International Plaza Resort & Spa....A Condo-Hotel......$30M in renovations....From $165,000
*Lease Back paid to you up until 2010
*Condo Fees Paid up to 2010 by Developer
*All Taxes Paid to 2010 by Developer
*3% of Closing Costs paid by Developer
*All New Furniture included
A Magical World at the International Plaza Resort & Spa...
Enter the lavish gates of the International Plaza Resort & Spa and discover a tropical paradise filled with exotic flowers, charming wood bridges and unique décor. Walk through our main doors and you’ll be greeted by majestic African Greys and tropical birds inside our stunning main lobby. Conveniently located just minutes from Walt Disney World, Universal Studios and the Orange County Convention Center, the International Plaza Resort & Spa offers the perfect setting for any occasion. Enjoy lush, native palm trees, select amenities and deluxe hotel accommodations set to the highest standard of personal comfort. With our variety of services and features, it’s easy to see why we’ve become so popular among Orlando resorts for both leisure and business travel. Experience the convenience and splendor of our unparalleled location:
*Situated on 28 lush, tropically landscaped acres in Orlando, Florida;
*Walking distance from SeaWorld Orlando theme park;
*Three blocks from the Orange County Convention Center;
*Just five minutes from Walt Disney World and Universal Studios;
*Located on International Drive, with a trolley stop in front of the hotel;
*Only 10 miles from Orlando International Airport (MCO);
*Free transportation to all Disney parks.
***Owners will be allowed to use it 14 days a year during Lease Back program, following lease back program you will have to option of placing into our rental program.***
Wednesday, November 28, 2007
Punta Perla - Dominican Republic
Colin Montgomerie Golf Course at Punta Perla
The new 5 star Caribbean golf resort that is currently underway in Punta Cana has recently begun the initial stages of construction for the first of three signature golf courses at Punta Perla. The resort offers luxury properties situated around the golf courses, including townhouses, beach apartments and luxury multi-million dollar mansions.
The spectacular 18-hole golf course has been designed by one of the world’s best golfers, Colin Montgomerie, in conjunction with Berkshire-based European Golf Design. The joint-venture is also responsible for the construction of other courses in the Caribbean, including Black Bess and Sugar Hill in Barbados, Tryall in Jamaica and Kittitian Heights in St Kitts.
By mid-2008, Punta Perla will have made good progress in its transformation into a golf enthusiast’s paradise, having completed the first of its very own world-class golf courses.
As expected, the completion of this first course is set to increase visitor numbers to the area and further boost off-plan property prices in Punta Perla by some 25%. By their very nature, off-plan opportunities need timely action if they are to realize their full investment potential and Caribbean Dream Properties are pleased to offer pre-launch prices before the end of the year, after which time they are also due to rise by some 25%.
The new 5 star Caribbean golf resort that is currently underway in Punta Cana has recently begun the initial stages of construction for the first of three signature golf courses at Punta Perla. The resort offers luxury properties situated around the golf courses, including townhouses, beach apartments and luxury multi-million dollar mansions.
The spectacular 18-hole golf course has been designed by one of the world’s best golfers, Colin Montgomerie, in conjunction with Berkshire-based European Golf Design. The joint-venture is also responsible for the construction of other courses in the Caribbean, including Black Bess and Sugar Hill in Barbados, Tryall in Jamaica and Kittitian Heights in St Kitts.
By mid-2008, Punta Perla will have made good progress in its transformation into a golf enthusiast’s paradise, having completed the first of its very own world-class golf courses.
As expected, the completion of this first course is set to increase visitor numbers to the area and further boost off-plan property prices in Punta Perla by some 25%. By their very nature, off-plan opportunities need timely action if they are to realize their full investment potential and Caribbean Dream Properties are pleased to offer pre-launch prices before the end of the year, after which time they are also due to rise by some 25%.
Four Seasons partners with Disney World to build resort
Four Seasons partners with Disney World to build resort
Mar 2, 2007
Associated Press - LAKE BUENA VISTA, Fla. – Four Seasons Hotels and Resorts will build a luxury hotel and 18-hole championship golf course along the northeast border of Walt Disney World, theme park officials said Thursday.
The Toronto-based luxury hotel chain is part of two expansion plans that will take eight to 10 years to fully develop and will include single- and multifamily vacation homes, fractional ownership homes and a 450-acre retail, dining and lodging district, said Meg Crofton, Disney World's president.
“This is a first-of-its kind development for our company,” Crofton said. “Four Seasons is a world-renowned brand known for its luxury and appeal.”
The number of jobs the two developments will bring to the area is unknown, Crofton said. Disney currently has 60,000 employees.
Four Seasons, with 74 hotels in 31 countries and two locations currently in Florida, will anchor a 900-acre development which already houses two golf courses. The hotel planned to open in 2010 could break ground later this year, Crofton said.
One of the existing golf courses will be upgraded into a championship course and the other will be renamed after the Four Seasons brand.
The second development will be roughly the size of Disney's Animal Kingdom and be located just outside the western entrance. About 4,500 time shares and hotel units will surround a pedestrian-friendly retail village that includes restaurants, shops and small-scale entertainment venues. Construction is slated for later this year.
“We chose this area because it's a great opportunity to further enhance the western entrance of our resort,” Crofton said. “We're currently putting the finishing touches on the design and then we will give this development a strong brand name.”
Mar 2, 2007
Associated Press - LAKE BUENA VISTA, Fla. – Four Seasons Hotels and Resorts will build a luxury hotel and 18-hole championship golf course along the northeast border of Walt Disney World, theme park officials said Thursday.
The Toronto-based luxury hotel chain is part of two expansion plans that will take eight to 10 years to fully develop and will include single- and multifamily vacation homes, fractional ownership homes and a 450-acre retail, dining and lodging district, said Meg Crofton, Disney World's president.
“This is a first-of-its kind development for our company,” Crofton said. “Four Seasons is a world-renowned brand known for its luxury and appeal.”
The number of jobs the two developments will bring to the area is unknown, Crofton said. Disney currently has 60,000 employees.
Four Seasons, with 74 hotels in 31 countries and two locations currently in Florida, will anchor a 900-acre development which already houses two golf courses. The hotel planned to open in 2010 could break ground later this year, Crofton said.
One of the existing golf courses will be upgraded into a championship course and the other will be renamed after the Four Seasons brand.
The second development will be roughly the size of Disney's Animal Kingdom and be located just outside the western entrance. About 4,500 time shares and hotel units will surround a pedestrian-friendly retail village that includes restaurants, shops and small-scale entertainment venues. Construction is slated for later this year.
“We chose this area because it's a great opportunity to further enhance the western entrance of our resort,” Crofton said. “We're currently putting the finishing touches on the design and then we will give this development a strong brand name.”
Monday, November 19, 2007
The World's Most Popular Tourist Destination
Orlando, Florida - The World's Most Popular Tourist Destination
The city's nickname is "The City Beautiful". The city of Orlando is the county seat of Orange County, Florida. As of the 2000 census, the city had a total population of 185,951 (metropolitan area 1,644,561). A 2004 U.S. Census Estimates population count gave the city had a total population of 205,648 (metropolitan area nearly 1.8 million). It is the sixth-largest city in Florida, and its largest inland city. It is also at the head of the state's third-largest metropolitan area, behind Miami-Fort Lauderdale and Tampa-St. Petersburg. Additionally, Orlando is home to the second largest university in Florida, the University of Central Florida.
The city is best known for the tourist attractions in the area, particularly the nearby Walt Disney World Resort, which is in the Reedy Creek Improvement District. Other area attractions include SeaWorld and the Universal Orlando Resort, the latter of which is in Orlando proper. Despite being far from the main tourist attractions, downtown Orlando has recently seen much redevelopment, with many more projects currently under construction or planned.
History
Some historians date Orlando's name to around 1836 when a soldier named Orlando Reeves allegedly died in the area, during the war against the Seminole Indian tribe. It seems, however, that Orlando Reeves (sometimes Rees) operated a sugar mill and plantation about 30 miles (50 km) to the north at Spring Garden in Volusia County, and pioneer settlers simply found his name carved into a tree and assumed it was a marker for a grave site. They thus referred to the area as "Orlando's grave" and later simply "Orlando."
During the Second Seminole War, the U.S. Army established an outpost at Fort Gatlin, a few miles south of the modern downtown, in 1838. But, it was quickly abandoned when the war came to an end. The first permanent settler was cattleman Aaron Jernigan, who acquired land along Lake Holden by the terms of the Armed Occupation Act of 1842. But, most pioneers did not arrive until after the Third Seminole War in the 1850s.
