Sherry Armstrong Daytona Beach FL real estate

Florida has had one of the highest rates of foreclosures in the country, but do we have deals and bargains on homes, condos, apartments! Don't rush into becoming an investor, and do your homework - when you decide this is the right place for your money, consider Daytona or Ormond Beach.

The most important considerations to investing in Florida real estate for rental income are
*Location
*Condition
*Price
*Financing

Location
1. Areas with homes priced in the middle ranges are usually well-maintained, and command reasonable rents
2. Run-down neighborhoods, with boarded up homes and lots of foreclosure signs, can represent opportunities, especially if you see new construction, and if the location is near schools and public transportation
3. Look for neighborhoods with a preponderance of 3 bedroom/2 bath homes, and ones similar in size and age. For condos, look for buildings with mostly 2 bedroom units.

Condition
1. Homes built in the last 10 years are more desirable, as fewer systems will have had time to break down, and major renovations should not be necessary.
2. If you do find an older home you think has room for appreciation, be sure all the parts like wiring, plumbing, foundation, and roof have been updated.
3. Determine which maintenance issues are cosmetic and which will require major work. Painting, carpet, wallpaper, countertops are all minor repairs. Roofs and foundations and possible termite damage are not.

Price
1. Be sure and make your offer contingent on an inspection. If you choose to buy a foreclosure at auction, you will have to do this before you place an offer. If you buy a bank-owned property, they will not give you any disclosures - it is Buyer Beware.
2. The actual price you decide to offer is dependent on many factors, and a real estate professional familiar with the area like myself is your best resource. You will not get an appraisal with a bank-owned home, and a seller in financial difficulty will not buy one either. So a Realtor who prepares a Comparative Market Analysis will give you the most accurate idea of the property value.
3. You can tie your offer to the appraisal done by your lender, though this contingency may not be acceptable to the seller. One recent article I read suggested you offer 50-60% of the listed price of a bank-owned home, dependent on condition, as a starting point.
4. Don't be in a hurry. If you do offer 60% less than listing price, be prepared to wait while the bank hopes for higher offers and eventually decides on yours. In the meantime, keep looking.

Financing
1. Check with your local lender
2. Be prepared to put more down than for an owner-occupied home
3. Consider living in 1 of the units

You can understand now all the decisions you will have to make to start in real estate investing, but the appreciation and rewards have historically outperformed all other vehicles. Our Daytona Beach and Ormond Beach areas are overflowing with great opportunities for investment properties. Let me know what information you need to get started.

Florida's existing home sales rose in September, which marks more than a year (13 months) that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors. September's statewide sales also increased over sales activity in August in both the existing home and existing condominium markets.

Existing home sales rose 34 percent last month with a total of 14,419 homes sold statewide compared to 10,778 homes sold in September 2008, according to Florida Realtors. Statewide existing home sales last month increased 4.1 percent over statewide sales activity in August.

Florida Realtors also reported a 77 percent increase in statewide sales of existing condos in September compared to the previous year's sales figure; statewide existing condo sales last month rose 8.9 percent over the total units sold in August.

The best news, of course, is our own backyard. Sales in the Daytona Beach MSA (metropolitan statistical area) rose significantly in September.

Single Family:
Sept. 2009 - 766 sales
Sept. 2008 - 536 sales
Median Sales Price
Sept. 2009 - $132,000
Sept. 2008 - $160,000

Condos:
Sept. 2009 - 140 sales
Sept. 2008 - 74 sales
Median Sales Price
Sept. 2009 - $176,000
Sept. 2008 - $237,500

While sellers may be groaning, this is great news for buyers - what bargains are available! It's just astounding you can buy oceanfront homes for such low prices.

NAR Chief Economist Lawrence Yun said, "Now that the market is showing some momentum, we have an opportunity to achieve a more rapid and broader stabilization in home prices...The outlook for home sales and prices depends on whether the tax credit is extended," he continued, describing it as "the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit."

Congress is working on extendng the tax credit. If you have an opinion, contact your senator or representative today. And - contact me to discuss our buying opportunities. If you can't move here, at least consider a 2nd home, or rental investment to hold and use later. Give me a call or email to discuss your options and which community will best suit your needs.

Indigo Lakes Golf & Country Club is the center of the Indigo Lakes community, located about 1.5 miles from the Daytona Speedway and 15 minutes from the intracoastal waterway. Homes for every price range and taste can be found here, on large lots built around the golf course, next to the preserve areas that create more open space, or on spring-fed Lake Timaku for a waterfront view. Compared to some of the newer areas of Daytona Beach, Indigo Lakes is more modestly priced.

Most homes were built in the late 1980's, are single story, 3 bedrooms/2 baths, and have screened porches. The styles include condos, zero lot line attached and detached, golf-course view and golf-course frontage homes with pools. The homeowners association maintains a community pool and tennis courts, and the fees include common areas, exterior painting, basic cable, and yard maintenance. HOA fees vary from the mid-$300's to $540 quarterly, for waterfront lots.

