Related Group beaten out on bid for Corus Bank’s Real Estate Assets

A couple of weeks ago we wrote a blog about Corus Bank (Are Developers Bankers? Are Bankers Developers?…). There were five major bidders up for the Real Estate Assets – Related Cos (parent company of Related Group of Florida (Jorge Perez), Colony Capital LLC, I Star, Lone Star Funds & Starwood Capital Group. Well the latter of all them, Starwood Capital Group and TPG (The Peninsula Group) are the winning bidders for the remaining assets of the now failed and defunct Corus Bank (taken over by FDIC on September 11, 2009).

The FDIC split the banking operations from its real estate holdings. According to The New York Times, the group bid $554 million for a 40% stake in the Corus real estate assets. The FDIC will retain the remaining 60% share. Corus represents the 90th bank to fail this year in the US. The blame is solely made around its loan portfolio that was based almost exclusively around condo projects in the once hot condo markets mostly in California, Florida & Georgia.

As of June 30, Corus held $4.42 billion in commercial real estate loans and $463 million in repossessed properties. At that time the bank reported that almost $3 billion of the outstanding loans were late or unpaid.

In Florida Corus holdings totaled $739 million in 15 different condo or condo conversion loans and a further $51.9m in one repossessed property (Tao project in Sunrise). Before it failed, the bank was able to sell its $44.1 million loan covering 41 unsold units at Onyx on the Bay in Miami and its $127.7 million loan covering 90 units at the Caribbean in Miami Beach. It had also successfully repossessed the 216 unit Aventine in Boynton Beach.

As Luxury Realtors specializing in Oceanfront and Intracoastal properties, we kept a special eye on the demise of Corus Bank as for us some of the bank’s most worthy assests were Jade Ocean Condominiums in Sunny Isles, Paramount Bay in Miami and the Trump International Hotel & Tower in Fort Lauderdale. Imagine these assets and others are now in the hands of the FDIC. Needless to say, the story is not yet over!!!

Out next blog will cover Jade Ocean Condominiums in Sunny Isles including exclusive photos and information.

For all your Real Estate needs in Southeast Florida count on the Golan Team (786-333-6200 or 786-271-1235), Your Luxury Realtors for Deserving Clients”

Happy New Year from The Golan Team

From our home to yours, and to those who celebrate, The Golan Team wishes you a Happy and Healthy New Year.

We thank you for all the business and support you have given us in the past and we look forward to continuing to work with you and your friends and family in the coming years as your Real Estate Agents.

Shana Tova (Happy New Year)
Eyal & Debra Golan
THE GOLAN TEAM
Keller Williams Realty
786-271-1235
786-333-6200
http://www.golanteam.com/

Are Developers Bankers? Are Bankers Developers?

In the past it was so simple. You needed a loan you went to a Bank. You needed to buy property you went to the Developer. Nowadays this line has been totally obscured. Last week, Stephen Ross of The Related Companies applied to form a bank. Here the Developer has now decided to become the Bank. Then you have several banks that have foreclosed on projects and are now selling them at discounted rates to Bulk Buyers and other investors. There the Banks have become the Developers/

Honestly, being in Real Estate has never been more tricky or confusing. Last Friday evening the FDIC closed the doors of Chicago Bank, Corus Bank. Corus Bank like so many of the other 92 banks that have failed this year invested heavily in Condo Construction Loans. In fact in just our area of South Florida they financed over $3,000,000,000 Yes that is THREE BILLION DOLLARS of construction loans. Notable projects include:

$288,115,000 for the construction of Jade Ocean in Sunny Isles Beach..
$216,000,000 for the downtown Paramount Bay
$191,800,000 for The Mint Downtown
$130,400,000 for The Ivy Downtown
$139,000,000 for Trump International Hotel and Tower in Fort Lauderdale
$135,000,000 for Phase II at the Continuum in South Beach
$130,000,000 for Artech in Aventura
$124,700,000 for the Caribbean in Miami Beach (note the outstanding balance of this loan was just settled for $50m by a NY investor)
$86,000,000 for Hampton South in Aventura
$83,175,000 for The Akoya in Miami Beach
$42,272,000 for The Solis in Sunny Isles Beach
$30,298,000 for The Peninsula in Aventura


Currently the FDIC is deciding whether to divide the bank’s assets and liabilities into Real Estate holdings and Bank holdings. Whichever way it goes, I guarantee you are going to see a feeding frenzy of Developers or Deep Pocket investors who will prance on the chance of buying these loans at a few cents on the Dollar. If this happens one can only ask how it will affect the pricing of this units still to come on the market. If you remember an earlier blog we did on the state of affairs in the Brickell area we discussed the construction of 23,000+ units in the last five years. Already almost 50% of these units are available for sale or resale (through the Developers or through the Multiple Listing Services) and we have seen Bulk Deals going for as low as $150/ft.

As a seasoned Real Estate team we can definitely say the opportunities out there are like nothing you have ever seen before. You need patience, education but there are definitely opportunities for the taking.

If you are interested in discussing your Real Estate needs further, call us at 786-333-6200, post a comment or email us confidentially at info@golanteam.com

Do you need to appeal your property tax bill?

By now, everyone who owns property in either Miami-Dade county or Broward county should have received their Property Tax notice last week. Did your taxes go down? Did your taxes go up? With property values declining across the board, how is it possible that your property taxes have gone up?

