Watersound Real Estate News

Hungry for Watersound Homes, Buyers Get Edged Out

John Moran — Fri, 23 Jul 2010 15:03:48 +0000

Here is a small article I saw recently from the Miami Herald and I think you can make the same argument for Watercolor Homes and Condos For Sale, and Watersound Homes and Condos For Sale and Seaside Homes For Sale

Hungry for Homes, Buyers Get Edged Out

As South Florida’s home sales have continued to outpace national trends, distressed properties are still dominating the market, with more than half of all homes and condos sold last month at some stage in the foreclosure process. And cash-happy investors have been scooping up these bargain basement deals at a fast clip, often before middle-income buyers can get financing. [Source: Miami Herald ]

To stay on top of what other investors are watching: Foreclosures and Short Sales

Watercolor Foreclosures and Watercolor Short Sales at Watercolor Real Estate News
Watersound Condo and Home Foreclosures and Watersound Condo and Home Short Sales at Watersound Real Estate News
Seaside Condo Foreclosures and Seaside Short Sales at Seaside Real Estate News

John Moran

John Moran, an award winning realtor at Keller Williams Realty, specializes in investment properties including beach front condos, second homes and residential land. He ranks in the top 1-1/2% of all realtors in the MLS for sales in 2007, 2008 & 2009. For more information about Destin Area real estate including Destin Foreclosures call or text John Moran at 850-217-7618.

Six reasons to tap retirement funds now to buy rental property

John Moran — Sun, 07 Feb 2010 00:46:05 +0000

Here is more information about investing and Watersound Real Estate. As always I think it’s very important to be as informed as possible on how to maximize your investing power. So with that in mind I found this article about using IRA’s to buy real estate at Market Watch.com. Take a look and let me know what you think.

Using IRAs to buy real estate

Six reasons to tap retirement funds now to buy rental property

SAN FRANCISCO (MarketWatch) — One of today’s soundest investments is never touted in financial-services ads. The reason: Wall Street wouldn’t make any money off it.

Since 1974, Americans have had the ability to use IRA assets to buy investment property. Yet the means to do that — called a self-directed IRA — remains one of the least known and unheralded investment vehicles in the vast financial marketplace.

With foreclosed homes selling at dimes on the dollar, residential real estate is a bargain for investors holding cash. And if they can put 30% down, IRA investors will find specialty lenders eager to help them leverage their retirement savings with mortgages on rental properties.

The U.S. housing market may not yet have hit bottom, but the winds appear to be shifting. Existing-home sales are on the mend in hardest-hit markets and foreclosure-avoidance programs are expected to stem the rising inventory of bank repossessions, meaning the window to buy at rock-bottom prices could close before the year is out.

Bear in mind homes purchased with IRA funds can’t be used for personal purposes. Doing so risks the IRS declaring the assets withdrawn and demanding immediate payment of income taxes and penalties on the entire account value.

Still, as an investment readily understood by anyone who’s been through the home buying and selling process, purchasing a steeply discounted property that can produce annual income of 10% and more is a low-risk strategy for uncertain times — especially for retirees whose fixed-income investments are paying paltry yields right now. Read more on setting up a managing a self-directed IRA.

Here are six reasons why buying real estate with an IRA is a potentially lucrative and wise move today:

1. A solid alternative to stocks

When economies teeter, investors often run to hard assets such as gold — humankind’s historic “store of value.” Yet gold’s value is measured not only in ounces but also in the intangible fear that surrounds its price spikes.

When it comes to hard assets, there’s perhaps no greater shared sense of value from Mongolia to Montana than for land and a dwelling. And in U.S. history, there’s never been such a fire sale on our housing stock.

The Great Depression exacted a heavy toll on home values, but there was nowhere near the inventory flooding the… housing market as in the past year. The reason: A collapse in home prices, not stocks, triggered this meltdown.

