Real Estate

[lilmalu]

I was curious to know how the real estate market is doing in Florida? I'm thinking of saving up and purchasing a house and putting it up for rent.

[InFuMoUs]

Well it depends on what part of FL your looking to buy, if your looking for foreclosures, or something that needs fixing, or just a house that needs no fixing whatsoever. There's alot of homes for sales down there below market value since home values dropped. If you know how much you're willing to spend, how many rooms you want, and what location are all some factors you might wanna narrow down which should help you in ya search. Since it's for an investment, you just gonna need to find the right people to rent to that's gonna be able to pay the rent and pay on time. Also, you gonna have to tell yaself can I afford to pay the mortgage payments if the people dont come up with the rent.

[timot_one]

Canadians aren't allowed to buy houses, are they?

[CrackerTeg]

Canadians aren't allowed to buy houses, are they?

I heard there was some clause like that somewhere.

[InFuMoUs]

Wow aint even realize he was from Canada.

[Mr Eazy]

Well it depends on what part of FL your looking to buy, if your looking for foreclosures, or something that needs fixing, or just a house that needs no fixing whatsoever. There's alot of homes for sales down there below market value since home values dropped. If you know how much you're willing to spend, how many rooms you want, and what location are all some factors you might wanna narrow down which should help you in ya search. Since it's for an investment, you just gonna need to find the right people to rent to that's gonna be able to pay the rent and pay on time. Also, you gonna have to tell yaself can I afford to pay the mortgage payments if the people dont come up with the rent.

Excellent info Steve.

Florida, especially south Florida was one of the most hardest hit areas in the real estate market. Over the last 18+ months, forclosures & short sales have swamped the market. If you are able to obtain the mortgage and find the right property, you're golden. This is due to the FL market being a renters market rather than a buyers market.

Remember that, you will have a shit load of competition both in purchasing and renting. To add to what steve said, "you gonna have to tell yaself can I afford to pay the mortgage payments if the people dont come up with the rent," you must also be prepared for renters who stop paying and live rent free. I'm not sure how FL laws go, but in NYC, they can live rent free till you finish any and all court precedings, which can take upto half a year or more.

Another note you must be able to prepare any and all necessary documentation if you plan on getting financing. In addtion, since you are from Canada, some lending institutions will need some sort of proof that you will live in the FL property. Otherwise they will mark it as an investment property which will cause you to have a higher rate.

Let me know if you have any questions about financing, I was in the mortgage industry for quite a few years and still remember some stuff and some people who might be able to help you find a property in south florida and even might help you with financing.

[InFuMoUs]

lol I forgot you was in the Real Estate biz too Arie. Ya Port St Lucie was one of the places that got hit hard, with businesses closing down and people abandoning their homes, but you can find alot of houses for sale for real cheap.

[lilmalu]

Well it depends on what part of FL your looking to buy, if your looking for foreclosures, or something that needs fixing, or just a house that needs no fixing whatsoever. There's alot of homes for sales down there below market value since home values dropped. If you know how much you're willing to spend, how many rooms you want, and what location are all some factors you might wanna narrow down which should help you in ya search. Since it's for an investment, you just gonna need to find the right people to rent to that's gonna be able to pay the rent and pay on time. Also, you gonna have to tell yaself can I afford to pay the mortgage payments if the people dont come up with the rent.

Excellent info Steve.

Florida, especially south Florida was one of the most hardest hit areas in the real estate market. Over the last 18+ months, forclosures & short sales have swamped the market. If you are able to obtain the mortgage and find the right property, you're golden. This is due to the FL market being a renters market rather than a buyers market.

Remember that, you will have a shit load of competition both in purchasing and renting. To add to what steve said, "you gonna have to tell yaself can I afford to pay the mortgage payments if the people dont come up with the rent," you must also be prepared for renters who stop paying and live rent free. I'm not sure how FL laws go, but in NYC, they can live rent free till you finish any and all court precedings, which can take upto half a year or more.

Another note you must be able to prepare any and all necessary documentation if you plan on getting financing. In addtion, since you are from Canada, some lending institutions will need some sort of proof that you will live in the FL property. Otherwise they will mark it as an investment property which will cause you to have a higher rate.

Let me know if you have any questions about financing, I was in the mortgage industry for quite a few years and still remember some stuff and some people who might be able to help you find a property in south florida and even might help you with financing.

Well the initial plan was for it to be a second source of income. I was also thinking of a long term plan for a future retirement get away place to stay during the winter months. But most importantly, if the need occurs, have the house handed over to my kids so that they don't have to work their balls off.

I was mainly looking for real estate in the Tampa area due to me having family there. This would allow me to have someone there in case something does come up and they can represent me until I get there or what not.  I was looking more into a house that doesn't really need fixing so that I don't have to dump more money into the house, otherwise I rather move myself down there and enjoy the fruits of my labour.

