Tag Archives: Florida Real estate

How to ‘plan, invest and retire wealthy’

What if condo investing were as easy as owning a mutual fund? Well, it can be.

Connect Asset Management will be at the Investor Forum on March 2 to explain how it helps its clients turn one property into several and build portfolios that cash flow millions of dollars. One of the ways in which Connect Asset Management does that is by helping investor clients access to some of the most exclusive real estate developments in Ontario.

“We help investors plan, invest and retire wealthy with cash flow in condos,” said real estate broker and founder of Connect Asset Management Ryan Coyle. “It’s completely hands-off for our clients; we make investing in real estate as easy as owning a mutual fund.”

Connect Asset Management builds a strategy for its clients predicated on timing—that is, strategically choosing when to purchase a property.

“From acquisition to completion, there’s a tremendous amount of growth on capital appreciation and rental appreciation, so when the condo is built they have all this appreciation that gives them the ability to refinance, pull out the equity and buy more property,” said Coyle. “We help our clients identify the optimal time to flow that capital into more properties.”

The strategy, which Connect Asset Management will decode at the Investor Forum, is called the Multiplier Effect: The ability to use equity in a safe, not to mention lucrative, way. Coyle says that, with the right strategy, anyone can become a millionaire through investing in real estate.

For starters, ever wonder why the best units in key developments are gone well before sales open to the public?

“We’ve been a top-producing team for many years now and what that means for us is we get to access all the best developments, and we get our clients first access to all the developments before they open to general public and, quite frankly, before anyone even knows about them,” continued Coyle. “This way, our clients are able to get the best deals on the best units.”

Condominiums are far from Connect Asset Management’s sole investment strategy. The firm identifies key markets where yields remunerate clients well, and some of them include university towns with high enrollment but meagre student lodgings.

“Student housing is often referred to as ‘recession-free real estate,’ meaning that when recessions hit student housing tends to be among the strongest real estate because more people go back to school and that increases the demand on both the rental and resale side. The areas we invest in are seeing some of the highest enrollment rates in the country, and Canadian schools have a shortage of on-campus housing, so there’s a new demand for student living, such as condos.”

Source: Canadian Real Estate Magazine – by Neil Sharma  07 Feb 2019

Tagged , , , , , ,

How To Buy Foreclosures at Auction

 

Sales of distressed homes usually come in several forms. First, there are short sales or pre-foreclosures, deals where an owner who can no longer afford the property tries to work out a purchase with a buyer, subject to the approval of the lender. If that doesn’t work, the lender may start foreclosure proceedings, and the home may be put up for sale at a public auction. If the highest bid at the auction is insufficient, the lender then gets title to the property and holds it as a bank-owned (or REO) property.

The purpose of a foreclosure auction is to get the highest possible price for the property, in order to mitigate the losses a lender suffers when a borrower defaults on a loan. If the sale amount covers the outstanding mortgage debt and various foreclosure costs, then any surplus goes to the borrower. Bidders, on the other hand, are looking for investment bargains, so many homes sold at foreclosure auctions ultimately sell at something of a discount compared to traditional properties.

Preparing for a Foreclosure Auction

Foreclosure auctions differ substantially from a typical residential sale. There are no terms to discuss, no haggling over paint or appliances. The property is sold as is, where it is, and with any existing faults and limitations. The property may be sold on an absolute basis (the highest bid wins, even if it’s for a tiny amount) or with a reserve or minimum bid (the property has to sell for at least a given price, otherwise the lender gets title).

The condition of the property may range from wonderful to awful, and it may or may not be occupied. Some properties are “zombie foreclosures,” a situation where the borrower has abandoned the property before the foreclosure has been completed. In all cases, bidders should review disclosures with care and seek as much information as possible about the property.

It’s important to visit the property before the auction, if you can, especially if you live locally. Does it seem occupied or not? How does the exterior condition appear? Be aware that trespassing and Peeping Tom rules may limit access unless you’re invited onto the property. Some bidders drive by the property just before the auction to ensure that its condition hasn’t changed since the disclosure papers were written. In some cases, you may be able to see a virtual tour or even attend an open house.

Lastly, real estate values are related to local economies. How much would a given property be worth if it was in pristine condition? What rental could you expect? Is there a lot of local sale and rental demand—or a little? Speak with local real estate brokers to better gauge the market.

Your Foreclosure Auction Questions, Answered

As with any real estate purchase, there are a variety of expenses associated with a foreclosure auction. Charges, fees and costs vary widely, so it’s important to understand these expenses before you bid. Here are some questions people often ask about financing and buying a foreclosure at auction:

Before the Auction

Since it’s the lenders that are selling houses, why don’t they just finance the foreclosure sale? That usually doesn’t happen. The division of the lending institution that sells foreclosure properties and the division that does real estate financing are two separate organizations.

Are foreclosures riskier than existing home purchases? It depends on which foreclosure and which existing home. All real estate investing—like all stock market investing—implies some level of risk. But there are some inherent risks involved in buying a foreclosure home—like the inability to do a thorough internal inspection. People who buy these properties hope that the risk will be offset by the kind of discount prices often available on these homes.

Will I have to register to bid? You bet. As with a rental car reservation, you’ll typically have to provide a credit card number and expect the auction company to take a given amount to hold. Why? They want the money in case someone bids and wins, but doesn’t close the deal. How much will be taken out? It depends, so ask the auction company for details.

Will I have to qualify? Yes. The auction company wants to be sure that you have the funds to close the transaction. Most foreclosure auctions are all-cash transactions. The term “all-cash” generally means the ability to put down a deposit immediately after a successful bid and close within a short timeframe.

Do I always need the full amount in cash to buy a foreclosure? This depends to a great degree on the laws in your state. Most foreclosure auctions require payment in cash (or a cashier’s check) within a relatively short time after the auction. Technically, it doesn’t matter if the funds come from you or a lender. What does matter is that successful bidders have the financial ability to close the deal on time and in full. Ask auctioneers about financing and pre-approval requirements.

What’s the best way to learn about auctions before actually buying? Register for auctions and attend the bidding. Learn the mechanics of the auctioning process in your community. Get to know local auctioneers, brokers, attorneys, repair specialists and appraisers who specialize in foreclosures.

