tom-beaty.com views on real estate

The NRHA, Norfolk Redevelopment and Housing Authority, will receive funding to assist first time home buyers who are in the low to moderate income level. The Virginia Housing Development Authority announced over $13 million in funds. These funds are the larges amount of money that has been designated to any authority in the state and it will be allocated to NRHA to finance affordable housing in the city.

The funding comes from VHDA’s Sponsoring Partnerships and Revitalizing Communities, or SPARC program. SPARC provides loans below market rate to first time homebuyers with special allocations that are made by local housing groups. The funding is allocated annually and on a competitive basis to assist housing groups in the critical housing needs of the community. SPARC funding helps organizations obtain the allocations at 1/2 to 1 percent below the normal VHDA’s First Time Homebuyer Program rate. The entire allocation for NRHA was awarded at 1 percent below the fixed VHDA rate.

In addition the NRHA HOME Program was awarded nearly $6 million to assist eligible low to moderate income homebuyers and the HomeNet Homeownership Center was given over $7 million for the eligible market rate homebuyers. Naturally income limits will apply to both the market rate and the low to moderate income homebuyers. These awards will allow the NRHA to approve a one percent discounted interest rate for the first time homebuyer that is eligible. The homebuyer will then be able to purchase new construction homes in Norfolk with below market rate 30 year mortgages that will offer a more affordable monthly payment.

The awarded allocation is expected to help around 81 first time homebuyers. According to the current VHDA fixed rate an eligible homebuyer’s rate, being 1 percent less would reduce the principal and interest payment by 11 percent. It is estimated that the awarded money will provide up to $4 million in payments for all of the homebuyers who get assistance.

The combined NRHA and SPARC funds will be combined with other local, state and federal loan and grant programs that will create a variety of finance options to meet the needs of first time homebuyers who are buying within Norfolk. Additionally, a discounted SPARC interest rate will be available to eligible first time home buyers with a gross annual household income that is at 50 to 80 percent of the areas median income limit. A “soft second” forgivable no monthly payment loan through the NRHA HOME Program is also available to these qualifiers; which will provide down payment and closing cost assistance.

The Virginia Housing Development Authority is Virginia’s mortgage finance agency and was established in 1972 by the Virginia General Assembly. The mission of VHDA is to help low and moderate income residence obtain quality and affordable housing. The NRHA was founded in 1940 and is among the national leaders in community revitalization and fosters sustainable mixed income communities. They are the largest redevelopment and housing authority in Virginia and plays a major role in making Norfolk a choice city in which to build, work and live.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

Communities that have been hit hard by the current foreclosure crisis in California is the focus of Governor Schwarzenegger who has come up with a plan to stabilize the neighborhoods as well as helping those looking to buy, including the first time home buyers. Many communities in California struck by the foreclosure crisis have neighborhoods with homes that loom vacant amongst active family dwellings. Houses with boarded up windows, for sale signs and dead lawns sit neglected without buyers to fill them.

Using the worst hit communities for his ground zero, the Governor launched a special home loan program targeted at these abandoned properties in hopes that people will buy. “We want to fill up those empty homes and neighborhoods with stability and create, again, energy in those neighborhoods as quickly as possible. And this program is a step in the right direction,” stated Governor Schwarzenegger (R) CA.
Under the state’s Community Stabilization Home Loan Program, close to $200 million is available. This will help from 800 to 1,000 first time home buyers buy a foreclosed home with a 30 year mortgage at a below market fixed rate interest. Naturally there are sales price limits as well as income limits and the property has to be located in the areas that were hit particularly hard by foreclosures; areas such as Riverside, Alameda and Merced Counties in California.

This program does not include every foreclosed home in the state designated areas and only a few lenders are participating in the program and of these lenders they are only listing certain houses. Despite this there remain thousands of homes that can be purchased for bargain basement prices.

One potential first time homebuyer, Nancy, states; “I have not even owned a home on my own.” She is enthusiastic that the program puts her dream no longer renting and becoming a home owner closer to a reality. Nancy asks, “Who would have guessed five years ago that this would happen? Of course, for a lot of people, it’s a tragedy. But for some people, it’s a wonderful opportunity.”

Residents living in high foreclosure neighborhoods are even more excited about the effort who have witnessed many abandoned homes be defaced with graffiti as well as otherwise being vandalized. One resident living near a foreclosed home says, “Obviously, that it was going to be distressed property and nobody would take upkeep on it. And so, it was a little bit of blight.”

