Money makers in U.S. are fleeing their home states and looking to the Florida luxury real estate market options for a better quality of life, after the Tax Cut and Jobs Act passed by Congress and signed by the president on 2017, set the state and local taxes cap set to $10,000.
South Florida is sure to offer multiple benefits for the real estate industry, It is not a myth that South Florida has the most perfect weather all year round, but it also offer lifestyle options, all sort of real estate and projects offering amenities that fits every lifestyle need, and tax benefits.
Rise in Multimillion Dollar Real Estate Market
The multimillion-dollar real estate market in Florida is rising; the many beautiful and well located mansions options, the no state income tax obligation, and the lower property fees, are now part of the long list of benefits that wealthy real estate buyers around U.S are adding to their list of benefits, and motivating them to move to the Sunshine State. The new South Florida real estate buyers are buying properties valued up to $30 million, for them it is some sore a bargain, if they compare with all they have to pay on state taxes and city taxes on their home states.
Multimillion Dollar Buyers in Florida
As well as millionaire business people from other states in U.S., Hollywood stars, and wealthy foreigners are being attracted by the fabulous lifestyle and tax benefits the State of Florida offers. On December 2018, Kanye West brought to Kim Kardashian as Christmas present, a $14M condo in the 18-story luxury beachfront tower Faena House. Also, a $50M mansion was just sold in Miami Beach on February 1, 2019.
The good news for Miami, as developer Edgardo Defortuna said is: “Miami doesn’t really depend on anyone given economy.” According to data released by Brokers, “luxury purchases are on a steady climb in South Florida. The Overall housing market in Miami is seeing the first annual rise in market-wide sales in more than five years, both on the coastal mainland and the beach.” The number of home sales increased about 11 percent to 3,518 in the fourth quarter of 2018 for Miami coastal mainland compared to 2017, according to the sales data. There is more consistency in regards the number of people moving to South Florida, looking for opportunities,
Despite the fact that traffic may be a rival, the influx of American buyers doesn’t seem to be a temporary trend, it is projected to last. We may need to figure traffic solutions, better transportation, because there is a lot of people moving into South Florida now.
Even though New York is on the top as the real estate market in the country, it is still losing ground, together with other markets around the country. This is an opportunity for the South Florida luxury real estate market to expand, as it is for the brokerages firms and realtors to look into the luxury market opportunities.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email email@example.com.
With the constant change and advance in technology, and being that millennials have all the information, understand how every dollar in their pocket is indebted, and realize that their own national currency is indebted to an-already indebted US Dollar, enthusiasts see it as an alternative way of paying for regular things, and an option to acquire their home.
Maybe you have heard about cryptocurrencies, maybe you haven’t, but we are confident that you already have heard about Bitcoin and other cryptocurrencies. With cryptocurrencies on the rise, it is time to get informed and learn some basic concepts that relate with the currency and the possibilities it offers.
What is Cryptocurrency?
It is a digital currency. It is a medium of exchange, created and stored electronically in a “blockchain” using encryption techniques to control the creation of monetary units, and verify the transfer of funds. It emerged as a side product created on 2008, by Satoshi Nakamoto “A Peer-to-Peer Electronic Cash System .” This creation found a way to build a decentralized digital cash system.
What is Blockchain?
It is the technology that establishes the digital currency. It allows digital information to be distributed, but not copied, meaning that each portion of the data can only have one owner. It is described as a “digital ledger” in a network. The records are public and exits simultaneously in millions of places, which makes it harder to hack. The proponents of the blockchain call it “a trustworthy system in a trustless world”.
The list of cryptocurrencies is long, some of them are certainly more common, and they started to make an impression in real estate, so for the effects of this article, we’ll focus our attention on Bitcoin.
What is Bitcoin?
It is the first and most famous digital currency, it works without a bank or intermediary. It has created wealth for investors, and some had cashed out and used it to buy their home. Some real estate sellers are willing to accept Bitcoin as payment.
