Condo Hotels have been quickly becoming a hot new concept in South Florida. People from all over the world desire a piece of South Florida, and the Condo Hotel is the easiest way to obtain it. Unlike buying a condo where it may sit vacant for 9 months when the 2nd home owner is using it, the Condo Hotel gets rented out on a nightly basis by the hotel management company and the revenue is split with the owner. This drastically reduces the costs of keeping a property here when not in use, and in a lot of cases, they even make a profit.
A lot of it depends on the occupancy rates, prices and the quality of the management company.
The Facts:
Average Hotel Rates in South Florida Hotels for 2006 rose again by 11% in Miami Dade County, 14% in Broward, and 11% in the Keys. Occupancy was 70% for Broward, and 71% for Dade. Dade County ranked third in the country for most expensive hotels, behind only New York and Honolulu. The Average night was $142.
My Opinion:
I am pleasantly surprised. The hurricane season in 2005 coupled with a mild winter in 2006 should have made visitors skip vacationing down here, but that wasn't the case. We have seen more "out of season" tourists in months that typically have been lower in occupancy. The summer alone this year set a record with occupancy levels around 67%.
There are several condo hotels that I recommend buying which will make great vacation homes while the hotel program will help offset the costs. Just be careful of stay restrictions: some programs allow you to stay in there only a few weeks, but give you a larger split of the revenue. Decide how long you will use it before signing up for the hotel program. In most cases you obtain a history of the rent from the previous owner. Some Condo Hotels are better than others.
I have purchased two myself: The Point Orlando in Orlando, and the Sian Crowne Plaza Resort in Hallandale. I am closing on the Sian in a few months, and Point Orlando should be ready in a year or so. Both are tremendous locations in areas with booming demand for hotels, and locations that attract both business customers, heavy convention traffic as well as high tourism.
The Sian starts as little as $255,000 for a studio, and there is a special deal in the Point Orlando right now where you can get a 2/2 for $425,000 when all the other units are $480,000 and up in the building and $570k and up in the surrounding competing buildings. Visit www.sianbeachclub.com and www.thepointorlando.com for all info on these two fine opportunities. The two deals I mentioned are only available through my Remax office and not from the developer. Contact me for more info.
What's Next:
Ever wonder, how you rate as a typical buyer who purchases real estate? I will discuss the numbers and buying habits of calls/inquiries to our office and how they eventually turn into buyers. You will be shocked at how some people purchase real estate. Also, coming soon: Condo Hotels Part 2: the Purchase Process.
Deal of the Week:
**ESTATE SALE** Condo on Country Club Drive 2/2 renovated only $250,000. Units like these closed for $325,000 last year before the Hurricane Damage. The building has been fully restored, new balconies, new windows and values should start to rise again. Right on country club drive with water view, vacant and the descendants say SELL NOW!!
Wednesday, January 31, 2007
Sunday, January 28, 2007
Population Trends in Florida
The facts:
I just read a great article in Florida Trend Magazine. If you are an executive, Developer, or in charge of our region for your company, then this is a great magazine to read. The results are in for 2006, and the population for Florida grew again gaining more than 1000 people per day. Here are the numbers:
Daily in Migration +1,932
Daily out Migration - 966
Births minus deaths +115
Daily growth 1,081
FLorida Population
2003 17.0 million
2004 17.4 million
2005 17.8 million
2006 18.2 million
Florida ranked 2nd in the US for Biggest Population Gains (321,697) only behind Texas (579,275).
My opinion:
I am surprised. The last year was about as bad as it has gotten with factors affecting real estate. High property taxes, skyrocketing insurance rates, lack of affordable housing, some of the worst Hurriance seasons ever appeared to valid reasons for a slowdown in the growth. Personally I have in the last 6 months had a lot of past clients move to the Carolinas. It felt like 5 years ago, everyone was moving here from the Carolinas. The bottom line is that the real estate boom was experienced in other parts of the country too, so markets like California and New York as still much more expensive and FLorida continues to draw residents form those countries. California has earthquakes, midwest has tornadoes, northeast has blizzards. It is all relative.
