|
MY GUIDING PRINCIPLES: · Professionalism · Honesty · Fairness · Accountability · Skill · Care · Diligence and · Confidentiality! |
|
THIS MONTH · Pg 1 Pre-Qualification Scenarios— · PG 1 Why $110 in Taxes Could Cost You $20,000 · Pg 2 CDD Editorial-Where & What is Justification? · Pg 2 Can Eddie Predict The Real Estate Market? · Pg 3 The (new) Tax Amendment · Pg 3 Roll Tape on Property Tax Reform · Pg 3 Market Not As Bad As It Seems · Pg 3 But, How Bad Is The Market? · Pg 3 CHART: Avg, Median, # Sales Since 1990 · Pg 3 FSBOs No More? (they’re at record lows) · Pg 4 What Happened To The Sub-prime Market? · Pg 4 CHART: Relationship of FICO to Interest ~ · Pg 4 Why Grade A Lending was Unaffected? |
|
At Home In Coral Bay — Nov-Dec, 2007 |
|
No One Knows Coral Bay Like Eddie Velie, Realtor & Licensed Mortgage Broker |
|
A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Svcs. |
|
EDDIE VELIE, Realtor & Licensed Mortgage Broker (954) 263-6287 Copyright: Eddie Velie
|
|
IT IS TIME TO BUY! It’s the best time to buy since the early 1990’S recession! FREE HOME BUYER REPRESENTATION! |
|
Just your CDD taxes could cost you $20,000 when you sell your home! (below) |
|
No One Knows Coral Bay Like Eddie Velie, Realtor & Licensed Mortgage Broker |
|
Unfiltered Coral Bay News Get this newsletter in full color via e-mail. Sign up by entering your email address and a comment at: |
|
Page 2 |
|
CDD Editorial – Where & What Is The Justification? Your CDD Board is at it again. They approved the reinstatement of the ticket and tow policy and are paying for it with our tax dollars. This is just down right stupid. This is not in the best interest of the Coral Bay homeowners. With all the other things that need to be done in Coral Bay, they waste money on a security patrol to: 1) drive around even when there is NO RELATIVE CRIME DATA to justify it, 2) harass people by ticketing and towing their cars and, 3) harass people by making them leave the common areas. We have to pay twice for this stupidity because the eight HOA’s have to enforce the rest of the parking problems as a result. The CDD board is now allowing the extra vehicles to park in our tennis, playground, & clubhouse parking lots. Now when you come in the gates (what gates) the first thing we see is parking lots full of cars, vans, & trucks attempting to disguise as “non-commercial” vehicles. It isn’t pretty by any standard. There is no City law against parking on the grass or the street. The city police won’t enforce the CDD parking rules. Instead of voting to rescind the rule, they voted to reinstate it. Hey, “Tony the Tax Man”, are you still going to blame this on the previous board too? It is also a violation of the CDD Master Covenants. “Common Properties means those portions of the community, including, without limitation, easements, for the common use and enjoyment of the owners ~” (Coral Bay Master Declaration article 1.1 f.). Article 7.11 says, “No motor vehicles of any type, trailers, ~ may be parked on any unpaved portions of the Common Properties.” All of our properties have about a 12’ easement along the roadways. Nowhere does it say we can’t park on the streets. In fact, they are again doing the opposite of what is in the our best interest. |
|
on credit, assets, etc.). If you are an investor with an ARM, you have a tough decision to make; ask yourself, "should I sell?" On the other hand, "should I refinance to a fixed rate now or sell NOW?" If you wait to refinance or sell because your payments will not double for another year or two, the value will not be there to refinance. That 20% you put down has melted away. You are risking being upside down with a very high payment and having to put money in every month because the rent will not cover the payments, insurance, maintenance fees, etc. (End of July’s Conclusion to “State of the Market Report”) NOVEMBER 1, 2007: “IT ALL CAME TRUE—” The housing inventory went up. There are now 118,787 homes for sale in the tri-county area. We have seen 5.5% - 6% increase in available inventory. “Short Sales” has become a household word along with “foreclosure” as banks, investors, and homeowner try to minimize their losses. “Broward County had 1,965 foreclosure filings in August, up 615 percent from 275 the year before. Miami-Dade County was next in the state, with 996 foreclosures, up 70 percent from 585 in August 2006. Palm Beach County had 808 foreclosures, up from 122 in August 2006.” (Source: S. FL Journal, Sept 07) “Monthly foreclosure figures have been volatile over the last year, and September was no exception. Florida's numbers were down 2 percent from the previous month, but up 157 percent from September 2006.” (Source S. FL Journal, Oct 07). Foreclosures will continue to drive the downturn in housing until we hit bottom. The bottom is where it no longer makes sense for all the qualified buyers packing the apartment complexes to continue to rent. That is, when the rent payment will cover the principle, interest, taxes, insurance, and maintenance fees for relative like housing. |
|
At Home In Coral Bay — Nov-Dec, 2007 |
|
A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Svcs |
|
