Hungry for Homes, Buyers Get Edged Out

As South Florida’s home sales have continued to outpace national trends, distressed properties are still dominating the market, with more than half of all homes and condos sold last month at some stage in the foreclosure process. And cash-happy investors have been scooping up these bargain basement deals at a fast clip, often before middle-income buyers can get financing. [Source: Miami Herald]

To stay on top of what other investors are watching:  Foreclosures and Short Sales

• Destin Condo Foreclosures and Destin Short Sales at Destin Condo News
• 30A Condo and Home Foreclosures and 30A Condo and Home Short Sales at 30A Real Estate News
• Panama City Beach Condo Foreclosures and Panama City Beach Short Sales at Panama City Beach Condo News

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

This Tidewater Condo Went Under Contract This Week!

This oil has a lot of people – buyers and sellers – spooked that is for sure.  I keep hearing people say that nothing is going to sell and nobody would buy a condo in Panama City Beach while there is oil in the Gulf of Mexico and washing up on our beaches. 

Let’s see what the facts tell us.  In the last 7 days there have been 25 condos in Panama City Beach went under contract.  Not a ton but still almost 4 per day.  

Search Panama City Beach Condo Foreclosures

Are they all foreclosures and short sales? Most, of the 25 properties to go under contract 9 were short sales or foreclosures.  So more than 60% were distressed sales.

Search Panama City Beach Real Estate 

Are they just low end properties?  I wouldn’t say that – the low list price was 64,000, the high was $599,000 and the average list price for the 25 was $183,384.

Sign Up for Free Panama City Beach Condo Foreclosures and Short Sales Alerts

The Bottom Line?  There are a lot of really good deals out there so if you are a buyer this is your time.  If you are a seller be prepared to get down and dirty so you can compete with the short sales and foreclosures.

Want More Information?  Keller Williams Realty’s At The Beach Team sells more area real estate than most so if you are interested in buying or selling Destin Area Real Estate simply call or text John at 850-231-1400 or send an email to JohnSkinner@AtTheBeachTeam.com

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Beautiful Father's Day At The Beach

There is so much talk of oil washing up on the beaches that many people have decided not to come for fear their vacation may be ruined.  The deal is that there is oil in the Gulf of Mexico and some days it will wash up on parts of our beaches and most days it won’t.  When it does affected sections of the beach will be closed while very diligent and capable clean up crews come in and make the beach pristine again. 

See Panama City Beach Foreclosures Now  

Just like rain days.  We never know if or when it’s going to rain but people still come to the beach and if / when it rains they do something else until it stops and people and be on the beach again.  It’s basically the same thing with the beach.

Sign Up For Free Panama City Beach Foreclosure and Short Sale Alerts Now

Now is the time to buy real estate at the beach.  Short sales and Foreclosures are everywhere creating incredible deals and now the oil spill is giving buyers even more leverage. 

See All Panama City Beach Real Estate For Sale Now

 Learn More About Panama City Beach Real Estate For Sale

Keller Williams Realty’s At The Beach Team sells more real estate in the area than almost anyone so if you are considering buying or selling a Panama City Beach Condos or Panama City Beach Houses simply call or text us today at 850-231-1400.  Or send an email to JohnSkinner@AtTheBeachTeam.com

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Worry Abounds

Everyone who owns or lives in the Panama City Beach area along with those who visit our wonderful beaches is worried about the oil spill and what the effects will be. As of today I can tell you there is NO OIL on our beaches yet but by all accounts there will be in the days and weeks to come.

What Next?

Merlin Law Group will be hosting an educational town hall meeting, along with Keefe, Anchors, Gordon and Moyle, P.A (KAGM). to help those who may be affected from what is being described as the worst environmental calamity in US history, in understanding what they need to know about the oil spill and how it may affect their bottom-line. Gulf Coast Oil Spill Catastrophe: An Educational Town Hall Meeting is expected to be heavily attended by those unsure as to what this catastrophe can mean to their lives, will be held on Tuesday, May 4th at 1:00 PM in the Emerald Ballroom at the Hilton at Sandestin, 4400 South Sandestin Boulevard, Destin, Florida 32550.

I will attend and hopefully learn what property and business owners need to do now in order to prepare their property against damage and in the unfortunate event that a claim will have to be filed. Apparently they will address concerns from condominium associations, restaurants and hotels anticipating and already experiencing major interruption in their business as people who had considered vacationing in along the Gulf Coast and Florida are cancelling plans in face of the real possibility of the destruction of beaches by the spill. Also of great concern is possible evacuation should the oil cause the presence of toxins in the air and in the water.

Check back tomorrow to see the results of this meeting.

Wondering About Your Panama City Beach Real Estate?

