Aventura & Sunny Isles Beach Luxury Real Estate

That is the question?

Let’s compare…

The Courtyard Homes at the Pointe at The Waterways, are single family courtyard homes, directly on the Intracoastal Waterways, spectacular views, 3200 to 3600 sq ft asking just under $2 million dollars. They have 4 bedrooms and 3 1 ? 2 baths, high-end finishes, a boat dock, high ceilings, hurricane impact and/or hurricane shutters, 2 car garages and a wonderful full service spa. You can rent one today for $6,500 per month for 2 years. Now you should be able to buy the same home for approx. $1,750,000 to buy this home the fixed costs are:

R.E. Taxes, presently $18,000.00, Monthly maintenance $1,091.00, Annual Insurance $3,000.00.

And then you have the cost of the $1,750,000 which could be valued at $9,500.00 monthly (simple 6 1 ? 2 % interest). So that your monthly real cost would be over $12,000 monthly, as compared to $6500.00, plus renter’s insurance.

The Answer…

Depends on the individual and their life circumstances.

The empty nester who just sold their large home and is not sure where or whether or not they want to settle down or travel takes advantage of this type of opportunity. They could probably use the interest of their capital gains to cover most of the rental costs without touching their principal.

The individuals who continue to generate sizable incomes would benefit from the tax savings of ownership. A major portion of the sizable difference outlined herein above would be offset by the tax benefits.

Also you would have to evaluate appreciation versus “safe” interest returns. The Buyers that purchased these properties anytime between 1999 and the end of 2004 paid between $600,000 and just under one million. They are realizing tremendous monetary gains.

So call me this weekend to figure out what could be the best direction for you…

Danger Sharp Drop Ahead

Real Estate Taxes
WARNING
Not Sure
In Which Direction
They Are Headed

Unfortunately, today’s real estate signs aren’t as simple as road signs. Knowing how to interpret which are the correct signs to guide you on your road to buying or selling real estate is a challenge that requires a true professional. This is all the more reason why having a Koslovsky Realty agent at your side is so important today. What is good advice for one client may not necessarily be the correct approach for another. Real Estate needs are very personal. Please call on us so that we can educate you on the choices available in today’s marketplace.

Going over the Why (?) reasons in an understanding way.

I think I may have felt bottom today….or, at least very close to it.

Seller’s that believe that they can control, dictate and or influence buyers to pay what they (the Seller’s) “have to” or “must” get are not being realistic.

And Realtors that think the same… should not be in the business or should at least take a long vacation and reality check.

This is as true a buyer’s market as we have experienced in the past 20 years.

Sellers have one alternative and that’s simply “don’t sell now! ”

However, if a seller really wants to sell you must understand that buyers are controlling prices and you have to be flexible in order to make the deal. This week I was dealing with a Pennsylvania Owner that has her property actively for sale & vacant since April of 2004, asking $265,000 back then and has been with 6 different companies over 8 periods of time. In June 2007 the price was $234,900. I had suggested pricing the unit at $199,900 and that the first $175-$183,000 offer that comes about we should accept. Upon her request for immediate activity, while waiting for the listing to be returned, I placed an ad in the paper and showed it to one prospect, that prospect was interested in negotiating a deal at $180,000, however, when I called to follow up with the owner, I was told that I am too aggressive and the ad I placed said “needs updating” and that I “did not represent her property properly” I explained that the price point was obviously correct and that buyer’s are entitled to certain facts, and that a bathroom or kitchen renovated 10 years ago is outdated, perhaps not as outdated as the 33 year old building. This was an example of a Realtor doing their job correctly and still not getting paid.

Buyer’s Please Note:
There are excellent opportunities out there… You need to be financially prepared to act on an opportunity when one comes available. So my suggestion is be ready: interview several mortgage professionals, select the two that you feel the most comfortable with and believe are looking out for your best interest, and you should share the fact that you are making an application with two, separate mortgage professionals (that will keep them on their toes to constantly find you the best terms available). Once the lenders have approved you, the only thing left for you to do is have a Koslovsky Realty agent assist you in selecting the best suited property.

Buyers, please understand that even in a buyer’s market, there is a price point that Seller’s will NOT go below, so once you get to the bottom, please don’t make the mistake of trying to dig deeper, make your deal & enjoy- otherwise you take the chance of joining the “woulda, coulda, shoulda” club.