During the Auction

Is it better to go to absolute auctions or sales that require minimum bids? People debate this question, but it’s largely a matter of personal preference. With an absolute auction, one bidder will win, while with a reserve sale, it’s possible that no bid will be sufficient. However, if you attend a reserve sale and the lender takes title, then speak with the lender after the auction about an REO purchase. The overwhelming majority of foreclosure sales are conducted using a reserve, since lenders are trying to capture at least a minimum amount of money to offset their losses.

Can I bid $1 more than the next bidder and win the property? Probably not. There are typically minimum bid increments in place.

If I win, do I get title then and there? Not usually. The seller—usually a lender—must approve the bid. Typically, they have 15 days to do so. Once an answer comes through, there’s an additional period required to arrange closing, which may take several weeks.

After the Auction

After closing, do I own the property? In some jurisdictions, there may be an equity of redemption right that allows the borrower who defaulted to regain title to their property under certain conditions. Speak with a local attorney for details before bidding.

Will there be any liens that will become my responsibility after the sale? Most liens are sublimated (or wiped out) by a foreclosure sale. But there are exceptions. Real estate tends to attract liens, so it makes sense to get title insurance for the property with the insurer you prefer.

How much should I set aside for repairs? Each property is unique, so repair requirements can vary widely. Estimating repairs can be difficult because if the property is occupied, the residents may not want visitors. If it’s unoccupied, the utilities may be turned off. The best approach is to get as much information as possible before in the auction. In some cases, you may be able to find utility records that can help you better understand property issues.

What if I have owners or squatters on the property? If the residents won’t move, you may need to contact an attorney who can obtain an eviction notice and arrange for a sheriff to clear the property.

For more details and specifics, you and your broker should contact the auctioneer. Happy bidding!

Source: Auction.com // November 15, 2018 – By Peter Miller

 

Tagged , , , , , , ,

Five Ways To Tell If You’re Cut Out To Be A Landlord

 

Getty

Investing in real estate by purchasing rental properties can be a smart way to balance your portfolio, hedge against inflation and build long-term wealth. Not everyone is cut out to be a landlord, though — but even if you feel you’re not landlord material, you can get the same portfolio benefits by investing in real estate indirectly through a private loan fund or a real estate investment trust. Here are five questions to help determine if investing directly in real estate is right for you.

1. Do you have 20% down payment and 5% to cover repairs and unexpected expenses?

Buying a rental property takes a much bigger down payment than buying a personal residence. Most lenders want at least 20% down, even if the property will generate enough income to pay the mortgage plus expenses like property taxes and hazard insurance. Having another 5% set aside to cover repairs and big-ticket expenses, such as replacing a roof or an HVAC system, may keep you from having to dip into personal funds to pay for unexpected problems.

2. How will you handle renters who don’t pay and the possibility of evicting tenants?

At some point, almost every landlord has to deal with tenants who stop paying rent. Eviction is a financial decision with emotional underpinnings. When tenants don’t pay rent, you still have to pay the mortgage, the property taxes, the water bill and all the other holding costs. But sometimes, nonpaying tenants are families with children or have unexpected circumstances like a serious illness or accident occur, leaving them unable to pay rent. If it’s too emotionally taxing to handle the eviction yourself, you can hire an attorney to represent you in court and movers to remove the tenants’ possessions from the property. Before becoming a landlord, you should know that the possibility of evicting a tenant might become a reality.

3. How do you feel about other people using your stuff?

Landlords hold security deposits because damage happens. Carpets get stained, hardwood floors get scratched and there is a fair amount of general wear and tear that should be expected in and on your property. As long as the cost to repair damages doesn’t exceed the security deposit, there shouldn’t be an issue. The real question becomes, what happens when the cost of repairs required exceed the security deposit? How will you confront your tenant to address these issues?  If contemplating this (somewhat common) scenario is stressful, becoming a landlord may not be an optimal option for you.

4. Can you wait at least 15 years for your investment to pay off?

Real estate is a long-term investment for a couple of reasons. First, the transaction costs are high. Real estate sales commissions, state and local transfer taxes, appraisals and settlement costs all reduce your resale profit. Second, the length of your mortgage dictates the monthly payment. The longer your keep your mortgage, the lower the monthly payment.

 

Source: Forbes – Bobby Montagne, CEO of Walnut Street Finance

Tagged , , , ,

The 4 Key Trends Home Buyers and Sellers Should Watch in 2019

 | Nov 28, 2018

We’re entering the home stretch of 2018, when you can actually say, “See you next year!” to someone you’ll see in just a few weeks. It’s a time to look ahead, to make new plans, to achieve new dreams.

And if those dreams include buying your own home, you should keep an eye on the ever-changing tides of the housing market. Now, markets are like the weather: You can’t entirely predict how they will act, but you canget a sense of the forces that will push things in one direction or another.

The realtor.com® economic research team analyzed a wealth of housing data to come up with a forecast of what 2019 might hold for home buyers and sellers—and it looks like both groups are going to be facing some challenges.

Here are the top four takeaways. For more information, see the full realtor.com® 2019 forecast.

1. We’ll have more homes for sale, especially luxury ones

We’ve been chronicling the super-tight inventory of homes for sale for several years now. Yes, homes have been hitting the market, but not enough to keep up with the demand. Nationwide, inventory actually hit its lowest level in recorded history last winter, but this year it finally started to recover. We’re expecting to see that inventory growth continue into next year, but not at a blockbuster rate—less than 7%.

While this is welcome news for buyers who’ve been sidelined, sellers must confront a new reality.

“More inventory for sellers means it’s not going to be as easy as it has been in past years—it means they will have to think about the competition,” says Danielle Halerealtor.com‘s chief economist.

“It’s still going to be a very good market for sellers,” she adds, “but if they’ve had their expectations set by listening to stories of how quickly their neighbor’s home sold in 2017 or in 2018, they may have to adjust their expectations.”

Although next year’s inventory growth is expected to be modest nationwide, pricier markets will tell a different story. In these markets—which typically have strong economies (read: high-paying jobs)—most of the expected inventory growth will come from listings of luxury homes.

We’re expecting to see the biggest increases in high-end inventory in the metro areas of San Jose, CASeattle, WAWorcester, MABoston, MA; and Nashville, TN. All of those metro markets, which may include neighboring towns, could see double-digit gains in inventory in 2019.