If you own Panama City Beach Real Estate and would like to know what you could expect if you were to sell it in today’s market conditions simply call or text John Skinner at 850-543-5763 or send send me an email at JohnSkinner@AtTheBeachTeam.com

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Here is more information about investing and Panama City Beach Real Estate.  As always I think it’s very important to be as informed as possible on how to maximize your investing power.  So with that in mind I found this article about using IRA’s to buy real estate at Market Watch.com. Take a look and let me know what you think.

Using IRAs to buy real estate

Six reasons to tap retirement funds now to buy rental property

SAN FRANCISCO (MarketWatch) — One of today’s soundest investments is never touted in financial-services ads. The reason: Wall Street wouldn’t make any money off it.

Since 1974, Americans have had the ability to use IRA assets to buy investment property. Yet the means to do that — called a self-directed IRA — remains one of the least known and unheralded investment vehicles in the vast financial marketplace.

With foreclosed homes selling at dimes on the dollar, residential real estate is a bargain for investors holding cash. And if they can put 30% down, IRA investors will find specialty lenders eager to help them leverage their retirement savings with mortgages on rental properties.

The U.S. housing market may not yet have hit bottom, but the winds appear to be shifting. Existing-home sales are on the mend in hardest-hit markets and foreclosure-avoidance programs are expected to stem the rising inventory of bank repossessions, meaning the window to buy at rock-bottom prices could close before the year is out.

Bear in mind homes purchased with IRA funds can’t be used for personal purposes. Doing so risks the IRS declaring the assets withdrawn and demanding immediate payment of income taxes and penalties on the entire account value.

Still, as an investment readily understood by anyone who’s been through the home buying and selling process, purchasing a steeply discounted property that can produce annual income of 10% and more is a low-risk strategy for uncertain times — especially for retirees whose fixed-income investments are paying paltry yields right now. Read more on setting up a managing a self-directed IRA.

Here are six reasons why buying real estate with an IRA is a potentially lucrative and wise move today:

1. A solid alternative to stocks

When economies teeter, investors often run to hard assets such as gold — humankind’s historic “store of value.” Yet gold’s value is measured not only in ounces but also in the intangible fear that surrounds its price spikes.

When it comes to hard assets, there’s perhaps no greater shared sense of value from Mongolia to Montana than for land and a dwelling. And in U.S. history, there’s never been such a fire sale on our housing stock.

The Great Depression exacted a heavy toll on home values, but there was nowhere near the inventory flooding the… housing market as in the past year. The reason: A collapse in home prices, not stocks, triggered this meltdown.

Of course, some would say foreclosed-home buyers capitalize on others’ misfortune. But the sooner we clear the massive, nationwide inventory of unsold homes — which many economists argue is a key to recovery — the better off we’ll all be.

2. An investment well-suited for long-term investors

Even in the best of times, the stock market looks out six months to a year. Right now, even seasoned pros can’t feel the bottom of the muck we’re in.

Many retirement savers are uncomfortable with their nest egg tied up largely in stocks. That’s just the direction where the system of IRAs and 401(k)s — which also advances Wall Street’s interests — shepherds them.

Real-estate cycles generally run in decade-or-so swings and this one may not yet have neared its bottom. Housing values could drop another 10% to 20%, but the stock market also could drop further and take a decade to well surpass its previous highs.

Especially for those in or near retirement, buying a property that produces rental income that’s likely to increase with inflation is as sound a long-term investment as any TV commentator or investing guru might offer.

3. Purchasing a significantly undervalued asset

For investors willing to hang on to a property for five years or more, residential real estate today presents a tremendous opportunity to do just what investors ideally do — buy low and sell high.  In some of the hardest-hit regional markets nationwide, homes are selling for as little as 20% of their value in 2006. In the San Francisco Bay Area, for instance, a 3,400-square-foot, five-bedroom, three-bath house built in 2000 recently listed for $257,000 — after last selling for $795,000 just three years ago.

More importantly, at a cost of just $75 per-square-foot, that’s about a third of the new construction cost for a well-outfitted, single-family home in that region. An IRA buyer in that case would get a relatively new house that would require little maintenance — and a 7,000-square-foot lot essentially thrown in for free.

While that may be an extreme example, countless thousands of existing homes nationwide are selling for 50% of today’s construction and land costs. Putting aside previous overinflated values, that statistic illustrates how inexpensive home prices have become — and how much upside they offer in terms of appreciation when the real-estate market finally recovers.

4. A steady income generator

At a time when companies are slashing stock dividends at record rates, retirees can’t be assured of that income source. And with government bonds paying a pittance in terms of yield, that fixed-income stream is running mighty shallow.

