Tag Archives: Florida Property

Cheap US homes lure foreign buyers

From yesterday’s US CNN Money about international buyers

Cheap US homes lure foreign buyers

A Russian billionaire paid $88 million for a Manhattan condo earlier this year.

Lured by bargain home prices, foreign buyers stepped up their purchases of U.S. homes by 24% over the past year, according to an industry trade group.

The National Association of Realtors reported Monday that $82.4 billion worth of homes were sold to international buyers in the 12 months that ended in March, up from $66.4 billion the year before.

“Today’s advantageous market conditions have drawn more and more foreign buyers to the U.S.,” said NAR President Moe Veissi, who owns a real estate firm in Miami.

U.S. prices have fallen by about a third from their 2006 peak and are at their lowest level since 2002, and foreign sales were especially strong in states where prices dropped even more sharply. Of the four states cited in the report as tops for foreign buyers — Florida, California, Texas and Arizona — only Texas has not recorded a severe home price correction.

Meanwhile, currency exchange rates grew more favorable for many foreign nationals. The currencies of both Mexico and Brazil have gained 20% or more against the dollar over the past year, giving buyers additional discounts on U.S. purchases.

Foreigners participated in some of the year’s biggest home buys.

A British buyer bought the Spelling mansion in the Holmby Hills section of Los Angeles last summer for $85 million. And in December, Russian billionaire businessman Dmitry Rybolovlev purchased an $88 million Manhattan condo for his 22-year-old college student daughter.

Holmby Hills and New York City are, of course, pricey markets — but a bargain for the super rich compared to some foreign markets. For example, real estate in Hong Kong and London is about 50% more expensive, noted Edward Mermelstein, a New York-based real estate attorney.

Canada, China, Mexico, India and the United Kingdom accounted for 55% of international sales, according to the NAR survey.

The trend might have been even stronger except for the difficulties some international buyers had in obtaining financing. Many real estate agent reported that deals fell through because buyers lacked U.S. credit history.

Most completed deals involving foreign buyers were all-cash, accounting for 62% of foreign sales.

And now, we are delighted to announce, British Home Loans Florida, Inc., our Orlando-based mortgage brokerage arm, can arrange “Foreign National” low-interest rate mortgage financing for UK home-buyers in Florida once again!

Exciting and most timely news!

Sincerely,   

Bill Cowie

President 

Thinking about buying or selling vacation or 2nd home property around Orlando and the Disney World Area? Contact us, in confidence, and see what we can do to help you fulfill your Florida dream!

Request more information on Florida homes or submit a Custom Property Search Request

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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

Short Sales aren’t very Short!

Florida “Short Sale” Buyers Beware!

According to a recent article by Joan Probala, Short Sales Create Unique Challenges for Buyers and Sellers…and they do!

The frustrations created for agent and buyer going through this process can be unusual to say the list. Only last week we had an agent get to the day before a closing when an unexpected home owners association bill nearly derailed the whole transaction. There was a flurry of phone calls and things got sorted out ok but this was a few months into the negotiations so just goes to show you can never relax until after signing is complete.

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It is not unusual for below market priced short sale properties to sell quickly, but it is also common for many of them to come back on the market after several months.

Buyers and sellers face difficult and unique problems when dealing with a short sale, the sale of a home for a price less than what the owner owes on the mortgage with the lender agreeing to a “short” payoff on the seller’s home loan.

Unfortunately, there are no set guidelines that fit every transaction. Everyone should be prepared for roadblocks, delays and consequences. Understanding the process is critical.
Sellers face the prospect of being burdened with the responsibility of paying the difference between the sales price and the mortgage amount, credit implications and paying tax on any “forgiven” amount. But, buyers experience problems also.

There have been attempts to make the short sale process more efficient. Despite all good intentions, lenders can still inflict pain into the process.

It is not unusual for below market priced short sale properties to sell quickly, but it is also common for many of them to come back on the market after several months.
Buyers should be aware of the many problems that could deter a successful close-starting with the listing process.

Many buyers believe that lenders will automatically accept a full price offer. Most often, a lender will not discuss price until after an offer is submitted. A listing agent may set the asking price lower than market value, but the lender may have different ideas on what they will actually accept.

So, when a buyer enters into an agreement with a seller, there still is a good chance that the lender may require a higher price or set more conditions on the purchase. If the short sale buyer is drawn to the property only by the price and has no intention of paying close to fair market value, then the only thing the buyer has accomplished is to delay the sale for the seller.