Because of a bond the state will issue, the Community Stabilization Home Loans will not cost taxpayers anything. The CSHL will be paid back with the new buyer’s mortgage payments.

J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as First Time Home Buyer where you can find today’s mortgage rates as well as a wealth of information on getting a First Time Home Buyers Loan .

Real estate investment has become a hot topic over the last decade or so. Would-be investors seem to be around every corner. They attend seminars, buy investment classes on DVD and study the real estate market religiously.

The world of real estate investing seems to be an exclusive and exciting realm where only a privileged few are successful. If you have always wanted to be a part of this world, you may feel that you are too late now that the real estate market has taken a sharp down turn.

However, it may still be possible to start a successful real estate investment career even in a slow real estate market. The most important point to remember is that real estate investing isn’t all about buying a house, improving it, and selling it right away. There are many facets to the world of real estate investment.

One of the most stable forms of real estate investment in a weak or unstable real estate market is rental properties. A poor real estate market means that fewer people are buying their homes and more people are renting. Being the owner of a rental property can put you in a position to be a successful real estate investor very quickly.

Renting out your property lets you build equity while your renter basically makes the mortgage payments for you. You will be stuck if you can’t find a renter for a period of time, but this isn’t very likely. In a slow market where buyers are too afraid to buy, you won’t be at a loss for people who want to live in a house without a mortgage.

If you are patient and don’t need to turn a profit right away, today’s slow real estate market opens up a variety of opportunities for you. Homes are being foreclosed every day, and many homeowners are desperate to get rid of their property before it is foreclosed. You can buy a foreclosed property as a real estate investment for far below its value. If you have great timing and a lot of money in savings, you can even snatch up one of these properties with a cash sale. You’ll have no need for a mortgage and can hold on to the property until the market starts to look up.

In the mean time, you can make improvements to the home that will make it more desirable to future buyers. You can then wait for a better time before putting it back on the market and enjoy a tidy profit on the improved property. This real estate investment tactic is not for beginners or the faint of heart, but it is effective.

In real estate investment, as in most other types of investments, the bigger risk yields the bigger reward. If you are willing to go out on a limb and invest in a property that will not immediately give you a profit, you’re likely to come out far ahead in the future. If you are looking for a lower-risk investment, renting out your property is a fantastic choice in a slow real estate market.

Real estate investment is not as complicated as some investors would like you to believe. It involves making sound choices and knowing the risks that you are taking. If you are willing to jump in and get started in real estate investment, don’t let today’s cold market scare you off. Just think of it as an opportunity to get your feet wet.

Stuart Anthony Atkinson

www.offplanpropertyexchange.com New homes for sale and property investment opportunities worldwide.

In an effort to find more and more assistance with the current real estate problems, Freddie Mac and Fannie Mae are in talks with the Treasury, White House officials and the Federal Reserve. In essence, both Freddie Mac and Fannie Mae are looking for ways to give additional financing for the struggling mortgage companies whose financial problems and ammount of homes in foreclosure are one of the bigger issues in the real estate sector.

What is one of the ways that Freddie Mac will help with their money problems? They are scheduled to sell roughly $3 billion in short term notes starting July 14th. In case they cannot find enough investors, they are negotiating for a backup plan.

Henry Paulson, the Treasury Secretary, is likely to make a planned announcement to reinforce his support for Freddie Mac and Fannie Mae as both companies lost roughly 45% of their value in the past week alone. Since both Freddie Mac and Fannie Mae are an integral part of the success of the real estate market, their stability is essential. Both companies guarantee roughly half of the $12 trillion left in outstanding home mortgages in the United States.

In addition to the current sale of $3 billion in short term funds, the talks are looking at additional ways to fund the companies in case the businesses are unable to raise the capital in the future. One option involves company recapitalization, although neither Frannie Mae nor Freddie Mac want this much government involvement. The Treasurys main focus is to support Freddie Mac and Fannie Mae throughout their current financial state.

Currently, real estate experts estimate that Fannie Mae and Freddie Mac would have about $77 billion in losses before the government could step in for assistance. However, the plans and talks now are an effort to stem losses before they get any worse in the housing market. The auction scheduled by Freddie Mac will have both three month and six month reference bills in an effort to raise monies.

The money will be used in mortgagee securities in future transactions. Unfortunately, the issuances do not have any asset backing, which prompts a great deal of speculation in the marketplace as to the potential for future loss and financial catastrophe. To compare, the mortgage backed securities are less likely to collapse since they are backed by home loans and additional assets.