There are two components to your Property Tax Notice. First is the ASSESSED VALUE and the second is MILLAGE RATE. The ASSESSED VALUE is where the counties base their tax bills on the “market value” which is the value of comparable properties in your neighborhood as of January 1, of this year. That means if there was a phenomenally low sale last month on a comparable property near yours that closed last month, it will not count until next year. Note that because foreclosure prices closed much lower than “traditional” home closings, the County Appraiser’s office has decided not to include them in their equation. If you want more information on this click http://www.miamidade.gov/pa/exempt_homestead.asp
or if you own property in Broward county go to http://www.bcpa.net/

The MILLAGE RATE – is how the county Property Appraiser determines the value of the property for tax purposes, the local taxing authorities (school board, commissioners, etc.) decide how much money is required to provide services and establish the millage rate . The Property Appraiser’s office does not determine the amount of taxes you pay. The taxes can increase or decrease depending on the millage rate set by the school board, commissioners, cities and other taxing authorities. The assessed value provides the base for this equation.

Therefore even if your property values have gone down (you should check on your notice the market/assessed value columns 2008 vs 2009) the millage rate could have gone up and that would cause an increase in your taxes due.

If you feel your taxes have been assessed wrong you must make a complaint by SEPTEMBER 18, 2009 latest.

In Dade county – click here to appeal
Or in person visit please visit one of their two Offices:
111 NW First St., 8th Floor, in downtown Miami

OR

10710 SW 211 St., 2nd Floor, in Cutler Bay

In Broward County - visit http://www.bcpa.net/ for information

If you own a House – call 954-357-6831
If you own a Condo – call 954-357-6832
If you own Commercial Property – call 954-357-6835

Remember the deadline is only 19 days away so do not delay if you want to appeal.

This blog has been provided as a free service from THE GOLAN TEAM. For all your Real Estate needs whether residential, commercial or investment. Contact us at 786-271-1235 or visit us at http://www.golanteam.com/. Interested in foreclosures – sign up for a free list of foreclosures at http://www.southfloridaluxuryforeclosures.com/ . Interested in subscribing to our blog – visit http://www.southfloridacondosblog,com/ and look for the subscribe box on the right hand side.

Red Light Traffic Cameras causing a Class Action Suit

If you have been driving around Aventura lately especially around the Golf Course you will have seen traffic cameras at almost every intersection. Well those traffic cameras are causing a big ruckus.

The cameras snap a photo of the car’s license plate, then the owners receive a citation in the mail.

Are they legal? Are they illegal?

In the past two weeks, several hundred drivers from throughout the state have joined class action suits filed against Aventura, Miami Gardens, Juno Beach and Orlando. Jason Weisser, an attorney leading this suit says he plans to file a lawsuit against Pembroke Pines, North Miami, Homestead and 16 other local governments in the next two weeks.

Critics have complained that red-light cameras violate driver’s due process and equal protection rights. Earlier this year, two separate lawsuits were filed over their use – one in Aventura and one in the Tampa suburb of Temple Terrace. The Aventura case is scheduled for judgement hearing on Nov 10.

The cities are claiming that the camera deters drivers from running red lights and are preventing accidents and saving lives.

Pembroke Pines Police Chief, Dan Giustino said before they installed the city’s camera at Southwest 129th Avenue and Pines Boulevard went live in April 2008, the City recorded 19 accidents over a 16 month period. Just nine wrecks have occurred over the past 16 months.

What do you think?
Post you comments at http://www.southfloridacondosblog.com/

SOUTH FLORIDA REAL ESTATE BULK DEALS

For the past two years the two buzz terms in Real Estate in South Florida have been “Foreclosure” or “Short Sale”. Buyers looking for deals or to buy below current market value were constantly looking for these two “adjectives” or what The Golan Team calls “qualifiers”. It was amazing there were Buyers out there that literally would only want to see properties with these criteria and then would decide of the choices they saw which one to take.

Now these buzz terms have taken a back seat to the newest buzz in the Real Estate world “BULK SALE”. A Bulk Sale is defined as an investor lead individual or group that purchases a group or Bulk of units ranging in numbers from a low quantity such as 10 units to 500+ units at a discounted rate. They are usually purchasing from the Developer units that either were never sold or were sold and not closed (due to lack of financing) and returned to the Developer. Some of these Bulk Deals are also being negotiated directly with Lenders who are looking to Foreclose on other Developers or on complexes that are in default. The Bulk deals are almost always "ALL CASH" scenarios. After the deal closes there are opportunities to obtain some financing.

According to our research over 1700 units have exchanged hands in the past year to year and a half as “Bulk Sales” in our local area (Dade, Broward, Palm Beach counties). Other smaller deals if included (smaller we classify as 10 or less) can take this number even higher.

Some of the highlight deals include:

1) July 2008 - 50 Biscayne (Downtown Miami, FL) – 146 units sold to a group of investors from Philadelphia (Lubert-Adler Partners LP) who joined Related group (the Developer) in this bulk sales @ $246/ft. ($36.4m) Shortly after closing they sold 10 units $367/ft.


2) January 2009 - Harbour House, Bal Harbour – a consortium of Related investors paid $277/ft for 101 units. Total purchase price was $27m. (Note the Related Group was said to have raised $1 billion in a consortium just to buy Bulk Sale Condo opportunities).

3) July 2009 - A South Florida private equity group, Elcom Condominium LLC paid $2.6 million to purchase 51 new, oceanfront condo-hotel units in the luxury One Bal Harbour complex – Regent (now called Bal Harbour Hotel) and another $12 million for 67,031 square feet of hotel common areas and land. (This equates to approximately $135/ft average for the common area and hotel compared to the average selling price of $1100/ft that the Developer WCI Communities charged Buyers for preconstruction pricing at the One Bal Harbour Regent Hotel project.) Interesting to note, the day after this Bulk deal went through, the Regent Hotel chain pulled out of their contract to run the hotel. There are a total of 124 hotel condo units in the Regent/Bal Harbour Hotel.


