The start of 2009. What’s going on?

A sampling of things in the midst.

• We are in a recession/Financial Meltdown. By a common rule of thumb, a recession occurs whenever the gross domestic product, the total output of goods and services, declines for two consecutive quarters. The GDP turned negative in the July-Sept. quarter of 2008 and falling at an even sharper rate at this time.
• The most important indicator of a productive economy, gross domestic product, Florida led the nation in 2005 and now ranks 47th.
• The economy is in a recession because of the housing market, and the housing market is further depressed because of the economy.
• Vanished Companies:
  • Bombay Co.
  • Lehman Brothers
  • Bear Stearns
  • Aloha Airlines
  • Skybus.com
  • Champion Air
  • Linens N Things
  • Steve & Barry’s
  • Catalog Retailer Lillian Vernon Corp.
  • Sharper Image
  • KB Toys
  • The big three (GM, Ford, Chrysler) on the brink….
  • and counting…..

• South Florida home values have fallen to 2003 levels. (We still have about 40 months worth of  inventory (Miami-Dade)- for a balanced market it should be around six months). Fear, financing and falling home prices are keeping consumers from buying a home. A once robust housing market (Florida) has a record inventory of 300,000 unsold homes, six times the normal average of 50,000.
• Florida Home sale purchases from foreigners made up 29% between summers of 2007 & 2008. Canada, Venezuela,UK, France and Italy topped the list of South Florida home buyers. But numbers have dropped considerably since then.                            
•   About 2/3 of the homes listed for sale on South Florida are for less than $300,000-but only the most credit-worthy buyers need apply.    
•   30-Year rates at new low average to 5.1% down from previous record 5.14%.
•   15-Year fixed rate mortgage dropped to 4.83% from 4.91%.
•   Florida’s minimum wage grows to $7.21 per hour. Will rise to $7.25 on July 24, by order of Congress.
•   Whole Foods pulls out of MET Miami Project. (Reason- Take a guess!-I would still like to see the details though) This was supposedly the Ace in the hole   for the MET project in Downtown Miami.
•   For the first time in decades fewer people are moving in to the state. With the mortgage crisis, credit crunch, property taxes and flat lining of population, the twin industries that buffered Florida through previous recessions-Real Estate and construction-are weighing down Florida’s economy.
• Employment- The state led the nation in job growth in 2005 and now leads the nation (9th) in job losses- a 15 year high. About 160,000 unemployed Floridians.
• Real Estate- Florida is 2nd in the nation in Foreclosure filings. (444,000 homeowners in default(Realty Track).

As you can tell, the list  is mostly about the negative stuff that’s going on at this time, but this too shall pass; 2009 is going to be rough for South Florida and so for the rest of the country,  for that matter, but we will bouce back once again in 2010-2011. So hold on to your wallet, if you can!

God Bless America!

 

The Recuset Group

For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

“The purpose of life is a life of purpose”

Technorati Tags: Beginning of 2009

Compare Homeowner’s Insurance Rates

Did you know (Florida Homeowners and buyers) can now find insurance cost comparison on a state run Web site? Compare Homeowner’s Insurance Rates which creates a fictional house and then shows how much it would cost to insure, by company and country, based on rate filings submitted to the Florida Office of insurance Regulation. A valuable tool and a great way to find insurance best suited to individual needs. You can compare rates offered competing companies working in your area, sorted from lowest to highest cost, with a company link.

 

 

The Recuset Group

For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

“The purpose of life is a life of purpose”

Early Modification is the word

For those thousands of homeowners out their facing tough financial times, here’s some good news.

In the past you had to miss two or three payments before the mortgage company would talk to you about a loan modification. Now, Fannie Mae- Responsible for about 18,000 home loans, will allow borrowers facing tough financial times to request “early workout” loan alterations, before you even make your first late payment.

What precisely is a loan modification? A loan alteration is an abiding change in a number of provisions of a borrower’s mortgage, permits the loan to be reinstated, and ends up in a payment the homeowner can afford.

How do I know if I will be able to qualify for a loan modification? The number one factor your bank is having a look at is your capability to make the new altered payment now and in the future.

You must supply the bank with evidence of your revenue, together with a total and correct finance statement detailing your earnings and expenses to show them that if granted the loan alteration, you’ll be able to afford the new, lower payments.

Fannie Mae’s new policy can potentially save thousands of homes. Under the new approach, company servicers will be required to inform borrowers that if they are “reasonably” certain that changes in their income will cause them to miss mortgage payments, they might qualify for an advance loan modification.

Qualified buyers will start on a trial bases with reduced payments, usually for about four months or so- could then be made permanent. This is after your current situation and facts have been thoroughly examined.

Most banks are following suit considering our nation’s financial crisis.

You should call your financial institution and find out whether your loan is owned by Fannie, Freddie or another major lender, and then request an early workout.

Before the flurry of real estate foreclosures became apparent this reaching out to the customer was unheard of. The sign of the times….

 

The Recuset Group

For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

“The purpose of life is a life of purpose”

New Condominium Laws: What Condo Commando’s might not want you to know.

For those who currently live in or will move to a condominium (One of the roughly 25,000 units in the tri-county areas), this is for you.

The Condominium Act (Chapter 718 F.S.) has been significantly amended for present and future residents.

Like just about all written statutes, there are pockets of ambiguity and issues that are open to interpretation-Unwritten attorney employment opportunity act.

Technorati Tags: The Condominium Act (Chapter 718 F.S.)

There are three areas that residents would be most interested in (insurance, board qualifications and collection of delinquent assessments. The laws affecting insurance and assessment collection were effective as of July 1, and those involving board qualifications went into effect on Oct. 1.