Of course, some would say foreclosed-home buyers capitalize on others’ misfortune. But the sooner we clear the massive, nationwide inventory of unsold homes — which many economists argue is a key to recovery — the better off we’ll all be.

2. An investment well-suited for long-term investors

Even in the best of times, the stock market looks out six months to a year. Right now, even seasoned pros can’t feel the bottom of the muck we’re in.

Many retirement savers are uncomfortable with their nest egg tied up largely in stocks. That’s just the direction where the system of IRAs and 401(k)s — which also advances Wall Street’s interests — shepherds them.

Real-estate cycles generally run in decade-or-so swings and this one may not yet have neared its bottom. Housing values could drop another 10% to 20%, but the stock market also could drop further and take a decade to well surpass its previous highs.

Especially for those in or near retirement, buying a property that produces rental income that’s likely to increase with inflation is as sound a long-term investment as any TV commentator or investing guru might offer.

3. Purchasing a significantly undervalued asset

For investors willing to hang on to a property for five years or more, residential real estate today presents a tremendous opportunity to do just what investors ideally do — buy low and sell high. In some of the hardest-hit regional markets nationwide, homes are selling for as little as 20% of their value in 2006. In the San Francisco Bay Area, for instance, a 3,400-square-foot, five-bedroom, three-bath house built in 2000 recently listed for $257,000 — after last selling for $795,000 just three years ago.

More importantly, at a cost of just $75 per-square-foot, that’s about a third of the new construction cost for a well-outfitted, single-family home in that region. An IRA buyer in that case would get a relatively new house that would require little maintenance — and a 7,000-square-foot lot essentially thrown in for free.

While that may be an extreme example, countless thousands of existing homes nationwide are selling for 50% of today’s construction and land costs. Putting aside previous overinflated values, that statistic illustrates how inexpensive home prices have become — and how much upside they offer in terms of appreciation when the real-estate market finally recovers.

4. A steady income generator

At a time when companies are slashing stock dividends at record rates, retirees can’t be assured of that income source. And with government bonds paying a pittance in terms of yield, that fixed-income stream is running mighty shallow.

Income from a rental property bought with a self-directed IRA flows back into the retirement account. The IRA holds title to the property and the income it produces can be directed into all manner of investments typically held within an IRA, be it stocks, bonds, mutual funds or money market accounts.

On a percentage basis, that income can be two to three times higher than today’s fixed-income offerings even after paying expenses such as property taxes and insurance. Meanwhile, the accountholder can eventually reap the potential appreciation of the underlying asset — the property — that the IRA owns.

For retirement savers needing to fund a child’s college costs, a rental property held in an IRA also can be a valuable source of funds. While money taken out of a traditional IRA is subject to income taxes, it doesn’t face early-withdrawal penalties if used for higher-education costs. And while financial advisers caution against using retirement funds to pay for college costs, the IRA owner still has upside potential on the property to count on and the income in years ahead.

5. A safer means to play the stock market

For those who don’t want to abandon potential stock-market returns, a rental home owned in an IRA still affords them the ability to invest in stocks.

Rental income funneled into stocks or stock mutual funds today will be buying shares at sharply reduced prices. Directing the proceeds of each monthly rent check into stocks or mutual-fund shares accomplishes the same “dollar-cost averaging” strategy that occurs when employees steer a fixed amount of every paycheck into their 401(k).

Over a 10- to 20-year period, the return that the rental income produces if plowed into stocks is rich icing on the cake, coming on top of the return provided by the rental income itself.

6. The ability to flip real estate with no tax bite

Proceeds from selling an IRA-owned home roll back into the IRA without facing capital-gains taxes. To the contrary, an investor who buys and resells a property within a year with nonretirement funds faces a capital-gains levy.

Many foreclosed homes today are “distressed,” vandalized by angry departing owners who may have deferred maintenance due to tough times. They often ransack anything and everything not nailed down and many things that are, from lighting fixtures and kitchen appliances to furnaces and central-air conditioners, toilets and bathroom vanities.

