Miami Condo positive cash flow

Miami Condo positive cash flow

BUYING A MIAMI HOME WITH THE BEST RESALE VALUE

When many of us buy a Miami home, we sometimes consider just the superficial appeal and do not devote much thought to Miami market resale value.  We may be blinded about our South Florida home purchase and are thinking about how we will decorate it; as well as the years of enjoyment we will derive from this home.

However, most Miami home buyers do not spend more than five to seven years in a house and consideration should be given to resale value as well as current satisfaction.

The Miami property location of the dwelling in a residential neighborhood is important and you have to look at the Miami real estate market trends to judge future value. There are the basics to keep in mind like, avoid living on a busy street with a great deal of traffic especially if you have small children.  Backing on a main street is also undesirable due to the possible noise factor and lack of privacy.  There are are certain Upper East side neighborhoods in Miami which limit drive through traffic such as Morningside and Belle Meade.

  

An important consideration is the safety factor.  The local police department will be able to provide information on crime statistics in the neighborhood. Another important point to research is the Miami neighborhood zoning.

MARGIN LOAN vs. SECURITIES-BASED LINE OF CREDIT

A margin loan is capped at 50% advance rate against your portfolio.  During these tough economic times and tight credit markets you will need more than 50%.  The securities based institutionally-managed credit line offers SIPC-insured accounts and allows for 70%-95% against the securities portfolio. That additional cash may be the difference of obtaining a perfect Miami real estate investment opportunity or losing it. This program allows the Miami real estate investors to leverage securities with cash advances higher than those available through conventional margin accounts, without selling shares.

Federal regulations will not allow the use of these credit lines to purchase more securities, but it could be the solution for purchasing a new Miami home, an Miami investment property, purchasing a business or any other purpose that may be desired.

This is a true “NO DOC LOAN” , no appraisal, no credit report, no income or employment verification Just proof of securities owned. Quick closings. 

Q & A on Miami Real Estate Market

Questions: By Tean Wong; www.teanwong.com,  Mon Sep 13 2010, 14:47
Is it still a good time to buy there? What do you see changing in FL market from last year?

Answer: By Matthew Jacocks,  Tue Sep 14 2010, 07:25
I can not speak for all of Florida because I only work in Miami and the Miami real estate market does not follow the same trend as all of Florida. The Miami market is "night and day" compared to last year. In some areas the prices have started to rise because" normal" sales are closing, as opposed to REOs or Short Sales. I am speaking of neighborhoods where the starting homes prices are $350,000. International buyers are definitely driving the market, which is what makes the Miami market different from the rest of Florida. Most of the foreclosures have multiple offers and most short sales already have offers submitted to the bank. One aspect that is stalling the market from a faster recovery is the sellers which have their properties listed for 1 or 2 years due to overpricing. The sellers can not or will not take the same loss as a bank, therefore that inventory has become stagnant. So basically, buyers and sellers are having a standoff on defining the normal market value; but sellers are slowly facing reality and now sometimes buyers meet them halfway. The opportunity is in the purchase of a waterfront condo or home, because unlike Dubai, Miami can not create any more waterfront land.

Miami real estate market depression means it is a great time to buy

In light of the current Miami real estate market depression means it is a great time to buy that Miami waterfront home or Miami waterfront condo you have always dreamed of. Don't run with the heard and buy when prices start to rise but capitalize on current market conditions.There are some unbelievable Miami real estate waterfront home deals on the market. One great deal that will not last is 1350 NE 101 St in Miami Shores. This house was first listed for $2,895,000 and is now currently listed at $1,495,000. This house boasts direct bay views in the private upscale Miami Shores neighborhood. This is not a Miami short sale or Miami Foreclosure but just one of the great opportunities to purchase a Miami Waterfront home. The neighborhood of Miami Shores, Florida is a 100-year old historic community of North Miami stretching inland from Biscayne Bay. This Miami Shores neighborhood includes luxury Miami homes, Miami businesses, Florida International University and Johnson and Wales University, Barry University and 11 parks. Miami Shores, Florida remains a quaint village at heart, with a small town appeal with a main street and luxury Miami private homes on palm tree-lined streets. Miami Shores Country Club offers golf, tennis and a new water park.

If you are in the market for a Miami waterfront condo then it is a great time to take advantage of the deals on South Beach condo development Bentley Bay South. A must see is Bentley Bay Unit # 1402. This Miami Condo unit was first listed for $1,200,000 and is now currently listed at $675,000. There are many amazing South Beach waterfront condo deals to take advantage of in this market. If you are thinking of buying a Miami condo in timeless South Beach, where the nightlife and restaurants are an international destination, then now is the time to act.

Miami Pending Home Sales Continue to Rise

The Pending Miami home sales which are compiled of both Miami condos and Miami Single family homes have risen 33.7 percent in August which contrast August 2009, from 7,570 to 10,119, and increased .06 percent from 10,113 to 10,119 from previous months according to Miami Association of Realtors and South East Florida Multiple Listing Services.

This rise is largely accredited to international Miami real estate buyers, which bucks the national trend which is suffering from the expiration of the tax credits. Another benefit of international buyers is they tend to be mostly cash purchases. If you compared Miami condo sales to Miami single family home sales, condos are still out preforming Miami single family homes.

According to South Florida's commercial real estate insite "in August, condominium pending sales increased 49.7 percent compared to the previous year, from 3,848 to 5,759 and increased 0.7 percent, from 5,720 the previous month. Pending sales of Miami single family homes in August increased 17.1 percent from the previous year, from 3,722 to 4,360, and decreased a slight 0.8 percent from the previous month when pending sales totaled 4,393, showing a preference for condos in August."

This shows that Miami real estate market is slowly recovering and the distressed property inventory is being absorbed. The pending sales would be higher but there is a standoff between sellers and buyers about current Miami property values.

Tax implications of a Miami short sale

If you are considering a Miami short sale of your home, you will need to take into consideration that you may receive a form 1099-C for the amount of the lender’s losses. The reason being is this is considered loan forgiveness by the IRS. Also, you might need to consider that if you have assets the amount on the 1099-C might be taxed as regular income. These are all things to take into consideration in a Miami short sale. You should consult a qualified tax and legal counsel to see if these circumstances apply. 
We offer free consultations on Miami short sales and explain the process so that you can make an informed choice. This is an important financial decision and you should be fully aware of all possible implications that apply to a short sale.

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