When the economy first started to decline and the number of short sales were just beginning to rise, lenders were more willing to accept lower offers. With the large increase, lenders are looking at prices closer to market value.

Being prepared to walk away from the property is important. Having your broker check on the number of lien holders on title could determine if you want to pursue the property. Having to negotiate with several lenders could not only cause delays, but actually indicate that the “sale” would never close.

There are several things that buyers could do to make the offer more attractive to a lender. Most importantly, lenders do not like contingencies, so remove as many as possible. If it is the right property, invest in an inspection and submit an offer with all necessary lender improvements.

Remember, a “short sale” is never short. So, working with a broker who understands the process or a company that specializes in short sales can greatly improve the possibility of a successful close as well as eliminating some of the frustration.

If you understand the process and are able to wait for an indeterminate length of time, buying a short sale that is priced below present market value is still a great way to gain instant equity. That is definitely unusual in today’s real estate market.

Request more information on Florida homes or submit a Custom Property Search Request

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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

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 Bill’s Bit:

“Short Sales” can be great buys – if you have the patience and a high tolerance for risk!

And please remember – British Homes is expert in finding the best “Short Sales” in the Orlando area!

Good hunting!

Orlando Florida
Kissimmee Office: 407 396 9914
British-American Chamber of Commerce  Advisory Board

Rising Miami Housing Prices

Saw a good article in the Miami Today from Patricia Hoyos about signs of improving home prices in the Miami area.

Experts foresee rising Miami-Dade housing prices

Residential real estate experts foresee a boost in property values due to international buyers growing increasingly interested in South Florida.

Still, with a lack of inventory, financing hurdles and more foreclosures on the horizon, the real estate industry is far from its 2005 market peak.

The state of the residential market was discussed at the fourth annual Residential Real Estate Outlook Luncheon on Friday at the Westin Colonnade in Coral Gables.

The luncheon and panel discussion were hosted by the Coral Gables Chamber of Commerce in partnership with the Miami Association of Realtors and Miami Today. Michael Lewis, Miami Today’s publisher, served as moderator.

“You can see that our monthly closings and sales are inching up,” said Patrick O’Connell, senior vice president of new business development for EWM and a panelist. “All the numbers are going in the right direction now, and that’s what we want to see.”

According to a market report by the Miami Association of Realtors, as of August, condominium sales are up 53% from one year ago and single-family home sales are up 49%. Also showing a favorable number is the residential inventory, which is down to 15,405 from last year’s 25,679 units on sale. The industry generally considers a six-month supply of residences on the market to be optimal; larger numbers tend to drive down prices.

In Florida, 31% of sales are to international buyers. In South Florida, 60% of buyers are foreign nationals, said Jack Levine, chairman of the board of the Miami Association of Realtors and a panelist. Nearly one in three international transactions in the US is in Florida, and nearly one in three international transactions in Florida is in the Miami and Fort Lauderdale area.

“The buyers are coming in here and they want to buy, and the pricing is great,” Mr. Levine said “The main problems I see are in the financing side of it.”

However, financing doesn’t seem to be a big problem for many international buyers, who tend to pay mostly with cash. Mr. Levine said foreign buyers also tend to buy residences at the higher end of the market.

Panelists agreed that the number of buyers from Brazil is increasing significantly. On average, Brazilian buyers pay about 85% in cash and only need financing for the remaining 15%, with a median purchase of $215,000, according to the market report.

Many of these international buyers are purchasing foreclosed properties as investments to rent them to others, Mr. Levine said.

“The rental market is on fire,” he said.

Around 53% of international buyers are from South American countries, including Venezuela, Brazil, Argentina and Colombia. Residents of Canada, France and Italy also represent a large number of international buyers.

Lorenzo Perez Jr., chief executive officer of Premier International Properties Inc., emphasized the need for realtors to reach international buyers through social media. With the majority of social media users not being from the US, he said, the web can be an effective way of reaching potential buyers.

Because of these international buyers, panelists predict that next year property values will rise.

“We do foresee an increase in values in properties,” said Mayelin Carbajales, vice president of Mercantil Commercebank’s residential lending sales department. “It all depends on the market. Currently, in Dade and Broward and Palm Beach, we are seeing an increase in value because of the foreign national buyers that are buying there.”