INSURANCE (11) a-o A must read.

Board Qualifications

Board member candidates; in order to address the issue of qualification must now submit a certificate as proof of knowledge on their governing documents, as well as the provisions of the Condominium Act.

ASSESSMENTS

The association is now required to provide owners 30 days written notice via certified and regular mail before they can place a lien on the property.

The Recuset Group

For professional advice on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

“The purpose of life is a life of purpose”

The government’s gift to homeowners

Wondering where is your bailout- why not? every other mega-billion dollar financial institution is getting their’s.   The U.S. Treasury is offering a  little present, just in time for the holidays.

The federal government announced that it will pump some $600 billion into the mortgage market — purchasing up to $100 billion of Fannie Mae and Freddie Mac debt and up to $500 billion in mortgage-backed securities. This action caused the average mortgage rate drop below 6%.

For those able to refinance, this is great news. It may mean some serious extra cash in hand each month, to be used to shore up retirement savings, pay down debt, maybe even afford a few more holiday gifts this year.

Now, for those that have not been paying their loans on time or owe more than what the property is worth, this present will more than likely not come to you. 

Getting a loan may still prove difficult for some, even those who aren’t under water on their mortgage loans, given stricter underwriting standards. Still, a refinancing rush is on the way.

Low rates, combined with the decline in home prices is nudging more home buyers into the market. Homes certainly are looking more affordable in many places — that is, for first-time homebuyers (who shouldn’t forget the $7,500 tax credit available to them for purchases between April 8, 2008, and July 1, 2009). Current homeowners eager to buy, on the other hand, well, would have to try to sell into this market, good luck!

Let’s Say Thanks

Let’s Say Thanks – In Support of Our Troops

As Thanksgiving approaches many of us are preparing for the circus of a big family dinner, but unfortunately  people serving in the U.S. military overseas can’t join in the festivities back home.  So Xerox has launched the Let’s Say Thanks Program, giving you the opportunity to let them know we support and appreciate their service to the country. 

All you have to do is choose a postcard designed by children from all over the country, write a personal message and hit send.  The holidays are a particularly difficult time to be away from the ones you love, so let the troops know that we’re thinking of them and hoping that they can come home soon.

Let’s Say Thanks

When the tax man cometh…

Most of my clients profit from selling their homes, and just before signing the doted line, I’m often asked about capital gains taxes.

When you sell your primary residence, you are not taxed on your profits if:

1. You have have lived in the home for two out of the last five years.
2. Your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly.

Gains above these limits are taxed at the current rate of 15% for higher income tax payers and 5% for lower income tax payers.

In 2008 the rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long term capital gains tax will once again be 15% and 5% through 2010.

Homeowners can use this tax free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption.

And last but not least, I would consult a “tax accountant” for more detailed information regarding your particular situation.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

The credit noose is tightening

New rules and restrictions are coming. Zero down-no more…..

Affected loans are:

• Mortgages for certain second home purchases.
• Short-term construction loans that convert to permanent mortgages.
• Cash-out refinances.
• Investment loan applications where the buyer already owns at least three other rental properties.
• Loans with anything less than full documentation of borrower income, credit and assets.
• Too new credit with thin files.

Freddie Mack plans to restrict financing to second and investment real estate purchasers who already own interest in multiple properties after August 8, 2008. Second home buyers will be ineligible for new mortgages through Freddie Mack if they have ownership interest in more than a total of four properties securing debt, including the one they propose to finance. The same for loans for rental houses and condos, and other investment properties. Freddie allowed up to 10 rental properties carrying mortgages.

Also affected, cash-out refinancing within the prior six months. The company defines a cash-out as any refinancing where the replacement loan balance exceeds the previous balance by 5% or more.

Meanwhile, private mortgage insurers- who provide loss coverage for lenders and investors on loans where down payments are less than 20%. Are also scaling back especially in declining areas-like Miami, Fl. One of the largest insurers, Genworth FInancial is no longer taking applications for second home purchases anywhere in Florida, irrespective of borrowers’ credit scores, assets or other characteristics.

PMI Group. another high volume insurer, is following suit. Including boosting minimum credit score requirements for “Jumbo” loans nationwide to a 700 FICO, and now will require at least a 10% down payment. And also ruling out stated loans.

MGIC, the largest private mortgage insurer, eliminated all “Option ARM loans”.

No wonder get rich quick, no money down infomercial’s are seen with less frequency these days.

 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

Downtown Miami

A Steal of a deal!

There is this 1/1, a corner unit, overlooking the pool of the  Met1,

waiting for you. Designer ready!

This would be below builders prices. Don’t delay! It would have to be a cash deal!!!! 

  (Only Unit under $300,00)   

                      $215,000

Motivated Seller!

This unit wont be listed in the MLS. Buyer can’t close. Just wants out. I’ll keep you posted on the progress of this deal! This will be a good gage as to how effective blog marketing can be. May the fastest draw win! 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

Edgewater Condo Priced For Today’s Market

Just bring your toothbrush! Completely renovated in 05 (original unit was gutted). Impeccable 2/2 unit featuring wood flrs., Open Kitchen, Granite counters, Stainless steel appliances (brand name i.e. Kitchen Aid, Sub Zero), Built in Wine Cooler, Spacious Master Bdr., w/extra large shower space , High Hat lighting-all lights are on dimmer switches. This charming community also offers 24 hr security, lush landscaping, and pool area overlooking the Gables Waterway-no fixed bridges, dock space, sauna, laundry facilities and meeting rooms.

           2/2     1237 Sqft.

 

The sign of the times…….$339,000

 

Disclosure: I am the listing agent. When you get over the perfunctory hyped property description, the facts should tell you this would be a great buy.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”