Orlando remained a rural backwater during the Civil War, and suffered greatly during the Federal Blockade. And, most of the early residents made their living by cattle ranching. But, the Reconstruction Era brought a population explosion. This led to the city's incorporation in 1875. The period from 1875 to 1895 is remembered as Orlando's "Gilded Era," when it became the hub of Florida's citrus industry. But, a great freeze in the latter year forced many owners to give up their independent groves, thus consolidating holdings in the hands of a few "citrus barons" which shifted operations south, primarily around Lake Wales in Polk County.
The years between the Spanish American War and World War I saw Orlando become a popular resort, as Florida's largest inland city. During World War II, a number of Army personnel were stationed at the Pine Castle AAF, now the site of Orlando International Airport. Some of these servicemen stayed in Orlando to settle and raise families. In 1956 the aerospace/defense company Martin Marietta (now Lockheed Martin) established a plant in Orlando. In addition, Orlando is close enough to Patrick Air Force Base, Cape Canaveral Air Force Station, and Kennedy Space Center for residents to commute to work from the city's suburbs. It also allows easy access to Port Canaveral, an important cruise ship terminal. Because of its proximity to the innovative "Space Coast", many high-tech companies have shifted to the Orlando area.
The most critical event for Orlando's economy occurred in 1965 when Walt Disney announced the plans for Walt Disney World. The famous vacation resort opened in October, 1971, ushering in an explosive population and economic growth for the Orlando metropolitan area, which now encompasses Orange, Seminole, Osceola, and Lake counties. As a result, tourism became the centerpiece of the Orlando economy. In the hurricane season of 2004, Hurricanes Charley, Frances, and Jeanne battered the Orlando area, causing widespread damage and flooding and impeding tourism to the area.
Geography
Orlando Skyline at sunset, from SR-408Orlando is located at 28°32'1" North, 81°22'33" West (28.533513, -81.375789)1. According to the United States Census Bureau, the city has a total area of 261.5 km² (100.9 mi²). 242.2 km² (93.5 mi²) of it is land and 19.3 km² (7.5 mi²) of it is water. The total area is 7.39% water.
Orlando is rivaled only by the Twin Cities in the number of natural lakes to be found in its metropolitan area. The region Orlando occupies is generally low-lying, the only exception being minor sand hills formed by wave action in earlier geological eras when sea level was higher. These are found primarily in the western sections of the metropolitan area, especially in Lake County. The Orlando area is home to 100+ lakes, the largest of which are Lake Apopka, Eustis, Griffin, Harney, Harris, Jessup, Monroe, Saint Cloud, and Tohopekaliga. The area is also very prone to sink-holes due to the large number of underground limestone caverns that are located in the area. Many of the lakes started as sink holes in recent geologic history.
Climate
Orlando is considered to be in a subtropical climate zone. Summer high temperatures average in the low-to-mid 90s °F (mid-30s °C). Its proximity to the Atlantic Ocean in particular allows the Sea Breeze to cool it, but also keeping humidity high, keeping temperatures stable and making temperatures of 100 °F (38 °C) very rare. Its all-time record high temperature is 102 °F (39 °C), last achieved on May 31, 1945. 100 °F (38 °C) was last reached in 1998 for several days and peaking at 101 °F (38.3 °C) on July 2.
Winter temperatures are typically mild, with the jet stream bringing in frequent cold fronts. High temperatures typically fluctuate anywhere from 65 °F (18 °C) to 80 °F (27 °F). Below-freezing temperatures are uncommon, with snow almost a generational event. Orlando's all-time record low is 19 °F (-7 °C), last achieved on January 20, 1985. The last recorded snow event was on December 23, 1989, when light snow and sleet fell and the high temperature only reached 37 °F (2.5 °C) on Christmas Day. January is the only month in which a temperature of 90°F (32°C) has not been recorded.
The average annual rainfall for Orlando is 48.35 in (1198 mm). June through September is its "rainy season", accounted for by its location at the center of the Florida Peninsula, with the Gulf Breeze off the Gulf of Mexico and the Sea Breeze off the Atlantic Ocean colliding over the city in the summer, creating "pop-up" thunderstorms. December through May is considered Orlando's "dry season", with wildfires a danger particularly in May.
The city's nickname is "The City Beautiful". The city of Orlando is the county seat of Orange County, Florida. As of the 2000 census, the city had a total population of 185,951 (metropolitan area 1,644,561). A 2004 U.S. Census Estimates population count gave the city had a total population of 205,648 (metropolitan area nearly 1.8 million). It is the sixth-largest city in Florida, and its largest inland city. It is also at the head of the state's third-largest metropolitan area, behind Miami-Fort Lauderdale and Tampa-St. Petersburg. Additionally, Orlando is home to the second largest university in Florida, the University of Central Florida.
The city is best known for the tourist attractions in the area, particularly the nearby Walt Disney World Resort, which is in the Reedy Creek Improvement District. Other area attractions include SeaWorld and the Universal Orlando Resort, the latter of which is in Orlando proper. Despite being far from the main tourist attractions, downtown Orlando has recently seen much redevelopment, with many more projects currently under construction or planned.
History
Some historians date Orlando's name to around 1836 when a soldier named Orlando Reeves allegedly died in the area, during the war against the Seminole Indian tribe. It seems, however, that Orlando Reeves (sometimes Rees) operated a sugar mill and plantation about 30 miles (50 km) to the north at Spring Garden in Volusia County, and pioneer settlers simply found his name carved into a tree and assumed it was a marker for a grave site. They thus referred to the area as "Orlando's grave" and later simply "Orlando."
During the Second Seminole War, the U.S. Army established an outpost at Fort Gatlin, a few miles south of the modern downtown, in 1838. But, it was quickly abandoned when the war came to an end. The first permanent settler was cattleman Aaron Jernigan, who acquired land along Lake Holden by the terms of the Armed Occupation Act of 1842. But, most pioneers did not arrive until after the Third Seminole War in the 1850s.
Orlando remained a rural backwater during the Civil War, and suffered greatly during the Federal Blockade. And, most of the early residents made their living by cattle ranching. But, the Reconstruction Era brought a population explosion. This led to the city's incorporation in 1875. The period from 1875 to 1895 is remembered as Orlando's "Gilded Era," when it became the hub of Florida's citrus industry. But, a great freeze in the latter year forced many owners to give up their independent groves, thus consolidating holdings in the hands of a few "citrus barons" which shifted operations south, primarily around Lake Wales in Polk County.
The years between the Spanish American War and World War I saw Orlando become a popular resort, as Florida's largest inland city. During World War II, a number of Army personnel were stationed at the Pine Castle AAF, now the site of Orlando International Airport. Some of these servicemen stayed in Orlando to settle and raise families. In 1956 the aerospace/defense company Martin Marietta (now Lockheed Martin) established a plant in Orlando. In addition, Orlando is close enough to Patrick Air Force Base, Cape Canaveral Air Force Station, and Kennedy Space Center for residents to commute to work from the city's suburbs. It also allows easy access to Port Canaveral, an important cruise ship terminal. Because of its proximity to the innovative "Space Coast", many high-tech companies have shifted to the Orlando area.
The most critical event for Orlando's economy occurred in 1965 when Walt Disney announced the plans for Walt Disney World. The famous vacation resort opened in October, 1971, ushering in an explosive population and economic growth for the Orlando metropolitan area, which now encompasses Orange, Seminole, Osceola, and Lake counties. As a result, tourism became the centerpiece of the Orlando economy. In the hurricane season of 2004, Hurricanes Charley, Frances, and Jeanne battered the Orlando area, causing widespread damage and flooding and impeding tourism to the area.
Geography
Orlando Skyline at sunset, from SR-408Orlando is located at 28°32'1" North, 81°22'33" West (28.533513, -81.375789)1. According to the United States Census Bureau, the city has a total area of 261.5 km² (100.9 mi²). 242.2 km² (93.5 mi²) of it is land and 19.3 km² (7.5 mi²) of it is water. The total area is 7.39% water.
Orlando is rivaled only by the Twin Cities in the number of natural lakes to be found in its metropolitan area. The region Orlando occupies is generally low-lying, the only exception being minor sand hills formed by wave action in earlier geological eras when sea level was higher. These are found primarily in the western sections of the metropolitan area, especially in Lake County. The Orlando area is home to 100+ lakes, the largest of which are Lake Apopka, Eustis, Griffin, Harney, Harris, Jessup, Monroe, Saint Cloud, and Tohopekaliga. The area is also very prone to sink-holes due to the large number of underground limestone caverns that are located in the area. Many of the lakes started as sink holes in recent geologic history.
Climate
Orlando is considered to be in a subtropical climate zone. Summer high temperatures average in the low-to-mid 90s °F (mid-30s °C). Its proximity to the Atlantic Ocean in particular allows the Sea Breeze to cool it, but also keeping humidity high, keeping temperatures stable and making temperatures of 100 °F (38 °C) very rare. Its all-time record high temperature is 102 °F (39 °C), last achieved on May 31, 1945. 100 °F (38 °C) was last reached in 1998 for several days and peaking at 101 °F (38.3 °C) on July 2.
