While in the past the majority of international buyers were retirees, the current buyers from overseas are getting younger and younger. Many of them are trying to secure a piece in paradise with a clear investment strategy. Use the home for a couple of weeks each year for themselves and rent it out to vacationers in order to cover the expenses like insurance and taxes. Just a combination of 2^nd home and investment.

However they have to keep an eye on one thing: Long term rentals don’t work, as they want to use the home or condo several times per year for themselves. They could rent it to snowbirds, but many homes are just too high priced in order to rent for 3 months or more. And many retirees are locked with their pension portfolios right now and have to scale back on their winter plans.

So these foreigners are advertising their homes as extended vacation places for other people who prefer the amenities of living in a community against staying at hotels for stay between a few weeks to several months.  Many communities in the Bradenton/Sarasota area however show relatively tight rental restrictions regulating the number of times per year a property can be rented out and/or minimum leases terms. Some restrictions are manageable, but if you are limited to a minimum of 6 months or just once per year, or even no rentals at all, it’s a “No-Go” for every investor.

Recent calculations show a loss in usability of about 25% – 33% for an identical property with or without rental restrictions. That’s about $100,000 on a $300,000 property in usability loss. The stricter the restriction the higher the loss. Because not everybody is planning to rent at this point the loss in property value might be a little less dramatic. As – however – in future more and more people are living on tight budgets, condos and homes with higher restrictions will have a lower potential of possible gain in value.

 For the homeowner it’s a disaster, just imagine: If somebody from your neighborhood knocks on your door and asks for support of new rental restrictions, ask yourself why they want to take $100,000 from your money? And if your association already has strict rental restrictions in place, ask yourself what you would do with the $100,000 if they get rid of them.

And the community is suffering, too: You have foreclosures or unpaid dues in your community? Maybe the owners are just not able to rent / sell their place as fast as possible. By time, they get late in the HOA dues and the community is suffering.

A well-off investor from overseas with cash in a property will probably be the best add-on for your community. So watch out and make sure you stay attractive for this clientele!

For more information on how to market your property locally and internationally please contact:

Axel Weiss, Broker
Weiss International Realty
Bradenton, FL 34205
(941) 866 1666

Here are some highlights of this article:

In the Sarasota-Bradenton market, 239 condos changed hands, a 130 percent increase from the 104 sales that took place during the same month a year earlier.

Realtors and analysts attribute the uptick to both the first-time buyer tax incentive, which was recently extended, and to the return of investors to the market.

All over the region and across the state, investors are snapping up condos that either came out of the ground or were converted from apartments during the boom.

In Sarasota-Bradenton, the median condo price was down 20 percent to $141,100 in November from the same month a year ago.

If your are interested in buying or selling a condo in the Bradenton/Sarasota are, please call the experts @ 941.866.1666.

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Buyers often are taking money out of stocks and retirement plans and sinking it into real estate.

Many are in search of retirement properties and are grabbing the bargains. Others want to buy a home for vacation and investment and are buying without even having seen the home in person.

If you are interested in selling your home, contact a Real Estate Company which specializes in working with International and out-of-state buyers – contact Weiss & Weiss International Realty.

Slightly more than half of foreign buyers (52 percent) purchased a detached single-family home, compared to 78 percent among all buyers nationally. Approximately one third (34 percent) of foreign buyers purchased a condo, 7 percent purchased a townhouse or row house, and the remaining 7 percent purchased some other type of home.

According to the 2008 Profile of Home Buyers and Sellers, 93 percent of all home buyers used mortgage financing to purchase their home. Among recent foreign buyers in Florida, use of mortgage financing was less frequent. Overall, 32 percent of foreign buyers financed their home with a mortgage while 67 percent paid cash with no mortgage financing.

Many foreign buyers (16 percent) purchased a property to use exclusively as a vacation home. Fourteen percent purchased a home to be used as a rental property. Given the
limitations on the length of time that foreign buyers may be able to personally use their property, 24 percent of sales were for a dual use – as a vacation home for the buyer’s
family and friends and as a rental property at other times.

The Miami-Fort Lauderdale area was the most frequently reported location of a home purchased by a foreign buyer in Florida. More than one in four (27 percent) foreign buyers purchased a home in the area, followed by 11 percent who purchased a home in each the Sarasota and Orlando areas.

If you are interested in selling your home, contact a Real Estate Company which specializes in working with International Buyers – contact Weiss & Weiss International Realty.

Source: Florida Association of Realtors

Our beautiful area is definitely a great place to be all year round.  We admit it – we´re crazy about this region, from the blue-green Gulf and wild rivers to buzzling Sarasota Downtown  and a word-class cultural and restaurant scene.

Unlike many beach communities, things don´t come to a halt in the off season. Rather the off season allows locals to enjoy our serene white sandy beaches all to themselves.

There is plenty of activity all year round: boaters, golfers and sun-seekers all find happiness in the Bradenton/Sarasota region!

Wheather you have your eye on a condo on the island, a home on the golf course or an expansive rural home, the Bradenton/Sarasota offers lots of choices for all budgets and tastes.