2. Affording a home will remain tough

It’s no secret that home sellers have been sitting pretty for the past several years. But is the tide about to change in buyers’ favor?

“In some ways, life is going to be easier for home buyers; they’ll have more options,” Hale says. “But life is also going to be more difficult for home buyers, because we expect mortgage rates to continue to increase, we expect home prices to continue to increase, so the pinch that they’re feeling from affordability is going to continue to be a pain point moving into 2019.”

Hale predicts that mortgage rates, now hovering around 5%, will reach around 5.5% by the end of 2019. That means the monthly mortgage payment on a typical home listing will be about 8% higher next year, she notes. Meanwhile, incomes are only growing about 3% on average. That double whammy is toughest on first-time home buyers, who tend to borrow the most heavily and who don’t have any equity in a current home to draw on.

3. Millennials will still dominate home buying

Just a few years ago, millennials were the new kids on the block, just barely old enough to buy their own homes. Now they’re the biggest generational group of home buyers, accounting for 45% of mortgages (compared with 17% for baby boomers and 37% for Gen Xers). Some of them are even moving on up from their starter homes.

As we mentioned above, things will be tough for those first-time buyers. But the slightly older move-up buyers will reap the benefits of both their home equity and the increased choices in the market.

And regardless of whether they’re part of that younger set starting a career or the older set that’s starting a family, “they’re going to be more price-conscious than any other generation,” says Ali Wolf, director of economic research at Meyers Research.

That’s because they typically are still carrying student debt and want to be able to spend on experiences, like travel. That takes away from the funds they can put aside for a down payment, or a monthly mortgage payment.

“They want to maintain a certain lifestyle, but they still see the value in owning a home,” Wolf says.

So they might compromise on distance from an urban center, or certain amenities, or space—70% of millennial homeowners own a residence that’s less than 2,000 square feet, Wolf notes.

There’s plenty of time to expand those portfolios, though, as millennials’ housing reign is just beginning: This group is likely to make up the largest share of home buyers for the next decade. The year 2020 is projected to be the peak for millennial home buying—the bulk of them will be age 30.

4. The new tax law is still a wild card

At the time of last year’s forecast, the GOP’s proposed revision of the tax code was still being batted around Congress. While there was talk that it might discourage people from buying a home, no one really knew how it might affect the real-estate market.

This year … well, we still don’t really know. That’s because most taxpayers won’t be filing taxes under the new law until April 2019. And while some people might have a savvy tax adviser giving them a better idea of what’s in store, for many, the reality check will come in the form of a bigger tax bill—or a bigger refund.

Renters are likely to have lower tax bills, but might not be tempted to buy while affordability remains a challenge, and with the new, increased standard deduction reducing the appeal of the homeowner’s mortgage-interest deduction.

“I think the new tax plan will affect mostly homeowners and home buyers in the upper parts of the distribution,” says Andrew Hanson, associate professor of economics at Marquette University in Milwaukee, WI. “Those who either own or are buying higher-priced homes are going to pay a lot more.”

Sellers of those pricier homes will also take a hit, as buyers anticipating bigger tax bills won’t be as willing to pony up for a high list price.

The biggest change resulting from the new tax law, Hanson predicts, will be in mortgages, since people will be less inclined to take out large mortgages.

“If anyone is going to be upset about the tax plan, it’ll be mortgage bankers,” he says.

Source: Realtor.com  –  and Allison Underhill | Nov 28, 2018

Cicely Wedgeworth is the managing editor of realtor.com. She has worked as a writer and editor at Yahoo, the Los Angeles Times, and Newsday.
Tagged , , , , , ,

The 10 Best Big Cities to Live in Right Now

You don’t have to empty your savings account to afford city living in America—at least not in these locations.

Urban areas offer a gateway to culture or a medley of activities, but they typically come with a high price tag. That’s why MONEY crunched the numbers to find big cities—those with a population of 300,000 or more—with the best of all worlds: attractions, iconic neighborhoods, a relatively low cost of living, and promising job growth.

Here are our top 10 picks for best big cities to live in. (See MONEY’s full 2018 ranking of the Best Places to Live in America.)

1. Austin, Texas

  • Average Family Income: $87,389
  • Median Home Price: $326,562
  • Projected Job Growth (2017-2022): 10.9%

Texas’s delightfully bohemian capital nabs the list’s top spot because of the thriving job scene, coupled with memorable food, music, and a startup culture.

Not only is Austin projected to see a whopping 10.9% increase in jobs over the next four years, but the current unemployment rate of 3% also sits below the national average. The city’s median family income is $87,389, and the median home sale price is $326,562, according to realtor.com. Much of its job growth comes from small businesses and the tech sector—Dell, IBM, and Amazon are some of the biggest employers. Entrepreneurs, take note: CNBC ranked Austin as the No. 1 place to start a business, while Forbes named it one of the top 10 rising cities for startups.

Once you do land a job, you won’t have to worry about how to entertain yourself. Dubbed the Live Music Capital of the World, Austin is bursting with talent and more live music venues per capita than anywhere else in the nation. Visitors flock to the annual South by Southwest festivals, featuring concerts, speeches, and comedy showcases.

And then there’s the food. Restaurant-rating powerhouse Zagat named Austin the second-most-exciting food city in the U.S. last year, thanks to mainstays like Franklin Barbecue and new favorites such as ramen restaurant Kemuri Tatsu-ya, which combines Texan flavors and Japanese techniques for a meal as distinctive as the city itself.

2. Raleigh, North Carolina

  • Average Family Income: $82,021
  • Median Home Price: $263,000
  • Projected Job Growth (2017-2022): 9.6%

Part of North Carolina’s tri-city university hub, called the Triangle, along with Durham and Chapel Hill, Raleigh is home to a relatively young, diverse, and educated population.

Like Austin, Raleigh is a hotspot for employment seekers: Moody’s Analytics projects the area’s jobs will grow 9.6% by 2022. Forbes this year ranked Raleigh among the top 10 cities for jobs, owing in part to its 17.25% job growth over the past five years. And people are listening: There’s been a 13% increase in population since 2010, according to MONEY’s Best Places to Live database.