Florida still has a lot of advantages regarding taxes and prices. We are one of the few states that do not have an income tax. We pay higher property taxes as a result, but this helps the locals because they dont pay income tax and foreign property owners all pay property taxes. Unlike a lot of other taxes, you cannot shelter property income tax. Did you know that the millage rate here in Fort Lauderdale is 22.11 and Miami 24.64 is much less that other cities like Pittsburgh (29.41), Detroit (53.07), Bloomfield (36.47).
The bottom line is that people are still coming and further helps the case that our property values should remain stable.
DEAL OF THE DAY
**Estate Sale** This Aventura condo in the Bonavista has renovated Bathrooms, new tile, new windows and is priced for fast sale at $250,000. 2/2 with water view right on Country Club Drive. There is no mortgage on the property, the first reasonable offer will be accepted, descendants want a quick sale. Call 305-965-6947. This will be hitting the market be Feb 1,2007.
I just read a great article in Florida Trend Magazine. If you are an executive, Developer, or in charge of our region for your company, then this is a great magazine to read. The results are in for 2006, and the population for Florida grew again gaining more than 1000 people per day. Here are the numbers:
Daily in Migration +1,932
Daily out Migration - 966
Births minus deaths +115
Daily growth 1,081
FLorida Population
2003 17.0 million
2004 17.4 million
2005 17.8 million
2006 18.2 million
Florida ranked 2nd in the US for Biggest Population Gains (321,697) only behind Texas (579,275).
My opinion:
I am surprised. The last year was about as bad as it has gotten with factors affecting real estate. High property taxes, skyrocketing insurance rates, lack of affordable housing, some of the worst Hurriance seasons ever appeared to valid reasons for a slowdown in the growth. Personally I have in the last 6 months had a lot of past clients move to the Carolinas. It felt like 5 years ago, everyone was moving here from the Carolinas. The bottom line is that the real estate boom was experienced in other parts of the country too, so markets like California and New York as still much more expensive and FLorida continues to draw residents form those countries. California has earthquakes, midwest has tornadoes, northeast has blizzards. It is all relative.
Florida still has a lot of advantages regarding taxes and prices. We are one of the few states that do not have an income tax. We pay higher property taxes as a result, but this helps the locals because they dont pay income tax and foreign property owners all pay property taxes. Unlike a lot of other taxes, you cannot shelter property income tax. Did you know that the millage rate here in Fort Lauderdale is 22.11 and Miami 24.64 is much less that other cities like Pittsburgh (29.41), Detroit (53.07), Bloomfield (36.47).
The bottom line is that people are still coming and further helps the case that our property values should remain stable.
DEAL OF THE DAY
**Estate Sale** This Aventura condo in the Bonavista has renovated Bathrooms, new tile, new windows and is priced for fast sale at $250,000. 2/2 with water view right on Country Club Drive. There is no mortgage on the property, the first reasonable offer will be accepted, descendants want a quick sale. Call 305-965-6947. This will be hitting the market be Feb 1,2007.
Sunday, January 21, 2007
Market Turning
The Facts:
National Association of Realtors reported that existing home resales were up in November by 0.6 percent , the second straight month that it has increased. In addition, new home sales rose by 3.4 percent, and unsold inventories of builders decreased to their lowest levels since FEBRUARY 2006. Federal data also showed that 36 metro areas with solid employment were still experiencing double digit price increases at the end of September 2006. There were some markets where unemployment has been prevalent and those markets experienced declines.
South Florida's base economic indicators have all been solid. Although local inflation has increased slightly larger than the national average, local household income did increase by almost 50% since 1999, from approximately $40,000 to over $60,000. I saw the article in the Miami Herald earlier in the week. If anyone has it, please comment on the stats. The unknowns going into the future are how many of the condo buyers were investors versus end users.
