Foreign Investors Cashing in on U.S. Real Estate

According to the National Association of Realtors, foreign buyers accounted for $82.5 billion spent in the residential real estate market for the twelve month period ending in the first quarter. That equals about 8.9% of all residential real estate transactions. Investors from Canada, Asia, Europe, and Latin America are all eager to invest their money into U.S. real estate. The weakness of the U.S. dollar compared to some currencies is an additional market factor as to why some investors like the odds of what some claim to be a “risky bet”. Recently SI Real Estate has seen an increase in rentals which stems somewhat from the hesitant nature of Americans when it comes to home buying. With rental rates increasing, investors will be presented with an even more favorable outlook when it comes to their returns on buying a home and turning the keys over to someone else to manage. Savvy foreign investors are beginning to invest their money for real estate in cities or areas with highly desirable rentals located in a walking friendly environment. More and more renters are looking to cut expenses, and gas is a major one. Cities with good “walking scores” like Tampa, Florida’s Hyde Park, Westshore, Channelside, and Westchase are target markets for these investors. Whether you are a prospective home buyer or a foreign investor, the best time to buy is quickly passing. Why wait until mortgage rates climb from the near historical low rates we are all enjoying now? With mortgage applications rates being the highest they have been since 2009 and inventory finally diminishing, your opportunity is now. Contact SI Real Estate for more information on how you can become a home owner in the most opportune of real estate markets. SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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Real Estate Prices to Increase for Rentals | Fence Sitters May Sway Towards Purchasing

A recent study done by Marcus & Millchap, shows that rental prices in Florida may see an increase in the last half of 2012. They cited improving job rates, less apartment inventory, and declining vacancy rates as the main contributing factors to the expected increase in rental costs. Larger cities like Miami, Tampa, and Orlando may feel the increase more so than smaller markets such as Sarasota or Bradenton because the smaller markets usually have somewhat higher vacancy rates. Here in Tampa, Florida, we have seen this trend first hand with our investors and landlords expecting increases in rental rates. This has proven to be an attractive component for international investors who are constantly looking to Florida, especially Tampa, for investment opportunities. Real Estate management companies can present higher return opportunities to these investors who usually hand the keys over immediately after closing on properties. Condo communities in Tampa such as Courtney Palms, Valhalla, Cordoba Beach Park and many more are seeing these increases already. Being that these rental prices are already on the path to spike, tenants who have been on the fence about buying, are being encouraged to step up to the plate and make the move into home ownership. With mortgage rates at a record low, 3.75%, more and more people are seriously considering their purchase options. This alone will not fuel a full recovery, but with the help of an improving job market that now boasts an extra 1 million jobs since the beginning of 2012, it will definitely have a larger impact for the rest of the year. The last couple of months have shown increases in real estate sales and new construction homes at the highest level in many years. We encourage all prospective home buyers, investors, and renters to ask themselves, “Am I ready to purchase a home”? The answer may come easier by having a casual conversation with one of our experienced real estate professionals and getting in front of someone who can actually crunch the numbers before you embrace or simply dismiss the idea. SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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Increase In Pending Home Sales

Pending home sales see a 4.1% increase from February to March 2012. These figures have increased 12.8% since last year at this time, which is also the highest it has been since April 2010. Lawrence Yun, chief economist for the National Association of Realtors, says, “The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions… which also means home prices will be rising in more areas as the year progresses.” This information is simply information, unless you use it to your benefit when mapping out your Real Estate Goals. Call SI today to talk about how you can take advantage of a changing market!

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Homes Are Now More Affordable Than Ever

A recent study conducted by the National Association of Realtors shows that housing affordability has been at an all time high thus far through 2012. The Housing Affordability Index is relative to median home prices, median home income, and average home mortgage rate. Buying power is the result of a higher index. Here in the Tampa, Florida market, the Housing Affordability Index is higher than most cities in the country. President of the National Association of Realtors, Moe Veissi, says the most recent study highlights the opportunities that more and more people are ready to buy, and some may not even know it. The “100 point” mark is reached when a median income level producing household is ready to purchase a median priced existing single family home. Being that the index is above 200 right now, the majority of Americans have double than what is actually needed to buy a home. Florida’s Bay area, which includes Tampa, St. Petersburg, and Clearwater, is currently at 154.4 as it relates to housing affordability. He also went on to say that housing inventory has dropped and that the decline in supply should help the housing market stabilize throughout 2012. If access to credit is made easier, we should see home prices and sales going up more and more as we head into the second quarter of this year. As mortgage rates remain at all time lows, and mortgage applications stay high, more activity is soon to come. If these record low rates can remain available for an extended period of time, we can begin to see light at the end of the tunnel. If you would like to receive information on what your buying power is, please leave a comment or contact us directly so we can send you information that your will find informative. You could stop wasting your money renting an apartment next to the noisy neighbors. Buy your own home and let SI Real Estate help you along the way. SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”

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Real Estate Truths: Rent vs. Buy

There is so much news on the health of the real estate market every day. Many people are waiting until the market fully recovers before investing in real estate but some are not waiting. What if experts suggested however that buying a home is actually cheaper than renting?

The newest studies of 50 of the largest cities in America are suggesting that it is a smart decision to buy and cheaper than rent in the same area. Trulia just released a new chart with varying factors that show which of the 50 largest cities is better to buy vs. rent a home. The results boast 39 of those cities are cheaper to purchase property than rent.

