Category Archives: Uncategorized

0 Miami Beach Vacation Rental Regulations for COVID-19

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Are Vacation Rentals Currently Permitted in Miami Beach?

As the situation continues to evolve in the United States with COVID-19, Florida’s regulations around short-term vacation rentals continue to evolve as well.

June 16th Miami Beach Short Term Rental Update:

According to Miami Beach’s Phase 2 Reopening Order and Emergency Measures, short-term rentals and vacation rentals were prohibited as of July 16, 2020:

Commencing on July 16, 2020 at 12:01 a.m., short-term rentals and vacation rentals must be CLOSED, and are hereby expressly PROHIBITED. Short-term and vacation rentals shall cancel all existing reservations, and shall refrain from accepting new guests or making new reservations, until such time as this Order expires or is otherwise amended. 

 

June 4th Miami Beach Short Term Rental Update:

As of June 4th, the State of Florida authorized Miami-Dade County to allow the operation of vacation rentals once again.

The Florida Department of Business & Professional Regulation (DBPR) approved the County’s plan for vacation rentals, which includes the following mandatory regulations:

Health and Safety of Guests

  • Guests and homeowners/property managers must follow Miami‐Dade County guidelines regarding social distancing and facial coverings and are restricted to gatherings of no more than 10 individuals.
  • Remote check‐in/out should be made available when possible to cut down on face‐to‐face interactions.
  • CDC resources must be provided to any guest while staying on property. These resources are available in multiple languages at the CDC website.
  • CDC guidance must be provided to guests traveling with pets and service/assistance animals if the property is pet friendly.
  • All properties must provide local COVID‐19 guidance for guests. Miami‐Dade County has a dedicated webpage that includes local information.
  • Homeowners/property managers will add cleaning procedures to their amenities list and property description.

 

Cleanliness of the Property

  • All DBPR sanitation guidelines must be followed: 61C‐3.001 Sanitation and Safety Requirements of the transient lodging statutes.
  • CDC-related guidelines that are for public spaces, businesses, schools and homes and which expand upon the State of Florida and DBPR requirements for safety and sanitation for all lodging, must be followed.
  • Two days must be allowed for enhanced cleaning procedures to take place between stays based upon the use of CDC cleaning and sanitization procedures.
  • Housecleaning will conform to the “Enhanced Industry‐Wide Hotel Cleaning Standards in response to COVID‐19” adopted by the American Hotel & Lodging Association (AHLA).
  • All cleaning will be completed prior to guest check in, so as to avoid any physical contact between cleaning staff and guests.
  • Shared pools and elevators, as well as common areas, will be subject to the Enhanced Industry‐Wide Hotel Cleaning Standards (AHLA).
  • Spare blankets and pillows will be removed, unless cleaned between each guest stay.
  • To inform guests, signage will be placed at each property highlighting the cleaning protocols between stays.

 

All vacation rentals must follow guidelines for Hotels and Accommodations included in The New Normal Guidebook.

For additional information and guidance related to vacation rentals or other businesses regulated by the DBPR during the ongoing “Safe. Smart. Step-by-Step. Plan for Florida’s Recovery,” visit www.myfloridalicense.com/emergency.  

For other County news and updates on COVID-19, see miamidade.gov/coronavirus.

0 Rebound of South Florida Real Estate Market Over Past Decade Points To Sound Fundamentals

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South Florida Real Estate Market

 

Uncertainty. It’s a word we are hearing a lot these days. It’s in just about every advertisement you hear because it’s something we are all actively thinking about. Uncertainty for what the future holds for yourself, your family, your company, your industry. It has to be on our minds because we are all trying our best to plan for the future and make equitable decisions in the face of an unprecedented circumstance with an array of unknown factors.

In the midst of uncertainty, one of the best things we can do to help mitigate the unknown is to draw from similar past experiences. While it is true that many aspects of the current situation are unprecedented, the patternfs of how markets respond to economic difficulty, and to what degree they rebound can tell you a lot about the potential benefit of your investments, despite all of the present unknown.