My Opinion:
So far, the activity in the first two weeks of January has been unbelievable. I have listed several homes and gotten offers within the first 3 days of listing 3 times. In addition, homes that have been sitting for months have now received offers also. We have been receiving more showings on our listings in 2 weeks than we did almost the entire months of November and December combined. All of our buyers who were thinking about buying for the second half of 2006 but chose not to, are all deciding to buy now.
What's Next:
How To sell your Home Tax-Free. Some of the rules are a little tricky when it comes to selling your homestead exempted home. I will discuss some of these issues soon.
Deal of the Day:
We have a fantastic luxury condo for sale in the Peninsula Building, directly on the intracoastal in Aventura, next to Williams Island. This flow through unit features 3298 sq ft of open living area, with tremendous sweeping views of the ocean, intracoastal and sunrise to the east, and city and sunset views to the west. Many upgrades including a granite and stainless steel appliance kitchen, custom bar area and 3 full bedrooms and marble flooring. Call for uptodate pricing and availability.
National Association of Realtors reported that existing home resales were up in November by 0.6 percent , the second straight month that it has increased. In addition, new home sales rose by 3.4 percent, and unsold inventories of builders decreased to their lowest levels since FEBRUARY 2006. Federal data also showed that 36 metro areas with solid employment were still experiencing double digit price increases at the end of September 2006. There were some markets where unemployment has been prevalent and those markets experienced declines.
South Florida's base economic indicators have all been solid. Although local inflation has increased slightly larger than the national average, local household income did increase by almost 50% since 1999, from approximately $40,000 to over $60,000. I saw the article in the Miami Herald earlier in the week. If anyone has it, please comment on the stats. The unknowns going into the future are how many of the condo buyers were investors versus end users.
My Opinion:
So far, the activity in the first two weeks of January has been unbelievable. I have listed several homes and gotten offers within the first 3 days of listing 3 times. In addition, homes that have been sitting for months have now received offers also. We have been receiving more showings on our listings in 2 weeks than we did almost the entire months of November and December combined. All of our buyers who were thinking about buying for the second half of 2006 but chose not to, are all deciding to buy now.
What's Next:
How To sell your Home Tax-Free. Some of the rules are a little tricky when it comes to selling your homestead exempted home. I will discuss some of these issues soon.
Deal of the Day:
We have a fantastic luxury condo for sale in the Peninsula Building, directly on the intracoastal in Aventura, next to Williams Island. This flow through unit features 3298 sq ft of open living area, with tremendous sweeping views of the ocean, intracoastal and sunrise to the east, and city and sunset views to the west. Many upgrades including a granite and stainless steel appliance kitchen, custom bar area and 3 full bedrooms and marble flooring. Call for uptodate pricing and availability.
Tuesday, January 16, 2007
South Florida Home Sales Prices
The Facts:
Sales numbers are in for December 2006. The market has shown resiliency. In Dade County, the median price of a Single Family Home did not change from Dec 2005 to Dec 2006 at $370,000. The median price of a condo actually ROSE from $250,000 to $260,000. IN Broward County the median price of a Single Family Home DROPPED from $385,000 to $371,000, and the median price of a condo remained unchanged from $205,000. Experts have stated that this represents a more normal market and that we have a good balance between Sellers and Buyers. The stable prices have occurred despite the inventory of resale homes more than DOUBLING from approx 31,000 in 2005 to 65,287 available in 2006.
My Opinion:
As with most facts, I think you have to go a little deeper. The median price can sometimes be misleading and I believe it is too general to answer the most important question: how has the price of my home changed? We need to look at everything one neighborhood at a time, and see sales now versus sales last year. One important factor is that there were thousands of condo conversions that hit the market where 1 bedroom units were priced in the 160's and 2/2 units priced in the 200s. Estimates show that we had anywhere between 20,000 and 30,000 condo conversions in the last few years. Whenever you flood a market with units that are priced at the lower end, then statistically, it will lower the average, and the median.
What's Next
We are now compiling our own sales figures from the MLS that will show what I believe is the most important sales figure: new pending contracts each month. I believe this is the most relevant because it will show you who is out there now writing contracts on real estate, versus pending contracts from last year. Closings do not mean anything because they could have been written a long time ago, some as much as 2-3 year. There may be closings now, but they may have been from buyers who bought under different market conditions.