Winter temperatures are typically mild, with the jet stream bringing in frequent cold fronts. High temperatures typically fluctuate anywhere from 65 °F (18 °C) to 80 °F (27 °F). Below-freezing temperatures are uncommon, with snow almost a generational event. Orlando's all-time record low is 19 °F (-7 °C), last achieved on January 20, 1985. The last recorded snow event was on December 23, 1989, when light snow and sleet fell and the high temperature only reached 37 °F (2.5 °C) on Christmas Day. January is the only month in which a temperature of 90°F (32°C) has not been recorded.
The average annual rainfall for Orlando is 48.35 in (1198 mm). June through September is its "rainy season", accounted for by its location at the center of the Florida Peninsula, with the Gulf Breeze off the Gulf of Mexico and the Sea Breeze off the Atlantic Ocean colliding over the city in the summer, creating "pop-up" thunderstorms. December through May is considered Orlando's "dry season", with wildfires a danger particularly in May.
Tuesday, November 13, 2007
How buyers could save the housing market
How buyers could save the housing market.
By BusinessWeek.com
With real estate on the skids, which matters more to potential buyers: Declining mortgage rates or falling home prices?
The housing market, like a bull in the ring, is wounded yet still powerful. It takes an experienced toreador to discern whether the beast will succumb to the knife or come charging back. The course it takes may hinge on which matters more to buyers: falling interest rates (a big positive) or fear of falling prices (a big negative).
For now, at least, housing construction is clearly in a localized recession. On Nov. 17, the Census Bureau announced that starts on construction of single-family homes plunged 14.6% in October, to the lowest level since July of 2000. On top of that, permits fell 6.3%, to the lowest level since December, 1997, indicating that construction could dip even further in the months ahead.
But that's not the end of the story. Buyers could still save the housing market, depending on how they react to current economic conditions. Mortgage rates, after rising at the beginning of this year, have dipped in recent months, from a peak of 6.8% on average for a 30-year fixed loan in July to 6.24% last month, according to FreddieMac. There's also speculation that the Federal Reserve could cut rates in the months ahead, if inflation is under control and the economy flags.
DIVIDED ECONOMISTS
If buyers take heart from the decline in mortgage rates and step up to buy, the backlog of unsold homes could shrink quickly -- especially with the production of new homes having abruptly fallen. That would put the market back on sound footing within a few months. On the other hand, if potential customers decide that an investment in housing is "dead money" because home prices are going to flatten or decline for an extended period, then no jiggering of interest rates is going to encourage them to part with their down payments.
Economists are sharply divided over the prospects for housing because they disagree over how potential buyers will react. Ian Shepherdson, chief North American economist of High-Frequency Economics in Valhalla, N.Y., is a bear on housing because he thinks the prospect of further price declines, or at least a lull, will scare away buyers. During the boom, he says, people were effectively being paid to buy homes because the annual appreciation they got was greater than the interest on their loans. That is no longer true.
But economists who are more bullish say buyers don't seem to be frightened despite the flood of bad publicity about housing. They point to the recent resilience of demand. For example, the Mortgage Bankers Association announced on Nov. 15 that its seasonally adjusted index of mortgages to purchase homes rose 2.7% in the week ended Nov. 10, to its highest level since July. The biggest factor: lower mortgage rates. Rates for 30-year fixed mortgages fell to 6.15%, their lowest since January, 2006.
WAITING FOR THE RECOVERY
And people are putting those mortgage loans to work: Sales of both new and existing homes are up from their summer lows. "We're probably seeing the turn. We're starting fewer homes even though we're continuing to sell them," says Michael Englund of Action Economics.
The housing slump is far from over, but the conditions for an eventual recovery are in place: Builders are sharply cutting back, and buyers are cautiously continuing to buy. That means the backlog of unsold homes should begin to diminish. The welcome decline in mortgage rates may seem small compared to the reversal in price trends, from soaring to sinking. But it appears enough to put at least some people back in a buying mood.
Peter Coy, economics editor for BusinessWeek.com
By BusinessWeek.com
With real estate on the skids, which matters more to potential buyers: Declining mortgage rates or falling home prices?
The housing market, like a bull in the ring, is wounded yet still powerful. It takes an experienced toreador to discern whether the beast will succumb to the knife or come charging back. The course it takes may hinge on which matters more to buyers: falling interest rates (a big positive) or fear of falling prices (a big negative).
For now, at least, housing construction is clearly in a localized recession. On Nov. 17, the Census Bureau announced that starts on construction of single-family homes plunged 14.6% in October, to the lowest level since July of 2000. On top of that, permits fell 6.3%, to the lowest level since December, 1997, indicating that construction could dip even further in the months ahead.
But that's not the end of the story. Buyers could still save the housing market, depending on how they react to current economic conditions. Mortgage rates, after rising at the beginning of this year, have dipped in recent months, from a peak of 6.8% on average for a 30-year fixed loan in July to 6.24% last month, according to FreddieMac. There's also speculation that the Federal Reserve could cut rates in the months ahead, if inflation is under control and the economy flags.
DIVIDED ECONOMISTS
If buyers take heart from the decline in mortgage rates and step up to buy, the backlog of unsold homes could shrink quickly -- especially with the production of new homes having abruptly fallen. That would put the market back on sound footing within a few months. On the other hand, if potential customers decide that an investment in housing is "dead money" because home prices are going to flatten or decline for an extended period, then no jiggering of interest rates is going to encourage them to part with their down payments.
Economists are sharply divided over the prospects for housing because they disagree over how potential buyers will react. Ian Shepherdson, chief North American economist of High-Frequency Economics in Valhalla, N.Y., is a bear on housing because he thinks the prospect of further price declines, or at least a lull, will scare away buyers. During the boom, he says, people were effectively being paid to buy homes because the annual appreciation they got was greater than the interest on their loans. That is no longer true.
But economists who are more bullish say buyers don't seem to be frightened despite the flood of bad publicity about housing. They point to the recent resilience of demand. For example, the Mortgage Bankers Association announced on Nov. 15 that its seasonally adjusted index of mortgages to purchase homes rose 2.7% in the week ended Nov. 10, to its highest level since July. The biggest factor: lower mortgage rates. Rates for 30-year fixed mortgages fell to 6.15%, their lowest since January, 2006.
WAITING FOR THE RECOVERY
And people are putting those mortgage loans to work: Sales of both new and existing homes are up from their summer lows. "We're probably seeing the turn. We're starting fewer homes even though we're continuing to sell them," says Michael Englund of Action Economics.
The housing slump is far from over, but the conditions for an eventual recovery are in place: Builders are sharply cutting back, and buyers are cautiously continuing to buy. That means the backlog of unsold homes should begin to diminish. The welcome decline in mortgage rates may seem small compared to the reversal in price trends, from soaring to sinking. But it appears enough to put at least some people back in a buying mood.
Peter Coy, economics editor for BusinessWeek.com
People Watching
People watching
Reports of Florida’s declining population boom are greatly exaggerated. That’s according to Stan Smith, director of the UF’s Bureau of Economic and Business Research. “There have been a number of news articles lately focusing on the idea that population growth in Florida has fallen off and practically come to a standstill, and that simply isn’t true,” says Smith. “Florida has a strong economy and adds jobs every year. That is a major factor in last year still being a big year for population growth, even though it was less than in the previous three years.” According to new UF research, Florida’s population grew by 331,000 between 2006 and 2007, or about 900 people per day. That’s slightly less than the 1,100-people-per-day rate recorded a few years ago. Florida’s total population is 18,680,367 as of April 1, 2007. Where are all these people going? To Orange, Miami-Dade and Hillsborough counties, according to UF. But in terms of growth rates, Flagler, Sumter and Osceola counties lead the state.
Reports of Florida’s declining population boom are greatly exaggerated. That’s according to Stan Smith, director of the UF’s Bureau of Economic and Business Research. “There have been a number of news articles lately focusing on the idea that population growth in Florida has fallen off and practically come to a standstill, and that simply isn’t true,” says Smith. “Florida has a strong economy and adds jobs every year. That is a major factor in last year still being a big year for population growth, even though it was less than in the previous three years.” According to new UF research, Florida’s population grew by 331,000 between 2006 and 2007, or about 900 people per day. That’s slightly less than the 1,100-people-per-day rate recorded a few years ago. Florida’s total population is 18,680,367 as of April 1, 2007. Where are all these people going? To Orange, Miami-Dade and Hillsborough counties, according to UF. But in terms of growth rates, Flagler, Sumter and Osceola counties lead the state.