Now there are two Bulk deals arising that are of interest

1) WCI Communities – the builder of the One Bal Harbour/Regent Bal Harbour project, is seeking court approval to hold a September 22, 2009 auction for its Pompano Beach condo complex. Currently a New York based company, Chetrit Group LLC is bidding $46.7 million. According to the Miami Herald , WCI Communities and it’s chairman, billionaire investor, Carl Icahn wants this $46.7m bid to be the opening bid at an auction A September 2, hearing has been requested for court approval of the auction proceedings. The Chetrit Group have been huge players in the Real Estate world and have been linked to bids and purchases of such iconic structures as the Sears Tower in Chicago ($840m sale), Roney Palace in Miami Beach (bid was $150m) and various iconic buildings in Manhattan.

2) The Related Group of Florida (whose iconic Condo King head is Jorge Perez easily the most recognizable name in South Florida Real Estate) associate company, New York Developer, Related Cos and the Lubert-Adler Partners LP of Philadelphia (you will recognize their name from the purchase of Bulk units at 50 Biscayne in Downtown Miami) have teamed up to bid on the assets of condo lender Chicago based, Corus Bank. A sale could be weeks away though according to the Wall Street Journal there are up to three other key bidders for these assets. Some of the most prominent condo projects in South Florida: Jade Beach and Jade Ocean Condominiums in Sunny Isles Beach, FL, the Trump International Hotel and Tower in Fort Lauderdale and Edge Condominium in West Palm Beach. All in all the assets could be as high as 6,400 condo units in South Florida.

The Golan Team are working with investors interested in purchasing Bulk Deals particularly on Oceanfront properties and Downtown Miami/Brickell area. We have identified several key opportunities for purchase. If you are interested, please contact us at 786-333-6200 or send an email with your requirements and preferences to debra@golanteam.com

Sunny Isles Beach building a four acre multi-use facility

Attention Sunny Isles Beach Residents (or future residents) – there is a fantastic new addition coming to this wonderful oceanfront community.

Construction for the brand new Heritage Park located at 19250 Collins Avenue will begin in about two weeks. Plans include a multi-use parking garage and a three-acre park. The space will feature a dog park, exercise trail, gazebo, basketball court, two tot-lots, a 500-space parking garage with office space, large green space and a picturesque entrance that will contain historical information and signage.

“I think it's going to be the gem of the city and truly magnificent,'' said City Manager Rick Conner said. He continued, ”There will be plenty of space for kids to run, throw a ball or play catch,''

The parking garage is scheduled for completion in June 2010, while the park is scheduled for completion by August 2010.

The Golan Team will keep you up to date with details on the construction. If you are interested in purchasing property in Sunny Isles Beach email us at info@golanteam.com

Buying a Property in South Florida - Weighing your options

There are so many Real Estate topics to write about that a blog can be a full time job!! With the information technology that exists whether you are a Realtor, a Buyer, a Seller or an Investor, there are literally thousands of articles, blogs, comments or sources one can turn too to educate or confuse (LOL) you more!!!

Real Estate is definitely changing and in my opinion, becoming more and more accountable. Buyers are not just buying “what they like” they are using more “scientific” methods to determine which property to purchase.

Case in point, we have been working with a Buyer over the last few weeks who came to Florida with his wife on a “property buying trip”. We spent two days appealing to their “senses” and showed them a variety of oceanfront condos from Bal Harbour across Sunny Isles Beach and up to Hallandale Beach. During this time all their decisions and comments were based on what they saw and what appealed to their physical senses. We needed this process to occur as it helps us determine where they want to live. At the end of this search, we finally settled on one particular building that answered their needs vis a vie to location & amenities. Now we reached the point of selecting a unit to make an offer on.

In the past at this point of beginning the process of making an offer, is when I am used to hearing all about the various aspects of one particular unit that wins over another unit. It could be the choice of flooring, a custom closet, particular lighting etc etc etc. Again, it is a continuation of the process of using their "senses" to purchase. However, in this situation and we are finding the same with a lot of the Buyers we are working with, this is not the case.

It has come down to Price per Square Foot or (PSF). The Price per Square Foot is calculated by taking the asking price and dividing it by the interior (under air) square footage of a property. For example if a property is asking $1,000,000 and is 2,000 sf under air (balconies or garages do not count in this equation), the PSF is $500/ft. I want to add two caveats here. The first is when one is getting ready to buy Real Estate you should look at not only the asking price/foot but also the closed sales prices/ft. Many times this number can be vastly different. The second point that I want to make is regarding quality and finishes. You will pay more PSF for a finished condo on the Ocean then a “Decorator Ready” unit (one that needs flooring, paint etc) and this should be factored in to your PSF. Always make sure you are comparing “like” properties in your analysis.

You should be aware of this especially if you are purchasing a property including financing. An appraiser only uses comparables of sold properties. So even if a property looks like “a great deal” and is priced much lower than competitive ones, check and ask what the sold comparables are and then judge if you have found that “great deal”. The properties that are moving and selling in this market are the ones that have priced themselves correctly against recent closed sales.