If you would like a copy of our sales date, please email us and we will forward to you when we get it shortly
Deal of the Day:
THE EDGE CONDO in West Palm Beach: Large 2/2 direct water view, one of the waterfront condos in a high tech luxury building for under $500,000. Ready for closing in the late summer. Visit www.theedgewestpalm.com to view the project info and then contact me for specifics on this unit since the developer has sold them out.
Roman Pavlik
Sales numbers are in for December 2006. The market has shown resiliency. In Dade County, the median price of a Single Family Home did not change from Dec 2005 to Dec 2006 at $370,000. The median price of a condo actually ROSE from $250,000 to $260,000. IN Broward County the median price of a Single Family Home DROPPED from $385,000 to $371,000, and the median price of a condo remained unchanged from $205,000. Experts have stated that this represents a more normal market and that we have a good balance between Sellers and Buyers. The stable prices have occurred despite the inventory of resale homes more than DOUBLING from approx 31,000 in 2005 to 65,287 available in 2006.
My Opinion:
As with most facts, I think you have to go a little deeper. The median price can sometimes be misleading and I believe it is too general to answer the most important question: how has the price of my home changed? We need to look at everything one neighborhood at a time, and see sales now versus sales last year. One important factor is that there were thousands of condo conversions that hit the market where 1 bedroom units were priced in the 160's and 2/2 units priced in the 200s. Estimates show that we had anywhere between 20,000 and 30,000 condo conversions in the last few years. Whenever you flood a market with units that are priced at the lower end, then statistically, it will lower the average, and the median.
What's Next
We are now compiling our own sales figures from the MLS that will show what I believe is the most important sales figure: new pending contracts each month. I believe this is the most relevant because it will show you who is out there now writing contracts on real estate, versus pending contracts from last year. Closings do not mean anything because they could have been written a long time ago, some as much as 2-3 year. There may be closings now, but they may have been from buyers who bought under different market conditions.
If you would like a copy of our sales date, please email us and we will forward to you when we get it shortly
Deal of the Day:
THE EDGE CONDO in West Palm Beach: Large 2/2 direct water view, one of the waterfront condos in a high tech luxury building for under $500,000. Ready for closing in the late summer. Visit www.theedgewestpalm.com to view the project info and then contact me for specifics on this unit since the developer has sold them out.
Roman Pavlik
Sunday, January 14, 2007
Insurance Crisis
We all know there is an insurance crisis in the South Florida Real Estate Market. The escalating insurance costs have been a major factor in the softening of the real estate market, especially for Single Family Homes. The Miami Herald reported some interesting statistics:
85% of the housing stock in Florida was built before 2001 which was the first release of a statewide building code which mandated stronger roofs. A staggering $232 million of damages in Dade and Broward since 2004 were for minor repairs to roofs on homes built before 2001.
Florida has led the USA in population growth by surging to 17.5 million residents, and this doesnt include foreign owners. They predict that we will need an additional funding source of $1 billion per year from 2013 to keep up with the demand for insurance.
The good news is that it appears Republican Governor Crist is doing something that Republicans don't usually do: want more Government Involvement in the form of subsidies, stronger auditing to prevent fraud, and get more control of the industry in general.
I always believe that the fairest way to tax is to charge a sales tax on purchases. A penny sales tax for the purpose of creating a state run insurance fund would go a long way to aiding homeowners escalating insruance rates. I think this the fairest way. Poorer people don't spend as much as richer people, and a 1% tax on purchases would hardly be felt by consumers.
This is a common way that most COUNTRIES around the world raise revenues. Actually they all charge a federal sales tax ranging anywhere from 15 to 30% on all purchases that you make.
IN the US, we do not have anything like that.
Send me your comments, possible solutions so that we can all be heard and make recommendations to the city, county and state officials, because something has to be done.