A major problem currently facing the residential real estate market is having limited inventory.

Mr. Perez said there is a demand for properties, but there hasn’t been much inventory placed out there. High numbers of bank-owned real estate properties continues to be a problem that could continue to hurt South Florida’s real estate in the upcoming year. ”From a banking perspective, we are going to see an increase in foreclosures,” Ms. Carbajales said. “We are also seeing distressed borrowers.”

According to Mr. O’Connell, the universal message from his contacts in the banking industry is that a lot of bank real estate owned properties are in the pipeline. He said real estate owned inventory in the market is currently down 50% to 60% from the peak.

In the luxury homes market, he cited a 30% decrease in inventory.

Mr. Levine said he expects the real estate owned inventory to be “gobbled up as soon as it comes back up in the market.” The question remains when these properties will be listed again on the market.

Also hurting the real estate industry are banks being more hesitant to lend than in the past.

In coming months, banks are going to require higher down payments and increase credit score requirements, Ms. Carbajales said. Overall, she predicted, standards across the country for borrowers will be raised.

With the number of foreclosures still high, banks are continuing to be concerned about the risks associated with lending, she added.

The panelists said they don’t expect foreclosures to slow down in 2012. But on the bright side, they anticipate that interest from international buyers will remain strong, increasing the value of properties.

“We aren’t able to predict with crystal balls,” Mr. Levine said. “We try to pick up trends, but it’s really, really hard, especially because there are so many moving variables.”

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In Florida property it appears that what goes down must come up!

Good hunting!

Bill Cowie
www.BritishHomesGroup.com

Orlando Florida (Kissimmee Office) 407 396 9914

British-American Chamber of Commerce Advisory Board

Request more information on Florida homes or submit a Custom Property Search Request

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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

July’s Florida Property of the Month

THIS PROPERTY HAS SOLD.

PLEASE SUBMIT A:  Custom Search Request

BRITISH HOMES GROUP Florida ~ Specialising in Florida Real Estate

Brand-New Luxury 5-Bedroom Luxury Villa Close to Disney

A BRITISH HOMES GROUP “BEST BUY”

Just Reduced $30,000 to

$239,000!

Pool, Spa, 5 Bedrooms and Close to Everything!

  • Over 2,600 square feet of air-conditioned living space
  • 2 En-Suite Master Bedrooms plus 3 additional bedrooms
  • Upstairs Theatre and Game Room
  • Backs on to wooded Conservation Area
  • Minutes from Disney, 3 Championship Golf Courses, Supermarket and Shops
  • Ideal for Second Home, Long and Short-Term Rentals

FINANCING AVAILABLE

For Overseas investors (including UK) with a 30%/ $71,700 deposit

THIS SPECTACULAR BRITISH HOMES’ “BEST BUY” WILL NOT LAST!

So if you are at all interested please contact MARK SHORE, our UK/Florida property specialist (from Bristol!), directly.

Mark will give you full details on this and other great buys in the Disney area and help you with the mortgage financing arrangements if needed – all in time for you to enjoy this year’s “Season” in the Sunshine State of Florida!

Mark’s Orlando Mobile Phone Number is 863-557-6443

Good luck – but please act quickly if you are interested!

Bill Cowie President

www.britishhomesgroup.com

Orlando, Florida

Kissimmee Office 407 396 9914
Direct (Mobile) 407 620 7777

British-American Chamber of Commerce Advisory Board

Request more information on this home or submit a Custom Search Request

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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

May’s Florida Property of the Month

THIS PROPERTY HAS SOLD.

PLEASE SUBMIT A:  Custom Search Request

4 BEDROOM 3  BATHROOM POOL HOME  WITH SPA & RESORT FACILITIES!

New British Homes’ “Best Buy” 4-Bedroom Orlando Villa!

$145,000!

Developer Financing available with a 30% Down Payment – less than £30,000!

  • 4 Bedrooms, 3 Bathrooms, Private Swimming Pool and Spa
  • Superb Club House and Community Swimming Pool, Fitness Center, Games Room – and Private Cinema!
  • Approved for Long- and Short-Term Rental
  • Short drive from Disney and the other World-Famous “Attractions” as well as the Orlando and Millenium Malls, downtown Orlando and Orlando International and Sanford Airports.