Foreclosure properties – those owned by the bank are mostly always priced below the last closed sale comparable. If you are interested in receiving a weekly list (for free) of all luxury foreclosures please subscribe here http://www.southfloridaluxuryforeclosures.com/

Sunny Isles Beach, Florida - Ocean III Unbelievable Buying Opportunity

The Golan Team (786-271-1235) are proud to present for sale at Ocean III in Sunny Isles Beach, Florida, this 3 bed 4.5 bath Oceanfront flowthrough residence on the 23rd floor with Direct Ocean & Intracoastal Views. From a private elevator enter directly into your private foyer. A separate laundry room is located just off this entrance. A double door entry leads into this magnificent residence that is almost 2700 sf under air. This condo features 3/4" mahogany floors throughout the living areas and bedrooms + marble in the kitchen and baths. The master suite includes his and her outfitted custom closets, his and her baths and a bedroom with direct ocean views. The kitchen features Miele and Subzero Appliances. The owners of this unit are the original owners but only used the apartment for a few months so you will see even the oven is brand new and never been used!!! Each bedroom has stunning views of the Ocean or the Intracoastal. They are all very spacious size rooms and feature en-suite bathrooms. Enjoy sunrises and sunsets from two very spacious balconies that can fit table, chairs, outdoor beds and lounge chairs. The views are magnificent and unobstructed. Just check out the pics below!!!

Ocean III is located on the upper end of Sunny Isles Beach. It is a beautiful building and amenities include a 2 story lobby, concierge, valet, gym, pool, full beach service, café restaurant, roof top spa and sun deck, party room, billiards and an Oceanside tennis court.

This residence was just reduced to $991,350 and is an excellent buy in this market. It is also not a short sale, so you can be rest assured for a quick response from the Seller and a quick closing if you desire.



Enjoy Roof Top Jacuzzi & Party Room

Living Room with Stunning Ocean Views Stunning Bay Views from Dining

Room, Kitchen & 2nd Bedroom


Elegant 2 story lobby & Concierge

IF YOU ARE INTERESTED IN SCHEDULING AN APPOINTMENT CALL 786-271-1235

SNOWBIRDS - BEWARE OF SCAM ARTISTS TARGETING RENTAL PROPERTY LISTINGS

Are you a snowbird looking to rent an apartment in South Florida for the winter?

If so, you must read this article….

BEWARE OF SCAM ARTISTS TARGETING RENTAL PROPERTY LISTINGS

According to the Florida Association of Realtors® (FAR), there are
scam artists out there targeting rental property listings. This scam is happening statewide. “This is happening everywhere, including Canada and in many different countries,” writes Jon Lioncourt, an administrative assistant with a Property Management company in Jacksonville, Florida. “Our listings have been copied onto Craigslist for quite some time. It is reported to IC3, a government Internet watchdog that forwards info to the proper authorities, such as the CIA and FBI.”

In the scam, criminals fraudulently lift legitimate rental property data from listings, change the contact phone numbers and/or email addresses, and advertise the rental on Craigslist. The criminals charge below-market rates and require one month’s deposit and one month’s security. Consumers, attracted by the low rate, complete the deal online even without access to the property.According to Lioncourt, the fraudulent ads sometimes list his name and ask the “renters” to send their money oversees.

"It’s not unusual, he says, for these people to later contact the rental agency and demand a refund of their money, even though the agency had nothing to do with the deal. “After all, Realtors are being scammed too,” Lioncourt says.

Donna Fries, a Panama City Beach Realtor, says the scam operates in her area too. She says the fraudulent ad uses the real owner’s name or the Realtor’s name, but a contact method that goes only to the criminals.She offers the following suggestions for detecting the scam: "The Craigslist ad is a carbon copy of the original ad with correct spelling, good English and a photo. Follow-up email responses, however, usually have incorrect spelling and awkward English."

She continues, "Scammers offer rental prices up to 40 percent below actual value, making it an attractive deal. If potential renters see identical ads in different locations with different prices, the lower-priced one is probably a scam. Criminals ask for deposit and rent money to be sent by Western Union or another method that works like cash, and it usually can’t be tracked or refunded. Many times, they use a foreign phone calling card that cannot be traced."

According to Lioncourt, criminals usually have an excuse for not showing the home’s interior, such as a sudden overseas assignment that is keeping them out of the country. Lioncourt offers one more word of warning, "Criminals may ask to see a rental and while doing so, make a copy of the key. After that, they might go so far as to show the property and even offer fake documents for the potential renter to sign. Phone calls are made from a pay-as-you-go cell phone that the criminals can throw away after they receive the money."

People who discover a potential scam can contact the local sheriff’s office and file a report, the IC3 (Internet Crime Complaint Center) (http://www.ic3.gov), or any other law enforcement office.

If you are looking on line at a winter rental, we urge you to contact a Realtor you know in the area where you want to rent, and work with them. If you don't know one, ask friends for a reference. If you see one of these types of ads that sound too good to be true, think twice and check it out. You can verify any Realtors name by clicking here - verify a Realtor's license (just make in the License Category you click - Real Estate).

You can also go to http://www.realtor.com/ and check out the listing directly with the listing agent to verify if the information (including contact name and number) you found is correct. Please do your due diligence as if you do fall for this scam, you will never see your deposits again and worse not have a place to spend the winter. If you are looking for winter rentals (minimum 4-6 months) in South Beach, Miami Beach, Bal Harbour, Sunny Isles Beach, Aventura, Hallandale, Hollywood or Fort Lauderdale contact the Golan Team at 786-271-1235.

The Golan Team launches new South Florida Luxury Foreclosure Website

The Golan Team at Keller Williams Realty are proud to announce the launch of a new luxury focused foreclosure website.

If you are specifically interested in luxury foreclosures in Dade, Broward or Palm Beach counties (that from just above the Keys to Port St Lucie) click on www.southfloridaluxuryforeclosures.com and sign up for your own personalized free foreclosure mailing list that you can customize to whatever type of property you are interested in. You will receive a weekly list of all foreclosure condos or homes (you specify choose one or the other or choose both!!!) in Southeast Florida.