Your wallet will feel the benefits too: With an average sales tax of about 7.25% and average property taxes at $2,632, the city’s cost of living is relatively low compared with our other big cities.

As the historically significant birthplace of Andrew Johnson, Raleigh is host to dozens of museums, earning it the nickname Smithsonian of the South. The North Carolina Museum of History reaches back 14,000 years into the state’s past, and at the massive North Carolina Museum of Natural Sciences, general admission is free.

There’s a strong sense of community as well. Every fall, the North Carolina State Fair draws 1 million visitors to Raleigh for a 10-day festival featuring rides, music, games, and crafts from local artists. Tickets cost about $10 for adults and $5 for children.

3. Virginia Beach, Virginia

  • Average Family Income: $82,927
  • Median Home Price: $255,000
  • Projected Job Growth (2017-2022): 2.6%

The living is easy in Virginia Beach, also named one of MONEY’s best beach destinations last year. The area’s unemployment rate is about 3.1%, below the national average, and crime, relatively low among the big cities here, is also well below the national average. Despite an only 4% increase in population since 2010, the area is booming for retirees: The number of people age 50 and over grew 22% over the past eight years. But perhaps best of all, there are 213 clear days a year, giving residents plenty of time to enjoy six major beaches over 35 miles of coastline.

There’s a sandy stretch for nearly everyone, starting with the family-friendly First Landing State Park at Chesapeake Bay Beach. For surfing, head to Virginia Beach Oceanfront, or for a quieter, picturesque view, go to Sandbridge Beach.

The Sandbridge area is also home to Back Bay National Wildlife Refuge, where you can learn about the region’s snakes, frogs, and turtles during a guided nature hike on Bay Trail. Nearby is First Landing State Park, the most visited state park in Virginia, named after the arrival of English colonists in 1607. First Landing offers outdoor activities as well as cabins, a boat launch, and swimmable waters.

Culture vultures won’t feel left out: Renowned symphony orchestras play the Sandler Center for the Performing Arts, and comedians headline at the Funny Bone Comedy Club.

4. Mesa, Arizona

  • Average Family Income: $64,455
  • Median Home Price: $246,000
  • Projected Job Growth (2017-2022): 8.1%

Seeking a sunny city with easy opportunities to escape to the outdoors? It pays to head west.

Mesa, just 20 miles outside Phoenix, has experienced a 12% growth in population over the past eight years and is projected to see jobs increase 8% in the next four years. The majority of new job offerings here, unlike in Austin, are in the investment and manufacturing sectors rather than tech.

Local government leaders say businesses are moving to Mesa, as well as the surrounding East Valley area, for its low tax rate and relative affordability. Average property taxes are around $1,444, the second lowest among MONEY’s big cities, and the median home sale price is $246,000 as of March.

Once you’ve settled in, you won’t have to look far for an outdoor retreat. Mesa gets an impressive 296 clear days a year, and a whopping 115 campsites surround the area. Camping reservations for county parks can be made online as early as six months in advance. You’ll pay $32, including a reservation fee of $8, for a developed camping site with electricity and restrooms or, if you’re a bit more daring, $15 for a site with no amenities.

To learn about the area’s history, visit the Mesa Grande Cultural Park, which preserves ruins believed to be the religious center of the ancient Hohokam civilization, dating back to 1100 A.D. Admission to the ruins costs $5 for adults and $2 for children. For more insight into the Hohokam ancient people, you can check out the Park of the Canals, which features 4,500 feet of an extensive canal system used to farm corn, beans, squash, and cotton.

5. Seattle, Washington

  • Average Family Income: $112,211
  • Median Home Price: $676,889
  • Projected Job Growth (2017-2022): 7.5%

The Emerald City enjoys a growing job market and vibrant cultural attractions but at a cost—the median home sale price, $676,889 as of March, is the most expensive among the cities on this list. But the high price tag might be offset if you could score a lofty job at Amazon, which employs more than 40,000 Seattle residents across its 8.1 million square feet of office space. The company’s dominance has spurred other major tech giants to build their own offices—and poach local employees.

Despite the relatively high cost of living, the area provides plenty of affordable attractions. Nearly 200 wineries cover the region and are ideal for visits. Check out the Charles Smith Wines Jet City tasting room for offerings from one of the state’s largest wine producers. Be sure to also try the famous cream cheese–covered Seattle-style hot dog at Monster Dogs.

To live like a tourist, get a two-in-one ticket to Seattle’s iconic sites: the towering Space Needle and the glass-sculpture garden at Chihuly Garden and Glass. They happen to double as ideal date spots. If you’re young and looking for love, Seattle is the perfect match. MONEY named it one of the best places for millennials and singles.

6. San Diego, California

  • Average Family Income: $91,199
  • Median Home Price: $555,000
  • Projected Job Growth (2017-2022): 4.4%

With 1.4 million residents, San Diego is the most populous city to make the list. It’s also one of the more racially diverse cities in the country, with 40% nonwhite residents.

Head to the east side, and you’ll find mountains and canyons perfect for hiking, mountain biking, and fishing. The area also boasts Las Vegas–style casinos and resorts, including Viejas Casino, home to 2,200 slot machines and an outdoor concert venue. California beaches outline the city’s west side, from mile-long La Jolla Shores, perfect for children and seal lovers, to bonfire-friendly Pacific Beach, often referred to as “the Strand.” And don’t forget to visit the rare giant pandas at the world-renowned San Diego Zoo.

7. Colorado Springs, Colorado

  • Average Family Income: $75,795
  • Median Home Price: $285,000
  • Projected Job Growth (2017-2022): 7.1%

About 70 miles south of Denver, Colorado Springs was recently ranked one of the country’s best tech hubs by the Computing Technology Industry Association. The city will see projected job growth of 7% by 2022, and the cost of living is relatively low among big U.S. cities, according to PayScale.

Skiers enjoy the region’s proximity to major ski getaways like Aspen and Vail, as well as the area’s surrounding resorts, including Eldora Mountain Resort, which offers 680 acres of terrain and 300 inches of snowfall a year.