Foreign Assets
Foreign assetsGood news from financial analysts: Foreign investment in real estate—particularly in Florida—is likely to pick up. So says Mark Vitner, chief economist for Charlotte, N.C.-based Wachovia Corp. “The dollar is on sale,” said Susan Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania. She points to the declining value of the dollar against the euro—the currency of 13 European countries: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia and Finland. Today, a foreign buyer would need only 34,100 euros to make a $50,000 downpayment on a house, compared to 37,920 euros to make the same downpayment at the beginning of the year.
What buyers want most in a home: air conditioning, over-sized garages and walk-in closets, according to NAR’s recent analysis of economic indicators.
Assessment of Florida Market
Homebuilder executive assesses Florida market
FORT LAUDERDALE, Fla.
– Nov. 13, 2007 –
Three years ago, home builders held lotteries to deal with hordes of people, mostly short-term investors, overwhelming their sales centers. Today, with housing markets crashing, builders practically beg for buyers.
“During the boom, you were developing strategies to manage demand,” said Jill DiDonna, a vice president of Sunrise-based GL Homes. “Now your whole modus operandi is trying to stimulate demand. It’s come 180 degrees.”
GL has grown substantially since beginning as a small local company in 1976. At the end of 2006, GL was ranked as the 36th largest builder in the nation, according to Professional Builder magazine.
The privately held builder also is one of the largest in Palm Beach and Broward counties and is feeling the brunt of the slump because its business is concentrated in the Sunshine State. California, Nevada and Florida were out front in the housing boom and now are leading the downturn.
GL, with revenue last year of $871.7 million and about 250 employees, builds homes for young families and retirees in Broward, Palm Beach, Indian River, Lee and Hillsborough counties. About 35 percent of its business is the growing active-adult segment.
“People are still moving to Florida to retire, and retirees don’t have time to wait on the sidelines,” said DiDonna, 37, in her 14th year at GL.
She discussed the state of the home-building industry during an interview last week at the company’s headquarters. Portions of her answers are paraphrased.
Q: In your opinion, when will the housing market improve?
A: Home builders and sellers are reducing their prices. Over time, the market will be stimulated by that adjustment. How long do I think that will take? Eighteen months to two years.
Q: Until then, can builders afford to keep offering deep discounts?
A: Buyers’ psychology today is that they expect to get good deals. Very few sales are happening without incentives. We just sold 40 homes in Vero Beach. We knocked anywhere from $60,000 to $100,000 off the price of the homes. That seemed to be the magic number. If a house is selling for $300,000, and it cost you $250,000 to build, and you have to sell it for $225,000, at least you have some cash flow coming in. Something is better than nothing.
Q: Are there any silver linings in this slump?
A: The active-adult market is very encouraging. That 55-and-older segment hasn’t seen the downturn that other segments have. At our Valencia Pointe development in Boynton Beach, we’re selling 26 homes a month during season. I go in there when I’m really depressed.
Q: How can consumers take advantage of a buyer’s market?
A: Get pre-approved for a mortgage before making an offer. You will have more credibility. Base your offer on something, like a comparable sale. Negotiate for items that carry value and affect the total purchase price, such as lot premiums, options, closing costs, deposit requirements, closing dates and interest rates. Builders are motivated by quick closings. If you can close quickly, that can play to your advantage in negotiations.
Q: What tactics should buyers avoid?
A: Don’t lowball. It gets the process off to a bad start, and builders won’t take you seriously. Don’t expect the builder to rebuild the house for you to include some unusual feature. Don’t blow the deal over $10,000 or $15,000 when you’ve already negotiated significant savings. Finally, don’t expect that a home will be there when you’re ready. Unique properties at the right price will sell quickly.
Copyright © 2007 South Florida Sun-Sentinel, Paul Owers. Distributed by McClatchy-Tribune Information Services. Staff Researcher Barbara Hijek contributed to this story.
FORT LAUDERDALE, Fla.
– Nov. 13, 2007 –
Three years ago, home builders held lotteries to deal with hordes of people, mostly short-term investors, overwhelming their sales centers. Today, with housing markets crashing, builders practically beg for buyers.
“During the boom, you were developing strategies to manage demand,” said Jill DiDonna, a vice president of Sunrise-based GL Homes. “Now your whole modus operandi is trying to stimulate demand. It’s come 180 degrees.”
GL has grown substantially since beginning as a small local company in 1976. At the end of 2006, GL was ranked as the 36th largest builder in the nation, according to Professional Builder magazine.
The privately held builder also is one of the largest in Palm Beach and Broward counties and is feeling the brunt of the slump because its business is concentrated in the Sunshine State. California, Nevada and Florida were out front in the housing boom and now are leading the downturn.
GL, with revenue last year of $871.7 million and about 250 employees, builds homes for young families and retirees in Broward, Palm Beach, Indian River, Lee and Hillsborough counties. About 35 percent of its business is the growing active-adult segment.
“People are still moving to Florida to retire, and retirees don’t have time to wait on the sidelines,” said DiDonna, 37, in her 14th year at GL.
She discussed the state of the home-building industry during an interview last week at the company’s headquarters. Portions of her answers are paraphrased.
Q: In your opinion, when will the housing market improve?
A: Home builders and sellers are reducing their prices. Over time, the market will be stimulated by that adjustment. How long do I think that will take? Eighteen months to two years.
Q: Until then, can builders afford to keep offering deep discounts?
A: Buyers’ psychology today is that they expect to get good deals. Very few sales are happening without incentives. We just sold 40 homes in Vero Beach. We knocked anywhere from $60,000 to $100,000 off the price of the homes. That seemed to be the magic number. If a house is selling for $300,000, and it cost you $250,000 to build, and you have to sell it for $225,000, at least you have some cash flow coming in. Something is better than nothing.
Q: Are there any silver linings in this slump?
A: The active-adult market is very encouraging. That 55-and-older segment hasn’t seen the downturn that other segments have. At our Valencia Pointe development in Boynton Beach, we’re selling 26 homes a month during season. I go in there when I’m really depressed.
Q: How can consumers take advantage of a buyer’s market?
A: Get pre-approved for a mortgage before making an offer. You will have more credibility. Base your offer on something, like a comparable sale. Negotiate for items that carry value and affect the total purchase price, such as lot premiums, options, closing costs, deposit requirements, closing dates and interest rates. Builders are motivated by quick closings. If you can close quickly, that can play to your advantage in negotiations.
Q: What tactics should buyers avoid?
A: Don’t lowball. It gets the process off to a bad start, and builders won’t take you seriously. Don’t expect the builder to rebuild the house for you to include some unusual feature. Don’t blow the deal over $10,000 or $15,000 when you’ve already negotiated significant savings. Finally, don’t expect that a home will be there when you’re ready. Unique properties at the right price will sell quickly.
Copyright © 2007 South Florida Sun-Sentinel, Paul Owers. Distributed by McClatchy-Tribune Information Services. Staff Researcher Barbara Hijek contributed to this story.
Saturday, November 10, 2007
Median Price of Existing Homes Slips to 2006 Levels
Median Price of Existing Homes Slips to 2006 Levels
(Orlando Sentinel, Apr. 10th):
"Orlando Regional Realtors Association: The median price of Orlando area existing homes sold in March slipped to 2006 levels, $240,000… Sales of homes and condos rose to 1,665 in March from 1,541 in February in the core Orlando market as the spring selling season kicked off. But that was down 42% from March 2006… The number of homes for sale by local Realtors rose to a record 23,547 from a revised 22,055 in February, up 1,492, a 14-month supply at the recent sales pace… The local Realtor group's affordability index rose to 93.6% in March from 87.1% in February."
(Orlando Sentinel, Apr. 10th):
"Orlando Regional Realtors Association: The median price of Orlando area existing homes sold in March slipped to 2006 levels, $240,000… Sales of homes and condos rose to 1,665 in March from 1,541 in February in the core Orlando market as the spring selling season kicked off. But that was down 42% from March 2006… The number of homes for sale by local Realtors rose to a record 23,547 from a revised 22,055 in February, up 1,492, a 14-month supply at the recent sales pace… The local Realtor group's affordability index rose to 93.6% in March from 87.1% in February."
Friday, November 9, 2007
First-Time Buyers can be in the Money
First-time buyers can be in the money!
While credit standards have clenched up, driving many too-lax lenders from the field, plenty of financiers are looking for customers, say home lenders.
“It’s a very good time for first-time buyers,” said Susan Wommack, national account manager with LoanSifter.com, an industry database business in Little Chute, Wis. “The lenders who are still standing are very competitive, and service levels have gone up, too.”
“For people with good credit, who’ve shown some responsibility, and have some income to work with, there’s plenty of money,” said Kevin Kubacki, senior loan officer with Pyramax bank in Greenfield, Wis.