Foreclosures or REO (Real Estate Owned) are properties that have gone through the entire foreclosure process and are now wholly owned by the bank. We are able to negotiate these properties directly with the bank through their representatives.

As we all know banks are definitely not in the Real Estate business but the money business. Therefore some of these properties can give you the absolute best opportunity to buy at rock bottom dollar.

We urge you to visit www.southfloridaluxuryforeclosures.com and get started on purchasing that great home, vacation condo or investment property today.

Please note this service is being offered to you as a valued subscriber of southfloridacondosblog.com absolutely FREE. At the Golan Team we believe in Helping a Client realize their vision is paramount to our Success.

Inside Word on Oceanfront Foreclosures in Sunny Isles Beach, Florida

For the last 4+ years, Paramount Beach has been trying to sell condos in its prime oceanfront location in Sunny Isles Beach, Florida. It had purchased 2.2 acres of oceanfront property at 16901 Collins Avenue. The plan was for a 47 story building consisting of 232 units. The sales office showed elaborate models, brochures and floorplans. No construction was started at the property location.

In February this year, iStar FM Loans sold the delinquent mortgage to Sunny Isles Property Holdings, which is managed to Carlos Mattos. This past Tuesday the group won a $26.2 million judgement. According to sources, this will give Mattos’s company the inside track at taking the property at the public sale on Sept 4 in the Miami-Dade County Courthouse.

You may recognize the Mattos name. He has been very active in Miami Real Estate recently. On June 17, 2009 a company affiliated with Mattos paid about $6 million for 31 units at 1060 Brickell Avenue, in Miami. Another company affiliated with his business partner, Jorge Mattos recently paid $5.7 million for 21 units at Marina Blue in Marina.

This is not the only foreclosure on the beach in Sunny Isles Beach, Florida.
BankFirst has also filed an $11.7 million foreclosure lawsuit against the developer of the proposed Regalia condominium in Sunny Isles Beach.

The Minneapolis-based bank filed the foreclosure action on June 15, 2009 against Aventura-based Regalia LLC and company members Jerold M. Kaufman, Abraham Cohen, Paul C. Murphy and Avra J. Jain, according to Miami-Dade County Circuit Court records. The action targets the vacant 1.14-acre beachfront site at 19505 Collins Ave. in Sunny Isles Beach.

Regalia got approval to build the 43-story, 40-unit condo, but construction never got under way. The preconstruction prices were from $6.3 million to $14.5 million for the 5,515-square-foot units with 2,100 square feet of balcony space.

BankFirst’s lawsuit also names British Virgin Islands-based Kannon Investment Business, which gave Regalia a $5 million second mortgage.

Regalia bought the site in 2001 for $9 million.

First Time Homebuyers Credit - $8000 you can use now to purchase a property.

July 4th has come and gone and I hope you all enjoyed the festivities and fireworks. Personally here in Aventura, Florida we had lovely fireworks though the weather was a little sticky and humid!!!

Well now that we’ve caught up on the festivities, thought I would share some more good news to all the first time home buyers out there (or the ones you may know). First off, let’s recap the definition of a “First Time Home Buyer”. These are classified as individuals who have not owned a “principal” residence in the last 3 years. This means that even if you own a vacation place or investment property you can still qualify. We first wrote about this in our blog on May 4th, 2009 (Do you want $8000? Buy a house and it’s yours!!!)

When this program first rolled out you needed to purchase your property and close by Nov 30, 2009. Then when you filed your taxes for the year you could apply for the credit. The credit went up to a maximum of $8000.

Last week on July 1, 2009 a new program names Florida Homebuyer Opportunity Program (FLHOP) was created to help First Time Homebuyers get their federal tax credit early and allowing them to use up to $8000 toward a downpayment. This bridge loan is created so that the new homeowner can effectively borrow the funds from the State of Florida and then pay them back after they receive the new tax credit.

For us as local Realtors we think this is going to healthily encourage purchasing of property with quick closings. We anticipate an upsurge of sales as more lenders and Realtors will educate their clients of this wonderful opportunity.

If you qualify for the First Time Home Buyer Credit or know of someone who does please send us information to info@golanteam.com or call us at 786-333-6200.

South Florida Real Estate Market Stats.

Info above is based on 33160,33180,33154 zip codes (Sunny Isles Beach, Aventura, Bal Harbour & Bay Harbour) May 2009 info.

South Florida Market Stats:

Are we at the bottom of the market? Who defines the bottom of the market?

Is it defined as when the sales prices are move up?
Is it defined as when there are more closed property sales month on month and year on year?
Is it defined as when the inventory has shrunk?


There are probably a dozen definitions for the “bottom of the market.” The bottom line is that there are great opportunities out there. A few days The Florida Association of Realtors compiled their monthly analysis on home and condo sales and the results were very positive. For the ninth month in a row, condo and single family home sales were up!!! Is this is a sign of recovery? Perhaps.

The full article goes on to explain how month on month we are up 16% on sales. Click to read more about South Florida Home Sales and Market Stats

Locally our numbers are holding though May seemed a better closed sale month than June (except in Bal Harbour/Bay Harbor Islands which increased), the number of pending sales in June 2009 are still holding strong.:


Aventura, Florida

No of Condo Properties Sold in June 2009: 68

No of Condo Properties Sold in May 2009: 98

No of Condo Properties Pending Sale June 2009: 94

No of Condo Properties Pending Sale May 2009: 60

Sunny Isles Beach, Florida:

No of Condo Properties Sold in June 2009: 32

No of Condo Properties Sold in May 2009: 41
No of Condo Properties Pending Sale June 2009: 55
No of Condo Properties Pending Sale May 2009: 55

Bal Harbour/Bay Harbour, Florida

No of Condo Properties Sold in June 2009: 12

No of Condo Properties Sold in May 2009: 10
No of Condo Properties Pending Sale June 2009: 8

No of Condo Properties Pending Sale May 2009: 10

Interesting to note, in Miami Dade County total inventory of property available is down 26%.