Here’s a summit for the courageous: the 2,000-foot-high, one-mile hike up the Manitou Incline. Climb all 2,744 steps, and you’ll be rewarded with gorgeous views of the city below. Nonathletic types are welcomed too. The annual Labor Day Lift Off features hot-air balloons and a festival with live music, skydiving demonstrations, and a doughnut-eating contest.

8. Lexington, Kentucky

  • Average Family Income: $74,531
  • Median Home Price: $131,000
  • Projected Job Growth (2017–2022): 4.3%

Good news for potential residents: Lexington has some of the lowest taxes among the cities on this list, with a sales tax of 6% and average property taxes nearing $1,921.

Moving to Lexington means embracing equestrian culture. Nicknamed the Horse Capital of the World, Lexington was the first U.S. city to host an FEI World Equestrian Games, in 2010, drawing half-a-million attendees. Residents and visitors alike can ride horses and ponies at the Kentucky Horse Park.

For a crash course in bourbon distilling, the Town Branch Distillery offers tours and tastings, and one of the South’s best bourbon bars, The Bluegrass Tavern, is home to Kentucky’s largest bourbon collection.

If you’re looking to root for the Wildcats, the University of Kentucky’s basketball team where NBA All-Stars Anthony Davis and John Wall got their start, head to Winchell’s Restaurant for 25 TVs and passionate fans.

9. Jacksonville, Florida

  • Average Family Income: $63,735
  • Median Home Price: $196,000
  • Projected Job Growth (2017-2022): 7.7%

As the largest metro area by landmass in the continental U.S., Jacksonville, like many other cities on our list, claims a growing job market and population. In the past eight years, the city’s population increased by nearly 9%, with a projected job growth of 7.7% by 2022. Those seeking employment, specifically in the tech industry, should head to the area’s growing job market, say ZipRecruiter and Indeed.

Visitors can support the home team by attending a Jacksonville Jaguars game at TIAA Bank Field. The coastal city also features 22 miles of mostly public and dog-friendly beaches. Learn to surf at Atlantic Beach, or brave souls might try a taste of alligator at nearby Mayport’s historic fish camps.

For a combined farmers’ market and artists’ hub, head to the Riverside Arts Market, which attracts thousands of people every Saturday. You’ll listen to live musicians, eat local bites alongside the St. Johns River, and support local artists, all in one day.

10. Columbus, Ohio

  • Average Family Income: $61,513
  • Median Home Price: $185,000
  • Projected Job Growth (2017-2022): 5.7%

Columbus is one of the fastest-growing cities in the U.S.—and in the Midwest—with a population increase of nearly 11% in the past eight years and job growth of 14% in roughly the same period.

Big 10 Ohio State University is the city’s biggest employer, and you can take advantage of the college town’s vibrant culture by attending a football game at Ohio Stadium, which seats over 100,000 people. Following the game, head to the Thurman Cafe and indulge in its massive, double-patty Thurmanator burger for $21.99.

If college athletics aren’t your thing, check out one of the area’s 96 museums, such as the hands-on Center of Science and Industry, or the Columbus Museum of Art, featuring modern and contemporary works.

Methodology

To create MONEY’s Best Big Cities ranking, we looked only at places with populations of 300,000 or greater. We eliminated any city that had more than double the national crime risk, less than 85% of its state’s median household income, or a lack of ethnic diversity. We further narrowed the list using more than 8,000 different data points, considering data on each place’s economic health, cost of living, public education, income, crime, ease of living, and amenities, all provided by research partner Witlytic. MONEY teamed up with realtor.com to leverage its knowledge of housing markets throughout the country. We put the greatest weight on economic health, public school performance, and local amenities; housing, cost of living, and diversity were also critical components.

Finally, reporters researched each spot, searching for the kinds of intangible factors that aren’t revealed by statistics. To ensure a geographically diverse set, we limited the Best Big Cities list to no more than one place per state.

Source: TopBuzz.cum November 19, 2018 6:12 AM

 

Tagged , , , , ,

The Best Cities To Own Rental Property In Florida

 

Credit: Getty Royalty Free | Miami Beach. Florida. USA. The Miami metro area is a hotbed for investment property investing.

Florida is an intriguing state when it comes to buying and owning rental property. On one hand, demand for homes — especially single-family homes — has been consistently on the rise in Florida. Yet despite the demand, it doesn’t necessarily convert to more homebuyers. Instead, even though Florida boasts fairly low housing prices statewide, many people are still opting to rent instead of buy. As a result, rental rates are skyrocketing.

Now add into the mix low property taxes and insurance, as well as no state income tax. Great climate and top-of-the-line healthcare are bonuses that help make Florida one of, if not the best, states for America’s retiring Baby Boomer masses.

Here’s a look at the best places in Florida to own rental property and turn a solid profit.

Tampa

Although Tampa home prices have risen in recent years, the city still has plenty of neighborhoods and zip codes where investors can find properties at affordable prices, and rent them out for $1,405 to $1,527 a month on average.

Tampa’s economic prospects really boost the city’s appeal to rental property owners. Tampa’s year-over-year employment growth beat the U.S. average. According to Bureau of Labor Statistics data, U.S. nonfarm employment increased approximately 1.6% from 2017 to 2018, while Tampa managed a 2.3% increase.

Healthcare and social assistance is the dominant employment sector in Tampa. This isn’t a bad thing considering jobs such as home health aides, personal care aides, physician assistants and nurse practitioners all rank among the top-10 fastest growing occupations in the country, according to BLS Employment Projections.

Here’s a breakdown of some important figures to consider before buying property in Tampa:

  • Median list price – All Homes: $312,995
  • Median list price – Condo: $239,900
  • Rent list price: $1,527
  • Median rent: $1,405
  • 1-year job growth rate: 2.3%
  • 5-year population growth: 12%
  • Average 30-year fixed mortgage rate: 4.40%
  • Rental yieldSee rental yields for Tampa

The trajectory of Tampa’s population growth is very conducive to potential future property owners. Since 2013, Tampa’s population has risen by an impressive 12%, one of the highest rates in the country. With a local economy worth well over $130 billion, Tampa is easily one of Florida’s best markets to buy and own rental property. For a more in-depth look, or just to explore, take a look at this interactive map of the Tampa real estate market.