Because a reliable history of meeting mortgage payments weighs heavily in calculating credit scores, first-time buyers are at a bit of a disadvantage, he added, typically landing between 620 and 680.
That limits the types of mortgages that borrowers can get more than the interest rates they’ll pay. For instance, a first-time buyer hoping to snag a relatively rare no-down-payment loan these days hasn’t a prayer with a credit score of less than 680.
Kubacki and other lenders say that first-timers are finding good luck with government programs specifically geared for them, such as those offered by the Federal Housing Administration.
Restrictions are geared to include as many first-time buyers as possible, because that’s the whole point of such programs, lenders say.
Coming up with the downpayment can be hard.
“The 100 percent financing programs have been popular, but people are rightfully wary of those, so we are returning to a 3 percent or 5 percent downpayment,” said Joni VonAsten, underwriting processor and closing supervisor for Wisconsin Mortgage Corp. in Brookfield, Wis. “We’re going back to the standards that have always been in place.”
Key lending ratios for first-time borrowers
• Total debt - including student loans ¬ shouldn’t exceed 50 percent of gross monthly income. That includes property taxes and insurance.
• Total housing payments ¬ including property taxes and insurance - shouldn’t exceed 34 percent of gross monthly income.
© 2007 Milwaukee Journal Sentinel, Joanne Cleaver. Distributed by McClatchy-Tribune News Service.
While credit standards have clenched up, driving many too-lax lenders from the field, plenty of financiers are looking for customers, say home lenders.
“It’s a very good time for first-time buyers,” said Susan Wommack, national account manager with LoanSifter.com, an industry database business in Little Chute, Wis. “The lenders who are still standing are very competitive, and service levels have gone up, too.”
“For people with good credit, who’ve shown some responsibility, and have some income to work with, there’s plenty of money,” said Kevin Kubacki, senior loan officer with Pyramax bank in Greenfield, Wis.
Because a reliable history of meeting mortgage payments weighs heavily in calculating credit scores, first-time buyers are at a bit of a disadvantage, he added, typically landing between 620 and 680.
That limits the types of mortgages that borrowers can get more than the interest rates they’ll pay. For instance, a first-time buyer hoping to snag a relatively rare no-down-payment loan these days hasn’t a prayer with a credit score of less than 680.
Kubacki and other lenders say that first-timers are finding good luck with government programs specifically geared for them, such as those offered by the Federal Housing Administration.
Restrictions are geared to include as many first-time buyers as possible, because that’s the whole point of such programs, lenders say.
Coming up with the downpayment can be hard.
“The 100 percent financing programs have been popular, but people are rightfully wary of those, so we are returning to a 3 percent or 5 percent downpayment,” said Joni VonAsten, underwriting processor and closing supervisor for Wisconsin Mortgage Corp. in Brookfield, Wis. “We’re going back to the standards that have always been in place.”
Key lending ratios for first-time borrowers
• Total debt - including student loans ¬ shouldn’t exceed 50 percent of gross monthly income. That includes property taxes and insurance.
• Total housing payments ¬ including property taxes and insurance - shouldn’t exceed 34 percent of gross monthly income.
© 2007 Milwaukee Journal Sentinel, Joanne Cleaver. Distributed by McClatchy-Tribune News Service.
Selling Your Home
Selling Your Home
Want to get the best price for your home? Here's a quick list of things you can do to ensure the best sales price and a speedy sale!
To figure your estimated proceeds of selling your home, click here.
Grounds and Exterior
* A fresh coat of paint for your home, garage, and fences
* Lawn trimmed, weeds pulled from beds, and yard clear of debris
* Gutters sealed and downspouts clean
* Polish door brass, paint worn trim or rusty mail box Clean all window and door storms and screens
Inside Your Home
* Paint inside walls and woodwork
* Oil doors, tighten loose cabinet knobs, take out removable stains
* Check that all windows, doors, and drawers can be easily opened and closed
* Replace damaged floor tiles, clean soiled carpeting
* Tighten leaky faucets, repair or replace faulty wall switches, outlets, light fixtures and appliances that will stay with the home
* Scrub bathroom tiles and grout, polish faucets, keep toiletries and medicines in their chest, and laundry items in a closed hamper
* Clean windows and keep closets, basement, and garage clear of clutter
* You may also want to have a garage sale to rid you of items you've accumulated over the years prior to showing your home.
Buying a Home Tips
Buying a Home
It's probably the biggest investment you'll ever make with long-term financial ramifications. It calls for many informed decisions and for good advice from a real estate professional.
When buying a home, here's what you can learn from a Realtor®'s knowledge and skill:*
It's probably the biggest investment you'll ever make with long-term financial ramifications. It calls for many informed decisions and for good advice from a real estate professional.
Members of the Orlando Regional Realtor® Association (ORRA) are real estate professionals who belong to the National Association of Realtors® and subscribe to its strict Code of Ethics. Not all real estate brokers and agents are Realtors®. To make sure you're working with one, look for the federally registered membership mark Realtor®.
ORRA members also are required to complete six hours of specialized Legal Liability training every two years. This mandatory education enables Realtors® to better serve you.
To figure your estmated costs of buying your home, click here.
When buying a home, here's what you can learn from a Realtor®'s knowledge and skill:*
*A Realtor® can help you determine how much home you can actually afford. Often, a Realtor® can suggest additional ways to accrue the down payment and explain alternative financing methods.
* A Realtor® can help you determine the home best suited to your family's needs and size, style, features, location, accessibility to schools, transportation, shopping, etc.
* Realtor® has access to thousands of listings of available homes, and can match the features of currently listed homes with your needs and within your price range, saving you time and frustration on unsuitable homes.
* A Realtor® can offer suggestions on how, with a few simple changes, a home could be made more suitable for you and improve its utility and value.
* A Realtor® can supply information on real estate values, taxes, utility costs, municipal services and facilities, and may be aware of proposed zoning changes that could affect your decision to buy.
* A Realtor® has no emotional ties to the homes he or she shows, can be objective about them, and can point out advantages and disadvantages while answering your questions.
* A Realtor® usually knows his or her local money market and can tell you about financing.
*A Realtor® can also tell you what personal and financial data to bring with you when applying for a loan.
* A Realtor® can help you better understand the closing process by explaining it all before you get to the closing table.
Thursday, November 8, 2007
Orlando Offers the Perfect Escape for Couples.
Orlando Offers the Perfect Escape for Couples.
Imagine breakfasting together in flight at sunrise, with orange and red blanketing the sky. Then, lounge by the pool, soaking up the warm Orlando weather. Paddle your way to lunch at noon, surround yourselves with dolphins in the afternoon, and finish the night with warm fondue. And that’s just one day. For couples, the options are endless in Orlando.
Enjoy a seafood entrée soaked in light garlic sauce with a red velvet cake for dessert at Seasons 52. Celebrate an anniversary at The Melting Pot, and take turns dipping fresh strawberries in chocolate and French bread in a savory cheese. Orlando offers plenty of opportunities for a romantic dinner in a magical setting.
Bobs Balloon Flights, Magic Sunrise Ballooning and Orlando Balloon Rides located near the Walt Disney World Resort area, offer daily hot air balloon rides at sunrise which include champagne and breakfast. Lake Eola features a breathtaking view of downtown, with picnic settings and paddle boat rentals. Or head to Winter Park to stroll down the streets of Park Ave. Walk hand-in-hand while browsing through an array of local shops, and then relax at a café with a pastry and tea. Spend an evening at Downtown Disney having dinner in a romantic setting at the Portobello Yacht Club, and afterwards, enjoy a night of entertainment by Cirque de Soleil and their mesmerizing acrobatics and costumes.
Orlando’s theme parks offer plenty of fun for adults, too. From high-energy thrill rides to spectacular shows and parades, grown-ups will find adventures just from them.
Enjoy pampering treatments and massages at a number of resort spas located throughout the Orlando area. The Canyon Ranch SpaClub at Gaylord Palms offers special “two-by-two couple therapies” where you can enjoy the massage treatment of your choice alongside your significant other. You’ll want to be a newlywed again at the Spa at Buena Vista Palace, which offers a special package for couples including a “Chocolate Blitz Scrub & Wrap,” followed by a couples’ massage in an outdoor private cabana. Then spend a few hours relaxing by a private pool and dining on a gourmet lunch. Other area spas include: The Ritz-Carlton Spa, Grand Floridian Spa & Health Club, Papillon the Spa at Westgate Lakes Resort, Mandara Spa at Portofino Bay Hotel and Mandara Spa at the Walt Disney World Dolphin.
Make plans to attend spectacular performances by the Orlando Ballet, the Orlando Opera or the Orlando Philharmonic. Or, for edgier entertainment, explore the Orlando International Fringe Festival or the annual Florida Music Festival. Just be sure to leave time to explore the Unexpected Orlando.