There are additional hopes for financial investing in the future for both Freddie Mac and Fannie Mae. They have a number of different venues for capital and liquidity that they could access to stabilize the current financial status of these companies. In addition, they could gain access to a discount window offered by the Federal Reserve.

The Federal Reserve would be able to jump in to assist in stemming the losses from these businesses and therefore help to stabilize a failing real estate marketand house values. However, the Federal Reserve spokesperson declares that the Federal Treasury has not yet had any talks about accessing funds for a direct loan from the central bank.

We Buy Houses Quick

Owner builders need to put a budget together prior to starting construction on their new home, not only to qualify for an owner builder construction loan, but also to properly plan for the construction phase.

All too often, though, owner builders use the latest and greatest cost estimator that claims to have eliminated the need for getting real bids from individual sub-contractors and material providers.

Just plug in some quick specs about your home, and you have an instantaneous construction budget to build your dream home.

Right? Wrong.

Here’s the problem - not one of those cost estimators is accurate for your specific project, especially for your owner builder project. All estimators, no matter how fancy or expensive, are based on average costs. Your house, no matter what, is not exactly average. Your house may be more detailed or less detailed than average. It is guaranteed not to be exactly average.

Cost estimators are almost entirely based on square footage and costs per square foot. Let’s say you, the owner builder, are building a 2000 square foot house. A cost estimator will spit out some number for you based on costs per square foot x 2000 feet. You can make some adjustments, typically, for higher or lower grade finishings, but that is it.

Is your 2000 square foot house a simple shoebox, or is it a Victorian style house? Your estimator software is likely not to care. A 2000 square foot Victorian could cost an owner builder over twice as much as a very simple design of the same size. Things like roof pitches, number and design of windows, porches, and many other variables are often not considered. So, using an estimator without getting proper bids, could force an owner builder to make gross budgeting errors.

And, it gets worse. Even if you think you are using a super detailed estimator designed just for owner builders, you will fall short if you fail to account for your local costs, which vary from town to town and even within different parts of the same town.

Also, owner builders constantly run into inaccuracies for any aspect of a home that is not completely standard. For example, if window sizes come in a standard size, and you need something an inch or two different, you will pay a huge premium that your estimating software will not account for. Do you want any curves to those windows? Any transoms or sidelights? These discrepancies are just for windows. Spread this across an entire house, and you should get the point.

Now add one more factor to the equation. The actual number of owner builders who use estimating software correctly is miniscule. Most people, especially owner builders, do not do this sort of thing professionally. And no matter how smart you think you are, you will most likely make mistakes. So, not only are most owner builders starting out with a faulty premise when using a cost estimator, they are using the application incorrectly on top of that.

Often owner builders want to use cost estimators that are provided by material package suppliers or home design companies for their particular set of blueprints. The owner builder’s argument is always logical - the blueprint company or the home kit supplier based the overall construction cost estimates on the specific set of blueprints. So, they should know the actual costs to build that particular house.

Well, sadly, they might only have a rough feel for the typical costs, based on some of the reasons listed above. And even if they do have a good idea, they may underestimate the costs just to get you to buy their package. Why would they do something like that? Put yourself in their shoes. They make more money by selling larger home designs or large material packages. So, by low-balling the estimated cost to complete the home, they can convince owner builders that the larger houses are affordable.

Therefore, owner builders opt to buy the larger houses, and more money goes into the company’s pockets. It happens all the time. When you confront a house plan provider or a home kit company, you will always get the same answer: the budget provided is just an estimate.

The only costs that the company can assure are accurate are the costs for the specific materials that the company is selling. The cost estimate to complete the house is meant solely as a helpful, rough guide for the customer.

The best advice for any owner builder is to disregard the cost estimate completely. If you want to know what it will cost for the labor and materials to build that particular house in that particular town, then go find out. Don’t rely on others to tell you what you want to hear.

In conclusion, do not rely solely on estimating software. They lead to trouble for owner builders every single day. And remember this last point: your cost estimator, and the person who designed it, has no liability when you run out of money during construction. But, you do.

So, when should an owner builder use cost estimating software? There actually is a good time to do so, and that is at the very early stages of thinking about your new home. If you just want to get a very rough idea of the costs of a house plan you like, by all means use a cost estimator to start your thought process. But, add 10-15% to be extra safe. Then, once you have decided to go forward with a home plan and a specific owner builder project, toss those estimates in the garbage and go about the process the right way.