Jacksonville

Robust job and population growth as well as great affordability greet prospective investment property owners in Jacksonville. Florida’s largest city is also home to a first-rate healthcare system, and burgeoning biological sciences sector. The population in Jacksonville has grown about 8% from 2013 to 2018, and 24% since the year 2000. Plus, the median home price is $210,000 in Jacksonville, which is 33% cheaper than the national average, $278,900.

Jacksonville’s average rental yield is among the highest in the U.S. Rent growth is also healthy. The city’s 2.6% increase is better than the national year-over-year average of 0.5%. Specific markets within the Jacksonville metro area, such as Butler Beach, are displaying rent growth rates in excess of 10%.

Here’s a breakdown of some important figures to note before buying property in Jacksonville:

  • Median list price – All Homes: $210,000
  • Median list price – Condo: $134,950
  • Rent list price: $1,250
  • Median rent: $1,345
  • 1-year job growth rate: 3.2%
  • 5-year population growth: 8%
  • Average 30-year fixed mortgage rate: 4.40%
  • Rental yieldSee rental yields for Jacksonville

The reasons for all this growth and development are manifold. Jacksonville’s cost of living is below the national average. And to this is we can add the usual Florida amenities, like warm weather, conducive business climate and no state income tax.

See interactive map of Jacksonville real estate market >>

Orlando

In terms of both employment and population growth, Orlando really outshines. From summer 2017 to 2018, employment increased 4.3%, which is almost three times the U.S. average growth rate. Its population surged by 14% from 2013 to 2018.

The most common employment sectors for those who live in Orlando are accommodation and food service (12.3%), which includes workers of Orlando’s world-class resorts like Disney World and Universal Studios Orlando. Second most common sector is healthcare and social assistance (11.9%), followed by retail trade (11%).

Here’s a breakdown of some important figures to consider before you buy property in Orlando. Also, here’s an interactive map of Orlando’s real estate market to help out.

  • Median list price – All Homes: $285,000
  • Median list price – Condo:$140,000
  • Rent list price: $1,600
  • Median rent: $1,478
  • 1-year jogrowth rate: 4.3%
  • 5-year population growth: 14%
  • Average 30-year fixed mortgage rate: 4.40%
  • Rental yieldSee rental yields for Orlando

Rents grew 2.3% in the last year, which is well ahead of the U.S. overall growth rate. Rent yield in Orlando is markedly higher than in most other cities. Comparatively low home prices combine with relatively higher rent prices to create a city that is especially suitable to owning rental property.

Source: Forbes –
Tagged , , , , , , , ,
Uncategorized

Here’s how much money you have to make a year to afford an ‘average’ home in the hottest US cities

Business district area of downtown San Jose, California.

Mark Miller Photos | Getty Images
Business district area of downtown San Jose, California.

The median U.S. household now earns about $61,372 a year, up nearly 2 percent from 2016. Still, in order to afford to buy a home in one of the country’s hottest and most expensive cities, like San Jose, California, you’d need to make more than four times that amount.

That’s according to financial website How Much, which crunched numbers from the National Association of Realtors and mortgage-information website HSH.com to determine where it’s most expensive to buy an “average-sized home.”

Researchers found the median price of homes in the 50 most populated metro areas across the country and “calculated monthly principal, interest, property tax and insurance payments buyers have to pay for a 30-year fixed rate mortgage,” says How Much.

They then calculated what salary would be needed to afford each home, assuming a 20 percent down payment and that the total housing payment would not make up more than 28 percent of gross income.

How Much: Annual income needed to buy a home

Based on the data, here are the top 10 cities where you to earn the most money to buy a typical home:

1. San Jose, California

Annual income needed to afford a home: $274,623

2. San Francisco, California

Annual income needed to afford a home: $213,727

3. San Diego, California

Annual income needed to afford a home: $130,986

4. Los Angeles, California

Annual income needed to afford a home: $114,908

5. Boston, Massachusetts

Annual income needed to afford a home: $109,411

6. Seattle, Washington

Annual income needed to afford a home: $109,275

7. New York, New York

Annual income needed to afford a home: $103,235

8. Washington, D.C.

Annual income needed to afford a home: $96,144

9. Denver, Colorado

Annual income needed to afford a home: $93,263

10. Portland, Oregon

Annual income needed to afford a home: $85,369

“Median household income across the United States recently reached a record high, which is great news for workers,” says How Much. “The bad news is that isn’t enough to afford a typical home in 25 out of the 50 cities on our map.” That’s especially true on the West Coast.

“Our map reveals three tiers in annual income workers need to earn to afford a median home. First, the West Coast stands out as by far the most expensive market in the country,” the report says, “with four out of the top four markets in California alone.”

In Los Angeles, San Diego, San Francisco and San Jose, California, median homes range in value from $618,000 to more than $1.3 million, according to real-estate site Zillow. The U.S. national median home value, by comparison, is just above $216,000.

“Median household income across the United States recently reached a record high, which is great news for workers. The bad news is that isn’t enough to afford a typical home in 25 out of the 50 cities on our map.”-HowMuch.net

“The second tier of expensive locales is along the East Coast,” How Much reports, “led by the familiar hot spots of unaffordable housing like Boston, New York and Washington, D.C.

In Portland and Denver, meanwhile, homes aren’t as expensive as they are in California or New York, but workers would still need to make about $85,000 a year to afford to buy.

Some lower-profile American cities do still offer professional opportunities and good deals. In these three up-and-coming metro areas, for example, jobs are plentiful yet housing is affordable.

No matter where you fall on the map, though, living within your means and employing common-sense budgeting tactics can help you save in the long run. If you’re looking to buy a home, be sure you’re ready to transition from renting and if you’re going to continue to rent, check out these savings hacks and other ways to make your money stretch further.

 

Source: CNBC.com –  

Tagged , , , , ,
Uncategorized

Five Financial Benefits of Owning Residential Real Estate Investments

Financial-Benefits

 

For the last 25 years, I have been helping families and individuals identify goals, establish a plan and determine a clear vision of their financial future. While a financial plan is a future road map that is normally put into writing, it is also a guideline that is used to track results, and make adjustments when needed. Since this is an ongoing process, there are several areas which should be discussed.

When it comes to investments and cashflow, many financial planners will focus on the Equity, Bond or Alternative markets, but I feel it is important to also be aware of the power of investing in cash-flowing residential real estate in areas of the country which make sense.

