Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

Developers may have passed the first hurdle in getting the approval for the largest "Mega Development" Building Project proposed to bring in an additional 36,000 people to Osceola County by 2025. The proposal includes building an additional 13,000 homes near the new interchange by the Florida Turnpike along the east side of Lake Tohopekaliga known as (Lake Toho) For whom? IS the nagging question one should ponder.

Developer Charles Pratt from New Jersey and Jupiter recently purchased ranchland from the Partin Family members for a reported sum of $220 Million dollars for the project called Green Island. This is the third Toho project to clear review by the East Central Florida Regional Planning Council, which makes recommendations to local governments regarding large developments. For local government the impact fees, improvements, and increase in tax revenue may indeed be enticing. For the people who actually live here, the additional overcrowding in schools, traffic and lack of jobs may make Osceola County much less appealing.

In an economic recession one must ponder what the purpose of making recommendations for projects of this magnitude would be? St. Cloud, Florida which also borders on Lake Toho has no Industrial Revenue, No Tourist Revenue, and relies on Tax Revenue as its sole means of support. The City's population is at present approximately 29,000 people. This project would bring a population larger than Apopka, and larger than St. Cloud in an area of 6000 acres. Homeowners and business owners are already struggling under current economic pressure.

But fear not, there are "Green themed" protections under consideration. They are proposing protection for the three sandhill hill nesting marshes, a ban on St. Augustine grass, no lakefront homes, and a plan to plant pines trees for bald eagle nesting sites.Along with 660 foot buffer around eagle nests and will "set the standard" for future projects according to council planners.

The Osceola County Commission could vote on Green Island as early as April. This is about the time the Northern most development Toho Preserve (3000 homes on 1600 acres off Neptune Road) is also being scheduled for a hearing. There has been vigorous opposition from neighbors and and suggestions that the land be purchased from DR Horton for a nature park. With housing at an all time high in record levels of inventory (over 7000 units for sale) and a projected 2.4 year inventory of homes on the market, homes prices falling 30% (+/-) how exactly would this project benefit the residents?

Turtle Creek (Levitt & Sons) has failed and filed for bankruptcy. (Approved previously for 1536 units) Sales in Harmony are stalled, and Stevens Plantation is failing to thrive as anticipated. With so many vacant properties there appears to be no need for additional housing in this area of Osceola County.

Most of the Major builders have postponed or cancelled expansion phases on many of the already approved developments. A Mega Development such as the one proposed, could potential saturate an already soaked market of pre-existing and unsold new and existing homes.

Osceola County may have to redesign their logo from this...

To this

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The question everyone seems to be asking in Real Estate is how low will prices go? There is no precise way to measure when the bottom will it or has hit until after it happens. What we are seeing is a return to value and in some areas the housing recession has hit harder than others.

In Central Florida in Osceola County Florida, There are at present an estimated 4100 properties according Realty Trac in some form of foreclosure. This is not a local problem by any means. It is however a welcome relief to buyers who had to wait out the Market Boom. The emergence of qualified first time buyers has triggered an acceleration in showings and subsequently offers. Sellers who are comitted to selling their homes, have reduced prices to affordable levels and local banks are offering mortgages at competive rates. Real Estate Owned Properties held by banks are now discovering how competitive the market actually is. Forced to reduced their asking prices to liquidate inventory they are now becoming acutely aware of what distressed sellers experienced before they were foreclosed upon. Having to take significant losses will bring few consumers to tears for the financial institutions who profited handsomely during the housing market boom.

Entire developements like Levitt & Sons Turtle Creek Subdivision, which the city had hoped would generate extensive tax revenue have fallen short and in Turtle Creek's case fallen under the weight of the crushing housing market recession. Leaving lenders out millions of dollars in unrecoverable loans.

People Question why The city however continues to discuss the "need to for Affordable Housing" and a proposed project "The Preserve" for educators primarily, seems somewhat ridiculous in the wake of the declining home prices and property values. Educators have enough means to qualify for many of the thousands of homes currently for sale in Osceola County. So one must ponder why would the officials of the City of St. Cloud consider a building project during a Market Recession? There is no shortgage of homes the current market inventory is 28 months or a little over 2.4 years. There is a great deal of money the city would capture should such a housing project launch.

Starter Homes have made a come back. Smaller, freshly renovated and loaded with charm, these wonderful vintage homes make great places for first time home buyers to look. In addition, builders closing out inventory homes at steeply reduced prices make even brand new homes afforable. Townhomes are another option and have reduced their asking prices as well.

There is sufficient quantities of available housing for virtually every price range and buyers are responding. The "sweet spot" of market pricing at present appears to be in the $200,000 and under price range. When will it hit bottom? Perhaps it already has. It appears 2008 may be the year to get in the game.

By the time you hear it on the news, prices will be on the rebound once again.

