How They Sell Real Estate In The UK

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Positive Signs for Florida Real Estate

The National Association of Home Builders (NAHB) is reporting that builder confidence is up 5 points this month. After months of negative numbers, their Housing Market Index indicates that this is the biggest one month gain in 6 years.

“If you’re a potential buyer who’s been sitting on the fence waiting for a sign that now is the time to act, this is it,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “Some of the most favorable buying conditions in a lifetime are now in place, and they are drawing more consumers back to the market.”  

“This is a very encouraging sign that we are at or near the bottom of the current housing depression,” said NAHB Chief Economist David Crowe.

In other good news from Tallahassee, Florida is experiencing an unprecedented number of requests to build new homes and develop commercial property. Despite a rapidly deteriorating housing market and plunging real estate values, requests are coming from developers with an eye on a future real estate bubble. “Instinctively, most people would think there would be a slowdown,” said Mike McDaniel, a planner at the state’s Department of Community Affairs. “And it may be true at the other end, where the developers apply for the permit. But there’s been no letup here. It’s a gold rush.”

It is the Department of Community affairs that approves and denies requests to change land usage. Since 2007, it has received a massive 410,126 acres of proposed new projects, with a potential for over 630,000 new homes and 480 million square feet of nonresidential space.

“This really catches me by surprise,” said David Denslow, a University of Florida economics professor. “I’ll have to revise my thinking.”

Of course, not all plans submitted get approved, and not all plans approved will be built, but this trend seems to add to the indicators that things are gradually improving for Florida real estate.

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First Time Home Buyer Credit - $8000 - FREE

Expires December 2009. From now and through November 30 2009, anyone who qualifies as a “first time homebuyer” (has not owned a home in the last three years) who buys AND CLOSES on a principal residence will receive a substantial tax credit of $8,000.  

Firstly, let’s be clear about the difference between a TAX CREDIT and a TAX DEDUCTION.  A TAX CREDIT is a dollar for dollar reduction in a person’s tax obligation which will result in a refund in that amount for most buyers - or, as you are seeing in ads from some lenders this can also be turned into down payment money up front.  A TAX DEDUCTION, on the other hand, is simply a reduction in a person’s taxable income and results in a savings of a percentage of that amount based on the tax payers tax bracket (i.e., for someone in the 28% tax bracket, the saving would be $2,240).  In contrast to the TAX CREDIT that was in place
 last year, this $8,000 NEVER has to be paid back to the Federal Government.

So, let’s assume the Orlando Real Estate Pros sell you a $200,000 home and you obtains a 90% loan or a loan for $180,000 at 4.875%.  The monthly P&I payments would be $952.57.  Now assume that values drop another 10% this year and you wait for the bottom (which buyers ALWAYS MISS) and a year from now you can purchase the home for $180,000 with 90% financing with a $162,000 loan, but due to the market rebounding the rates go up to 5.5% (very conservative) which brings the payments down to $919.82 P&I for a savings of $32.75 per month.  Under this scenario, it would take you 20 years to recapture the $8,000 tax credit without taking into consideration inflation and the real cost of money.  If we calculate this scenario at a more realistic interest rate of 6% a year from now, the payments are $971.27, which is $18.70 per month HIGHER than what the home could be purchased for now AND you now miss the opportunity to get the TAX CREDIT.

There are only 7 months left for buyers to avail themselves of this opportunity. Contact us for more info.

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Orlando’s real estate market… bottom?

Are we at… B… B… B… Bottom?

Yep, the much anticipated “B” word - no one wants to risk saying it. I mean, what if you’re wrong? There was Jim Cramer (Mad Money) with Bear Stearns, and George Bush with Mission Accomplished. Why take the chance of making a public gaffe?

Well, I’m not about to stick my neck (all the way) out - but the fact is, there is light at the end of the tunnel. Sales and pending sales of homes have turned in hard-hit markets. House prices are finally affordable. Consumer confidence polls show noteworthy improvements in the public’s outlook. And mortgage rates are at 4.7%.

Each state and community will rebound according to its own economic underpinnings but the signs are that even the Orlando condo market is on the way to recovery.

In last week’s developments:

Mortgage applications for purchases of resale and new homes were up again - 8 % for applications using conventional loans, and a remarkable 17 % gain in applications to buy houses using low-down payment FHA mortgages.

A group of new consumer-sentiment polls came out showing that Americans are feeling better about their economic prospects for the first time in months. The Times even put the results at the top its front page with the headline: “Poll finds Brightening Outlook on U.S. Economy.”

Members of the National Association of Home Builders reported that shoppers’ visits to look at new houses for sale are “on the rise and consumer interest is increasing.” The Association also announced that more than half of all U.S. households - 55 million of them - can now afford to buy the median priced $200,000 new home. That’s up 45 % in the past 2 years.

Even Business Week, particularly harsh on U.S. housing in recent years, ran a cover story about the turnaround getting underway, focusing on hard-hit areas like Florida, and Las Vegas, where sales have been rising fast. In Orlando unsold inventory is taking a plunge.

In view of still-rising unemployment and depressed levels of available credit we’re not out of the woods yet. But if you’re a buyer and you’re still on the sidelines, then there’s an Orlando real estate genie who’d like a word in your ear!

Contact the Orlando Real Estate Pros on 407-290-3408 to get the latest Orlando data on buying or selling a home.

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Best Deal in Palma Vista!

Palma Vista four bedroom executive home $397K!

in this much sought after gated community in Southwest Orlando. Extensive ceramic tile throughout entire home except the master bedroom which has bamboo wood floors. In the process of painting the interior, refurbishing kitchen and bathroom cabinets. Family room offers vaulted ceilings with wood burning fireplace. The Master Bathroom has double sink vanity, jetted tub & separate shower. The generous use of space throughout the home makes each room perfect for extended family, guests. The Master Bedroom, Formal Living room, Dining room, Kitchen, Family room and guest room have views of the screened in pool and covered lanai with summer kitchen. It is the perfect home for entertaining. Conveniently located near I4 and the 408, restaurant row and Veranda park. It is zoned for Olympia High School.

This listing has been sampled from the mid Florida region MLS.

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Cheer Up - You Could Be An Orlando Real Estate Broker!

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