What About Investment in Tampa Real Estate?
July 7, 2008
Many people who’ve never invested real estate in Tampa are now thinking about it for the first time, as compared to current trends in Wall Street. . “Investment real estate” may cover everything from your vacation home at the beach, to apartments, offices, shopping centers, warehouses, and land. This is a broad subject, and we will approach it in sections, beginning with Housing.
A. Housing. The bottom line is this: In good times and bad, people need two things above all: A roof over their head and food on the table. Recent bad news about the housing market does not mention that rental occupancies are up. In Florida, one often quoted statistic is that 31% of people in Florida live in rental housing. And of course the population here continues to grow. In Tampa Bay, rental occupancies have been solidly above 95% for years. We smile when buyers and investors from other parts of the country ask us what the vacancy factor is!
The answer is, housing is an excellent investment. Nationwide, individual investors and not big corporations account for the largest percentage of owners. Forty-seven percent (47%) of all rental housing properties are owned by individuals. Looking at it from the viewpoint of large investors and pension funds, in the period 1984-2004, apartments averaged a 9.3% total annual return on investment, compared to 7.6% for all property types combined.
What about right now? Any real estate professional will tell you what a great time this is to buy or invest in Florida real estate. While the news media have been emphasizing the down side of things, 1)Prices are more reasonable today, 2)interest rates on mortgages are very attractive, and 3)In Florida, as a Sunbelt State, the future continues to point to strong demand and growth. While Americans have been wringing their hands over a perceived drop in values, European and South American investors have recognized this as a time of opportunity. And Tampa Bay has often been singled out as one of the best buys in the country when it comes to rental housing.
How much can I make in real estate? How much do I have to invest? Unlike other business investments, real estate has several considerations. First, if it’s property which produces a net income after expenses, it’s making money. The second consideration is that over time, if it is a sound choice, it will likely appreciate in value. Third, the property owner realizes depreciation and expense deductions on his tax return each year – a possible important consideration if he has other income he wishes to offset. Fourth, when you sell that real estate investment, you can “roll over” into another like kind property and defer tax liability on your capital gains, by means of Internal Revenue Service Law, in a “1031 Exchange”.
Usually, regardless of the size, you will have to invest 20%-25% of the price, plus closing costs, and can leverage, or mortgage, the rest provided that your credit is good, and that the property has a positive cash flow sufficient to support the debt after expenses. Retail banks may lend on small investment properties, however the most competitive lenders are usually Insurance companies and other institutional lenders.
Each Investor has a different approach, a different motive. Yours may be Positive Cash Flow after expenses, or Long Term Appreciation. It may be a writeoff for you against other income. Some investors are interested in CAP (Capitalization) Rates. Others want to see Cash-on-Cash returns, or total Return on Investment (ROI). Yet others may want to buy distressed properties and invest “sweat equity’ on repairs and improvements to make the property perform better. So a combination of factors can influence your returns Your own goals should be examined so that you can approach this exciting field with a realistic, eyes-open attitude.
Tampa Water Restriction Rule in Effect
June 14, 2008
So far in 2008, the City of Tampa Water Enforcement Office has written more than 800 water use citations, 355 in the month of May alone. Current outdoor water use restrictions in Tampa, including limits on irrigation to one day per week, have been in effect since May 4, 2006, under Emergency Water Use Restriction Ordinance 2006-104.
Despite sporadic rainfall, the level and flow in the Hillsborough River – Tampa’s primary drinking water source - are still below normal levels. Continued conservation of potable water is needed to ensure adequate water supplies are available.
For those of you who may have forgotten or those new to the area, here is a quick summary of some of the provisions Read more
Are Home Warranties Worth It When Selling a Home?
June 5, 2008
A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. Warranties can be purchased by either the buyer or seller. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year.
There are a lot of companies offering home warranties and coverage of individual policies can vary widely. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It’s important that you read the policy closely and understand what is and is not covered. The cost for a one year home warranty typically runs between $300 and $500, depending on the size of the home and the specific types of coverage. In addition to the policy premium, there is normally a deductible of $50 - $75 to pay when making a repair claim. Read more
Attend The Florida Aquarium’s SudsFest 2008
June 4, 2008
If you live in one of the Channelside condos in Downtown Tampa or happen to be near the Channelside District, this might be an event for you. There’s never been a better excuse to drink like a fish! The Florida Aquarium’s SudsFest 2008, features more than 50 worldly varieties of beer by Anheuser-Busch and delicious food from 16 area restaurants.
Get out of the summer heat and get into the cool! 250,000 square feet of air-conditioned exhibit space with dozens of craft brew style beer and tasty international food pairings. But don’t get too tanked! Save some fun for Father’s Day. Sunday, June 15, dads get free aquarium admission with a SudsFest ticket or a full-priced regular admission to the Aquarium.