The Rodeo a tradition since 1944 in Osecola County Florida. To area newcomers many are unfamilar with the tradition called "Rodeo Day" when they arrive. It does not take long to realize that even though Osceola County has grown and flourished, the traditions established over half a century are still alive and thriving. Every February the Rodeo comes to town along with the Fair. Located at the Silver Spurs Arena on Hwy 192 in Kissimmee, Florida.

School children in Osceola County have the opportunity to show their farm animals and 4-H clubs throughout the area set up displays. There are several catagories including citrus, hogs, cattle, horses, goats, quilting, canning, sewing and more. The displays are visually appealing and open to a wide variety of ages.

In a world which seems to move faster and faster their is a certain refreshing quality about taking a step back in time by going to the County Fair and Rodeo.

They won't say it but it is so. The "R" word RECESSION. It is not what economists are saying, it is what they are not saying. We "could be", "fighting off" "facing a future" recession. Millions of Americans already know it is here. We have been through it before. In fact, it was much worse in the 1980's and 1990's.

The recession is here. Rising costs of fuel,food and the decline in prices of housing,and minute economic growth are indicators that the Recession has taken root in the American economy. But you do not need to be an economist to know that. When costs rise and personal income does not...you have a recession.

Local business have been reporting a decline in sales. The reports from December 2007, showed disappointing holiday sales. Many experts are scrutinizing the housing market as a leading cause of the economic slow down. While that is true, the real culprit is credit card debt. Unlike mortgages which have a cap, credit cards companies have "Carte Blanche". A payment arriving even one day late, can result in a default rate as high as 32.79%.

When one card declares a default rate, the other cards a consumer owns have the right to automatically adjust your rate as well. Unbelievable but true- it is in the "fine print". While making payments at ten percent for example, is possible continuing to make payments at 30% or higher, is not. Consumer debt becomes an insurmountable mountain. If you think Mt. Everest is inhospitable..try climbing this credit card slippery slope. You will never reach the summit.

Unlike a home equity loan, where it is possible to pay down the principle, over a specified period of time, making large payments against a credit card, may not decrease your balance, or time it takes to pay down the debt; it may just drain your bank account. Once a default rate has been declared, it takes six to nine months of consistent payments at the nearly usury rate to get a rate reduction. Regardless of how good your payment history was before the hick-cup.

The Fed froze adjustable rate mortgages which for many homeowners were the straw that broke the camels back. However, the Fed needs to put Credit card companies under the microscope as well. Since the 1986 Tax Reform Act was instituted, Americans were no longer able to deduct the interest paid to credit card companies from their taxes.

By the 1990's American's were in a Recession. As the credit card rates rose, more and more Americans were faced with mounting debt as a result of rising interest rates. Very similar to what the adjustable rate mortgages did. Prior to and during the Housing Market Recession.

Local Businesses are reporting an economic slow down. Many local business owners have been reporting business is slower than in the previous year. The lines to pay utilities bills were literally through the door at OUC (The Orlando Utility Authority) as record numbers of users are on a "Cash Only" order for insufficient funds. When two payments are declined by the bank, the "Cash Only" policy is instituted for a 24 month period. Which means, consumers putting their electric bill on their credit card could be paying 30% + interest in addition to the bill just to be able to read the bill!

So How Does One Battle the Mountain of Debt?

The first thing to do is DO NOT WAIT. When the bills become insurmountable, consult a local lender and explore what options you have. For some people a consolidation loan may put an end to to the usury rates the credit card companies are charging. In addition there may be a tax advantage realized which under the revolving credit cards does not exist. Once you have paid them off, cut the card in half. Do not cancel the account. In order to protect your credit score, keeping the approved lines of credit open will help you in the long run.

While it is true, that your home is not an ATM machine, and you are not frivolously spending (cruises, vacations, or needless wants) for some people the only way out, is to acquire a loan to consolidate the high interest credit cards and establish a substantially lower monthly payment.

For instance: If you are carrying $30,000 in credit card debt, the monthly payments could be as high as $700-800 a month. A debt consolidation loan could reduce those payments to $300 a month (depending on your creditworthiness)

Instead of spending those savings, establish a separate account and create a savings plan.

Ask your public Utility Company for a budget plan. A budget plan averages your utility use over a one year period, and creates a 12 month equal installment payment plan. A consumer can have a direct payment option applied to their account as well so that the Utility Bill is paid automatically.

CREATING A REALISTIC BUDGET : The Demise of Home Economics Class

Taking a page our of our parents and grandparents book, back in the day a family budget was a necessity. Most families today have failed to implement that practice. Perhaps it is a byproduct of the loss of Home Economics class in school. As a result consumers born after that class was canceled tend to lose tract of their spending and find themselves in deep trouble.

Creating a budget is not a complicated matter. Yet, it intimidates most people.