From an investment standpoint, you may be nervous about the current housing market. But especially this market offers lots of opportunities for buyers. Low interest rates and a large market favor anybody who is looking to invest.

Take advantage of the buyer´s market by checking out the local real estate. The variety of homes makes sure thateveryone can find their personal paradise. Enjoy the lifestyle you deserve – make your vacation last a lifetime!

No, no, don’t laugh. I’m serious. Of course, I don’t mean property that is overpriced or overvalued. The kind of real estate that is only available at these times and at these prices.  Realistic sellers, short sales and foreclosures mean opportunities for buyers.

Look ahead of the crowd

Today, you can find some great bargains on real estate in the Florida, if you know where to look. Look ahead now and you won’t have missed the boat like you did before. I mean these people from overseas saying, if we knew the market would go like this, we should have bought something here in 1995. The 2nd chance is just around the corner waiting.

Sure, the US Real Estate and mortgage market is desparate now. Have we already seen the bottom of the real estate market and the US-Dollar vs. the other important currencies of the world? I don’t believe so, but nobody knows for sure. Besides that election year is coming, what I know for sure is that the US Real Estate market is not Florida. Why?

Sail, surf and beaches! Period!

Espcially the Sarasota / Bradenton market was ahead of the rest when the prices began to skyrocket and it was ahead when they began to drop. So this is the market where you should starting looking now. Don’t wait to long and try to chase prices better catch them in advance.

More money to buy real estate

The falling dollar and the mortgage crisis make up a perfect storm that has left overseas investors in U.S. stocks and bonds facing unattractively low interest rates and unattractively low (or negative) returns on stocks. The dollar’s fall will cause them to lose money in their home currencies even if U.S. stocks hold steady.

An increasing number of overseas investors are joining the global search for alternatives.  The number one alternative is real estate.

 Do you think real estate is a smart investment now?

At some point, though, those same overseas investors will realize that U.S. real estate is a great hedge against what they fear most: an attack of runaway inflation in the United States. A physical asset such as real estate goes up in value when inflation soars. At some point, those overseas investors will notice that real estate in the U.S. is cheap enough that any recovery in the American economy will produce windfall profits.

And besides all profits, don’t forget: Surf, sail and beaches and this can be the source for: More profits…

Axel Weiss, MBA
Lic. Real Estate Pro, Lic. Mortgage Broker
with material from Matt Augustyniak, Horizon RealtyBradenton, Florida

The high level of inventory still presures sellers to lower the prices of their homes. Together with the actual conversion rate this makes Florida homes much more affordable for international investors. Watch out, there are a lot of bargains out there!

When you sell the property later after the market has picked up again, you can make a nice profit in appreciation. Additionally there´s a good chance to make a profit on the appreciated Dollar!

The increasing international demand itself will also have a positive influence on the market, which will help the local market to pick up again.

Don´t miss out – call us today for more information!

The most common flip involves one investor, who obtains the property at below market value. Most times this will be a property in need of major repair, or a property that has to be sold fast to avoid foreclosure. The investor then makes some necessary repairs, and sells the property at or nearer to market value, hoping that the sales price is higher than the purchase price plus costs of repair and financing.

 
When buying an investment property you always should choose a house that is in a good location. It should be priced enough below market value (usually 25%) to allow room for a profitable re-sale after the necessary work is completed.

Inexpensive cosmetic improvements often give a great return on your investment. Paint, landscaping, carpeting, and light fixtures are relatively inexpensive improvements. But try to avoid purchasing a fixer-upper that needs expensive structural improvements such as a new roof, plumbing, wiring, or foundation repairs.

When you look at a house that needs work, try to imagine it with fresh paint, refinished floors and new carpet. Consider the attractive features of the home. Try to distinguish between the cosmetic condition of the house and the state of its structure and major systems.

Flipping always takes skill, foresight, market knowledge, and market resources. Let us help you to find the right property for your investment!

Renting your investment property can provide you with monthly cash flow while you build equity using your tenant’s money. Renting also allows you to take advantage of tax breaks for any improvements you make to the property.

Although rental property is almost always a good investment, you should understand the consequences of becoming a landlord. When you own an investment property, you want to get the highest monthly rent possible with the lowest vacancy rate.

It pays to keep your property in good condition while you are trying to rent it, as well as after the new tenants move in. If you work to keep it that way, your tenants are more likely to feel motivated to stay in the home.

When something needs to be repaired, be sure your tenants know whom to call to get the job done. Arrange for periodic inspections of the property to check for leaking roofs or pipes, defective wiring or malfunctioning appliances. If you are an absentee landlord, it makes sense to hire property management professionals to keep a close eye on your investment for you.

After you’ve let the property rent for a couple of years, check its value and you will be pleasantly surprised!

The advantage of a buy and hold is that you don´t have to put in much work – you just have to find a great property in an appreciating market, and let a passive investment earn big returns.

Florida´s white sand and the ocean is only two of the things that keep people coming to the area. Whether they are new residents or just tourists – they will always need a place to live. This is why Florida real estate stays at the top of the list for investors.