If you are interested in a particular condo building stats or other area stats sent us an email to info@golanteam.com and we will send you the requested information.

Buyer revealed for Shaq's House

We were one of the first to break the news of the sale of Shaq's house. Final sales price was $16,000,000 (a couple of million loss for Shaq who bought the house for $18,800,000 in 2004).

The buyer was none other than Supermodel Naomi Campbell's boyfriend billionaire Valdimir Doronin.

Keep posted to http://www.southfloridacondosblog.com/ for updates on Southeast Florida Real Estate news.

Shaq's Star Island house sold!!!

What a week of news here in Southeast Florida...

Earlier we reported about the sale of the Regent Bal Harbour. Now after 4 years on the market with asking prices reaching $32,000,000, the magnificent Mediterranean estate of Shaquille O'Neal has sold.

This is so hot of the press that if you ask any Realtor to check the local Multiple Listing Service, the property still shows as Available!!!

I have heard from a trusted colleague that after 4 years on the market for sale, Shaq’s house at 26 Star Island has sold. It is a very confidential deal (lots of anonymity with Corporation names etc) but it is sold for under the asking price of $22,500,000.

I have personally had the opportunity to tour the house and I can tell you it is magnificent. Sitting on 2.5 acres with the most stunning open water views, the house is breathtaking. Amenities include an indoor basketball court (of course remember whose house it is!!!), a full size tennis court, a large infinity pool (emblazoned with Shaq’s famous Superman logo), a 2 bedroom guest house, workout room, huge great room, dining room, kitchen and a master suite fit for a king…The main house has 7 bedrooms, 8 full baths and 2 half baths and occupies 19,440 sf. Got a car or two - no problem here with a 6 car garage and huge driveway to park at least a dozen more.

About a year ago when the price of the house was $32,000,000 my partner, Eyal and I showed the property to a wealthy client of ours. It wasn’t easy to arrange the showing, as you must imagine the confidentiality and background checks we had to go through. In my opinion and I have had the honor and pleasure of viewing many of the most beautiful properties in Southeast Florida, this house was unique. On Star Island it ranks as one of the top properties in size, land and positioning on the Island.

Star Island is home to many personalities including Gloria Estefan, P Diddy, Rosie O Donnell, Tommy Motola, Philip Frost (formerly of pharmaceutical giant IVAX) and more. It is located just south of South Beach. There are three island that form this cluster. The other two are Hibiscus Island and Palm Island.

Currently there is only one other property available on Star Island, a 10 bedroom 9 full bath and 3 half bath home with an asking price of $15,500,000 on over an acre of land. Click to see photos of 45 Star Island.

If you are interested in viewing this home or want to see other great waterfront home or condo opportunites here, contact us at info@golanteam.com or call us at 786-271-1235 or 786-333-6200.

WCI sells Regent Hotel in Bal Harbour, Florida

It has definitely been an interesting week so far in Southeast Florida Real Estate. Top news of the week is the selling of its shares in the Regent Bal Harbour by WCI Communities only to have the Regent Hotel Chain pull out of the property the next day. The Regent Bal Harbour or I should say the Bal Harbour Hotel which I believe will be the new name) is located on one of the prestigious oceanfront lots in all of South Florida.

Right on the Haulover Inlet the views are absolutely spectacular. It is a condo hotel project which like most Real Estate in South East Florida has seen a drop in value. It shares the same address as One Bal Harbour – one of the most luxurious condo buildings on the Beach.

Currently there are 18 listing for sale ranging from studios to 1 bedroom suites. Prices range from $369,000 (an unbelievable short sale opportunity) to $1,150,000. Owners can use the units as well as put them into the hotel program to earn income while they are vacant. Maintenances fees run between $3000-$3500 depending on the size of the unit. However this maintenance fee can be recouped depending on owners entering their units into the hotel pools and the revenue this generates. Please click to see properties available at Regent Bal Harbour

Earlier I mentioned that the hotel shares some amenities (like a gorgeous pool deck and 24 hour valet, housekeeping and full concierge ) with the condo One Bal Harbour. This luxurious building currently has 33 properties for sale ranging from 1972 sf (2 bed 2.5 bath) to 5200+ sf (4 bed 4.5 bath) and are priced between $1,295,000 and $6,299,000. Many of these units have been reduced in price. To see pictures click One Bal Harbour Properties.

If you would like more information or to arrange a private viewing the Golan Team are available at 786-271-1235 or 786-333-6200.

IRA accounts - a great way to invest in South Florida Real Estate

Buying Real Estate with your IRA account.

With the current instability of the stock market, many individuals are wondering what to do with their IRA accounts.

Investing in real estate through an IRA is one of the hottest new areas of investment.

Why invest in Real Estate now?

1) The stock market has tanked. Stock portfolios on average are down 30-50% and even more in certain instances.

2) Real Estate prices are dramatically lower than just two-three years ago creating a tremendous upside through both a higher further resale value and current return on investment (rental revenue).

3) There are a tremendous amount of foreclosures and auctions where you can pick up properties at 20-40% of their original values.

4) By purchasing real estate through your IRAs you are not changing your retirement plan funds, which was to build tax-free value for a later date, you are simply changing the type of investment you are investing in.