The Quick and Easy Plan

Create Just Two columns

Income Expenses

List what you earn, and what you spend on a monthly basis.

There is only so much to go around. When you see what you need, you can eliminate what you do not need.

CHANGING YOUR SPENDING MINDSET

Start pinching those purse strings. The "WANT IT NOW" mentality is a thing of the past. SAVING is the word of the future.

In order to survive the recession, a consumer must minimize spending and maximize savings. The creation of a financial cushion allows one to make monthly payments in a timely manner.

RENT VS OWN

Why do most business fail?

Overhead. Overhead are the operating expenses. When income does NOT exceed overhead, the business will fail. The same rule applies applies for the business of living.

Rent is a huge expense. The largest drawback to renting, is it does not afford the renter a tax benefit. A home conversely does. While it may cost a little more to buy rather than own when comparing the cost of ownership and weighted tax advantages of mortgage, property taxes, and insurance as benefits in deductions. A 1,000 sq ft home will, in the end yield the owner a greater return at tax time than a renter of the same size property.

How does this translate to what the Market is Doing?

Simple. More renters are converting to home owners. With the price reductions receding to 2004 levels, it is once again possible to purchase a modest home for a reasonable price. You will need a down-payment in most cases. That is where the family budget and debt consolidation come in. Perhaps now is a good time to sort through stuff you no longer use and plan a House Buying sale.

Hard economic times present opportunity times for the people who have planned for it.

"It's a buyers market" we hear it all the time. Much has been written about this term, however, the public perception and the Reality of Realty are quite different indeed. The secrets to competing to win in todays market is about to be revealed...

BUYERS: You are NOT alone. Clearly, the resetting interest rates and decrease in housing prices has stimulated your interest or at least peeked your curiousity in the Real Estate Market. The misconception however, is that Buyers are dictating the terms and prices. The secret revealed is to realize that you do have quiet competition.

SELLERS: Too often feel they can start high and lower the price. This is known as Chasing The Market. You have 90 days to make a powerful impression. Putting your best price out first, attracts the most interest and viability. The secret revealed is to fight the temptation to hold out. Agressive pricing achieves a faster sale.

Real Estate Professionals: In order to obtain listings of homes for sale, the number one mistake is allowing the seller to dictate the price, despite what the market analysis indicates. This mistake is both costly in terms of financial outlay and time. The secret revealed is to select the most sellable properties to market.

CUTTING CORNERS

Everything you do in life comes with a cost attached. Weighing out the risk to the gain is one way to avoid making a costly mistake. Cutting corners may seem like an economically sound idea, however it is severely limiting as well.

FOR SALE BY OWNERS for example, want to save money by selling the property themselves. Buyers want to share that savings as well and typically make lower offers because they are not using the services of a REALTOR® and feel those commission savings should belong to them. How can two parties share the same savings? They can't.

BUYERS: Three possible outcomes exist when making offers on Real Estate. They are: Acceptance, rejection or counter offer. A low ball offer is a hope the seller "might" take it. The risk is a better offer may come in and the game is over. The secret revealed is to make an offer all parties can live with from the beginning. Eliminate the games and opportunity for someone else to jump in and outbid you.

SELLERS: Unrealistic Expectations. If you are trying to sell your home, you need to be competitively priced, offer excellent value, and be willing to negotiate. The offer may not be at full asking price-the secret revealed is to decide if cash in hand is better than waiting for a better offer which may or may not happen. The secret rvealed here is to Recognize the Opportunity to sell your property when it is presented.

WAITING IT OUT

If you are waiting to hear the Market has rebounded...it will already be too late. By the time the news reports it, it is already happening and has been for some time. Winners win because they do not wait for the game to be in full swing, before jumping in.

As the Market peeked in 2005, the "investors" who ran the highest risk and susequently defaulted the value they thought they were gaining; were the ones who jumped in to late. By the time they got wind of the rises in home values EVERYONE was in the game.

Predictably, as the Market softened, the price the late comers paid was already out of the profit zone and in the end zone. This is why "flips" flopped. It was a timing issue. As with automotive engines, if the timing is off the engine will misfire.

The secret is to not wait until the media tells you the Market is back...the best deals will have already been made.

TIMING IS EVERYTHING

So how do you know when the timing is right? By getting consulting with the experts. The secret to getting the inside information on what the Market is Doing is by working with an industry expert. The Real Estate professional who is tracking the prices and sales.

Since Real Estate is LOCAL what is happening in ne area, may not apply in another. Florida was among the first States to report a slow down. It spread like a virus from east to west. Conversely, watching what is happening in Florida now, and which niches are hot, will give one insight as to what price ranges are selling faster than others.

The secret to winning is not to wait until everyone else knows what you know.

These basic secrets are tools on how to win in todays Real Estate Market.

Be prepared

Be among the first to respond

Consult a Local Expert

Know how much house you can afford

And be ready to Act when you find one.