Trulia is not the only one spreading the good news however, check out Inman News this week. The news source is reporting that 78% of the major cities in the U.S. it is cheaper to buy real estate than to rent a home.

How does the Tampa Bay Area compare? Tampa, Florida is not one of the top 50 cities by population in the US therefore it doesn’t make most of the list, however using our own knowledge of the Tampa Bay Area we can figure out statistically if it is a better idea to buy your home or rent locally. Using the rent ratio described by the NY Times, a formula created by taking purchase price of a property and dividing it by the annual cost to rent the exact same property. The rule of thumb is less than 20; usually better idea to purchase a property. If the ratio is over 20 you should at least consider renting.

If you look at SI Real Estate’s recent sales, we will compare some of our recent purchases. A South Tampa condo in Cordoba Beach Park (2BD/2BA) just sold for $130,000. The same condo rents for about $1550. So using the rent ratio formula you get 7.0. If you compared a new construction home is New Tampa, a very nice 3 bedroom 2 bath house in a great neighborhood would run about $205,000. Let’s say if it was rented at $1700, the ratio is still only 10.05. Both examples are well below the 20 point rule of thumb given.

If you don’t like math check out this website at NY Times, it lets you plug in your own numbers and see whether purchasing or renting is a better idea. Have fun and when you are ready to start house hunting call SI Real Estate at (813)631-5144 or email us at YourHome@SIRealEstateInvestments.com.

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10 U.S. Cities With The Steepest Rent Increases (2010)

Home sales data is easing so far in this calendar year. Home resales and new construction have dropped to multi-month lows and, in many cities, home supplies are rising. One housing sector that's not slowing, however, is rentals.

The rental market is booming.

As reported by the Wall Street Journal, the average apartment vacancy rate is 6.6% nationwide, down from 8.0% last year. In addition, the number of occupied apartments rose by more during Q4 2010 than during any comparable period of the last 10 years.

It's a major reason why rents are up 2.3%.

Some areas, however, fared worse than others. This study of rent increases as published on MSNBC, for example, lists the 10 U.S. cities in which rents increased the most last year. And they may not be the cities you'd expect.

In order:

1. Greenville, SC (+11.2%; $669 average monthly rent)
2. Chattanooga, TN (+10.4%; $726 average monthly rent)
3. Savannah, GA (+8.4%; $866 average monthly rent)
4. Portland, OR (+8.1%; $875 average monthly rent)
5. San Jose, CA (+8.0%; $1,716 average monthly rent)
6. Nashville, TN (+8.0%; $786 average monthly rent)
7. Tacoma, WA (+8.0%; $900 average monthly rent)
8. Denver, CO (+7.5%; $873 average monthly rent)
9. Washington, DC (+7.4%; $1,473 average monthly rent)
10. Raleigh, NC (+7.4%; $785 average monthly rent)

Big cities New York (#18), San Francisco (#19), and Chicago (#24) showed modest gains, by comparison.

Not everyone across WA wants to be a homeowner, but renters are facing a squeeze. With mortgage rates historically low and home values slow to recover, in many cities, the cost-benefit analysis is shifting toward buying.

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Four Most Important Qualities in Selecting a Real Estate Agent

When it comes to buying, selling or renting real estate it is important you find the best representation to work alongside you. What qualities are the most important when selecting a Real Estate Agent to help you:


1. Trust

In making the decision to purchase, sell, or rent a property the most important quality to look for in your real estate agent is whether you trust them. They will be advising you on what the best home prices in the local market, they will be drafting legal contracts for you and you need to know they have your best interest at heart. You also need someone who is going to be honest when you need it.

2. Experience

Experience is one of the best ways to see how well a real estate agent has done their job in the past. The best way to judge experience may not be the highest number of listings, but instead the number of real estate buyers and investors who complete their real estate transaction with confidence they had the best real estate agent to represent them. It is also very important you choose a full-time real estate agent with experience, someone who works at the business on their “extra” time, will never have the same quality of expertise as someone who focuses on it seven days a week.

3. Knowledge

Real Estate is a specific industry. You need to make sure you have a licensed real estate agent who is knowledgeable about all types of real estate transactions and your local market. Although many real estate statistics are measured in a National or state wide level, the real estate professionals who work in your specified city and neighborhood are the most practical people to help you. The real estate agent you choose should be familiar with the city, neighborhood and community that impact your goals.

4. Dedication

You need to find a real estate agent who is dedicated to working with you to accomplish your goals whether they take a day or a year. Work with a firm that is more focused on building long-term business relationships than just hitting higher sales goals.

How does SI Real Estate Measure Up?

Building on over 40 years of experience in the industry, SI Real Estate Investments, LLC simplifies and expedites Real Estate in Every Way: all the real estate property services a buyer, seller, owner, or developer could want or need, and all with a unique level of quality and personalization. We concentrate on quality, not volume. We blend our 40-plus years of real estate knowledge and experience with an amazing attention to detail, guaranteeing exceptional quality. We know success depends on client satisfaction, which keeps us focused on our core values: honesty, integrity, trust, and dedication. We integrate these values into everything we do, using our diverse competencies to foster our clients’ purchase, sale, development and management of all types of properties. Call SI Real Estate Today at (813)631-5144 or email us at Yourhome@SIRealEstatInvestments.com and see if one of our Real estate agents is available to help you reach your real estate goals.

http://www.sirealestateinvestments.com/

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