Relax after a long day at The Blue Martini in The Mall at Millenia. Enjoy a night out at Glo Lounge Orlando which has 50-inch plasma screens, billiard tables, VIP couches and one of the best in town. From the streets of downtown Orlando to the entertainment complexes at area theme parks, Orlando offers plenty of places to party the night away.
With an impressive collection of dining experiences, luxurious resorts and spas, and remarkable entertainment options, couples can rekindle their relationship with an array of vacation options in Orlando.
Imagine breakfasting together in flight at sunrise, with orange and red blanketing the sky. Then, lounge by the pool, soaking up the warm Orlando weather. Paddle your way to lunch at noon, surround yourselves with dolphins in the afternoon, and finish the night with warm fondue. And that’s just one day. For couples, the options are endless in Orlando.
Enjoy a seafood entrée soaked in light garlic sauce with a red velvet cake for dessert at Seasons 52. Celebrate an anniversary at The Melting Pot, and take turns dipping fresh strawberries in chocolate and French bread in a savory cheese. Orlando offers plenty of opportunities for a romantic dinner in a magical setting.
Bobs Balloon Flights, Magic Sunrise Ballooning and Orlando Balloon Rides located near the Walt Disney World Resort area, offer daily hot air balloon rides at sunrise which include champagne and breakfast. Lake Eola features a breathtaking view of downtown, with picnic settings and paddle boat rentals. Or head to Winter Park to stroll down the streets of Park Ave. Walk hand-in-hand while browsing through an array of local shops, and then relax at a café with a pastry and tea. Spend an evening at Downtown Disney having dinner in a romantic setting at the Portobello Yacht Club, and afterwards, enjoy a night of entertainment by Cirque de Soleil and their mesmerizing acrobatics and costumes.
Orlando’s theme parks offer plenty of fun for adults, too. From high-energy thrill rides to spectacular shows and parades, grown-ups will find adventures just from them.
Enjoy pampering treatments and massages at a number of resort spas located throughout the Orlando area. The Canyon Ranch SpaClub at Gaylord Palms offers special “two-by-two couple therapies” where you can enjoy the massage treatment of your choice alongside your significant other. You’ll want to be a newlywed again at the Spa at Buena Vista Palace, which offers a special package for couples including a “Chocolate Blitz Scrub & Wrap,” followed by a couples’ massage in an outdoor private cabana. Then spend a few hours relaxing by a private pool and dining on a gourmet lunch. Other area spas include: The Ritz-Carlton Spa, Grand Floridian Spa & Health Club, Papillon the Spa at Westgate Lakes Resort, Mandara Spa at Portofino Bay Hotel and Mandara Spa at the Walt Disney World Dolphin.
Make plans to attend spectacular performances by the Orlando Ballet, the Orlando Opera or the Orlando Philharmonic. Or, for edgier entertainment, explore the Orlando International Fringe Festival or the annual Florida Music Festival. Just be sure to leave time to explore the Unexpected Orlando.
Relax after a long day at The Blue Martini in The Mall at Millenia. Enjoy a night out at Glo Lounge Orlando which has 50-inch plasma screens, billiard tables, VIP couches and one of the best in town. From the streets of downtown Orlando to the entertainment complexes at area theme parks, Orlando offers plenty of places to party the night away.
With an impressive collection of dining experiences, luxurious resorts and spas, and remarkable entertainment options, couples can rekindle their relationship with an array of vacation options in Orlando.
Everyone Can be a Kid Again in Orlando!
Everyone Can be a Kid Again in Orlando!
Parents, you might think you are planning an Orlando vacation for your kids but, we bet that once you get here, you’ll realize that this trip is just what you needed, too! After all, where else but Orlando can you race your kids from exciting ride to breathtaking show one day and sneak away guilt-free for a round of golf, a spa treatment, relaxing dinner or show the next? In a destination built especially for families, you will find that childhood is a place you can revisit time and again as you reconnect with your own children in this magical place where fantasy and reality meet.
Whether you are traveling with a star-struck toddler who dreams of meeting fairytale princesses, an adventure-seeking pre-teen who wants an amazing animal encounter, or a hard-to-impress teenager who feels the need for speed and high-tech thrills, you will find that Orlando offers unique adventures for kids of all ages. But, don’t worry - Orlando’s theme parks also offer plenty of fun for grown-ups, too.
The fun extends far beyond our theme parks for visitors of all ages. Enjoy a night out on the town or soak up some culture while your kids laugh the night away in one of our great hotel and resort childcare options – ranging from Kids' Clubs to private in-room childcare providers. Or use your vacation to embark on a new adventure as a family like hang gliding or sky diving.
Take your next vacation in place where families can just be, well, families.
Parents, you might think you are planning an Orlando vacation for your kids but, we bet that once you get here, you’ll realize that this trip is just what you needed, too! After all, where else but Orlando can you race your kids from exciting ride to breathtaking show one day and sneak away guilt-free for a round of golf, a spa treatment, relaxing dinner or show the next? In a destination built especially for families, you will find that childhood is a place you can revisit time and again as you reconnect with your own children in this magical place where fantasy and reality meet.
Whether you are traveling with a star-struck toddler who dreams of meeting fairytale princesses, an adventure-seeking pre-teen who wants an amazing animal encounter, or a hard-to-impress teenager who feels the need for speed and high-tech thrills, you will find that Orlando offers unique adventures for kids of all ages. But, don’t worry - Orlando’s theme parks also offer plenty of fun for grown-ups, too.
The fun extends far beyond our theme parks for visitors of all ages. Enjoy a night out on the town or soak up some culture while your kids laugh the night away in one of our great hotel and resort childcare options – ranging from Kids' Clubs to private in-room childcare providers. Or use your vacation to embark on a new adventure as a family like hang gliding or sky diving.
Take your next vacation in place where families can just be, well, families.
Mortgage Probe
NY subpoenas Fannie and Freddie in mortgage probe
Wednesday November 7, 1:10 pm ET
By Patrick Rucker and Paritosh Bansal
WASHINGTON/NEW YORK (Reuters) - New York Attorney General Andrew Cuomo announced on Wednesday that his office was sending subpoenas to Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) as part of his expanding probe of the home mortgage industry.
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The subpoenas seek information on the mortgage loans that the two companies purchased from banks, including Washington Mutual (NYSE:WM - News), Cuomo said.
The two government-sponsored enterprises also have agreed to a demand by Cuomo that they retain an independent examiner to conduct a review of all Washington Mutual appraisals and mortgages purchased by the companies, Cuomo said.
Last week, Cuomo sued First American Corp (NYSE:FAF - News) and one of its units for allegedly colluding with Washington Mutual, known as WaMu, to inflate the appraisal values of homes. WaMu, the largest U.S. savings and loan, was not named as a defendant.
"In order to fulfill their duty to consumers and investors, Fannie Mae and Freddie Mac must ensure that Washington Mutual's mortgages have not been corrupted by inflated appraisals," the attorney general said in a statement.
The subpoenas also seek information on the due diligence practices of Fannie Mae and Freddie Mac, and their valuations of appraisals, he said.
Washington Mutual stock was down nearly 13 percent, falling $3.13 to $21.10, on the New York Stock Exchange. Fannie Mae stock was down 7.8 percent at $51, while Freddie Mac was off 5.5 percent at $46.70, also on the NYSE.
In a statement, Fannie Mae said that it would cooperate fully with Cuomo's probe.
"It is against our interest to purchase or guarantee mortgages with inflated appraisals, and so it is in Fannie Mae's interest that these appraisal practices be investigated," the company said.
Neither Freddie Mac nor Washington Mutual was immediately available for comment.
Cuomo was Secretary of Housing and Urban Development under U.S. President Bill Clinton. The development is the latest outcome of Cuomo's ongoing, nine-month probe into the mortgage industry.
Fannie and Freddie are known as government-sponsored enterprises because the publicly traded firms also hold federal charters to add liquidity to the homes market and contribute to affordable housing.
The lawsuit filed last week against First American, brought in New York Supreme Court, alleged that the company and its real estate appraisal subsidiary, eAppraiseIT, violated appraiser independence laws.
In its mortgage investigation, the New York attorney general's office has sent hundreds of subpoenas and has uncovered "fundamental flaws" in two areas of the market -- appraisals and securitization of mortgage loans, officials have said.
(Additional reporting by Martha Graybow and Joseph Giannone)
Wednesday November 7, 1:10 pm ET
By Patrick Rucker and Paritosh Bansal
WASHINGTON/NEW YORK (Reuters) - New York Attorney General Andrew Cuomo announced on Wednesday that his office was sending subpoenas to Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) as part of his expanding probe of the home mortgage industry.