Chris Esposito and Owner Builder 101 provide owner builder construction loans to people who want to build instant equity into their new homes by avoiding general contractor fees. Discover the secrets of owner builder financing and planning at www.OwnerBuilder101.com. Or, call (877) 876-3688.

First of all we have to look at what a building code is and the difference between a property inspection and a building code inspection.

First lets determine what a building code is. Definition: A published body of rules and regulations for building practices, materials, installation and performance designed to protect the health, welfare and safety of the public.

These range anywhere between the minimum size of a room to how many, how far apart and what size nails are used when the structure is put together. Also they can address the type of glass used in a window to the size wires used in the electrical system for different applications. The list of building codes is very long and very technical.

Why do we say we dont do code inspections? The simple answer is because codes change through time and location and there are literally thousands of codes. A bit of history is in order.

The building codes in the United States started in late 1927. Before that time there were no written and agreed upon uniform standards of construction.

The public was mainly relying on the builder and the tradesman to be ethical and honest and good craftsman. To a large degree they were. How this effects property inspections today is that we dont know what every code was when a property was built nor do we know all the codes. City inspectors dont know all the current codes much less past codes.

Throughout every year the codes change. These changes are put out in writing approximately every three years in book form. The codes can be different depending on the city in which the building is located. We do inspections in over 25 different municipalities. There is no way we can know all the codes for each different area for all the different possible times of construction.

Another aspect that can come into play is the on-site local Building and Safety inspector has final say as to whether something is acceptable per the code. He may waive a minor infraction if he feels it is in the spirit of the code.

There may be a Modification to the Building Code that was filed and accepted for the site for a particular circumstance or a Variance. Without getting into the technicalities of what these are the simple explanation is they are all circumstances that are not exactly per the code of the time but are changes that have been approved by the local Department of Building and Safety. They have the final say as to whether something is acceptable per the code.

I am sure you now get the point of why we dont do a code inspection.

We do however use the various building codes as basic guidelines. We study the codes extensively to give us some basic rules for safety. If a question comes up as to whether something is up to code or not for that location or time of construction it will be necessary to consult with the local Department of Building and Safety. This is not part of a general visual inspection that we do.

There are times where we try to communicate changes that have occurred through the years in the codes that we feel are better or safer. One classic example of this is GFCI plugs. These are safety plugs with little buttons in them that can shut off the power to that outlet in less than 1/40th of a second if something non optimum occurs such as a coffee maker while plugged in falling into the office sink. These types of plugs are mandatory in many areas such as restrooms, kitchen areas, or any area near running water and the exterior by most current jurisdictions.

To the best of my knowledge it is not mandatory at this time to have these safety outlets installed in older buildings when they are sold or leased. They usually cost about $25 - $35 per plug to have installed and would have stopped approx. Of all the electrocutions last year if they were installed in all the recommended areas. If you do not have them we will usually suggest you get them for safety however it is usually not mandatory at this time to make the change. I am just mentioning this as an example and depending on the site there may be a few suggestions such as this.

During an inspection we are looking at anywhere from 300-500 different items. Many deal with safety and many deal with function. We do not care about cosmetic issues such as the color of the paint, worn carpet or the style of architecture.

Our main concern is safety and function.

Our reports are extremely detailed and will provide you with a significant amount of information that you can use to make an informed decision.

Our purpose is to make sure you are aware of any significant defects in the building and site and to help you understand what you are agreeing to, not to determine if something is up to code.

Bob has been a Certified Inspector since 1994 and a licensed contractor for nearly 4o years. For more information about commercial real estate inspections visit his website at http://www.commercialrealestateinspectors.com to find out how he can help with your real estate inspection.

The TIC investment is one that has become widely popular, especially over the past few years in particular. But before you can really appreciate the benefits of the TIC exchange properties, it is important that you take the time to become educated and that you understand what a TIC property actually is.

TIC: Due Diligence on a Sole Owner Property

TIC due diligence on a sole owner property is basically the alternative to having the sole ownership of a real estate property but with the same benefits. The advantage is that you will be able to have an investment at a fractional ownership of said property.

When you, the investor, wants to complete a TIC exchange in order to take advantage of the benefits but you want to avoid all the trouble that comes with acquiring another property, then the TIC 1031 may be the perfect solution for you.

Benefits

To be more specific on the benefits that TIC: due diligence on a sole owner property investments have to offer, this includes low minimum investment for one. Rather than a super expensive investment, the TIC: due diligence on a sole owner property investment is one that is affordable, and therefore accessible to the average person. This is because

Simplicity and speed are also favored advantages that come from a TIC: due diligence on a sole owner property investment. These investments are usually set up with a non-recourse whole property loan, and the due diligence information that is provided for the whole property purchase is provided for TIC owners and TIC purchases can actually be completed in just a few days.

