estate transaction.

When you want to get your FIRPTA taxes back completely or partial you as the foreign national seller have to file income taxes too in the following year after the sale of your home.

This information is only a quick and partial overview and you as the taxpayer should discuss your individual tax situation with a tax professional.

For questions about how to get your tax paperwork started please contact us at andrea@florida-informations.com

Vacation home purchases are the today’s market trend

Market studies show that the investment trend in the real estate has shifted from investment properties to vacation and second homes. This trend is not only popular in the super rich population but also in the ordinary middle class. The market share of these transactions is 21 % of all transactions and exceed the market share of the investment home purchases that have only 19 % portion of the real estate transactions.

The vacation home purchaser often buy their property in an average distance of 200 miles from their primary residence. The most preferred location for this type of retreat homes are with over 40 % beach areas while the country side homes are only 19 % and the homes in the mountains are only 17 % of the transactions.

Based on the strong economy the buyers are using mortgage for their vacation home purchase but the mortgages for these home are below 70 % of the loan ratio.  

You want to know more about this actual market trend? Our email address is andrea@florida-informations.com

Spring trends in the housing market

Normally the housing marketing is more active in spring and that is not different this year. The market is a seller market with only 4.6 months of inventory on the market and this low inventory has the consequence that the home prices are surging.

The rising home prices are good news for the sellers but not for the investors who are looking for cheap homes that they can flip or rent. Therefore the investor numbers are declining and the normal home buyers have a greater chance to get their new home.

The rising price are also not an important thing for the buyers because it makes it harder to buy a new home even when the mortgage rates are still as low as 3.7 % for a 30 year mortgage. They have to qualify for their home loan. 

The most positive news for home buyers is the return of the Freddie Mac mortgage with only 3 % downpayment. This specific mortgage was not available for nearly 5 years.  

You want to get more market details? You can reach us at andrea@florida-informations.com

Buying a home and get financing – Changes at the beginning of August 2015

You are a frequent home buyer or a first time home, who is looking to purchase a home in the near future? Then you should keep in mind that there changes in the financing process in the coming summer. These change can impact you and your financing preparations.

After the financing crisis and hard to understand financing process with its costs and expenses along the way, the CFPB – that is the Consumer Financial Protection Bureau – is in the process developing a toolkit for home buyers in this matter. This toolkit will help you as the home buyer to understand the necessary steps in the process and the connected costs and expenses that come with the mortgage and the closing.

This toolkit will not only help the home buyers to understand the process better but also to find the best matching type of mortgage. It will also make it easier to understand the differences, requirements and benefits of the different mortgage types.

It is also intended that the mortgage industry use this toolkit with its customers. This toolkit will soon be available in English, Spanish and also for consumers with disabilities.

For more details to this topic please contact us at andrea@florida-informations.com