Such properties — which can be found at most all price points — are among the cheapest on the market on a per-square-foot basis because the Federal Housing Administration (FHA) and most private mortgage lenders won’t loan on homes deemed “uninhabitable.” That drastically reduces the potential buyer pool to just cash purchasers — and reduces the property values as a result.

Even homes needing only cosmetic fixes sell at a discount today because there are countless others available in move-in condition. If an IRA home buyer has enough in the account post-purchase to refit a home’s interior — whether it’s laying carpet and laminate flooring or upgrading a kitchen or bathroom — going the minor-rehab route can be a rewarding approach.

Buyers might choose to fix up the cheapest, distressed property in a solid neighborhood so it qualifies for a mortgage and then resell it. They also could improve upon it over several years with the rental income. Either way, it’s a potentially enriching value-add strategy.

The ultimate choice

The bottom line with buying rental properties with an IRA is that the investor retains a level of control over a tangible asset that he or she could never remotely attain in owning shares of a company or a mutual fund.

The question that bears asking: What will yield a better return in the next five to 10 years — shares of Microsoft, General Electric or Citigroup, or a modest rental home in a decent school district — selling for 30 cents on the dollar — whose value may soon be juiced by record-low mortgage rates and unprecedented tax breaks?

Chris Pummer is a former senior editor for MarketWatch and Bloomberg News and a reporter for such papers as the Los Angeles Times and San Jose Mercury News.

Click on the links to find Watersound Foreclosures, Watersound Short Sales, Watersound Homes For Sale, Watersound Condos For Sale

Also check out The Destin Real Estate News, 30A Real Estate News, Panama City Beach Real Estate News, Destin Condo News.

John Moran

Buying Watersound Real Estate in you IRA

John Moran — Fri, 05 Feb 2010 21:40:38 +0000

Because investing and Watersound Real Estate go hand and hand I think it’s very important to be informed as possible on how to maximize your investing power. With that in mind I came across this question and answer segment on Smart Money.com that address IRA’s and real estate. Take a look and let me know what you think.

Q. Can an IRA be invested in mortgages or real estate?
—Linda Bruyette, Ellington, Conn

Yes, some real estate (including commercial property, vacation rentals, raw land and mortgage notes) is permitted. At best, real estate provides steady income and long-term appreciation. Usually only special-purpose banks and trust companies offer these investments, as “self-directed IRAs.”

Potential risks are high. “Self dealing” is strictly prohibited—which means you can’t invest in something you or immediate family members use or benefit from. Otherwise your entire IRA balance is treated as a withdrawal and subject to relevant taxes plus a 10 percent penalty if you’re under age 59 1/2. Plus, there’s the liquidity issue: You need a big IRA to handle buying and maintaining property while also keeping a diversified portfolio. And if you need out quickly, you better hope for a robust real estate market. A good real estate mutual fund or exchange-traded fund is a simpler choice.

Click on the links to find Watersound Foreclosures, Watersound Short Sales, Watersound Homes For Sale, Watersound Condos For Sale

Also check out The Destin Real Estate News, 30A Real Estate News, Panama City Beach Real Estate News.

John Moran

Mortgage Rates Expected To Increase in Watersound

John Moran — Wed, 03 Feb 2010 14:40:03 +0000

I saw this press release in Florida Realtors magazine and thought the information would be helpful for folks considering Watersound Real Estate. Take a look and let me know what you think.

COLLEGE STATION, Texas – Feb. 1, 2010 – According to Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University, mortgage interest rates are low right now but don’t expect that to last. When the government quits buying mortgage-backed securities, rates will head up and away.

Dotzour says that mortgage rates were low at the end of 2009 because “the global consensus among bondholders appeared to be that inflation will remain low in the United States for an extended period. This caused the ten-year U.S. Treasury rate to fall to between 3.2 and 3.6 percent for much of the second half of 2009.”

