Florida Real Estate Tips

Where are the baby boomers retiring?

The profile of America is shifting rapidly as the first of the Baby Boomers begin to retire. It’s a well-known fact that every aspect of the economy has been impacted for over a half century by the so-called Baby Boom generation; that cohort of births which took place right after WWII until the mid-60s. From music to investing, they have shaped America and continue to do so more than ever. So it’s not by mistake that many are calling on researchers and analysts to forecast where the Boomers are planning to retire. After all, if the past decades have been any indication, it’s a sure bet that real estate trends will be impacted by the Boomers.

This time, the Boomers have decided they like some real estate markets more than others – for many reasons. First, Boomers like to have fun. They don’t define themselves as aged, old or elderly like their parents before them. Instead, they exercise, remain active and desire to maintain a lifestyle far from the rocking chair of yesteryear. Shuffle-board is out - golf is in. Wigs are out - glowing tans and strong bodies are in. Oatmeal and soft diets are out – fine dining is in. But what they enjoy most of all is travel, sightseeing and year-round access to sunshine and fun!

It's no surprise to find that Florida tops the list as a primary retirement destination. Places like St. Augustine, Gainesville and other Florida locations that were all but ignored 10 years ago are now areas of interest to the first of the Baby Boomers.

But it’s not all fun and games for the Boomers. They want to stretch their money. The average lifespan has increased dramatically during their generation and many expect to live far into their 80s or even 90s. After spending most of their working lives in large cities with rapidly growing populations, Boomers want to stretch their hard-earned dollars in areas where work is less important and hospitals and other amenities take first priority. St. Augustine, Florida real estate is a prime location for affordability, beautiful beaches, warm weather and world-class amenities.

If this is a trend of interest, visit HomesAndLand.com to request a real estate magazine and find a real estate agent to help locate your perfect Florida home.

More Real Estate Tips.

---

What should I look for when researching Florida Homes for Sale?

You have heard the old adage: location, location, location. By now we all know it’s critical when it comes to investing in real estate, yet the vast majority of people buy based on price alone. Rather than research the right location, most people tend to focus merely on the number of bedrooms and monthly payment. Of course that is important, but by taking a long term look at the role of location and subsequent re-sale value, you can dramatically decrease your overall cost of home ownership or dramatically increase the total value of your real estate investment.

Concentrating only on monthly payments or square footage is a recipe for disaster. For instance, let’s assume two buyers both purchase a home with a monthly mortgage of $1,000 per month. One is in an area that averages 2 percent appreciation per year, barely keeping pace with inflation. Another is in an area that averages 12 percent per year. Each keep their home for five years. The first buyer hasn’t even kept up with inflation so even though they may sell and have money in their pocket at closing, the reality is the next home they purchase will require even more money. They are behind the game at that point. On the other hand, by purchasing a home in a rapidly appreciating sub-market, the second buyer preserves his/her buying power while beating inflation. In fact, it’s almost like living in the house for half price! They get back a significant portion of what they paid toward the mortgage for the entire time they lived there, tax free!

Ask people where the best areas to buy are located and most don’t know. What states are gaining population? What states are losing people? What counties in each state are good or bad? There is a lot of confusion out there and it is costing people real money and lost opportunities. To learn more about Florida homes for sale and growing areas with great locations, visit HomesAndLand.com.

More Real Estate Tips.

---

Is Florida real estate still a good investment?

Florida real estate is positioned for continued growth according to the U.S. Census state population projections. Three states - Florida, California and Texas - are projected to account for 46 percent of total U.S. population growth by the year 2030.

Florida, now the fourth most populous state will edge past New York into third place in total population by 2011...only four short years from now! Florida is anticipated to add over 1,000 people each and every day, month after month, year after year...for the next 25 years! With this type of growth, it's easy to understand why the Florida real estate market is expected to rebound and thrive. However, the difference in impact fees, resale value, taxation and appreciation from one county to the next, even from one city or town to the next, can be tremendous. It’s important to do your research and understand how it impacts your financial planning and personal investment portfolio.

The first step is to find a real estate agent or broker that specializes in the area and type of property that best fits your needs. If you are considering relocating or investing in Florida real estate order a real estate magazine for the cities you are interested in from HomesAndLand.com.

More Real Estate Tips.

---

How can I find underpriced Florida real estate?

Everyone that you make money when you buy real estate not when you sell. This simply means that you must buy at the right price in order to assure a profit later. Real estate goes through different cycles just like any other investment and Florida real estate is no exception, despite the rapid growth projections for the state.

Common wisdom suggests searching for properties selling at 20 percent or more below market price but how do you find these types of deals? The first step is to understand what motivates people to sell their home. The most common reasons include:

• Failing Health
• Inherited Property
• Lawsuit
• Retirement
• Bankruptcy
• Foreclosure
• Condemned Building
• Relocation
• Divorce
• Losing Money
• Don't Want the Property

Learn how to read the legal information for those areas you are interested in buying a Florida home for sale. Legal notices are typically published in the newspaper and online formats to provide notification of many situations that may create a motivated seller. Worth-of-mouth and referrals are also good ways to learn about a motivated seller. Most of all, finding a real estate professional who knows the area well and keeps their eyes and ears open can open doors to great opportunities. Buyer's agents represent the buyer only and are often valuable resources in your search for under-priced real estate.

More Real Estate Tips.

---

Where can I buy real estate in Florida?

Despite what you hear in the media, many areas of the country remain highly attractive to investors and first time homebuyers. Take Gainesville, Florida for instance; the median sales price of an existing family home rose over 30 percent between the 1st quarter of 2005 to the 1st quarter of 2006. Statistics for the past three to five years are even more impressive, especially when you consider that Gainesville is home to one of the largest university campuses in the nation.

Understanding real estate trends is critical. Not every area is growing at the same rate and some locations are saturated. Those markets have reached their peak and most appreciation has already taken place. On the other hand, areas like Gainesville were actually below the median price of homes nationwide. Combined with the population explosion taking place in Florida real estate, the great weather and amenities of the city, housing was surprisingly affordable.

For those who think they will wait for prices to decline further consider this: Gainesville experienced a 30 percent increase in one year...that translates to over $50,000 for the average home in that area. Those who waited only found the price of a home even less affordable. Those who purchased early were rewarded with enough equity to nearly pay for their child's college education!

For more information on real estate in Gainesville Florida or to locate a real estate agent, visit HomesAndLand.com.

More Real Estate Tips.

---

How can I use the affordability index to locate real estate investment properties?

Many people have never heard of an affordability index, but this simple formula measures the ability of a typical family to "afford" or qualify for the average mortgage in any given area. Of course, you may wonder what "typical" means; according to the U.S. Department of Housing and Urban Development (HUD), a typical family is one that earns the median income for that area. Likewise, a typical home is defined as a median price single-family house in that same area.

One reason real estate in Florida grew at such a strong rate was that the affordability index, or average income, was higher than what was required to purchase the average home. Of course, recent years have demonstrated strong growth and rapid appreciation of home values, but it is still possible to locate Florida real estate investment properties by using the affordability index.

An index value of 100 means the average family has exactly the required amount of income required to purchase a median priced home. Over 100 means the family makes more than what is required while less than 100 means they can't afford to purchase an average home in that area.

Ask your real estate agent about the affordability index for any Florida real estate properties you are considering.

More Real Estate Tips.