Prices range from single family attached homes at $175,000 to $210,000, to single family detached at $175,000 to $600,000. Square foot values from $97 to $196 for about 1500 sq ft up to 2900 sq ft.

The Indigo Lakes course is 18-holes, par 72, open to the public, and was called "one of the top 10 golf courses in Florida" by Golfweek Magazine.

Here's a new listing in Indigo Lakes. 3 bedrooms/3 baths, 1800 SF interior, on the 7th tee of the Indigo Lakes golf course in a cul-de-sac, listed for only $219,900!

Features include screened porch, cathedral ceilings, storm shutters, appliances, fireplace, wet bar, ceiling fans, central air, central heat, and all the Indigo Lakes amenities, like pool, clubhouse, and golf.

This is not a fixer upper - just a real bargain for a golf course home in Florida!

Contact me for details and a private showing.

The Florida Assn. of Realtors has released data to show that Florida's existing home sales rose in August, marking a full calendar year that sales activity increased in a year-to-year comparison. Existing home sales rose 28 percent last month with a total of 13,850 homes sold statewide compared to 10,813 homes sold in August 2008. The state association also reported a 45 percent increase in last month's statewide sales of existing condos compared to the previous year's sales figure.

"For a year now, statewide sales of existing single-family homes in Florida have increased each month compared to the year-ago figures," said 2009 Florida Realtors® President Cynthia Shelton. "This is encouraging news, and while it shows the beginnings of recovery, the housing market still needs time to continue its gradual absorption of housing inventory that will help stabilize home prices."

Florida's median sales price for existing homes in August was $147,400; a year ago, it was $188,500 for a 22 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

NAR Chief Economist Lawrence Yun is optimistic, "The fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,' to ‘I don't want to miss out on a recovery.'"

The Daytona Beach area reported a total of 686 homes sold in August compared to 573 homes a year earlier for a 20 percent increase. The market's existing home median sales price last month was $132,700; a year ago it was $164,200 for a 19 percent decrease. A total of 135 condos sold in August, up 27 percent over the 106 units sold in August 2008. The existing condo median price last month remained level compared to a year ago at $184,300.

I sound like a broken record - it's still a Buyer's Market here! Search homes for sale in the Daytona Beach area, and see what you can buy! Then contact me to preview homes and help you get preapproved.

Most of what you've read the last couple of months has been geared to 1st time buyers because of the tax credit available. But in our Daytona Beach real estate market, we have a large percentage of investors - folks who want to buy now to use in later years, or just buyers who see the market as a great opportunity for rental property. Here are some points you should consider when you think of becoming a real estate investor:

1. Location: Invest in the very best location you can afford. You will attract better tenants, higher rents, and achieve more appreciation. You can buy golf course frontage or waterfront homes now in Ormond Beach or Daytona Beach communities for bargain prices.

2. Be cautious spending money on improvements: don't be the most luxurious rental in the building. You won't get rents to compensate, and you still will get wear and tear. Most tenants look for homes that are light, bright, and clean.

3. Go into investing for the long-haul: flipping was a strategy in previous years, but not in this real estate market. Plan on holding the property 5-10 years. Our Daytona Beach properties aren't expected to rise enough in value in the next few years for a short investment timeframe. Historically, real estate has been an excellent investment, always appreciating a few points over the rate of inflation.

4. Down payment: plan on 25-30% down for non-owner occupied homes.

5. Know your cost of ownership: include association dues, reserves for repairs, taxes, utilities you don't pass on to the tenant, reserve for vacancy, and your mortage payments. Budget for more, not less.

6. Fixers are OK: cosmetic repairs are easy and cheap, meaning paint, landscaping, light fixtures, and a thorough scrubbing. Unless you are a contractor, don't do the repairs yourself - it will be obvious. All expenses will now be tax deductible - hire professionals.

7. Always screen the tenants: even if you have personal knowledge, get a credit check, call old landlords, and verify employment.

8. Know the landlord-tenant code: know your rights and those of tenants. Be ready for an eviction and happy you don't have to go through one.

9 What type of property is best for a Daytona Beach investment: In general, buildings with 3-4 units or duplexes pencil out best, followed by single family homes with 3 bedrooms. Some investors find it works out best to buy a duplex and move into one of the units.

10. Learn about the tax advantages and whether they will be advantageous for your own situation: talk to a tax person or CPA, and make sure you can afford the investment even if it is empty.

If you do your homework, and investment property seems a good real estate strategy for you, now is the time to buy in Daytona Beach or Ormond Beach. Prices are so incredibly low! Contact me to learn what waterfront homes or condos, or golf course, or even modest properties in great communities - are selling for, and search our homes for sale on my web site. Start building your real estate portfolio in this "bargain basement" market.