If you are relocating, a lease-purchase offers you the ability to lock in a purchase price (and yet still lease!)  …until you can sell the home you currently own.

Alexandra and I have two separate lease-purchase contracts …  in Miami (Pinecrest, Florida)… that we put together this month.  Two transactions really don’t constitute a wave …  or a trend for that matter … but it’s an option we thought worth sharing with you in our real estate blog  MiamiRealEstateCafe.com.   The terms can be worked out (as they are in any transaction!): to the benefit of both parties.

No two situations are ever the same.  Each and every real estate transaction is unique (no matter where or what it is).  

With each of these two contracts, the  buyers and sellers agreed in advance on the purchase price and rental amounts  as well as on the other terms -  including the length of time the buyer will have to exercise his/her right to buy,  any downpayment requirements, security deposits, all the lease terms,  and whatever amounts (if any) were to go toward the purchase price…   but each was structured differently. 

The lease-purchase docs are prepared by an attorney, after we’ve  negotiated and solidified the options, terms and conditions.  

As a buyer/tenant,  a lease-purchase allows you a cushion of time so you can sell your existing home before closing on your new one …   Each of these buyers were relocating  to Miami … *** One of them is opting  to rent furniture for their rental home ( so as to leave their own furniture behind until that house sells)  …***  The other has chosen to move everything here  (and professionally stage the house they’re selling). 

* I mention this because having furniture in a house tends to make it sell faster and at a higher pricepoint. 

Whenever you are ready to consider moving  (whether it be to buy, sell or relocate) …  we would love to help you.  Your Local Miami Real Estate Experts … Vicki & Alexandra Restivo  -  mother/daughter  team with EWM Realtors.   You can reach us here  … or through our direct line at 305 793-1365  or restivo.v@ewm.com  any time .

Because of the pricepoint for these buyers we are working with, an FHA loan is an option. 

And we wanted to post a blog  for your benefit  … and for others of you who might looking to buy …   who might be in a similar situation:

The current loan limit on FHA loans in Florida for both  Miami-Dade and Broward counties is $423,750.00  for single family homes. 

In a prior post on MiamiRealEstateCafe.com we mentioned that FHA loans  are not limited to first-time home buyers.  

That’s true.  FHA isn’t  limited to first-time home buyers…. and that makes it a viable option for many who are looking to buy a home.

FHA loans are available to qualified individuals looking to finance a home purchase …  up to $423,750.00  …  with a loan amount of  up to 96.7% of the purchase price  …  and a downpayment of  3.5% in Miami-Dade and Broward countires. 

Call us when you’re ready to move …   Whether you’re buying or selling or relocating, we look forward to helping to make your next move a good one.   Vicki & Alexandra  Restivo …  The Restivo Team …  EWM Realtors.  Direct number:  305 793-1365  E-mail:  restivo.v@ewm.com

1) Don’t Guess …. Determine what you can afford:

Figure out your financial comfort zone,  before  you really start looking for a place to buy.    Start by jotting down the basics:  your  income,  savings,  any portfolio investments …  account numbers,  income tax returns …  along with a list of contact names and numbers  for any banks/loans/investments . 

Make a list of  expenses …  Include groceries, gas, car payments, insurance premiums,  loans you are in the process of paying off (including credit card balances).    Those will help give you a better idea as to what you can afford  …

You will have additional expenses as a homeowner -  above and beyond what you have now, as a tenant or living rent-free .   Insurance, property taxes and your monthly mortgage  … along with maintenance,  upkeep, painting,  landscaping, yard work, pool service, household repairs (including appliances, air conditioning, and roof) all  fall on the homeowner.

2) Get pre-approved … Make  sure you are properly qualified for a mortgage: 

Talk with a  loan officer and get  pre-qualfied for a loan.  You’ll want what’s known as a pre-approval letter though  (or better still DU  approval  – “direct underwriting approval”)- before you fall love with a house or make an offer.  And by the way, once you have a loan approval, don’t lease or buy a  car, and don’t take out any new credit cards because any expenses or debts may  alter your credit score  and that can cause hiccups  …  change your rates … and/or cause your loan to fall through.