British Homes Group customers have already bought 4 of these incredibly-priced new Florida villas in the last few weeks – within days of them coming on the market!

So why buy “distressed” and often “worn” when you can own your own brand newplace in the sun at the same price – or less!

And if this particular “Best Buy” Florida villa is not for you the British Homes Group has full information over 20,000 other properties for you to choose from here in Central Florida alone!

If you agree with the growing number of industry observers that the Orlando marketplace is, at long last, beginning to turn-around and rebound now could be the ideal time to invest in Florida property.

Happy Bargain Hunting!
This property would make an ideal second or investment home, or it can be used for short-term-rental vacation home.

Mortgages are available for British and other international buyers with a 30% down payment.

May’s Hot Property – click on one of the links below to make an offer or request more information on this home.
 
4 Bedroomed, 3 Bathroom
Status: Available
Listing Price: $145,000
Bedrooms: 4
Baths: 3
 
Located close to Orlando’s World Famous Attractions, shopping, airports and restaurants and 15 mins from Disney. Take advantage of Orlando’s buyer’s market today.
 
 
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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

Central Florida Property Market Trends

Thank you to our friends at Stirling Sotheby’s International Realty for the latest Central Florida Property Market Trends.

2010 Market Trends Review and 2011 Forecast Observation

· 2010 Started out very strong through the second quarter. This was fueled by the governments Home Ownership Tax Incentive Program, which artificially stimulated the real estate market.

· 2010 Close sales peaked in June with 3,059 closed transactions and then declined monthly through November followed by an up-tic in December of 18%.

· 2010 year end sales were 19.57% ahead 2009 sales.

· Listing inventory has steadily declined with just under 15,000 listings on the market in December 2010, which is considerably below the nearly 26,000 listings that were on the market in February 2008.

· After 5 years of declining home values, many property owners are coming to the realization that we will not see a quick recovery in home prices.

· We are seeing signs of more home sellers returning from the sideline and repricing their properties to what we are calling the “New Price Normal” allowing them to sell their current home and move on to purchase their new dream home at prices that are 40% to 60% below the market peak and in some situations we are seeing some properties under valued.

· 50% of all closed monthly transactions are for cash.

· Central Florida’s luxury market of $1 Million plus properties in 2010 dramatically out performed $1 Million plus sales in 2009, with Orange County seeing the bulk of the sales activity.

· Distressed sales which include bank owned properties and short sales continues to be an active part of our overall Central Florida sales, hovering in the 65% to 70% range monthly for most of 2010.

· Short sales and bank owned properties will continue to be an active part of our market in 2011, which will continue to hold back area home price increases.

Florida Property – Past it’s Worst?

The following report from the BBC/US NAR further indicates tht the Florida property market may “finally be past its worst”:

From BBC BUSINESS…

US pending home sales show signs of recovery

The US housing market is still suffering under a flood of repossessed home sales

The number of newly signed sale contracts on existing US homes registered another uptick in December, beating analysts’ expectations.

Pending home sales increased 2% in the month, according to the National Association of Realtors, following a downwardly-revised 3% rise in November.

The data is an early indicator for the housing market, as usually a contract is signed weeks before a sale closes.

But some economists warn the rise may be down to sales of repossessed homes.

Separate data released yesterday showed that sales of newly built homes also recovering, but from a heavily depressed level, as house-builders are unable to compete with a flood of foreclosed properties being auctioned off by banks.

The latest data from the National Association of Realtors adds to the picture of a market that may finally be past its worst.

“This shows housing is moving up from a low level again,” said Steven Wood, chief economist at Insight Economics in California. “But with the glut in existing homes, housing won’t be a significant contributor to [economic growth] this year.”

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As we observed earlier this month:

“As more and more industry observers see signs that the Florida property market is either at or close to “bottom” could there be a better time to invest in your very own place in the Florida sun?

Florida home prices are now often 40-60% off – but not for long!

Please let us know if you or any of your other family members, friends or business assosciates would like us to help them find their own sunny villa – close to Disney or anywhere in our “Sunshine State”.

February is shaping up to be record month for bargain-priced Florida home sales for British Home Sales in Orlando.

Come join us and the growing number of other astute Florid property investors -  before it’s too late and the current unprecedented “Buyers Market” passes.

Best!

Bill Cowie  President

www.britishhomesgroup.com

Orlando Office     407 396 9914