Take the South Florida real estate market for example. Despite the hit the housing market took in 2008, the South Florida real estate metro has soared over the past decade. Rewind to 2008 and Florida was one of the hardest-hit areas during the foreclosure crisis. However, present-day they have experienced one of the greatest recoveries in the nation.

In Miami-Dade, home prices rose 106% from 2010 to 2019 according to a report by Redfin. In Broward, the median home price increased 161% from $106,000 at the beginning of 2010 to $278,000 at the end of 2019.

 

Real Estate Investments In a Post-Pandemic World

So what does this mean for the future of real estate investments? It means that the time may be coming to make smart investments in the face of dropping prices. If the housing market is to take a hit, historic data shows that the Miami Beach market, in particular, has the fundamentals needed for a strong recovery. Getting into a typically expensive market at a lower price point at a time when demand is lower in the face of economic uncertainty sets you up for a smart investment that has proved to pay out in the past.

Outside of potentially falling prices, interest rates in early 2020 are at historic lows, which is a very important factor to consider for your investment. Buying a property when interest rates are low and getting that rate locked in can truly save you thousands of dollars in interest over the life of your loan.

Interest rates and market prices are important factors to consider if you are thinking about listing your house as well. It will take a bit of time for market prices to adjust following any potential economic downturn, and in the meantime, ready buyers are out there taking advantage of lower mortgage rates. The low mortgage rates will also be beneficial to any seller who will be subsequently or simultaneously listing their home and purchasing a new one.

 

Looking Beyond South Florida Real Estate Market Trends

These market trends are important to keep in mind, but so is the fact that a deal is a deal no matter when it appears. Prices may be high in a market, but if you find your dream home at a good price point, you are still going to want to make an offer. Prices may be down in a market, but you are the one who still gets to decide what your home is worth when you go to list it.

The economics are much more micro in practice than in theory. Real estate market trends guide, rather than determine, individual supply and demand. And that is the way it should be. This is why it usually doesn’t make sense to wait to enter the market based on predicted trends. Deals tend to be out there at all times, you just have to find them. And when you do find them, you have to act based on the current market situation while still keeping in mind those future predictions.

For example, if you know that a listing is very competitively priced, you should make an offer that is competitive to that price point. Why? Because if it’s priced low it is likely to receive more bids, which means you have to compete with a greater number of buyers and offers. You don’t want to take advantage of a competitive listing price by low-balling a bid in an effort to get an even better deal or because you predict a drop in market prices in the future. With that strategy, chances are you will bid yourself right out of that deal time and time again.

 

Can We Help?

A trustworthy real estate broker can help determine if a property is competitively priced. Knowing when to jump on an investment and when to wait for something better is something that takes years of industry experience to feel truly confident in. Your broker can also counsel you in what bid you should place in order to maximize your chance of winning while still getting you the best deal possible. This is a fine line to walk.  Let us help you! Reach out to the Properties & Paradise team today.

0 Is Buying Better Than Renting? Yes

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is buying better than rentingAnyone looking for a home will probably asking themselves, “is buying better than renting? or vice versa?” While each have pros and cons, the recent market may have an answer: buying is better. The latest national index produced by Florida Atlantic University (FAU) and Florida International University indicated this. Housing markets across the country seem to be healthy. Home prices are rising nationally.

“This appears to be driven by a steady but strengthening job market, rising rents relative to rising ownership costs and recent slower growth in traditional financial portfolios consisting of stocks and bonds,” says Ken Johnson, Ph.D., a real estate economist, one of the index’s authors and an associate dean of graduate programs and professor in FAU’s College of Business.

Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index specifically measures buying vs. renting. It compares the potential wealth from purchasing home with a renting a comparable home while investing in stocks and bonds. 16 of the 23 major metropolitan markets studied were in the buy territory.