This makes them ideal for 1031 exchanges and means that there is as little fuss and confusion for the investor as possible.

In regards to the tax advantages offered, 1031 TIC investments offer very unique ones. Deferred capital gains tax and depreciation recapture into and out of the investment, and can preserve a significant amount of wealth.

Another benefit is for professionals who are dedicated to their careers but who also desire to build a well diversified real estate portfolio with current income and strong appreciation potential, as the TIC program is perfect for them.

You will want to speak to a tax consultant or financial advisor before going through with this, as they will assess your situation and help you to decide whether or not this is going to be a smart move for you.

Kathryn R. Landry is a business writer for TIC Advisors, Inc . A company that can give you the most complete information on a 1031 exchange or TIC properties nationwide.

Search for any article on real estate lately and you will read a lot of doom and gloom scenarios. While it is true that the real estate market is struggling overall, there are some top tips to consider before you purchase a home, no matter what the rest of the mortgage industry and real estate market is doing overall. Before you sell your home or look to buy a new property, answer the questions below to see if now is the right time for you to purchase.

Can you commit? If you can not stay in your new home for at least three years, then now is not the time to buy. With the money that is required to purchase and sell a home, homeownership can end up costing you a great deal of money. If this is a possible outcome for you, it is actually more financially beneficial to rent rather than own until your life becomes more sedentary.

How is your credit? It is remarkable how much of your life is dependent upon your credit score. If you are considering purchasing a new home, the first step is to look at your credit report. If your credit score is low, wait to purchase. Repairing your credit now can translate into thousands of dollars saved in your future as homeowners with low credit scores will incur higher interest rates and more money out the door to the bank instead of towards the property to build equity.

Do you know how much home you can afford? Throw away the online mortgage affordability calculators. Many of these calculators do not factor in a number of important influences when it comes to buying a home and will instead tempt you with a larger home price possibility so that you will call their offices. Instead, follow the savvy rule of thumb that states you can buy a house that is 2.5 times more than your annual salary. Take into account your debts and expenses before you commit to that number, however.

What school district are you searching to buy a home in? It does not matter if you do not have children or are not planning to have any in the future. The savvy home buyer knows that if they want to sell their house fast and see a good increase in the price, they should invest in a good school district. School districts can be the biggest motivating factor for motivated buyers in the future and will ensure a boost in your property value year to year.

Have you been preapproved? It is fun to look at houses. It is not as much fun to go through the bureaucracy of getting preapproved. However, this step is a necessary one for home buyers. Getting preapproved from a lender involves submitting your actual income, debt and credit history and can save you countless hours of grief and heartache from looking at a home that you simply cannot afford. Knowing how much you can spend ahead of time will make the home buying process easier and more enjoyable.

Buy My House at a great price?

Recent research from varying organizations around the world shows an alarming drop in property prices, not just in certain countries, but around the world. Current economic troubles aren’t country-based. Larger, suburban areas seem to be taking the brunt of the decrease in property prices. Small communities and rural areas are also feeling the crunch of the wide-spread decline. Some attribute the decrease in property prices to the decrease in the number of people buying new homes. For many people worldwide, failing economies are making it more cost-effective to rent in lieu of buying a home, townhouse or condominium.

Spanish Property Prices

The Spanish housing market has reported a decline of up to 30 percent. The Don Piso real estate company closed 120 of its offices in May 2008. Along with the closure of 120 of its offices, about 350 jobs were lost. The agency had seen a 66 percent decline in sales over the past year. According to Juan Carlos Sandoval, President of the Union de Creditos Inmobiliarios, UCI, some areas of Spain have seen a housing price decrease of 30 percent over the past year.

The Canary Islands are also seeing a decline in property prices. On the south and southeast sides of the island, property prices have fallen almost 3.5 percent. In the metro areas of Tegueste, Santa Cruz, La Laguna and El Rosario, prices have fallen more than 3.25 percent. After taking inflation into account, the southern part of the island has seen price decreases of 5.6 percent, while the north and metro areas have fallen 4.7 percent and 5.4 percent respectively. John Gardner of Value It stated, “These are averages for these regions and are based upon a survey of 6250 properties for sale.” He explains further that some areas have seen more drastic price declines than others, especially when inflation is taken into consideration.