3)  Be realistic about your first home purchase:

Start with each  ”want/must have/would like to have” … And first and foremost on that list should really be location. There are certain things you can’t  fix or change about a house (ie. ceiling height/neighborhood/ basic layout/  number of beds and baths/square feet inside the house)…. and location is one of those. 

There are a lot of changes that you can make  later.  You can change paint colors, replace flooring and appliances, window treatments, lighting, add hurricane protection, re-landscape, add a pool  or  re-surface a pool,  remove wall-paper, update baths or kitchens … but you really can’t change things like ceiling height, or alter neighboring homes , and you can’t drag your house to a different location, or change the school boundaries. 

As you’re looking at potential properties, try to look past whatever hideous decor or outdated  furnishings might to the seller (All of that will go with the seller!). 

Look past the dirt too.  I know it’s easy to fall in love with a perfect, model home.   But dirty houses can be cleaned, and they often sell for less.  Be happy if no staging or decorating was done by the seller …  What it often translates into is a lower  pricetag for you!.  Sometimes the money a seller puts into readying the house ( to make it look like  a model home) somehow gets added to the list price …   

Spit and elbow grease (or a commercial cleaning service), a coat of fresh paint, and minor touch-ups are simple  enough … and  inexpensive …  so keep that in mind if you’re the buyer.  You may be able to live with some  imperfections … then make your own changes later on… Who knows, you may even get used to the awful wallpaper or light fixture you cringed at  -  at least for awhile. 

4) Calculate your potential return on investment … Based on neighboring values and current market values:

If you buy a place that has room for  improvement  (that can use some updating), by making those updates you’ll be the one to reap the benefits and gain equity.   Cosmetic changes , re-decorating and/or  adding curb appeal may well build added equity.

5) Hire a Realtor or Broker to represent you as the buyer…  and… get a  knowledgeable Inspection Company and make  sure the property you’re contemplating  is well-constructed and without defects:

You can avoid most hiccups and/or  unexpected surprises:  Rely on people you  trust  … Gather information…  Hire a buyer’s agent. By having a realtor represent you,  you’re apt to get better terms and have fewer hiccups -   and I’m talking about all phases of the purchase … from negotiating your contract terms,  recommending  inspection companies,   overseeing  loan, appraisal, survey, title, open permits, code violations …  keeping an eye out for any red flags and nipping them in the bud,  and handling any re-negotiations.  

A listing/seller’s agent can and often does represent both parties in the role of  a transactional agent … seeing to it that the both parties  actually get to the closing table and title transferred and keys exchange hands.  

By having your own buyer’s agent : your buyer’s agent will oversee the transaction( for you) from showing you property that fit your criteria,   helping you determine property value and what to offer, pinpointing comparable recent and relevant sales  to serve as comps,  preparing and submitting your offer, negotiating the contract, overseeing it through to closing:  loan process, inspections, closing out any open permits, checking for code violations,  recommending  insurance and title and closing agents, explaining how to file for your homestead exemption …  and being there for you  even post-closing..

Buying and moving into a new place is exciting.   It’s can also be overwhelming …    Just remember that some of the cosmetic fixes,  you can do yourself … after the place is yours. 

Whenever you’re ready to buy or move … call us.  we look forward to making your next move the best. The Restivo Team at EWM Realtors  305 793-1365 or restivo.v@ewm.com

Now is the time to apply for your 2012 Homestead Exemption! You must apply between January 1st and March 1st.  This will mean substantial savings on your real estate taxes if you purchased a home in Broward County anytime in 2011. If you do not apply by March 1st 2012, you will lose your eligibility for this year.

APPLY IN PERSON at:

GOVERNMENTAL CENTER

115 S. Andrews Ave., Room 111

Fort Lauderdale, FL 33301

954-357-6830

PLEASE NOTE: Office hours are Monday-Friday from 7:00 AM to 6:00 PM. Government offices are closed on weekends and legal holidays.