With extraordinary levels of federal deficit spending, Dotzour says it is unlikely that the low-inflation scenario will be popular when the economy starts to rebound. Consumers should expect mortgage rates to rise when signs of improvement appear.

A second factor contributing to the low mortgage rates is the Federal Reserve Bank’s unprecedented purchase of nearly all the mortgage-backed securities issued by Fannie Mae and Freddie Mac in 2009, he adds. Totaling more than $1 trillion for the year, this program has been extended through the end of March 2010.

“The Fed has never done this before in its history,” says Dotzour. “They are doing this to stimulate the economy by keeping mortgage rates as low as possible. When the Fed stops buying these securities from Fannie and Freddie, mortgage rates are likely to increase, and possibly quite abruptly.”

How far will rates go up when the Fed terminates its buying program? Dotzour says that question is difficult to answer precisely because this has never been done before; but many experts think that rates could move up one-half to 1 percent.

“The combination of extraordinarily low mortgage rates and current price levels are making homes extremely affordable to American families. In fact, national and Texas housing affordability indices indicate that homes are more affordable than ever. But this will not last. When the economy recovers and the Fed stops purchasing mortgages, rates will rise.”

To read more on the subject, see Dotzour’s article “Rate Expectations” in the January 2010 issue of Tierra Grande magazine at http://recenter.tamu.edu/tgrande/.

For more information about real estate in the area check out The Destin Real Estate News or the 30A Real Estate News and the Panama City Beach Real Estate News.

John Moran

California vs. Florida Home Prices

John Moran — Wed, 27 Jan 2010 23:00:08 +0000

Ever wonder what houses are selling for in other parts of the country? I’ve heard for years that prices are extremely high in California so I thought I’d take a look and see how we compare and here is what I found.

California First

I was on Lenny LaRocca’s web site www.southbayhomeexpert.com – Lenny covers the Hermosa Beach area in California and I saw that this house in Torrence CA recently sold for $619,000. It was built in 1954, has 3 bedrooms, 2 bathrooms and 1,338 sq. ft.

What About Florida?

By comparison this house in the gated community of Kelly Plantation in Destin Florida sold recently for $600,000. It was built in 1998, has 4 bedrooms, 4 bathrooms and 3,350 sq.ft.

Interesting isn’t it?

For more information on Destin Homes For Sale or Destin Condos For Sale simply click on the links and let Keller Williams Realty’s At The Beach Team help you get your place at the beach – relatively cheap!

John Moran

Acceptable Short Sale Hardships Identified

John Moran — Tue, 26 Jan 2010 14:55:40 +0000

Need Some Direction With Watersound Short Sales?

The Watersound Real Estate market has changed dramatically over the last few years and has left several owners in a position of not being able to carry their properties anymore.

Many owners of Watersound Real Estate in this position are turning to short sales to get out from underneath the mounting financial pressure that comes from owing these properties. Simply stated a short sale is when you sell for less than what is owed on the mortgage and the bank accepts the amount.

Why would the bank do a short Sale?
Well let’s say your financial picture has changed since you bought the property and you are now facing a “financial hardship” that has put you in a position of not being able to make your payments and the possibility of foreclosure is looming. In cases where foreclosure is likely it makes sense for the bank to negotiate a short sale because it is generally costs the bank much less than if they have to take the property back, maintain it while marketing it to a new buyer – all with the possibility of getting less than what was on the table as a short sale.
What are acceptable hardships?
According to HUD – the Dept. of Housing and Urban Development – there are many valid reasons and hardships to be acceptable for default. Here are 5 of them.

1. Death of Principal Borrower
2. Serious Illness of Principle Borrower
3. Marital Problems (Divorce, Separation)
4. Unemployment
5. Lessened Income
These are only 5 of the “Acceptable Hardships for Short Sales” and there are many others so if you are considering a short sale and would like more information about acceptable hardships or any other questions relating to short sales simply contact Keller Williams Realty’s At The Beach Team today and we will be happy to help.
Interested in buying a short sale?
To see all the Watersound Short Sales currently for sale simply click on the link or you can sign up for the FREE Watersound Short Sale Alert and we will email you every time a new Watersound short sale hits the market.