The marked evolution on technology, and the influence it has on the way business are operated and transactions are handled everyday, the cryptocurrency has a gigantic play field in the real estate market. In Florida, some real estate transactions have already closed using Bitcoin. A real estate transaction will be conducted for the most part the same as a cash transaction; however, Natalia Karayaneva, CEO of real estate startup Propy highlights “The main issue we’ve experienced is exchanging large amounts because sellers, very often, want to get paid in fiat,” she explains. “When payment is crypto to crypto, large amounts have to be sent in smaller portions as transactions are not reversible. This is because sending large amounts of crypto is still a risky process e.g. if a hacker swaps a public address, the transaction is not reversible.” For some sellers, it may be difficult feel confident to accept Bitcoin; in regards of the buyers, you may have to “sweeten the pot” for them to accept the cryptocurrency.
Sellers and buyers considering Bitcoin as a payment method, should first look at the pros and cons before moving forward.
Pros and Cons of Buying and Selling Property with Bitcoin
Buyers and Sellers
|The Pros: An international currency, independent of a country or central bank, for a globalized economy, with the equivalent of cash, it provides:
||The Cons: Bitcoins advocates are hoarding it, for what they believe is hyperinflation, as they don’t trust the Federal government, neither the central banks.
As for what to expect for Bitcoin in 2019, it is uncertain, as the last two quarters of 2018 the cryptocurrency had a tumbled. The magic about the coin, was that it has a fixed supply, which suppose to prevent manipulation and inflation. We’ll have to wait to see what happens.
Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email firstname.lastname@example.org.
Owning a real estate property represents one of the biggest financial commitments you will incur. Once you have closed on the purchase, your property will become an important portion of your wealth. The closing process implies several tasks, and a series of steps that involves every party along the way: the real estate agent, the mortgage broker, the seller, the buyer, the inspector, and sometimes others may take part.
In Florida, once the seller and the buyer are in contract, typically, every step of the purchase process is supervised and facilitated by a real estate attorney or a title company which will prepare all paperwork related to transferring the property and emitting the new title to the buyer. Also, Florida Department of Financial Services controls the real estate transactions when an escrow fund has been created for the closing and when title insurance has been purchased.
What is a title ?
It is a bundle of rights, and serves as evidence of ownership of the real estate, it represents your legal rights in the property’s possession, use, control, and dispossession. It includes all previous ownerships, uses, and transfers.
Before the property is legally transferred to the new owner, a title search must be performed to make sure the title is free and secures ownership. Even the most thorough search of the county public records may not reveal certain title defects on the property. For this reason, it is recommended to get title insurance, to protect against the possibility of future loss, should a challenge arise.
What is an owner title insurance?
It is an insurance policy that protects the homebuyer for the full value of the property and from the following challenges that may occur in previous ownership:
- Mistakes in the recording of legal documents,
- Forged deeds, releases or wills,
- Undisclosed or missing heirs, including spouses,
- Deeds by persons of unsound mind,
- Deeds by minors,
- Deeds executed under an invalid or expired power of attorney,
- Liens for unpaid taxes, and
How long does the owner’s title coverage last?
An owner’s title policy remain in force as long as you or your heirs have an interest in the property. The title insurance will protect the title for the buyer. Before the emission of the title insurance policy, yout title agent will check and review any defects such as unpaid taxes, a lien filed by a contractor, an assessment or any other title defect, a thorough review will be made. Without the protection of the title insurance, your investment is in risk.
How title insurance protects the owner?
The title insurance protects the owner from claims or rights that another party may have for unsettled claims from the previous property owners, prior the actual purchase.
Why homeowners should get the title insurance?
Title insurance is a mandatory part of the mortgage process if the purchase is under a mortgage, the lender will require the home buyer to pay for lender’s title insurance as part of the mortgage closing costs. If anything wrong appears with the title of the property, the title insurance pays the policyholder for the cost of perfecting your title rights, or provides compensation if you lose the property altogether. Unfortunate to say, the record of deeds doesn’t guarantee accuracy in its records-keeping.
The cost of the title insurance will depend on the amount of the loan, the down payment and credit score of the buyer. Remember the title policy never expires, and protects the buyer until he holds ownership of that property.
Are you or your clients looking to buy or sell property? Choose to work with an attorney owned and operated title company that can offer the best arrangements, maximum protection, and reasonable rates. Title Partners of Florida offers high quality title company services and count with years of experience. Call us today.
If you are in the business of selling homes, understanding the Millennials generation, will help you as a Realtor to factor their characteristics and behaviors and be able to market your listings, so it becomes easier to build relationships, gain trust, and close business with this generation.
