10 tips to take advantage of this real estate market.

Tuesday, August 12, 2014

Miami, Fl. As soon as we published our market report, we received  many questions about what to do in this kind of market. And the answer is not the same for everybody depends where you are at now and what your needs are.
This is what I would do if...

  1. If you bought your property between 2008 and 2012 this is the right time to cash out. Today you are getting a substantial profit, in some cases doubling the initial investment. One of the best ways to move your earnings is to sell your actual home and either reinvest the profit diversifying in two properties or buy a good pre-construction to close within a couple of years. We can help you in that process.
  2. If you are a foreign investor, the US continues to be the safest harbor for foreign investment. The "visa crisis" post September 11 is an issue of the past and actually the US is "open for business" for most growing countries.
  3. For European investors: this is a great time to move your capital here: a small condo in any average location in Europe will be averaging $ 500K. With the same money, an avid investor can buy in the us two or three good income properties, returning a higher cap than in Euro markets.
  4. Brazil and other Southamerican countries: Miami still the top choice. New buyers among a growing professional middle class are investing in the area now in the $ 200K range. In fact, 50 % the high end units for the Miami market between 2008 and 2012 were sold to Brazilian investors.
  5. Countries with exchange control by the government like Argentina and Venezuela are rapidly reducing the presence on the real estate market. The ever changing exchange regulations on these locations are doing very hard to predict what will happen to them. By all means the view is not good for them.
  6. If you are upside down in your mortgage and need to sell: Short sales are back. Yes, lenders are giving good and fast response to those that are upside-down on their mortgages and need to move on. A short sale may close within 45 days or less. Many plans available due to the funds created by the penalties paid by lenders for the mortgage-fraud crisis. A short sale will affect your credit, but not as bad as a foreclosure. In fact some banks and credit unions are OK to do business with people undergoing a short sale and many lenders are offering mortgage products for people with short sales between 2-4 years after the sale.\ (some guidelines are changing). There are buyers for your home. If you NEED to SELL, just go ahead and do short sale. Don't suffer or expose yourself to foreclosure or bankruptcy if you can still get out of the home debt free.
  7. For new buyers: this is a great time to buy. Buy something you can pay NOW. Then, when your credit is stronger and so is your income, you can resale and grow into a better home. Nobody starts with a Ferrari as a first car. Same is with homes. Remember: if you can't pay for it, don't buy it. Start small, keep your credit, move in and see us back in two years. We will take care of the rest.
  8. If you are renting, this might be the last chance to buy at a decent price. Why pay someone else mortgage? Take advantage of the market, get prequalified with your bank and call us. We are seeing many people that didn't ever dream of buying, qualifying with their jobs and credit 620 and higher.
  9. If you are retiring and want a place in Florida, don't wait more. The home you see today in your price range, will not be affordable to you in a year from now. Call us now. You can use those funds on a non performing CD or investment and put them to work for you in your dream Florida home.Rather today than never or lost on those saggy 401k plans that you can not control at all.
  10. My best advice is this: do what is best for you and don't overbuy. Call us at any time with your questions at (786) 505 4007 or contact us clicking here.
Fernando Pettineroli

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