June is National Homeownership Month
June 4, 2008
June is National Homeownership month. This year’s theme “Back to Basics” – is designed to underscore the importance of having strong, common-sense fundamentals as a way to maintain a sustainable housing market. Many of those basics were ignored in the lead-up to the housing bubble. HUD’s Federal Housing Administration is at the center of the Administration’s efforts to help qualified homeowners refinance into safer, more affordable mortgage products. Over 200,000 families are already using FHA to keep their homes.
West End Tampa Condos and Townhomes
June 3, 2008
West End Tampa is a 20 acre master planned, gated community comprised of apartments, condominiums, town homes and retail features. It is centrally located between the region’s two largest business centers - Downtown Tampa (within 1.5 miles) and the West Shore Business District (within 3 miles).
West End Tampa is encircled by major medical centers including Tampa General, Memorial and St Joseph’s hospitals. It is situated among the area’s most desirable school districts and is half a mile from the nationally accredited University of Tampa. The West End Tampa community incorporates architectural sensitivity with ample, open public spaces to create a living environment that is distinctly different from the existing inventory of “Urban Lifestyle” product that are prevalent today.
If you would like to take a tour of this project or just be updated with the latest info, contact us today.
Tampa Homeowners and Businesses Get Ready For Super Bowl XLIII
June 2, 2008
We all know how the Super Bowl XLIII in Tampa will impact the community. Tampa homeowners and Tampa businesses are asked to support the big event. In 2009, the road to NFL greatness leads to beautiful Tampa Bay and Super Bowl XLIII. Our community is excited to welcome the nation and the world and hope they’ll enjoy our rich history, year-round sunshine, white, sandy beaches and thrilling attractions.
The Tampa Bay Super Bowl Host Committee is now drafting its team of more than 6,000 volunteers to ensure Super Bowl XLIII is a great success. The official online volunteer application launched online April 1st and within one month, more than 3,000 volunteer had registered. Volunteers will offer more than 100,000 visitors a first impression of Tampa Bay, providing guests with a warm welcome and a helping hand at airports and hotels across the region. Volunteers will also be needed at NFL Experience, a family-oriented, interactive football theme park that opens the weekend before Super Bowl Sunday. If you are at least 18-years-old and can work two four-hour shifts the Host Committee wants to hear from you. The Host Committee will provide all participants with training and an official volunteer uniform.
10 Tips for Homeowner’s Insurance Costs Savings
May 31, 2008
When buying a Tampa home, the lender will require you to obtain homeowner’s insurance. During the hurricane season in Florida, it is vital that you get this done as soon as you place a property under contract. There are times when a hurricane warning comes, that insurance companies halt any new applications. This means that you may be ready to close on a home, but temporarily can’t get approve on a Tampa home insurance policy. As a homebuyer, there are ways to lower your home insurace costs:
1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property you’re interested in buying. CLUE reports detail the property’s claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired.
Cardel Homes in Country Walk Incentives
May 30, 2008
If you’re looking for great Wesley Chapel Homes for sale, then look no further than Cardel Homes in Country Walk. Below are great incentives from Cardel Homes’ THE PLATINUM SERIES at COUNTRY WALK. These are their current inventory special.
Starling - 2525 Sq Ft, 3 bedrooms, a den and a bonus room. Home shows like a model and sits on an incredible homesite. Highlights too numerous to list include all countertops, cabinetry, flooring, fixtures, two tone paint, double pane windows, Central Vacuum system, Radiant Barrier insulation and a whole lot more!
4931 Point O’ Woods
$319,995 READY NOW!
Kingfisher 3 - 3136 Sq Ft, 4 bedroom, 2.5 bath, 3 car garage, over 600 sq ft of bonus room with a media room, and a full wetbar! Upgrades galore makes this waterfront home stand out! This is our most popular model, priced to go now at over $100,000 under market (several recent closings).
4814 Diamonds Palm Loop
$344,995 READY NOW!
Kingfisher 3 - 3136 Sq Ft, 4 bedroom, 2.5 bath, 3 car garage, over 600 sq ft of bonus room with a media room, and a full wetbar! Home has a Full Stone Front and is located on a deep conservation homesite. Read more
How To Stretch Your Canadian Dollar By Moving To Tampa
May 28, 2008
When it comes to your hard-earned money, Tampa FL real estate offers you more value for it even at less the cost. There’s absolutely more than one reason why it is recognized as one of the best places to live and work.
For one, Tampa proves that it is an erroneous belief that you have to be in a city where costs of living are high just so the family can have the best quality life and have a great leisure time. Tampa is a lovely area where beaches, nature and modern living come together in a perfect combination yet still maintain a below-average cost of living. So, whether the family has an active lifestyle, or one that enjoys the simple things in life, there is no need to look far as Tampa is a city bequeathed with amenities and natural beauty that will cater to their different needs. There are also Tampa homes that already come with swimming pools so that everyone can have a good time during the weekend. Read more