As for renters not paying rent, I will have to see what the law states down there in regards to that. I would probably make the renter sign a contract that if they miss 2 payments in a row, they would have a certain amount of days to vacate the property. I'm currently working part time at Costco while finishing up college and searching for a full time job. My parents are also here to support me financially if anything does rise up.

I understand that as I'm a foreign person owning property in the US, I would probably be subjected to higher interest rates, and thus am willing to put up with this, OR have the house placed under a family member's name there.

There are a ton of crap involved in this and I'm still looking into this, so I'll probably contact you Arie in the near future.

[Mike]

Canadians aren't allowed to buy houses, are they?

I laughed so hard at this I lost the coffee that I was drinking.

[timot_one]

That was my intent Mike.  Finney, it looks like you have been doing your research.  Arie is definitely a good person to talk to about real estate.  I was actually considering buying a place down in FL earlier this year also.  It seems to be the right venue to purchase a home considering the current status of the economy and housing market down there.

[driveaccord]

i live in ft lauderdale and i can attest to the market being very bad here the past year....like what's been said before there are a lot of foreclosures and short sales.  when searching the mls more times than not you will come across a short sale or foreclosure to send to your buyer.  short sales are a pain in the you know what but are getting a little better.  it can take upwards to 4-6 months for the banks to give you an answer about your offer if you even get one at all and foreclosures can be a great deal if you can get the house before the hundreds of other people see it too and get there offer in before you.  the banks usually have multiple offers to look over with these and will take the best available so if your paying cash and the offer is close or over asking you got a good chance to get the house.  now is a  great time to buy in florida because home prices are down and the rates are still good (around 5% for a 30 yr fixed), also the government is offering up to 8k dollars to first time home buyers before the end of this year. im not positive but they might have extended this date so ill have to double check about that.  at my office we have a in-house lender, she works for sunbelt lending and is one of the best so if anyone would like any help or has any more questions about real estate im here to help

[InFuMoUs]

Well the initial plan was for it to be a second source of income. I was also thinking of a long term plan for a future retirement get away place to stay during the winter months. But most importantly, if the need occurs, have the house handed over to my kids so that they don't have to work their balls off.

I was mainly looking for real estate in the Tampa area due to me having family there. This would allow me to have someone there in case something does come up and they can represent me until I get there or what not.  I was looking more into a house that doesn't really need fixing so that I don't have to dump more money into the house, otherwise I rather move myself down there and enjoy the fruits of my labour.

As for renters not paying rent, I will have to see what the law states down there in regards to that. I would probably make the renter sign a contract that if they miss 2 payments in a row, they would have a certain amount of days to vacate the property. I'm currently working part time at Costco while finishing up college and searching for a full time job. My parents are also here to support me financially if anything does rise up.

I understand that as I'm a foreign person owning property in the US, I would probably be subjected to higher interest rates, and thus am willing to put up with this, OR have the house placed under a family member's name there.

There are a ton of crap involved in this and I'm still looking into this, so I'll probably contact you Arie in the near future.

Tampa has alot of homes brand new inside and out for sale under 100k, maybe less. The pictures look good, but it would be better to see em with ya own eyes so you can do a walk thru to see what's good and what's not. I'm just not sure on the process of being able to see the whole house.

As for the renting, definitely make up a contract/lease. That would probably help you from getting screwed in the long run.

i live in ft lauderdale and i can attest to the market being very bad here the past year....like what's been said before there are a lot of foreclosures and short sales. when searching the mls more times than not you will come across a short sale or foreclosure to send to your buyer. short sales are a pain in the you know what but are getting a little better. it can take upwards to 4-6 months for the banks to give you an answer about your offer if you even get one at all and foreclosures can be a great deal if you can get the house before the hundreds of other people see it too and get there offer in before you. the banks usually have multiple offers to look over with these and will take the best available so if your paying cash and the offer is close or over asking you got a good chance to get the house. now is a great time to buy in florida because home prices are down and the rates are still good (around 5% for a 30 yr fixed), also the government is offering up to 8k dollars to first time home buyers before the end of this year. im not positive but they might have extended this date so ill have to double check about that. at my office we have a in-house lender, she works for sunbelt lending and is one of the best so if anyone would like any help or has any more questions about real estate im here to help

I got a ques, how can I get a list of what homes are on the foreclosure list? Do I have to go to a bank or real estate agency and ask for one?

[Philly Steve]

I just bought a house near Melbourne, FL in June and I can tell you that NY Steve and Arie are 100% right. My house was a short sale, 4 blocks from the beach in a well maintained neighborhood where home values are all equal or higher than mine. I got a great deal on it because it was a short sale. The bank is more willing to lose some money I think because they just want to get it out of short sale and get the money that the previous owners owed.

Another thing you might want to know about Florida if they didn't already mention it- i believe realtors are allowed to have "pocket listings" which are not listed on the MLS. I think that limits you so that you can only buy the house through the listing agent. I'm sure one of the realty experts can expand on that for me.