One of the cities in an what the authors call an “indifference” point was our own Miami. This means there is no obvious answer when asking is buying better than renting? However, the BH&J index did move further towards ownership in this quarter.

“This movement suggests that most consumers in these markets appear to have learned from the real estate crash and now understand that residential property prices can get too high,” Eli Beracha,Ph.D., co-author of the index and assistant professor in the T&S Hollo School of Real Estate at FIU said. “This is a good sign for future housing price stability in these markets.”

Most of the country is either in or headed towards a buying type of market. At RE/MAX Paradise, we have many amazing properties available to rent or buy. However, contact one of our agents today for expert advice on making the right choice.

 

0 Miami Real Estate Inside Scoop

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miami real estate inside scoopResearch, management and consulting firm Bendixen & Amandi International along with the Miami Herald polled Miami real estate professionals. These interviews give some truth and professional insight about what is going on in with the market in Miami-Dade. They discussed foreign influence, the luxury market and more to find out the Miami real estate inside scoop.

With many foreign economies on the fritz, it made sense that the real estate pros interviewed are noticing less foreign property buyers. Last year, more than half of respondents said that foreign buyers dominated purchases in the market. For 2016, only 33% responded that foreign buyers dominated the market.

“The weakened purchasing power of foreign economies has directly affected the residential real-estate market in Dade,” said one industry professional.

However, other respondents and many people agree that the foreign buyers are still prominent. While there may be less, there are still a lot of foreigners coming to buy real estate in Miami. Miami continues to be an international city in many ways.

“We have the beaches, the lifestyle, shopping, events, arts, culture and proximity to the islands, as well as South America. We have direct flights to nearly every major city in the world,” said Realtor Jill Hertzberg.

Another topic the poll covered was climate change. This year, 65 percent of respondents said they were worried about how climate change and rising sea levels will affect the market. This was a 9 percent increase from last year. However, resources are being used to assuage these issues.

“Most consumers are comforted by the fact that there is a great deal of awareness of the situation and therefore a great deal of resources are being put into place to find solutions,” Hertzberg wrote in an email. “Right here in Miami Beach, buyers see evidence of all the projects that are in progress to address potential flooding and other sea-level-rise issues.”

 Want more of the Miami real estate inside scoop? Contact our expert agents at RE/MAX Paradise today who are well-informed and wise about all things Miami.

0 Number of Pending Home Sales Hits a High

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number of pending home salesFor the third month in a row, the number of pending home sales in the United States rose. This information comes from the National Association of Realtors, who also said pending home sales reached their highest level in over ten years.

The Pending Home Sales index is based on contract signings from homes that have not quite sold. It rose 5.1 percent in April. It was 4.6 percent above April 2015. The number of pending home sales has now increased year-to-year for 20 months in a row. NAR chief economist Lawrence Yun said gains in the South and West helped the numbers increase a lot. In the South, pending home sales increased 6.8 percent.

“The ability to sign a contract on a home is slightly exceeding expectations this spring, even with the affordability stresses and inventory squeezes affecting buyers in a number of markets,” Yun says. “The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market.”

Pending home sales are so high for several reasons. Yun notes how mortgage rates have remained low- below 4 percent- in 16 of the last 17 months. However, no one can tell for sure how long they will stay low. Florida Realtors wrote that Yun thinks rates will stay around 4 percent in the near future, but inflation may raise them.

“Even if rates rise soon, sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search,” adds. Yun.

Yun also foresees home sales for the year exceeding previous predictions. He thinks they will reach a level 3 percent about 2015.

The levels of pending home sales indicate a bright future for real estate! Take advantage of today’s market and low mortgage rates and contact RE/MAX Paradise about your dream home in Miami!

0 Great Time to Buy or Sell Real Estate

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time to buy or sell real estateAccording to Jonathan Smoke, chief economist of realtor.com, it is currently a great time to buy OR sell real estate. That is great news! For the past few months, sellers have been very happy. High demand has led to high prices, and quick sales. Supply has been low, posing some challenges for homebuyers. However, seeing the benefits, more homeowners are selling, and that means good things for buyers.