You will need to bring the following:

Proof of  OWNERSHIP:

Proof of Permanent Florida RESIDENCE:

Recorded Warranty Deed or

FOR ALL APPLICANTS:

Co-Op Proprietary Lease or Florida Driver’s License for each owner (or a Florida I.D. card)

You MUST also have either:

1. Florida Voter’s Registration or

2. Declaration of Domicile

TO FILE ONLINE, go to:

https://www.bcpasecure.net/onlinehomestead/web/index.aspx (County)

For General Information:

http://www.myflorida.com/dor/property/exemptions.html (State)

Broward County Home Buyer’s Tax Estimator:

http://www.bcpa.net/TaxCalc.asp

For further information contact:

Broward County Property Appraiser

• Honorable Lori Parrish, CFA

115 S Andrews Ave, Room 111, Ft Lauderdale, FL 33301-1899

E-mail: lori@bcpa.net

954-357-6830, 954-357-8474 FAX

If I may be of further assistance, please do not hesitate to call me. It’s always a pleasure to hear from you.  Vicki Restivo … for all your real estate needs:  EWM Realtors … restivo.v@ewm.com

To be eligible, you must have bought a house in 2011… and … you must file your application for Homestead Exemption between January 1st and March 1st of 2012 .

This will mean substantial savings on your real estate taxes. If you do not apply by March 1ST , you will lose your eligibility for the year 2012.

GENERAL QUALIFICATIONS AND INFORMATION:

 To qualify for the Homestead Exemption, the applicant must at minimum meet the following criteria as of January 1st :

* Be a U.S. citizen or legal resident.

* Own the property (i.e., have legal or equitable title).

*Occupy the property as his/her permanent residence (to the exclusion of all others)

* Only those qualified persons listed on the exemption application will receive the exemption benefits. If the property is held jointly by husband and wife, either party may apply in person for the homestead exemption.

For more information go to: http://www.miamidade.gov/pa/exemptions_homestead_filing.asp

AND BY THE WAY,  YOU CAN NOW FILE ONLINE !!

YOU WILL NEED (ALL DOCUMENTS MUST BE IN YOUR NAME) Proof of Ownership: any one of the following

• A pre-printed application mailed to you by the property appraiser

• A recorded warranty deed Proof of Florida Residence: any one of the following • Florida vehicle registration,

• Florida voter’s registration,

• Prior year’s irs return or current w-2 form,

• Bank statements and checking account registered at the property

• Proof of payments for utilities at the property

1) YOU MAY RENEW/FILE BY MAIL

a) download the application form

b) Complete the form

c) Attach documents indicated on the form.

Mail to: Property Appraiser, PO BOX 013140, Miami FL 33101-3140

2) YOU MAY FILE IN PERSON at one of the following locations, Monday-Friday 9 AM-4 PM, (Except legal holidays. Monday January 16th, 2012 and February 20th, 2012)

Stephen P. Clark Center South Dade Government Center 111 NW 1st Street, Suite 710 10710 SW 211th Street, Room 207 Miami, Fl 33128 Cutler Bay, Fl 33189

3) YOU MAY FILE ONLINE @ http://www.miamidade.gov/pa/email/form.asp

 If we cab be of further assistance with any of your real estate needs, please call us. It’s always a pleasure to hear from you.   Vicki and Alexandra Restivo  EWM Realtors  305 793-1365 or restivo.v@ewm.com

Contact the Restivo Team if you are in the market for a new home. We would love to help you take advantage of the great opportunities that are available to you.

Over 50% of all residential real estate purchases in South Florida are cash transactions…   And, by buying in cash, and not paying  a mortgage, you may well be looking at a  higher return on investment (ROI) … 

 The Miami real estate market has been getting stronger … especially for income producing property… (Consult with a knowledgeable accountant or Real Estate Attorney though … as to the benefits of buying in cash vs carrying a mortgage) 

And, given recent real estate trends,  aim toward a  long term return on investment … ( not short).  