CAN EDDIE PREDICT THE REAL ESTATE MARKET? YOU DECIDE — In an article I wrote in early July 2007 titled, “STATE OF THE MARKET SUMMER 2007”, I covered 10 of the variables affecting the housing market by summarizing my perceptions after researching, reading and analyzing data and media sources. From July 1, 2007: “WHAT IT ALL MEANS” Conclusion to “State of the Market” (Click here for full article.) Hold on for the ride because prices will continue to fall for the rest of this year. The supply of homes for sale on the market is still growing and will probably continue to grow. The continued growth in inventory and decline in prices will be caused from an increase in foreclosures, short sales (when the bank agrees to let the owner sell the home for less than what they owe), and people wanting or having to move but there are no buyers. The demand for homes will probably not increase until we see the outcome of the vote on the property tax situation. The FHA, who used to exclusively help buyers with great credit, is implementing programs to help families in the sub-prime category. When these programs are fully deployed, the sub-prime category of buyers will have a safe place to go for their mortgages instead of being taken advantage of by unscrupulous mortgage brokers. If you are a buyer and have cash, just smile and look for bargains. If you are an owner and do not have to move, do not. If you are an owner with an ARM and are thinking, “my payments will stay low for a couple of more years, then I will refinance,” you may be in for a rude awakening. When you try to refinance, your house will be worth less, you will have built no equity (or maybe even increased the principle because you have a negative amortization ARM), and probably will not be able to refinance. You either make the high payments of the mature ARM, or lose the house (depending |
|
The Tax Amendment As I suggested earlier this year, the last property tax amendment was thrown off the ballot by a court judge. Instead of appealing, the state legislature went back to the drawing board. The Florida Association of Realtors and I believe that passage of this NEW amendment is very critical for Florida’s economy. If it doesn’t pass, it could be 2009 before we see any tax relief. (Please see the “pre-qualification scenario example on page 4 to see why $110 in taxes can affect a home’s value by $20,000). The 4 main points: 1) The portability of up to $500,000 in “Save Our Homes” is retroactive to January 1, 2007 and is good for 2 years after you sell your home. 2) The homestead exemption is doubled from $25,000 to $50,000. 3) It puts a 10% cap on commercial & non-homesteaded properties, even when values rise faster than that. 4) The amendment exempts $25,000 in intangible property taxes on local business. For a more complete explanation of the amendment, watch the video mentioned in the article on the right. |
|
No One Knows Coral Bay Like Eddie Velie, Realtor & Licensed Mortgage Broker |
|
At Home In Coral Bay — Nov-Dec, 2007 |
|
A Mortgage & Real Estate Newsletter By Eddie Velie Real Estate Svcs |
|
A BRIGHT SPOT ON THE CDD BOARD Sandi McCormick loves to work to try and improve the community of Coral Bay, Margate, and S FL. Her latest community service is voluntarily working to organize the CDD files. Since August, Sandi has worked every Wednesday at our clubhouse, while giving up pay as a paralegal. In addition, Sandi & husband Robert, do excellent puppet shows for children’s hospitals, Cub Scout Packs, etc. They use their massive collection of puppets & equipment to better our communities. THANK YOU SANDI!
|
|
DON’T FORGET — I WILL MEET OR BEAT ANY LISTING OFFER TO SELL YOUR HOME! |
|
MARKET NOT AS BAD AS IT SEEMS While it may appear that your net worth is collapsing around you as you look on helplessly, it is not nearly as bad as it appears. The first reason is that appraisers will not use properties sold under duress as a comp when they appraise your home. “Market Value” has a specific definition that includes language that the “buyer” and “seller” are not “under duress” or forced to sell, like in a foreclosure. The amount of value that our homes will lose remains very unclear. The State’s “Economic Advisors” are predicting 3%. The Center for Responsible Lending estimates that the value of Miami-Dade County homes will decline by an average of $13,122, Broward County homes by $6,451 and Palm Beach County homes by $3,378 Since the only thing selling these days is foreclosure properties, it is impossible to tell until the inventory comes down and we begin to sell under normal conditions again. |
|
ROLL TAPE ON PROPERTY TAX REFORM Do you have questions about the new property tax reform amendment approved by Florida lawmakers? Get your answers directly from FAR Vice President of Public Policy John Sebree, who explains in video format how the proposed property tax reform amendment helps Realtors and homeowners. The 10-minute video is now posted on FAR’s Web site, floridarealtors.com. |
|
FSBOs NO MORE? (For Sale By Owner) In the recent real estate boom, a lot of home sellers questioned the need for a Realtor in the transaction, thinking a home sale included little more than putting a “For Sale” sign in the front yard and waiting less than three days for an offer. But no more. The level of for-sale-by-owner (FSBO) transactions remains at a record low, according to the NAR’s 2007 Profile of Home Buyers and Sellers released yesterday at the 2007 Realtors Conference & Expo in Las Vegas. Only 12 percent of transactions in 2007 were FSBOs, unchanged from 2006. The level of homes sold without professional representation has declined since 1997 when a record 18 percent of transactions were FSBOs. The survey also found that four out of 10 FSBO properties were never available on the open market, but were “closely held” between parties who knew each other in advance, such as family members or acquaintances. (© 2007 FLORIDA ASSOCIATION OF REALTORS |
|
BUT HOW BAD IS THE MARKET? WE ARE ON PACE FOR THE LEAST NUMBER OF SALES IN CORAL BAY’S HISTORY! (ABOVE) |