A Generation refers to a group of persons that grew up within the same time frame, experiencing similar events, common social, economic, historical, and political setting. Regardless of some disparity in details, it is understood that there are six American generations: the Pre-Depression, Depression, Baby Boom, Generation X, Generation Y, aka Millennials, and the Tweens aka Generation Z. In this article we are providing some keys on how to market the Millennials.
It is common to hear that “not enough millennials are buying homes like the previous generations.” Most of them are renting homes, or relocating from city to city, that buying a home is not their priority, but this is only true for the youngest of the generation. The older millennials are beginning to enter their peak spending years. They are now the largest part of the workforce and a great audience to target your listing because of their large spending power and presence in society, but you must understand them and know what catches their attention.
Millennials are typically in their mid-twenties to late-thirties. They are up to date with everything happening around, are known for being tech-savvy and independent, have busy lives, spend good amount of time on social media, and settling at a later age. Their motivation is different that previous generations.
Get the millennials attention when marketing your listing following these tips:
- Be as helpful as you possibly can: millennials rarely have home buying experience. Typically they consult the internet, their parents, or older family members for advice on important matters like buying a house. They are also more likely to consult their friends before making purchase decisions.
- Be easy and patient to talk: be prepared with all the information at hands, to answer every question, since they will have a lot of them. Make sure to breakdown the complexities of the process of buying a home.
- Be friendly: millennials value good communication and friendships. They influence one another’s opinion and behaviours. It is more likely they will share their experience with their friends, and encourage them to also buy a home. Word-of-mouth is very important to them.
- Make emphasis on the listing space: millennials appreciate their space and ambiance. Because they are social people, and like to engage in group activities, they love to have friends over, host dinner parties, and have plenty of space for their projects. If you ask millennials about their dream home, it is more likely they have a home wish list that includes open floor plan, abundant natural lighting, and a convenient location, this last is extremely important to millennials and will be a huge factor in whether or not millennials are interested in your home. They need to be close to their activities or have easy access to the highways and the transportation options that take them there. Convenience and accessibility are key words for millennial.
- Respond fast to their inquiries: millennials love prompt online communication while using their phones. Be it phone calls, emails, or direct messages, or instant notifications with updates about your listing that interest them. Millennials love to receive their initial information online and they expect to have it fast. They value quick responses, or they’ll lose interest, they see a slow response a negative consumer experience. They are all about instant gratification “I want it fast, and I want it now.” They expect a faultless experience.
- Build an online presence: millennials are “digital natives,” they get all their information online. It is relevant that your listing is published on all the social media platforms, specially Instagram and Facebook. Just make sure to share content that is appealing, and high resolutions photos that attract them. Millennials are captivated by simple, minimalist, and clean design. Good-quality videos definitely catch millennials’ interest. Presentation and delivery of the content is very important for this generation.
Keep these tips in mind when marketing your listings to millennials, so they feel at ease with the purchase of their home. Most of all remember, millennials can buy homes and once they really want something, they’ll make sure they get it. In addition, millennials influence one another.
If you have questions about your real estate transaction, and want to make sure it flows smoothly to a successful closing, contact us by phone (844) 321-6168 or by email email@example.com.
A title company performs several fundamental roles in day-to-day real estate transactions. It generally acts as the intermediary between the buyer, the seller, the insurance company, mortgage lenders, and any other party involved. Title companies also search real estate titles’ histories to review the records of the property in subject in order to advise the parties involved the status of the property.
Title companies make sophisticated title search for outstanding mortgages, liens, judgements, unpaid taxes, restrictions, easements, leases, legal actions, or anything else that might affect real property ownership. After presenting the abstract of title, it issues a title opinion letter, a legal document that expresses the validity of the title. It is common that title companies retain the escrow account funds and documents designated to protect the parties interests.
A real estate attorney helps clients with legal issues related to real estate like prepare and review documents such as appraisals, agreements, mortgages, disputes, titles, file liens, draft deeds, transfer ownership documents, and oversee closings. If you are buying a real estate property in Florida, you have the choice of hiring a title company or a real estate attorney to assist on the closing.
The question is: why would you hire a real estate attorney when you have the option to hire an attorney owned and operated title company? It is very simple, an attorney owned and operated title company is established, managed, and controlled by an attorney. In addition, title companies must adhere to the American Land Title Association’s (ALTA) best practice standards, and are regulated by the Florida Department of Financial Services. A title company plays a crucial role in the process, coordinating the real estate transaction since it starts until the closing. It facilitates the closing, issues the title insurance, files and records paperwork, helps protect your investment, and prevents you from expensive and often hidden potential problems that may place the ownership of your home or your client’s home in jeopardy.