An important part of many people’s financial plan is the home they live in. The choice between buying a home and renting is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which is a better deal.

Owning a home is potentially the largest investment most people will make during their lifetime. Many purchase homes with the hope that the value will appreciate, and they will be able to build a sizable amount of equity, sell one day and live off the proceeds after investing in a 1 percent Certificate of Deposit (CD).

Homeownership Tougher in High-Priced Markets

 

While homeownership is great for some, there are segments of the population which find that renting a home and investing instead in income-producing real estate is a better financial decision.

Home-Owners

In many areas of the country, home prices are reaching unaffordable levels for many homebuyers, especially in California. According to an article in the Los Angeles Times, California’s median home price is now $537,315, reflecting a compounded annual growth rate of nearly 10 percent since 2012, according to real estate website Zillow. During the same time period, the median rent for a vacant apartments jumped an annual rate of nearly 5.5 percent to $2,428.

As a result of rapidly increasing housing costs in California, more people are leaving, according to a study conducted by Beacon Economics and Next 10, cited in the LA Times article. In 2016, 41,000 more households left the state than moved in, according to the study referenced in the article.

What this means is that people need a place to live no matter what the economy is doing. Unlike the commercial, retail and industrial real estate markets, the residential rental market (in many areas of the country) is less likely to drop as far down.

Money Out of Your Pocket

So is owning a home for your primary residence a good investment? To answer that question you need to understand that your personal property takes money out of your pocket each month. Every month you have to pay the mortgage, insurance and property taxes. Even if the house is paid off you are still spending money maintaining the house and paying your taxes and insurance. The house is still taking money out of your pocket, not producing income.

While your paid-off house might make your net worth look good, the equity is locked up in the home. If you actually need to access that money, you either need to refinance or sell the house, and then you are back to having mortgage debt or looking for a place to live.

A growing numbers of Americans — millennials, baby boomers and Gen-Xers in particular — are showing less and less interest in owning a home, according to new data from Freddie Mac.

Colorful-Houses

The study released by Freddie Mac Multifamily, found that while economic confidence is growing among renters, affordability concerns remain the dominant driver of renter behavior. The study found that 63 percent of renters view renting as more affordable than owning a home. That includes 73 percent of baby boomers. And 67 percent of renters who plan to continue renting said they would do so for financial reasons. That’s up from 59 percent two years ago, according to Freddie Mac.

Additionally, recent trends indicate that segments such as the millennials and baby boomers are electing to rent where they want to live and invest in a single family residence to create cash flow in another, more affordable market. The following are five advantages to such an approach:

1. Leverage

If you pay 10 percent to 30 percent as a down payment, a bank, lending institution or private party will provide the rest of your funding. That means you can own a $100,000 piece of property for just $10,000 to $30,000.

2. Cash flow

If purchased and managed properly, your property can offer long-term positive cash flow, and this ongoing stream of income you receive from an investment offers other benefits — see below.

3. Appreciation

If the value of your property has gone up, and you decide to sell, your profit is called appreciation. Cash flow and appreciation are two forms of revenue from rental properties. Remember, even though you aren’t buying in hopes of selling to earn a quick profit, you should always have an exit strategy in place.

4. Fewer highs and lows

A cash-flowing property is not subject to the daily ups and downs of the markets. It is typically a longer-term play — as opposed to paper assets or the Equity/Bond Markets, where you can have daily ups and downs of up to 10 percent.

5. Tax advantages

Tax credits are available for low-income housing, the rehabilitation of historical buildings, and certain other real estate investments. A tax credit is deducted directly from the tax you owe. You also get an annual deduction for depreciation, which is typically a percentage of the value of the property that you can write off as an expense against revenues. Finally, in some countries, the gains from the sale of real estate can be postponed indefinitely as long as the proceeds are reinvested in other real estate, known as a 1031 exchange.

Important factors to consider when choosing a real estate market for single family rental property investing include population and employment growth and home value appreciation. When buying single family rental properties located in a different city or state, investors also research purchase prices, taxes, and housing regulations.

Other investors also look at the percentage of the population that are renting. For instance, D.C., New York, and California have the most renters in terms of percentage of the population. Another important consideration is that you want to use the 1 percent rule, which means that the monthly rent generated is at least 1 percent of the sales price of the home. For example, if you have a house worth $250,000, you want to be able to generate around $2,500 per month in rent. This is going to eliminate a lot of areas of the country — in particular coastal California, New York and even some middle-America markets such as Denver, Colorado.

Source: ThinkRealty.com – Glenn Hamburger | 

Tagged , , , , ,
buying real estate in the caribbean, flipping real estate, investment real estate, luxury real estate, real estate, real estate investors, Uncategorized, US real estate

HIGH NET WORTH – Why the wealthy are heavily focused on real estate

Real estate averages 27 per cent of the investments of the ultra wealthy. (Sheldon Kralstein/Getty Images/iStockphoto)

Real estate averages 27 per cent of the investments of the ultra wealthy.
(Sheldon Kralstein/Getty Images)

With markets roiling in 2016 and commodities lingering in low-price limbo, the holdings of high-net-worth investors can serve as indicators of where the rest of us might consider parking our nest eggs. It turns out that a good chunk of wealthy peoples’ investments is in real estate.

“Real estate is generally accepted as an alternative investment [by high-net-worth investors],” says Simon Jochlin, portfolio analytics associate at StennerZohny Investment Partners, part of Richardson GMP in Vancouver.

“It has the characteristics of an inflation hedge: yield, leverage and cap gains. It does well in upwardly trending markets, it pays you to wait during market corrections and typically it lags equities in market declines – it buys you time to assess the market.”

While the definition of high net worth can be flexible, in Canada and the United States it is generally considered to be someone who has at least $1-million in investable assets.

Thane Stenner, StennerZohny’s director of wealth management and portfolio manager, says a good way for determining what the wealthy do with their investments is to look at reports from Tiger 21, an ultra-high-net-worth peer-to-peer network for North American investors who have a minimum of $10-million to invest and want to manage their capital carefully.

Every quarter the network surveys its members, who number about 400 members across Canada and the United States. Some of the participants are billionaires, and most have a keen eye for business, Mr. Stenner says.