Fannie Mae’s National Housing Survey from April showed that 52 percent of respondents said it was a good time to sell a home. According to realtor.com, that was the highest it had been since the survey started in 2010. This is just one of many indictors that a lot of homeowners are selling right now.

“But here’s the reality: Selling a home is usually just the first (critically important) step in the process of buying another home. We find that more than 85% of today’s sellers indicate that they also intend to buy. So while they’re adding to the inventory of homes for sale, they’re also dipping back into it,” wrote Smoke.

Smoke also noted the top five reasons for selling a home right now: want to be in a different neighborhood, need a home with different features, need a bigger home, want better location, and need to lower cost of living.

“Since mortgage rates have declined and stabilized at multiyear levels this spring, we’ll look back in a few years and realize what a unique window of time this was. Households that can indeed successfully sell and buy this year should improve their housing situation while locking in the lowest possible costs,” Smoke wrote.

If you are either a seller or buyer in Miami right now, you should be happy! For several reasons, right now is a great time to buy or sell real estate. We are excited to help you with either today at RE/MAX Paradise, so contact us now!

0 Reasons to Rent Your Home

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reasons to rentIf you have been renting a home, you may consider buying one sometimes. There are definitely perks of having your own home to do what you wish with. However, taking on a mortgage can also be a burden. If you are trying to decide to rent or buy, realtor.com helped compile some signs that are good reasons to rent your home.

1) You have recently switched jobs.

“Lenders prefer to see that a home buyer has two years of stable employment in the same industry—unless the home buyer is just out of college, which carries special circumstances,” says Ginger Wilcox, chief industry officer at the mortgage marketplace Sindeo.

2) You are still compounding savings.

Some down payments are 20 percent of the home price. If that wipes our your savings account, then it will be difficult to get a mortgage from lenders. If you are still building your savings account, that might be one of your best reasons to rent a home for a bit longer.

3) The timing isn’t right.

Starting to pay a mortgage is a financial commitment. It can cause stress or a lifestyle adjustment, even if you are financially ready.

“Not only do home buyers have to look for whether or not they can qualify for a loan, they need to look at other areas of their personal and financial life to determine if buying now is the right decision for them,” Wilcox says. “If making mortgage payments is going to take away a lifestyle they enjoy, cause too much stress to stay in a job they hate, or further stress an unstable relationship with a co-signee, perhaps it is better to come up with a homeownership strategy now to find the balance in the future.”

At RE/MAX Paradise, we have beautiful homes in Miami to either rent or buy. Our agents are happy to help you make a decision that is best for you!

0 Questions about the Taxation of Rentals

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taxation of rentalsEarlier this month, a panel met to discuss the taxation of rentals, specifically how to protect property rights while making things fair between hotels and short-term rental homes. The discussion took place at the Realtors® Legislative Meetings & Trade Expo in Washington, D.C and was written about in an article. 

Matt Kiessling, who leads short-term rental policy for the Travel Technology Association, said, “What you shouldn’t do is ban people from doing what they want to do with their property, especially when they aren’t changing the use of that property.” According to Florida Realtors, Kiessling said his organization does not oppose taxing short-term rentals, but that regulations should not infringe upon property rights.

However, others say that high taxes of hotels make for unfair competition with short-term rentals. They say the taxes do not interfere with property rights.

According to the article by Florida Realtors, a central question around the debate is about the different way websites that facilitate short-term rentals operate. For example, some sites like Airbnb facilitate the entire process of finding and booking a place, while others are just for advertising properties.

The advertising-only websites “often don’t know if a property has even been booked, so the idea that they would be able to collect and remit taxes … is nearly impossible,” he said, suggesting that it should be up to the individual owners to pay taxes directly in some cases.