How to purchase Real Estate with an IRA account:

There are a couple of technical requirements that allow people to purchase Real Estate in an IRA. (Note always consult a tax professional as well as a Realtor for all the conditions you must meet). The most important of these requirements is that you must have a separate investment account with the required documentation and not commingle this account with any other funds. i.e. if you buy a property for investment then the rent money must be paid into that account. Also if you need to do repairs on improvement on the property you must use funds from this account, not your personal account.

If you are interested in learning more about purchasing property with your IRA send us an email to info@golanteam.com.

Foreclosure properties available for sale:

If you want to search foreclosure properties in Aventura, Sunny Isles Beach, Bal Harbour and Miami Beach click on the following resources.

Current Foreclosures Available for Sale in Aventura

Current Foreclosures Available for Sale in Sunny Isles Beach

Current Foreclosures Available for Sale in Bal Harbour

Current Foreclosures Available for Sale in Miami Beach

Do you want $8000 - Buy a house and it's yours!!!! Certain restrictions apply!!!!

Can you use $8000?

Well the government is willing to give it to you to buy a house!

The federal tax credit is actually available for anyone purchasing a home that has not owned a principal home in the previous 3 years. Note they call it a “first time home buyer tax credit” but it does not mean you are purchasing a property for the first time!

There are certain limitations and criteria that you must meet in order to be eligible for the tax credit:

1 The deduction is worth 10% of the home’s value up to $8,000 (this means that every house valued over $80,000 can qualify for the maximum amount).

2.Income qualifications:
a) A married couple’s modified adjusted income (MAGI) should be under $150,000.
b) A single filer’s income should be less than $75,000
c) Partial credits may be available for married couples with MAGI incomes over $150,000 but under $170,000.
d) Partial credits may be available for single incomes over $75,000 but under $95,000.
e) If a married couple files individual returns, they can both claim 5% of the home purchase ($4000 each if home value is over $80,000) on their tax returns.

3. This is a tax credit not deduction. This means the entire amount goes back to the “first time homebuyer” unlike other deductions like interest on your mortgage which is deducted from gross income before tax is calculated. If you qualify for the $8000 credit, you will get $8000 even if they would not owe that much in taxes.

4. The tax credit applies to homes purchased from Jan 1, 2009 through Nov 30, 2009.

5. The tax credit does not have to be paid back, as long as the Buyer keeps the home for at least 36 months and resides in the home. This means you must make this your principle residence for 36 months in order to keep the credit.

6. To qualify, as a “first time Buyer” the purchaser cannot have owned a home within the previous three years. However ownership of a vacation home or rental home does not disqualify the Buyer.

7. The credit only applies from the day the Buyer takes possession of the property. For example if you purchase a pre construction home between Jan 1, 2009 and Nov 30, 2009, but you do not take possession until Jan 2010 you will not be eligible for the credit.

8. The tax credit can be claimed on 2008 income taxes even if you purchase the property in 2009.

It is important to note that the tax credit is not a down payment. However, if you know you are definitely purchasing between Jan 1 2009 and Nov 30 2009 and you are a US Taxpayer who has money withheld from their paychecks for income taxes and you owe more tax then the amount deducted you can pay the IRS: but if you owe less you can get a refund. If you could anticipate at least an $8000 refund in early 2010 when you file your 2009 taxes, you could technically cut down on your tax withholding this year and save the money toward a downpayment. There is one important caveat to remember – if you don’t purchase a home in the qualifying period you would still owe the money to the IRS, and not withholding can lead to a high bill at tax time.

You can visit the IRS website to learn more: IRS HOMEBUYING CREDIT
To check out neighborhood properties click here: Buy A Home

Sotuh Florida Real Estate - it depends on how you decide to see things

I had the pleasure of reading some wonderful lessons from a business coach and there was one lesson that resonated deeply with me. It was not phrased as a question but as a statement:

“Success depends on your mind-set”

Never have I heard a more truthful statement. The economy is telling us that we are suffering, that we cannot be successful because the economy is so bad. This self-limiting belief can prevent us all from achieving.

The coach went on to explain, as a child you are already programmed with self-limiting beliefs such as, “don’t talk to strangers” or “don’t be too forward” etc. These beliefs can actually hinder you in the future as they put negative and limiting beliefs.

Think of it like this: if you become excited and enthused about something no matter who you speak to about it they too will “catch your enthusiasm” and feed off your positive energy. Unfortunately the opposite also holds true.

As an active Realtor in today’s market, I am always hearing about how negative the market is. The fact is what can be negative to one person can also be an opportunity in disguise. Today’s Real Estate market has plenty of these opportunities to find. Prices are lower. Banks are more willing to negotiate and more and more Sellers have become realistic. Remember as a Seller you cannot think of what you need to sell for the price will only be set by what Buyers will be willing to pay for it.

As a Realtor I am having these conversations daily with my Sellers. I explain that there are ways to capitalize on this market but that you must also be willing to invest. For instance, did you know that staging a property can help not only sell a property faster but also for a higher dollar amount. De-cluttering is also another useful tool. I explain to Sellers that the moment you decide to list a property for sale is the moment that your property goes from being your “home” to an “investment”. Working with an experienced Realtor will benefit you tremendously.

To find out the current market value of your property send us an email at info@golanteam.com.

Statistics for February 2009 condo activity in Aventura, FL

Aventura sales were up but so was inventory in February 2009.

Below please find a chart of activity, pending sales and closed sales for Aventura in February 2009.

New condos listings in the market

Feb 2009 - 199

Feb 2008 - 49

# of listings of condos available

Feb 2009 - 1821

Feb 2008 - 401

Pending Sales

Feb 2009 - 79

Feb 2008 - 6

Closed Sales

Feb 2009 - 261

Feb 2008 - 51

The most expensive condo on the market in Aventura in February 2009 was a 6 bedroom apartment in Williams Island asking price $4.9 million. The lowest price was a one bedroom condo in Point East (an over 55 community) for $65,000.