Income from a rental property bought with a self-directed IRA flows back into the retirement account. The IRA holds title to the property and the income it produces can be directed into all manner of investments typically held within an IRA, be it stocks, bonds, mutual funds or money market accounts.

On a percentage basis, that income can be two to three times higher than today’s fixed-income offerings even after paying expenses such as property taxes and insurance. Meanwhile, the accountholder can eventually reap the potential appreciation of the underlying asset — the property — that the IRA owns.

For retirement savers needing to fund a child’s college costs, a rental property held in an IRA also can be a valuable source of funds. While money taken out of a traditional IRA is subject to income taxes, it doesn’t face early-withdrawal penalties if used for higher-education costs. And while financial advisers caution against using retirement funds to pay for college costs, the IRA owner still has upside potential on the property to count on and the income in years ahead.

5. A safer means to play the stock market

For those who don’t want to abandon potential stock-market returns, a rental home owned in an IRA still affords them the ability to invest in stocks.

Rental income funneled into stocks or stock mutual funds today will be buying shares at sharply reduced prices. Directing the proceeds of each monthly rent check into stocks or mutual-fund shares accomplishes the same “dollar-cost averaging” strategy that occurs when employees steer a fixed amount of every paycheck into their 401(k).

Over a 10- to 20-year period, the return that the rental income produces if plowed into stocks is rich icing on the cake, coming on top of the return provided by the rental income itself. 

6. The ability to flip real estate with no tax bite

Proceeds from selling an IRA-owned home roll back into the IRA without facing capital-gains taxes. To the contrary, an investor who buys and resells a property within a year with nonretirement funds faces a capital-gains levy.

Many foreclosed homes today are “distressed,” vandalized by angry departing owners who may have deferred maintenance due to tough times. They often ransack anything and everything not nailed down and many things that are, from lighting fixtures and kitchen appliances to furnaces and central-air conditioners, toilets and bathroom vanities.

Such properties — which can be found at most all price points — are among the cheapest on the market on a per-square-foot basis because the Federal Housing Administration (FHA) and most private mortgage lenders won’t loan on homes deemed “uninhabitable.” That drastically reduces the potential buyer pool to just cash purchasers — and reduces the property values as a result.

Even homes needing only cosmetic fixes sell at a discount today because there are countless others available in move-in condition. If an IRA home buyer has enough in the account post-purchase to refit a home’s interior — whether it’s laying carpet and laminate flooring or upgrading a kitchen or bathroom — going the minor-rehab route can be a rewarding approach.

Buyers might choose to fix up the cheapest, distressed property in a solid neighborhood so it qualifies for a mortgage and then resell it. They also could improve upon it over several years with the rental income. Either way, it’s a potentially enriching value-add strategy.

The ultimate choice

The bottom line with buying rental properties with an IRA is that the investor retains a level of control over a tangible asset that he or she could never remotely attain in owning shares of a company or a mutual fund.

The question that bears asking: What will yield a better return in the next five to 10 years — shares of Microsoft, General Electric or Citigroup, or a modest rental home in a decent school district — selling for 30 cents on the dollar — whose value may soon be juiced by record-low mortgage rates and unprecedented tax breaks?

Chris Pummer is a former senior editor for MarketWatch and Bloomberg News and a reporter for such papers as the Los Angeles Times and San Jose Mercury News.

Click on the links to find Panama City Beach Condo Foreclosures, Panama City Beach Condo Short Sales, Panama City Beach Homes For Sale,  Panama City Beach Condos For Sale

Also check out The Destin Real Estate News, 30A Real Estate News,  Panama City Beach Real Estate News.

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Because investing and Panama City Beach Real Estate go hand and hand I think it’s very important to be informed as possible on how to maximize your investing power.  With that in mind I came across this question and answer segment on Smart Money.com  that address IRA’s and real estate.  Take a look and let me know what you think.

Q. Can an IRA be invested in mortgages or real estate?
—Linda Bruyette, Ellington, Conn

Yes, some real estate (including commercial property, vacation rentals, raw land and mortgage notes) is permitted. At best, real estate provides steady income and long-term appreciation. Usually only special-purpose banks and trust companies offer these investments, as “self-directed IRAs.”

Potential risks are high. “Self dealing” is strictly prohibited—which means you can’t invest in something you or immediate family members use or benefit from. Otherwise your entire IRA balance is treated as a withdrawal and subject to relevant taxes plus a 10 percent penalty if you’re under age 59 1/2. Plus, there’s the liquidity issue: You need a big IRA to handle buying and maintaining property while also keeping a diversified portfolio. And if you need out quickly, you better hope for a robust real estate market. A good real estate mutual fund or exchange-traded fund is a simpler choice.