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The subpoenas seek information on the mortgage loans that the two companies purchased from banks, including Washington Mutual (NYSE:WM - News), Cuomo said.
The two government-sponsored enterprises also have agreed to a demand by Cuomo that they retain an independent examiner to conduct a review of all Washington Mutual appraisals and mortgages purchased by the companies, Cuomo said.
Last week, Cuomo sued First American Corp (NYSE:FAF - News) and one of its units for allegedly colluding with Washington Mutual, known as WaMu, to inflate the appraisal values of homes. WaMu, the largest U.S. savings and loan, was not named as a defendant.
"In order to fulfill their duty to consumers and investors, Fannie Mae and Freddie Mac must ensure that Washington Mutual's mortgages have not been corrupted by inflated appraisals," the attorney general said in a statement.
The subpoenas also seek information on the due diligence practices of Fannie Mae and Freddie Mac, and their valuations of appraisals, he said.
Washington Mutual stock was down nearly 13 percent, falling $3.13 to $21.10, on the New York Stock Exchange. Fannie Mae stock was down 7.8 percent at $51, while Freddie Mac was off 5.5 percent at $46.70, also on the NYSE.
In a statement, Fannie Mae said that it would cooperate fully with Cuomo's probe.
"It is against our interest to purchase or guarantee mortgages with inflated appraisals, and so it is in Fannie Mae's interest that these appraisal practices be investigated," the company said.
Neither Freddie Mac nor Washington Mutual was immediately available for comment.
Cuomo was Secretary of Housing and Urban Development under U.S. President Bill Clinton. The development is the latest outcome of Cuomo's ongoing, nine-month probe into the mortgage industry.
Fannie and Freddie are known as government-sponsored enterprises because the publicly traded firms also hold federal charters to add liquidity to the homes market and contribute to affordable housing.
The lawsuit filed last week against First American, brought in New York Supreme Court, alleged that the company and its real estate appraisal subsidiary, eAppraiseIT, violated appraiser independence laws.
In its mortgage investigation, the New York attorney general's office has sent hundreds of subpoenas and has uncovered "fundamental flaws" in two areas of the market -- appraisals and securitization of mortgage loans, officials have said.
(Additional reporting by Martha Graybow and Joseph Giannone)
Latest on the Market
Market watch
Housing industry analysts predicted the subprime mortgage crisis would affect home sales in September. By all accounts, they were right. Existing home sales in Florida plummeted 38% in September compared to a year ago, with 8,688 single-family homes changing hands. The median price fell 9% to $243,300. Sales of existing condominiums also decreased last month, with 2,557 condos sold statewide compared to 4,032 in September 2006 for a 37% decline. The statewide median sales price for condos was $194,200, down 4% from a year ago.
Housing industry analysts predicted the subprime mortgage crisis would affect home sales in September. By all accounts, they were right. Existing home sales in Florida plummeted 38% in September compared to a year ago, with 8,688 single-family homes changing hands. The median price fell 9% to $243,300. Sales of existing condominiums also decreased last month, with 2,557 condos sold statewide compared to 4,032 in September 2006 for a 37% decline. The statewide median sales price for condos was $194,200, down 4% from a year ago.
- Nationally, single-family home sales dropped 8.6% to a seasonally adjusted annual rate of 4.38 million in September from a pace of 4.79 million in August, and are 19.8% below the 5.46 million-unit pace in September 2006. The median existing single-family home price was $210,200 in September, down 4.9% from a year ago. Existing condominium and co-op sales fell 4.3% to a seasonally adjusted annual rate of 660,000 units in September from 690,000 in August, and are 14.7% below the 774,000-unit level in September 2006. The median existing condo price was $221,700 in September, up 1.4% from a year ago. “Although sales are off from an unsustainable peak in 2005, there is a historically high level of home sales taking place this year,” says NAR Senior Economist Lawrence Yun. “One out of 16 American households is buying a home this year.”
- Contrary to analysts’ expectations, sales of new homes nationwide rebounded in September from summer sales levels that were much weaker than previously reported, the Commerce Department reported last week. Sales increased 4.8% to a seasonally adjusted annual rate of 770,000 from a revised 735,000 in August, an 11-year low. Sales of new homes are down 23.3% in the past year. The sales figures do not account for canceled sales contracts, which have surged in recent months. Builders have reported cancellation rates as high as 68%. The median price of a new home rose 5% in September to $238,000.
- Homebuilders weigh in on housing trends. Tighter lending standards and reduced availability of credit will complicate—but not derail—a national recovery in the housing market, according to the National Association of Home Builders' (NAHB) state and metro economic forecast [http://housingeconomics.com]. The impact on housing markets will come in two forms, says NAHB Chief Economist David Seiders. First, tightened lending standards have already reduced the availability of loans overall and raised the price to riskier borrowers. A second effect, with the potential for a persistent cycle of defaults and price declines, will depend on the level of exposure to these loans, the current house price environment and the strength of the local economy.
- Bright spot. This week, the U.S. Commerce Department is expected to report that the U.S. economy grew by at least 3% in the third quarter, which would meet what economists deem the country's natural growth rate. With the exception of the housing market, much of the economy has shown little need for a boost from cheaper loans. Still, investors expect the Federal Reserve to lower the benchmark federal funds rate to 4.5% later this week as a preventive measure to head off a more serious downturn. Fed Chairman Ben Bernanke has reiterated on several occasions that declining home prices—coupled with other problems such as tightening credit markets and rising oil prices—could undermine other parts of the economy, warranting stronger action by the Fed.
Tuesday, November 6, 2007
Orlando Real Estate Market
Weekly Market Update 11-02-07
Posted by Lionel Anderson at 11/2/2007 8:47 AM
The Real Estate Market Synopsis
Over Corrections in Lending Standards Will Hurt Future Real Estate Market
Orlando's real estate market is suffering and things are not going to getting better any time soon, especially with the lame property tax package offered for approval on January 29th, 2008. For instance, like any industry, we are looking at future bookings to judge the times to come. Travel agents look at booking, businesses look at orders, and hotels look at future reservations to see where things will be going in the near future. Looking at the current pending home inventory (homes under contract) for Lake, Orange, Seminole and Volusia counties and comparing them to last year, we are looking at a 38% drop. This is a serious drop in future sales. Based on these numbers, the area can expect a very tough real estate market for the next four months or more.
I applaud the Fed's decision to reduce rates by 25 basis points, however this is not going to do very much for the home buyer in the future. Increased lending standards and frozen down payment assistance programs are going to hurt the home buyer and the real estate market. I am the first one to agree that the lending standards, or lack thereof in the past, have caused much of the problems we are experiencing. But, an over correction is going to take the real estate market into a deep depression.
Here are the facts. A lot of homebuyers have credit challenges and have little to no down payment funds. Many non-profit organizations used to exist to provide seller-financed down payment assistance to many buyers who did not have any money to buy a home (some of which needed to be shut down because they were organized scams). HUD and the IRS are trying to shut down many or all of the legitimate programs which will prevent many buyers to buy homes. This move will only add to the misery.
For helpful information on down payment assistance programs, click here.
The reason that 100% finance programs were created is because of the lack of home buyer down payment funds. In addition, they are also the result of the government's push to increase home ownership. According to the online realtor magazine, some are fighting, including the case where a judge stymies ban on down payment assistance. But, the way foreclosures are hitting the market, we are going to see a ban on these programs before it's all over.
Three main problems:
Posted by Lionel Anderson at 11/2/2007 8:47 AM
The Real Estate Market Synopsis
Over Corrections in Lending Standards Will Hurt Future Real Estate Market
Orlando's real estate market is suffering and things are not going to getting better any time soon, especially with the lame property tax package offered for approval on January 29th, 2008. For instance, like any industry, we are looking at future bookings to judge the times to come. Travel agents look at booking, businesses look at orders, and hotels look at future reservations to see where things will be going in the near future. Looking at the current pending home inventory (homes under contract) for Lake, Orange, Seminole and Volusia counties and comparing them to last year, we are looking at a 38% drop. This is a serious drop in future sales. Based on these numbers, the area can expect a very tough real estate market for the next four months or more.
I applaud the Fed's decision to reduce rates by 25 basis points, however this is not going to do very much for the home buyer in the future. Increased lending standards and frozen down payment assistance programs are going to hurt the home buyer and the real estate market. I am the first one to agree that the lending standards, or lack thereof in the past, have caused much of the problems we are experiencing. But, an over correction is going to take the real estate market into a deep depression.
Here are the facts. A lot of homebuyers have credit challenges and have little to no down payment funds. Many non-profit organizations used to exist to provide seller-financed down payment assistance to many buyers who did not have any money to buy a home (some of which needed to be shut down because they were organized scams). HUD and the IRS are trying to shut down many or all of the legitimate programs which will prevent many buyers to buy homes. This move will only add to the misery.