U.S. Property Prices

Virginia and the Washington D.C. Metropolitan area are experiencing price falls of up to 8 percent. Loudoun County property prices have seen the largest decrease at 8 percent, with Prince William County not far behind at 5 percent. California, Florida and Arizona report similar decreases in property prices.

To the dismay of many Brits, Florida’s housing market is also consecutively on the decline. In 2006, Florida’s housing market was one of the highest in the United States. Many Brits bought unfinished apartments and condominiums expecting to sell them when construction was complete. Unfortunately the Florida real estate market is now saturated with older condominiums and less pricey apartments, leaving a good number of investors with investment properties that they cannot sell.

U.K. Property Prices

For the ninth consecutive month, surveyors reported property price decreases in the United Kingdom. In March 2008, 79.4 percent of surveyors from the Royal Institution of Chartered Surveyors (RICS) reported a drop in home prices. The same report for April 2008 showed 95.1 percent of surveyors saw decreases in home prices. Price declines have reportedly spread to all regions in the U.K.

“The scale of house price falls remains relatively small at this stage compared to past downturns,” RICS said. “The lack of new instructions to sell property continues to provide a crutch to the market. Large numbers of distress sales, either repossessions or sales from those attempting to avoid the repossession process, have not yet appeared in the market place and while mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines.”

Potentially Good News for Investors

Current price falls are causing lenders to rethink their strategies. In the U.K., predictions indicate that half the country will be hit by the price fall within 18 months. Banks and lenders are considering lowering interest rates by as much as .25 percent, lowering the amount of certain credit lines and reconsidering which customers they will accept.

The decrease in the price of property worldwide could mean good news for investors. The ability to buy properties at below-value prices could give the real estate investor an edge when the housing market does get back on its usual track.

Value It representative John Gardner said, “The answer for people looking to buy in Tenerife is through research and knowing the pricing trends in the areas and for property types. There is no substitute if you want to buy well and protect your investment.”

The same is true in other areas of the world, not just Tenerife. Real estate investors make their money buying low and selling higher.

More information about the island of Tenerife can be found at yourtenerife.net including reviews of hotels in Tenerife

Other information includes today’s Tenerife weather and an extended Tenerife weather forecast plus cheap flight to Tenerife deals

A trip to Florida is an exciting and relaxing vacation. The beaches are beautiful and there are many great communities like Lake Worth around the state. The problem is that everyone else knows that. During the prime seasons accommodations are scarce and the rooms are downright pricey.

Wouldn’t it be nice to have one of those great Florida beach houses for your own? Well, sure. A few years ago you might have done it. But right now, with all the mortgage worries, would it be smart to invest in Lake Worth homes? The answer is a qualified yes. Here are a few tips to ensure that you get the most out of your investment.

Buy for the Long Term

In the past, investors bought Florida beach houses, used them as vacation homes for a few years, and then sold them for a substantial profit. Today the story is a little different. People see prices in their communities fall and wonder if vacation property would be a foolish investment.

Actually, prices in vacation areas are less affected by real estate problems than primary residences suffer. People selling a second home let it sit on the market for longer to get the price they want, so a lot of Lake Worth real estate has maintained value better than the national average.

Florida beach houses are a better investment than a primary residential property; however it will take longer to see a profit than it would have a few years ago.

Buy for Love Not Money

Since you should keep your vacation home for longer than you would have before, don’t make the purchase purely from an investment point of view. Buy because you love the area and you want to spend time there.

The more time you will have for vacations, even weekend jaunts, the more value you will get out of your home. In this way, you can stop obsessing over price fluctuations. This isn’t an investment; this is a vacation spot of your very own. If you see it as a long-term or even permanent acquisition, you will approach the deal with a better attitude.

Renting Out Your Home

The good news that is coming out of the real estate slump is that, because home ownership is down, home rentals are up.

Investors who don’t use their Florida beach houses very often defray costs of ownership by taking in long-term renters. This kind of long-distance transaction pretty much requires hiring a property management firm and that reduces profits, however any money you bring in makes the home that much cheaper.

Even if you use your property fairly often, consider short-term rentals to vacationers. You already know how great the area is and how much demand there is for beach property. Vacation rentals are lucrative income sources that don’t restrict your access to the property as much as long-term tenants do. Get in touch with a Palm Beach realtor and consider your options on a Lake Worth home for sale.

Author is a freelance copywriter. For more information on Florida
Beach Houses and Lake
Worth Real Estate, visit http://www.adamandhandsome.com.