Roman Pavlik
OUR DEAL OF THE DAY: The Point Orlando Condo Hotel: www.thePointOrlando.com, tower 3 is being launched where 2/2 units are starting around $500,000. I have a few limited units in tower 2, that you can get in the mid $400,000 range. I personally purchased in the project. They come fully furnished, right near the convention center, surrounded by other projects which have 2/2 units starting in the $600,000 range.
85% of the housing stock in Florida was built before 2001 which was the first release of a statewide building code which mandated stronger roofs. A staggering $232 million of damages in Dade and Broward since 2004 were for minor repairs to roofs on homes built before 2001.
Florida has led the USA in population growth by surging to 17.5 million residents, and this doesnt include foreign owners. They predict that we will need an additional funding source of $1 billion per year from 2013 to keep up with the demand for insurance.
The good news is that it appears Republican Governor Crist is doing something that Republicans don't usually do: want more Government Involvement in the form of subsidies, stronger auditing to prevent fraud, and get more control of the industry in general.
I always believe that the fairest way to tax is to charge a sales tax on purchases. A penny sales tax for the purpose of creating a state run insurance fund would go a long way to aiding homeowners escalating insruance rates. I think this the fairest way. Poorer people don't spend as much as richer people, and a 1% tax on purchases would hardly be felt by consumers.
This is a common way that most COUNTRIES around the world raise revenues. Actually they all charge a federal sales tax ranging anywhere from 15 to 30% on all purchases that you make.
IN the US, we do not have anything like that.
Send me your comments, possible solutions so that we can all be heard and make recommendations to the city, county and state officials, because something has to be done.
Roman Pavlik
OUR DEAL OF THE DAY: The Point Orlando Condo Hotel: www.thePointOrlando.com, tower 3 is being launched where 2/2 units are starting around $500,000. I have a few limited units in tower 2, that you can get in the mid $400,000 range. I personally purchased in the project. They come fully furnished, right near the convention center, surrounded by other projects which have 2/2 units starting in the $600,000 range.
Saturday, January 13, 2007
Real Estate Property Tax Cuts
Greetings All. I am pleased to announce that the Associated Press Reports that the State Legislatures are putting together proposals that might go to voters as early as the fall. As we all know, the property tax situation has gotten completely out of control, and everyone who owns South Florida Real Estate has seen their property taxes jump sharply. Doesn't matter if you own Miami Beach Condos, Fort Lauderdale Luxury Homes, or Downtown Miami and Brickell Condos, we have all been hit by the tax increases.
The main proposal is portability, where you can take your homestead exemption tax with you to your next purchase. The homes hardest hit so far have been the Single Family homes between $400,000 and $600,000 which are typically move up buyers. Studies have shown that the proposal will only reduce state tax rolls by only 0.7 percent in 2008 and 2.4% in 2012.
Personally I believe that this is a laughable number since property values have jumped by 150% in some areas. What they are not counting on, is that if relief comes, then values will increase more since more sales will start happening. Send us your comments and opinions and ideas.
Stay tuned for our podcast, and next blog on the insurance issues in our South Florida Market. Together with high taxes, insurance rates have caused an uptick in foreclosures. If you ready to buy one and save 40% to 50%, then sign up for our weekly list of foreclosed homes and condos by visiting www.bankownedcondos.com.
Roman Pavlik.
The main proposal is portability, where you can take your homestead exemption tax with you to your next purchase. The homes hardest hit so far have been the Single Family homes between $400,000 and $600,000 which are typically move up buyers. Studies have shown that the proposal will only reduce state tax rolls by only 0.7 percent in 2008 and 2.4% in 2012.
Personally I believe that this is a laughable number since property values have jumped by 150% in some areas. What they are not counting on, is that if relief comes, then values will increase more since more sales will start happening. Send us your comments and opinions and ideas.
Stay tuned for our podcast, and next blog on the insurance issues in our South Florida Market. Together with high taxes, insurance rates have caused an uptick in foreclosures. If you ready to buy one and save 40% to 50%, then sign up for our weekly list of foreclosed homes and condos by visiting www.bankownedcondos.com.
Roman Pavlik.
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