For helpful information on down payment assistance programs, click here.
The reason that 100% finance programs were created is because of the lack of home buyer down payment funds. In addition, they are also the result of the government's push to increase home ownership. According to the online realtor magazine, some are fighting, including the case where a judge stymies ban on down payment assistance. But, the way foreclosures are hitting the market, we are going to see a ban on these programs before it's all over.
Three main problems:
- Huge surplus inventory
- Stricter lending standards
- No down payment assistance programs
These three problems equal many more years of trouble for the real estate industry. Where will the buyers come from to buy off the huge inventory of homes if they cannot qualify for funds? What happens when they do not have any down payment assistance that was once available in the past to help them qualify for further funds? Because of the ultra liberal lending standards over the past five years, new measures will cause the lending pendulum to totally swing to the other side. This will cause trouble in the housing industry which will undoubtedly impact the rest of the economy.
Why your home not selling;
- Home Prices are too high
- Property taxes are too high
- Insurance is too expensive
- Lending standards are too tough
- Lack of down payment on behalf of the borrower
The question is – what will give first? Right now, we are seeing home prices tumbling. This will continue for some time to come until first time home buyers can once again afford to move into a home without getting over their head with debt ratios.
General Market Indicators
I have some great news to report in regard to the overall resale inventory. The resale inventory of unsold homes dropped by 400 homes since last week. This is great news! As well, there is a 47% drop in new construction, which will help when scarcity of supply sets in. This will get buyers to jump off the fence. However, do not get too excited, as we still have a long way to go.
Compared to last October, here are the following figures for resale volume and average home price for each of the four main counties.
Seminole County experienced a 58% drop in resale volume and a 9% drop in the average home price.
Orange County experienced a 56% drop in resale volume and a 4% drop in the average home price.
Volusia County shows a 41% drop in resale volume and an 18% drop in the average home price.
Lake County actually fared the best with only a 28% drop in resale volume and a 12% drop in the average home price.
The numbers speak for themselves. The way the industry is headed, we are not going to see a turnaround for quite a long time to come. We're talking several years away at best.
Monday, November 5, 2007
Orlando Home Buyers
Orlando Home Buyers
Buying a home is more than likely going to be one of the single most important investments of your life. It is crucial that you educate yourself on how to maximize your buying potential and make the most of your investment.
Orlando Home Buyers Protect Yourself - Your Real Estate Agent is Free!
Sellers have real estate agents representing them - Have Lionel represent you! As your exclusive Orlando Real Estate Agent, Lionel will consult with you and help you find not only the perfect home, but the perfect location as well.
In buying your dream home Lionel will help you with considerations such as commutes, schools, community features & more to find the best home meeting your needs.
What you can expect from Lionel as your Real Estate agent:
1. Help you secure Mortgage Per-Qualification or Pre-Approval
2. Represent you and your interests
3. Discuss your needs, wants, and concerns
4. Help you locate homes matching your criteria
5. Schedule and plan viewings of homes
6. Stay in regular communication with you at the same time keep you informed regarding: current market conditions, new homes for sale, recently sold homes in your areas of interest.
7. Help you determine the price you should pay for a specific home in today’s market.
8. Negotiate on your behalf to protect your investment as if it were my own.
9. Represent you and your interests during the Home Inspections Process.
10. Provide you information on Homeowners insurance and Home Warranties.
11. Discuss and follow up with you on aspects of the Closing process of your home
Tax Benefits Of Owning A vacation Home
Tax benefits of owning a vacation home.
Owning a vacation home can provide significant tax advantages. How often you use the home and how much you rent it are the primary determinants of your vacation home’s tax treatment. The Florida Institute of Certified Public Accountants (FICPA) explains what you need to know to gain maximum tax advantage from your vacation property.
MINIMAL RENTAL BRINGS TAX-FREE INCOME
If you rent your vacation home for fewer than 15 days during the year, any rental income you earn is tax-free. You don’t even have to show it on your tax return.
In terms of mortgage interest and property taxes, a vacation home used mainly for personal purposes receives the same tax treatment as your primary residence. You may fully deduct mortgage interest on up to $1 million of acquisition mortgage debt on your first and second home. Property taxes also are deductible, but you cannot write off any rental-related expenses.
RENTING MORE THAN 14 DAYS
If you rent your vacation home for more than 14 days per year and your personal use of the place exceeds 14 days per year or 10 percent of the number of days it is rented, whichever is greater, all rental payments are included in income, and limited rental expenses may be deducted. You may be able to write off certain rental-related expenses, but only up to the amount of your rental income. Expenses that relate only to renting, such as advertising and commissions paid to a rental agent, may be fully deducted. Next, mortgage interest and property taxes, which are deductible whether or not the property is rented, are allocated between rental and personal usage. Finally, all other expenses, such as insurance, maintenance and repairs that apply to the property itself must be allocated between rental and personal use. Expenses that cannot be currently deducted may be carried forward to future years.
PERSONAL USE MAY BE MORE THAN MEETS THE EYE
Be aware that when you allow family members to stay in your vacation home, you must count any part of the day the home is used by parents, siblings, children, grandparents and grandchildren as personal time, regardless of how much they pay for the privilege. If a friend rents your home for less than the fair market rate, that also counts as personal use. On the other hand, days spent at your vacation home to make repairs do not count as personal use. This is true even if other family members use the home during the same time for recreational purposes.
LIMITED PERSONAL USE LEADS TO GREATER TAX BENEFITS
If you do not use your vacation home for personal purposes for the greater of more than 14 days during the year or more than 10 percent of the number of days the home is rented, the limitation rules do not apply. However, restriction of expenses still may apply if the rental of the residence is not engaged in for profit. If the status of your property qualifies as rental property, it is possible for you to write off more expenses – up to $25,000 in excess of your rental income, if you actually manage the property. There are additional rules regarding the order in which you must deduct your expenses and actively manage the property to qualify for the deduction.
CONSULT WITH A CPA
Owning a vacation home requires attention to many tax details. For guidance in your tax-planning efforts and to help you make the most of the tax benefits available to you, please consult with a CPA in your area.
*Source - Florida Institute of Certified Public Accountants
Owning a vacation home can provide significant tax advantages. How often you use the home and how much you rent it are the primary determinants of your vacation home’s tax treatment. The Florida Institute of Certified Public Accountants (FICPA) explains what you need to know to gain maximum tax advantage from your vacation property.
MINIMAL RENTAL BRINGS TAX-FREE INCOME
If you rent your vacation home for fewer than 15 days during the year, any rental income you earn is tax-free. You don’t even have to show it on your tax return.
In terms of mortgage interest and property taxes, a vacation home used mainly for personal purposes receives the same tax treatment as your primary residence. You may fully deduct mortgage interest on up to $1 million of acquisition mortgage debt on your first and second home. Property taxes also are deductible, but you cannot write off any rental-related expenses.
RENTING MORE THAN 14 DAYS
If you rent your vacation home for more than 14 days per year and your personal use of the place exceeds 14 days per year or 10 percent of the number of days it is rented, whichever is greater, all rental payments are included in income, and limited rental expenses may be deducted. You may be able to write off certain rental-related expenses, but only up to the amount of your rental income. Expenses that relate only to renting, such as advertising and commissions paid to a rental agent, may be fully deducted. Next, mortgage interest and property taxes, which are deductible whether or not the property is rented, are allocated between rental and personal usage. Finally, all other expenses, such as insurance, maintenance and repairs that apply to the property itself must be allocated between rental and personal use. Expenses that cannot be currently deducted may be carried forward to future years.
PERSONAL USE MAY BE MORE THAN MEETS THE EYE
Be aware that when you allow family members to stay in your vacation home, you must count any part of the day the home is used by parents, siblings, children, grandparents and grandchildren as personal time, regardless of how much they pay for the privilege. If a friend rents your home for less than the fair market rate, that also counts as personal use. On the other hand, days spent at your vacation home to make repairs do not count as personal use. This is true even if other family members use the home during the same time for recreational purposes.
LIMITED PERSONAL USE LEADS TO GREATER TAX BENEFITS
If you do not use your vacation home for personal purposes for the greater of more than 14 days during the year or more than 10 percent of the number of days the home is rented, the limitation rules do not apply. However, restriction of expenses still may apply if the rental of the residence is not engaged in for profit. If the status of your property qualifies as rental property, it is possible for you to write off more expenses – up to $25,000 in excess of your rental income, if you actually manage the property. There are additional rules regarding the order in which you must deduct your expenses and actively manage the property to qualify for the deduction.
CONSULT WITH A CPA
Owning a vacation home requires attention to many tax details. For guidance in your tax-planning efforts and to help you make the most of the tax benefits available to you, please consult with a CPA in your area.
*Source - Florida Institute of Certified Public Accountants
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