Though the Tiger 21’s Asset Allocation Report for the fourth quarter of 2015 found that its members were becoming cautious about Canadian real estate, they still on average put 27 per cent of their investment into real estate, the largest portion of their allocations. The next largest were public equities (23 per cent) and private equity (22 per cent) with smaller percentages going to hedge funds, fixed income, commodities, foreign currencies, cash and miscellaneous investments.

The real estate portion declined by 1 percentage point from the previous quarter. “While this is the lowest we have seen this year, it is at the same level observed in the fourth quarter of last year, which consequently was the high of 2014,” the report said.

“Real estate is very popular and one of the reasons, in my opinion, is that investors can actually see and touch their investment,” says Darren Coleman, senior vice-president and portfolio manager at Raymond James Ltd. in Toronto.

In his experience, real-estate investors, wealthy or otherwise, seem to behave with more logic than those who focus on markets. “For example, if you own a rental condo, and the one across the hall goes on sale for 30 per cent less than you think it’s worth, you wouldn’t automatically put yours on the market and sell, too, because you think there is a problem. Indeed, you may actually buy the other condo,” he says.

“And yet when a stock drops on the market, instead of thinking of buying more, most people automatically become fearful and think they should sell.”

Real estate also allows for considerable leverage, Mr. Coleman adds: “Banks love to lend against it. Over time, this lets you own a property with a much smaller investment than if you had to buy all of it at once.”

At the same time, Mr. Jochlin says there are disadvantages to real estate that investors should beware of. Property is not particularly liquid, so if you need to sell you could be stuck for a while.

“It’s also sensitive to interest rates and risks from project development,” he says. There are administrative and maintenance costs, and an investor who buys commercial rental property will be exposed to the ups and downs of the entire economy – look at Calgary’s glut of unleased office space, for example.

“Timing is key. You do not want to chase the performance of a hot real estate market,” Mr. Jochlin says.

“Buying at highs will significantly reduce your overall return on investment. You want to buy in very depressed markets at a discount. In other words, look toward relative multiples, as you would an equity.”

As to how one goes about investing in real estate, Mr. Jochlin says it depends. The factors to consider include determining whether your investment objective is short- or longer-term, your liquidity requirements, your targeted return and whether you have any experience as a real estate manager.

“Sophisticated high-net-worth investors have a family office, and thus a specialist to manage their real estate assets,” he says.

Slide3

How the rich buy real estate

The wealthy don’t necessarily buy and sell real estate the same way ordinary investors do, says Mr. Stenner. Ordinary people buy something and hope that when they sell it they’ll get a better price. Meanwhile, they like to do things like live on the property or rent it out, whether it is residential or commercial. If it is vacant land they might build something. Not always so for high-net-worth (HNW) investors, Mr. Stenner says. While everyone who invests hopes their investment will rise, Mr. Stenner says that in real estate, HNW people tend to fall into four categories:

Developers

“The real estate developer is looking for substantial returns from individual/basket real estate projects, typically 30-50 per cent IRRs [internal rates of return],” Mr. Stenner says. Developers are highly experienced investors who often take big risks, looking at a raw, undeveloped property and envisioning what it could look like with, say, a shopping mall or office tower. This requires lots of access to capital and a strong stomach, as there can be huge delays and setbacks.

Income Investors

“These HNW investors typically look for a stable, secure yield, tax-preferred in nature and structure if possible, with modest capital growth potential,” Mr. Stenner says. They take the same businesslike approach to property as the developer-types, but they’re more conservative, focusing on cash flow and long-term profit as opposed to getting money out after a development is complete. Often they’re building a legacy that they hope to pass down through generations. Mr. Stenner says lower net worth people can emulate income investors, for example, through REITs that are based on apartment buildings.

Opportunists

These HNW investors tend to look for more short-term higher risk, higher return “asymmetric” payoffs. Income from the investment or project is secondary — they’re in it for the quick buck. Often they see real estate in contrarian terms – investments to look at when the market is low and to sell on the way up, rather than hold. After 2008, many HNW investors bought up depressed-price housing in the U.S. Sunbelt. The sizzling Vancouver and Toronto markets might be the opposite of what they’re looking for right now; commercial property in the stagnant Canadian economy that can be purchased for low-trading loonies right now might be more interesting.

Lenders

This refers to HNW investors who lend capital to developers or opportunistic investors, for a fixed return, plus as much asset coverage from the property as possible. They fund mortgages, invest in real estate financing pools or put money into companies involved in this type of investment. “Because wealthier investors tend to have more liquidity, this also creates more optionality to deploy capital in various ways, while using the real estate as collateral or protection,” Mr. Stenner says.

Being a lender is a way to diversify. In addition, money lent in this way puts the lender high up in the creditor line if something goes wrong. If things go right, it generates income as the mortgage is paid back to the HNW investors or the funds they buy into.

Source: DAVID ISRAELSON Special to The Globe and Mail Published Thursday, Feb. 18, 2016

Tagged , , , , ,
adult lifestyle communities, flipping properties, flipping real estate, Florida Real estate, foreign buyers, foreign investors, Uncategorized

Tax implications for selling a U.S. property

I’m considering selling my property in the U.S. I know I’ll need to pay capital gains on the appreciated value but do I claim the gains in U.S. or Canadian currency?

—Paul and Barb, Fort McMurray, Alta.

Timing is everything, in both comedy and taxes. According to Philippe Brideau, spokesperson for the CRA, both the cost of the property to buy and the proceeds of the sale must be converted into Canadian dollars using the exchange rate at the time of each transaction. You then report the capital gain, or loss, on your tax return based on “the difference between those two Canadian dollar amounts.” But the CRA isn’t the only tax collector to consider. The U.S. also cares about that property sale, explains Kim Moody of Calgary-based Moodys Gartner Tax Law. “A Canadian needs to first report a gain or loss in the U.S. by filing a U.S. tax return—form 1040NR—and paying any applicable U.S. taxes.” Expect to pay a withholding tax to the Internal Revenue Service, which you claim as a foreign tax credit on your Canadian tax return. Now, if this is a place in the sunny south, I hope you get to enjoy one last season down there.

Source: MoneySense.ca – Bruce Sellery February 2016

Tagged , , ,