John Moran

19 Watersound Homes Sold in 2009

John Moran — Tue, 26 Jan 2010 05:05:36 +0000

2009 high sale was $2.4 million

2009 was a OK year for Watersound home sales with 19 homes sold. The prices ranged from $375,000 on the low end to $2,400,000 on the high end. The interesting thing is that the high-end home was sold as a short sale while the lower priced home was a standard sale which goes to tell you that short sales can create deals at both end of the price spectrum.

How do this stack up to other years?

Well in 2008 there were 17 Watersound homes sold ranging in price from $426,500 to as high as $2,500,000 – neigher were short sales.

In 2007 there were 20 Watersound homes sold ranging in price from $650,000 to a high as $3,350,000 – Both were sold by Watersound developer St. Joe Corporation.

How does this compare to Watersound Homes For Sale today?

Well right now there are three Watersound homes for sale listed for more than $3,350,000 – the highest is on the market for $9,900,000 and the lowest is on the market for $489,000.

What if I want to sell my Watersound Real Estate?

If you are considering selling your Watersound Real Estate simply contact Keller Williams Realty’s At The Beach Team and we will do a complete market analysis to determine what you can reasonably expect to sell your property for.

What if I want to buy Watersound Real Estate?

John Moran

Only 1 Watersound Foreclosure Right Now!

John Moran — Tue, 26 Jan 2010 04:21:31 +0000

What’s going on with Watersound House and Condo Foreclosures?

If you are looking for a foreclosure to provide you the bargain that you have been waiting for in Watersound you better be prepared to move quickly or be patient as we wait for more foreclosures to hit the market because as of today there is only 1 property currently for sale as a Watersound Foreclosure. It it condo #108 – a 3 bedroom, 3 bathroom, 2,280 sq.ft. unit listed for $835,000. Click on the link for more details.

What about Watersound Land Foreclosures?

Like with the houses and condos there is only 1 Watersound Lot Foreclosure right now. Which is interesting when you look at the fact that there are a total of 90 Watersound lots for sale right now.

How do I stay on top of new Watersound Foreclosures?

As you can imagine there is a lot of interest in Watersound Foreclosures right now and they typically go pretty fast. If you want to know about new foreclosures as they hit the market simply sign up for our FREE Watersound Foreclosures Alert and will will send you an email every time they hit the market.

John Moran

Southwest Announces Destination Cities

John Moran — Mon, 25 Jan 2010 11:00:14 +0000

Four Cities to flight non-stop from Panama City, FL

Southwest Airlines announced that it will fly directly to Orlando, Houston, Nashville and Baltimore from the new airport under construction.

The flights fare will start as low as $49 one way…

and there will be two flights a day from each destination. These low fares will force other airlines to reduce their fares to stay in the game. Southwest Airlines anticipate serving around 2,000 travelers a day.

These strategically chosen cities will provide semi-direct flights to Chicago, New York, Dallas and Ft. Lauderdale. Semi-direct flights mean that you will stop before arriving to your destination, but will not leave the plane. You can book your direct flight now at www.southwest.com.

Go to www.AtTheBeachFl.com for things to do in South Walton

John Moran

Top Destination for 2010

John Moran — Mon, 25 Jan 2010 11:00:13 +0000

Florida Panhandle Beaches are a Top Destination

I am really proud to say that one of the top destinations for 2010 is the place I live in. Out of thirteen destinations all over the word, I am not surprise that Florida Gulf Coast is one of them. This place is amazing! There are things to do for the entire family. The Florida Panhandle Beaches are a must see destination.

This place has been overlooked by many, but the true is that it contains some of the most diverse recreation choices along Florida’s Gulf coast, and some of the best options for visitors seeking an affordable family vacation.