Second Home Purchases in Florida
In addition to being a favorite location for those moving from other states or from abroad, Florida is also a favorite destination for second home buyers. In fact, NAR Buyers Survey reveals the highest proportion of recently purchased vacation properties, as well as investment properties, were in the South, where Florida is the primary destination. Almost half of the vacation properties and 40 percent of the investment properties purchased in 2008 were in the South.
According to the 2007 HMDA, a total of 274,428 home purchase loans were made in Florida.
Search all homes in Tampa Bay, including Clearwater, St. Petersburg and the Beach Areas!
Second Home Purchases in Florida
In addition to being a favorite location for those moving from other states or from abroad, Florida is also a favorite destination for second home buyers. In fact, NAR Buyers Survey reveals the highest proportion of recently purchased vacation properties, as well as investment properties, were in the South, where Florida is the primary destination. Almost half of the vacation properties and 40 percent of the investment properties purchased in 2008 were in the South.
According to the 2007 HMDA, a total of 274,428 home purchase loans were made in Florida.
Search all homes in Tampa Bay, including Clearwater, St. Petersburg and the Beach Areas!
Business Week Article explains when conditions are favorable to own rather than rent.
Tampa Bay Ranked #5 in their report.
Tampa Metro (Fla.)
Own/rent ratio: 115%
Annual cost to own: $10,823
Annual cost to rent: $9,444
South Florida is has been hit hard by the recession, and home prices in Tampa have taken a dive. The metro was the country’s 19th-largest in 2007, with a population of more than 2.7 million. OSI Restaurant Partners (Outback Steakhouse) and WellCare Health Plans are headquartered here. The Tampa Bay area also relies on the tourism industry.
The metro areas were ranked based on the annual cost of owning compared to renting. The own/rent ratio represents the annual cost of owning as a percentage of the annual cost of renting. The lower the ratio, the more favorable owning is over renting and in any metro with a ratio below 100%, it’s cheaper to own than rent. To make a fair comparison between owning and renting, annual ownership costs were calculated based on a loan of 100% of the purchase price. (Of course, a down-payment is required for most purchases, but including it in our calculations would have skewed the results by lowering the cost of ownership). We also factored in tax rebates assuming an annual income tax rate of 30%. The ownership costs were calculated using a 30-year fixed mortgage with an interest rate of 5.5% and maintenance fees and property taxes were assumed to be about 3%. The second-quarter rental data, which was provided by REIS, is a blended average of all rental types and includes rent concessions. The second-quarter home value data comes from Zillow.com
Thinking of buying or listing a home for sale in the Tampa Bay Area? Give us a call
813 784 7744 or email realtyrae@yahoo.com
Rae Catanese, PA Real Estate Agent
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During the month of March, In Florida, one in every 282 homeowners received a foreclosure notice. In the U.S. One in every 538 American households received either a default notice, auction sale notice or bank repossession, according to RealtyTrac’s U.S. Foreclosure Market Report. With foreclosure filings up 57 percent from a year ago, (Source: RealtyTrac.)
Before making a buy, investors need to do their homework carefully—that means hiring a contractor to complete a home inspection for big-ticket problems, like structural damage or costly mold.
Investors also need to secure as precise a figure as possible for how much renovations will likely set them back, a major drag on profit.
Finally, buyers should consult a real estate agent to learn about comparable home sales in the same neighborhood, which will help determine how much the house might eventually fetch at resale.
They should also take note of how long listed homes—both rental and resale—have been sitting on the market.
“Many foreclosure investors won’t purchase a property unless it is at least a 30 percent discount,” said Sharga. “That’s because you’ll typically need to do a rehabilitation to bring the property back up to the neighborhood standard, you’ll probably have to finance it for a short period of time and it’ll cost you some money to market the property.”
It may be not sit well to profit from someone else’s misfortune, but keep in mind that when you purchase a distressed property you’re not just doing your investment portfolio a favor.
By reducing the inventory of available homes, you’re also helping to stabilize the residential real estate market which, in turn, will buoy the troubled U.S. economy.
If you need assistance purchasing a foreclosed property in the Tampa Bay area, give us a call. 813 784 7744 or send us an email: realtyrae@yahoo.com
If California is number 1 in foreclosures in the U.S. and
Tampa, Florida is number 2 in foreclosures;you can expect the housing markets to be similar. California offers the same type of opportunities with regards to climate and beauty.
The difference is that the Tampa Bay area has an even greater number of homes for sale in the 55K range than California.
I thought this was a very interesting article about an investor who is planning on buying property to hold onto.
Some Investors Are Gobbling Up Homes Home sales doubled in California in the fourth quarter of 2008 as investors and speculators bought foreclosed properties—cheap. “This is the buying opportunity of our lifetime,” said Bruce Norris, head of an investment group that expects to purchase at least 100 homes this year in Southern California.
Norris Investment Group prefers properties built between 1980 and 1990 that are smaller than 2,000 square feet. Norris says these homes usually don’t have too many maintenance issues and are the easiest to both rent and sell.
Typically, Norris pays somewhere around $50,000 for these properties and spends another $30,000 on repairs. He expects to rent these properties for at least $1,200 a month until the market for them turns.
He expects that time won’t be too far away. “You cannot have this (low) level of pricing be permanent because it costs too much to build a home [in California],” Norris said. “That’s how you know you’re making a logical decision when everything is falling around you.
When you can buy a finished product someone will want to live in for $55,000, that just has to make somebody pretty wealthy someday.”
If you are looking to invest in Real Estate in the Tampa Bay Area give us a call:
Phone number: Rae Catanese 813 784 7744
Prudential Tropical Realty
What’s the difference between Florida and other housing markets? The Tampa Bay area is still a desirable retirement and second home destination. Therefore, we are expecting our market to increase in sales and reducing the amount of foreclosures in our housing market, sooner than other parts of the country.
Hillsborough River, Tampa Florida
Nevada, Florida, Arizona posted top states for foreclosure rates in 2008. More than 7 percent of Nevada housing units (one in 14) received at least one foreclosure notice in 2008, giving it the nation’s highest state foreclosure rate for the year. A total of 77,693 Nevada properties received a foreclosure filing during the year, an increase of nearly 126 percent from 2007 and an increase of nearly 530 percent from 2006.
Florida registered the nation’s second highest state foreclosure rate in 2008, with 4.52 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year, and Arizona registered the nation’s third highest state foreclosure rate, with 4.49 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year.
I know we’ve all heard NOW IS THE TIME TO BUY, however, the facts are the facts and we have to go by the statistics provided to us by industry experts. ……………This is a quote from Peter Lynch, a well known Real Estate Investor
“Ive found that when the market’s going down and you buy wisely, at some point in the future you will be happy. You won’t get there by reading “now is the time to buy” Peter Lynch -
If you are interested in finding out more about bank owned and foreclosed properties in the Tampa Bay Area, including the Beaches please call Rae at 813-784-7744
The Tampa Real Estate Insider, your source for the Tampa Housing Market