Click on the links to find Panama City Beach Condo Foreclosures, Panama City Beach Condo Short Sales, Panama City Beach Homes For Sale,  Panama City Beach Condos For Sale

Also check out The Destin Real Estate News, 30A Real Estate News,  Panama City Beach Real Estate News.

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Giving Direction about Short Sales

The Panama City real estate market has changed dramatically over the last few years and has left several owners in a position of not being able to carry their properties anymore. 

Many people in this position are turning to short sales to get out from underneath the mounting financial pressure that comes from owing these properties. Simply stated a short sale is when you sell for less than what is owed on the mortgage and the bank accepts the amount.

Why would the bank do a short Sale?

Well let’s say your financial picture has changed since you bought the property and you are now facing a “financial hardship” that has put you in a position of not being able to make your payments and the possibility of foreclosure is looming. In cases where foreclosure is likely it makes sense for the bank to negotiate a short sale because it is generally costs the bank much less than if they have to take the property back, maintain it while marketing it to a new buyer – all with the possibility of getting less than what was on the table as a short sale.

What are acceptable hardships?

According to HUD – the Dept. of Housing and Urban Development – there are many valid reasons and hardships to be acceptable for default.  Here are 5 of them.

1. Death of Principal Borrower
2. Serious Illness of Principle Borrower
3. Marital Problems (Divorce, Separation)
4. Unemployment
5. Lessened Income

These are only 5 of the “Acceptable Hardships for Short Sales” and there are many others so if you are considering a short sale and would like more information about acceptable hardships or any other questions relating to short sales simply contact Keller Williams Realty’s At The Beach Team today and we will be happy to help.

Interested in buying a short sale?

To see all the Panama City Short Sales currently for sale simply click on the link or you can sign up for the Panama City Short Sale Alert and we will email you every time a new Panama City short sale hits the market.

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

No waiting for a Shores of Panama Condo deal.

There is no question that Panama City Beach Short Sales are a great way to get unbelievable deals on condos at the beach BUT they are not the only way.   There are some owners that are willing and able to sell at short sale competitive prices and here’s the thing – there is no waiting for bank approval!    

Why no waiting is important to you the buyer.

A short sale can take months – I’ve had one that took a year – to close compared to 30 days or so for a “normal” sale.  For many people waiting is part of the deal to get a great price and to them I say fair enough.  However, what if you could get a similar deal and not have to wait wouldn’t that be good?  Would it be advantagous if you were able to close before Spring Break and the busy Summer Rental Season?   

Did you answer yes?

If you answered yes to either of these questions I have one more for you – If I was able to show you a great property that could be purchased at short sale price and could be closed before the busy Spring Break and Summer Rental seasons would you be interested? 

If the answer is yes – call me, email me, text me … contact me because I have a deal for you. 

Keller Williams Realty’s  At The Beach Team – John Skinner.

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Here Are A Few Quick Tips To Create A Nicer Enviornment For Rentors

A recent article in Coastal Living Magazine written by Melissa Bigner made the point that you can increase the appeal of your unit which will directly translate into more rental dollars.   Among the tips for a condo upgrade in the article were:

Open It Up: Make sure that the light from the front of the condo is able to reach all the way to the back entrance.  Don’t close the light out with heavy window treatments or big bulky furniture. 

Establish Individual Areas:  Stay away from the long bedroom in the back meets kitchen in the middle followed by dining area just before the living area pushes up against the front screen doors.  Add hinged screens between each to mark transitions without breaking overall flow. 

Expirment With Design: Use a variety with different textures. Faux-bois and fabric wallcoverings, natural-fiber rugs, and rustic furnishings add richness and depth, echoed by organic surfaces like marble backsplashes and granite countertops.

Interested in owning a condo at the Beach?  Give John Skinner with  Keller Williams Realty’s AT THE BEACH TEAM a call today to learn more Panama City Beach Condo Foreclosures, Short Sales and All Around Great Deals.  

Also check out Destin Condos For Sale, Sandestin Condos For Sale, Condos For Sale On 30A .

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Four Cities to flight non-stop from Panama City, FL

Southwest Airlines announced that it will fly directly to Orlando, Houston, Nashville and Baltimore from the new airport under construction in Panama City, FL.

The flights fare will start as low as $49 one way …..

and there will be two flights a day from each destination.  These low fares will force other airlines to reduce their fares to stay in the game. Southwest Airlines anticipate serving around 2,000 travelers a day.

These strategically chosen cities will provide semi-direct flights to Chicago, New York, Dallas and Ft. Lauderdale, semi-direct flights mean that you will stop one time before arriving to your destination, but will not leave the plane. You can book your direct flight now at www.Southwest.com.

Go to www.AtTheBeachPanamaCity.com for thing to do in Panama City Beach.

JohnMoran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.