Brian Blaesser, who heads up the real estate development practice at Boston-based law firm Robinson & Cole feels as if local and state governments use taxes on short term rentals that end up crushing their business.

“You are running up against a fundamental issue here about what government can do,” Blaesser said. He warned real estate professionals to watch these restrictive trends closely. If they don’t, “you’re going to be pushed into a much more regulated environment.”

The regulation and taxation of rentals will continue to develop. Here at RE/MAX Paradise we have amazing rental properties available in Miami. Contact one of our agents today to inquire!

 

0 Chinese Real Estate Buyers Spend Billions

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chinese real estate buyersInternational investors are very important to the United States real estate market. Each year, foreigners buy homes in the U.S. for either commercial investment but also for residence. The most foreign buyers come from China, Canada, the United Kingdom, India, and Mexico. Last year, the Chinese real estate buyers accounted for 16% of all real estate sales to international buyers. According to a recent study by the Asia Society and Rosen Consulting Group, Chinese investors spent $17 billion on US commercial real estate between 2010 and 2015.

“More than any foreign investor other than Canada, China stands out for the breadth, depth, and speed of its participation in the US real estate market,” according to the report released on Monday, Breaking Ground: Chinese Investment in U.S. Real Estate.

“This wave of investment is coming from diverse sources in China,” said Arthur Margon, one of the authors of the report and a partner at Rosen Consulting Group (RGC), an independent real estate economics consulting firm. “But that’s really a small piece of the potential investor universe.”

Wendy Cai-Lee, executive vice-president at East West Bancorp Inc said recently at a discussion about the report that Chinese real estate buyers are becoming more knowledgable about U.S. real estate.

“Several years ago, I had Chinese buyers asking only about the return from a potential deal. Now they ask about safety and diversification reflecting a greater awareness of the U.S. market,” she said.

According to the report, a whopping half of the 17.1 billion dollars came in 2015. That meant there was an annual growth rate of 70 percent. Chinese buyers also spend more. According to the National Association of Realtors, the average home price for Chinese buyers in 2015 was $831,800 compared to $499,600 for other international buyers.

International buyers are very important to our market. It’s also an indication of a strong market when so many Chinese and other foreign buyers come to the U.S. to buy. They see the perks of investing in real estate, and so should you. We at RE/MAX Paradise have amazing commercial properties in Miami for sale today!

0 Miami Luxury Real Estate is 7th Best

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miami luxury real estateThere is no denying that Miami has some amazing luxury real estate. Amazing views, spacious areas, and desirable amenities give these homes the luxurious, sought after feel. Recently, Christie’s International Real Estate gave a list of the world’s top luxury real estate market. After 2015, Miami received its highest ranking yet. According to Christie’s, the Miami luxury real estate market is the seventh best in the world, in front of both Paris and San Francisco.

According to the Miami New Times, Christie’s uses a “luxury index” to make their list. The factors contributing include average luxury price per square foot, the total number of real estate sales made over $1 million, the percentage of total listings over $1 million, the average home price, the percentage of international and non-local buyers, recent market record sale price, and percentage of secondary homes.

Miami clearly does well in many of those categories. However recently, one single giant sale really helped Miami rank higher. The purchase was the 13th most expensive residential real estate purchase in the world last year.

“Miami achieved a local record sale ($55 million for a new-build penthouse), which offset declines in overseas and cash buyers, ensuring a solid performance in the Luxury Index,” reports Christies according to the Miami New Times article.

While Miami luxury real estate will always be top-notch, the city’s ranking might go down next year.

“New luxury stock and slowing buyer demand evidenced in late 2015 and early 2016 however, is likely to move it down in next year’s rankings,” finds the report.

However, the quality of Miami real estate will never dwindle. At RE/MAX Paradise, we can help you find your dream home in many luxury buildings in the city. For example, 1000 Museum, will be incredibly stunning and unique.

Of course, Miami is an amazing place for all types of residential homes, whether they be luxury or not, and we have a variety of diverse, beautiful homes.