That said though, short term investments have been gaining in popularity   …  We’ve seen a rise in the number of  investors  this past year  not only  ”covering their costs”   but  making a profit …   Many of them had no  mortgage … true … but because of a diminshed supply of  prime rental units in South Florida, there has been an upswing in rental pricing.  

The strategy for investing is normally to buy and hold on to real estate…  for 5-10 years … (as opposed to ‘flipping’ – which was popular in the boom years) …   Building equity over time …  allowing  property value to appreciate … is where investors tend to make money.  The idea is to cover most of your costs … write off some of them … and  then make your big money on the sale. 

Investors  who are buying in cash though …  with no mortgage…  have done surprisingly well in 2011 .   South Florida  properties in good locations and priced-well tend to rent out quickly.     And there seem to be more investors now who are profiting from  rental income alone …  an added benefit to long term investment.  Nevertheless, the real benefit to investment property often lies in the eventual sale of that investment…  several years down the road.

If you are considering buying, selling,  leasing or building we will be happy to assist you.  Contact  the Restivo Team at EWM Realtors …  restivo.v@ewm.com  Vicki Restivo at 305 793-1365   … Alexandra Restivo at 306 632-0164   or send us a note here 

We just rented out a beachfront condo to clients who were referred to us :  Two  young executives … a couple…  relocating from Texas … to Miami.   They’re driving across country …  arriving a day before starting their new jobs.  They haven’t seen their condo (other than online) … and they won’t … until they get here. 

They have access to  information online  …  information about  anything and everything imaginable on Miami Beach … about the building they’ll be leasing in … the amenities …  and about their neighborhood… restaurants … shopping… where to go and what to do… and about their commute to downtown  Miami where they’ll be working.  They have access to bird’s eye views of the areas… the beach … the  and they have access to visual tours.  

But they haven’t seen it, or Miami either,  firsthand.  

 And … they’re wondering if they’ll fit in … whether they’ll feel comfortable here … whether they’ll like the condo …   their apartment  (with it’s wide open views … the white sandy beaches and crystalline waters …  their oceanfront balconies… and their new lifestyle which will have them living smack in the middle of Millionaire’s Row).  It’s not Texas.  This is Miami.  It’s all new for them.

Will they like Miami?  Will they like living,  working,  playing here … in South Florida?  They’ve asked  that question.  And I can’t answer, because I really don’t know.   But  they’ll start off renting …   and take it a step at a time.  My guess is that they will like it … and that they will end up buying here too.

Florida has an incredibly diverse  population of people  …  and in Miami alone there are more than 106 other  languages spoken (besides English).  There’s a diversity of foods,  religions,  ethnicity and backgrounds, an array of opinions, and political persuasions …  If I were to guess,  I’d imagine that almost anyone can certainly  find friendship here, and carve out  the right niche for themselves… and feel at home  in Miami.

Miami is definitely a cultural melting pot … smack, dab in the middle of the tropics…. and surrounded by water and palm trees.  

 Those who call Miami ‘home’   were born in 171  different countries.

Whenever you are in the  market to buy, sell or lease real estate in Miami, we would love to help you move here or relocate elsewhere.  Call us anytime …   We are available to you, whenever you are ready …  the Restivo Team at EWM Realtors … Vicki Restivo 305 793-1365  …  Alexandra Restivo  305 632-0164.  We are local real estate agents and would love to work with you!

Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. 

There is a distinct difference between COST of a home today compared to pre-peak prices.  Link here to the entire article, as it appears in the KCM Blog.

The most recent S&P Case Shiller price index indicates that  residential real estate values have returned to 2003 1Q PRICEs.   Then factor in mortgage rates,  and the case for buying a home today becomes even more compelling.

Whether you’re looking to buy, sell, or lease - it’s important to rely on a knowledgeable, local,  real estate expert.  

The Restivo Team at EWM Realtors International looks forward to working with you and making your next move a really good move.  Our direct lines are  305 793-1365 for Vicki  or 305 632-0164  for Alexandra  and  you can reach us here or by email at restivo.v@ewm.com as well…  for real estate in South Florida …  as well as referal assistance internationally.