Choosing an attorney owned and operated title company provides you with the comfort that if an issue arises, the legal advice is in-house, you have access to legal answers concerning the settlement and the necessary corrective documents, and solutions can be prepared immediately, eliminating the risk to delay the closing. Make sure you comply with the law every step of the way, and guarantee moving forward without complications.
Working with Title Partners of Florida, an attorney owned and operated title company, you are hiring a team that has legal knowledge, is in regulatory compliance, maintains clear and quick communication, and is ready to quickly overcome issues that may arise during your real estate transaction. We are proud members of the Attorneys Title Insurance Fund, a division of Florida’s largest title insurance underwriter, which supports and promotes the success of attorneys’ real estate practices. We are Secure Insight Trusted & Verified.
We adopt and sustain the use of best practices in title insurances and closing process pursuant to ALTA standards, as follow:
- Obey with all state and federal laws and regulations,
- Ensure that our employees are updated with newly released ALTA policies, procedures, and standards,
- Provide sufficient protection for all customers’ personal and financial information.
We assist Realtors® with residential sales, commercial sales, short sales, and foreclosure. We offer equal professionalism and diligence to buyers, sellers, and lenders. We are a full-service, title, settlement, and escrow company with 17 years of experience formed of attorneys, paralegals, and significant support staff providing utmost efficiency and professionalism at reasonable rates. We are committed to your success and helping you strengthen your relationship with your clients.
Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email firstname.lastname@example.org.
The profitability of renting luxury condominiums in South Florida is yet to be proven. The high inventory and output of extravagant amenities determining high prices, tied to the stagnation of wage-increase for potential renters has been a sign of trouble for the investors’ industry.
For investors, these condos lost their attraction to be considered a sound, profitable investment, after evaluating the cost of association fees, assessments, and taxes.
The downturn in prices for these condos, “already happened” said Josh Migdal, Miami attorney who represents clients in multiple jurisdiction and is known for his work on behalf of the Federal Deposit Insurance Corporation (FDIC) in the wake of mortgage meltdown and the condo market.
Huge Supply of Million Dollar Condos
The condo oversupply is clear in luxury projects, yet absent in affordable projects. Condo Vultures’ website who weekly distributes the Market Intelligence Report for residential real estate in Miami-Dade, Broward, and Palm Beach counties, recently reported that there is a 70-month supply for condos costing at least $1 million.
Last year, a news report found a “home luxury glut”. There was a 124% increase of condos and luxury properties over the same time in comparison to the previous four years.
Last year, Ron Shuffield, President of EWM Realty International, a 54-year-old real estate brokerage, with 10 offices in South Florida said, “There are more properties on the luxury market right now than we’ve ever had in history.”
Peter Zalewski, founder of Condo Vultures, told the Herald, “there’s a 32-month supply of condos in downtown Miami alone, so the only way you’re going to move a condo in this market is to lower your price.”
Although in the second quarter of 2017, there was a median worth decline for condo/townhouse of 22% in zip code 33132, and 10.1% in zip code 33140, the recent trends in Miami real estate luxury prices finally saw a growth in January of 2018, and have reached the highest price gains since July 2005. The luxury market in Miami is growing according to Danielle Hale, chief economist for realtor.com®.
Shrinking Supply of Affordable Condos
There has been a crunch in the affordable housing in United States; consequently, affordability for renters is becoming an issue. Florida families spend more than half their income on rent, lead by a shrinking in the inventory of rental units and the increase of rental prices.
According to the Brooking Institute, a research leader non-profit organization for solving problems facing society at the local, national and global level, the supply of affordable condos within the $200,000 – $300,000 range in Miami-Dade has been shrinking, while the county’s median household income stays at $45,900.
The advice for investors looking for condos is to do their homework, analyze their investment prior to commitment, and align their costs with the return. Also, to look for alternatives outside the multi-million-dollar market areas with lower prices. An example of these areas is Homestead which has been undervalued, but where a significant appreciation has been occuring during the last two years.
Despite the variation in inventory supply, price, and climate change among other factors, it is well known that Miami-Dade is still one of the most attractive markets in the country to invest in real estate.