Stayed tuned later this week for statistics on homes in Aventura as well as condos and homes in surrounding areas.

If you are interested in seeing any of these properties contact the Golan Team at 786-271-1235 or visit us on the web at www.golanteam.com

Sunny Isles Beach - Ocean III Best Deal - Stunning 3 bed Oceanfront unit

Ocean III is a beautiful oceanfront complex in Sunny Isles Beach, Florida built in 2003 by The Related Group and designed by the architectural firm of Sieger Suarez. It soars 32 stories and boasts oceanfront amenities such as pool, gym, café, party rooms, tennis courts, roof top Jacuzzi and sundeck as well as conference rooms, valet, security and self parking privileges.

Most units feature private high speed elevators that open into private foyer areas. The building was specifically designed that every unit will have ocean views.

Currently there are 28 units for sale at Ocean III showing this is a very healthy building even though the economy is struggling. The building has 215 residences in total ranging from 2-4 bedrooms and 1591 sf to almost 4000 sf.

We have had the privilege of listing 2307, located on the 23rd floor. It is a flowthrough residence with 2649 sf under air + two huge entertaining style terraces.

This residence features 3 bedrooms 4.5 bathrooms and has two balconies allowing for direct east (oceanfront) and west (open bay and City of Aventura) views. In a word, “Breathtaking.” With brazilian cherry ¾” solid wood floors throughout, this residence is vacant and available for sale or rent. The bedrooms are all spacious and have ensuite bathrooms. The master suite includes his and her walk in closets, his bathroom and her bathroom with a jacuzzi overlooking the ocean. The kitchen is eat in and features Miele cooktop, oven, subzero Refrigerator and a Miele dishwasher.

The last sale of a similar unit was December 2007 when the same unit, two floors higher, sold for $1,270,000.

We have just reduced this unit to $1,065,000 an unbelievable opportunity for the right Buyer.
Please call us at 786-271-1235 to schedule a visit and we hope you can call this magnificent place “home” soon. PS It is also available for rent at $5000/month unfurnished.

Keller Williams Family Reunion - Lessons for All

Last week was a real wake up call. The whole Golan Team attended the Keller Williams Family Reunion in Orlando, Florida. For most when you think of a “Family Reunion” you think of fun in the sun, maybe a cruise, but most likely a big party and a lot of good memories.

For Keller Williams Agents, Family Reunion definitely does include the spirit of fun but it is more about work, goals, ethics and taking your business to a new level of achievement. For the Golan Team, that was exactly what we went to Family Reunion to achieve.

Almost 7000 Keller Williams Agents thought the same thing. Gary Keller, who founded the company in 1983 talked about all the opportunities we have as Agents in this “Shifted” market. There were approximately 100 seminars to attend over the three day period and there many lessons to learn whether you were a Realtor, a Buyer, a Seller or an Investor. Below I thought I would share a few thoughts that I think we can all learn lessons from:




These were my top 5 lessons that have changed my outlook not only on the Real Estate market but also in my personal life…


1) FOCUS ON WHAT YOU GET FROM AN EXPENSE: This is universal.. if you are subscribing to a service are you getting the most for it? Cut your expenses to a minimum…ask yourself do you really need this? Is it producing more than it is costing you? Are you bringing in more than you are spending? This principle can be applied not only to Real Estate but to every expense in our everyday lives.

2) If you want to sell your house then, “BE IN THE MARKET NOT ON THE MARKET”. Listing a property today is not the hard part – selling it is. The truth is that if a property is priced right (defined as being in the bottom 10%-20% of the lowest property price point for your property) it will sell…These are the properties that are attracting Buyers and know THERE ARE BUYERS OUT THERE. So remember in order to achieve your goal of selling a property = PRICE IT RIGHT.


3) Know that the price given to you at a Listing Presentation has an expiration date just like the milk in your refrigerator!!! Again thinking about the principle above, you must always be aggressive in your pricing and watch what is selling around you and why it is selling and yours is not. Be diligent in reducing your price of your property to attract the most Buyers. This is called, “the worry price” the price at which Buyers will worry that if they don’t jump on it, they will miss the opportunity.

4) Be consistent, Be Persistent and think like a Warrior. We all need to understand that we are fighting for our survival (just look at the economy) so think like a Warrior and keep that mentality to achieve your goals in this marketplace.


5) “Qualify your expectations” Be realistic about your goals. If you are listing a property then be realistic about the selling price. This market is based on the principle of timing and opportunity. Opportunity is a result of attracting the Buyer who will pay the best price in this market for your property and it is up to you to capitalize on this.

If you would like to discuss any of this further, please feel free to comment or contact me via email : debra@golanteam.com or phone 786-333-6200. If you also want to know how to sell your property and attract multiple offers, again please contact us to discuss strategies.

Bal Harbour - BALMORAL - Best Priced Condo attracts Multiple Offers

Every day I am asked, “how is the Real Estate market doing…it must be dead?” It is asked as a question, but I hear it more and more like a statement. However, I always answer and say truthfully that the market is "Great" for us, business is "Great." The truth is it is "Great." This market is making us not only work harder but truthfully work better. It is a market of quality not quantity. What I mean by that is that if you have a property that you price right, stage right and market right – the Buyers out there will see the value of the deal and jump right on it…

Case in Point: Balmoral, Bal Harbour

We recently listed (just 3 days ago) a 2 bedroom with 2 bathroom, 1388sf (currently set up as a one bed convertible) with oceanview from every window at The Balmoral, in Bal Harbour, FL. The Balmoral is a large and elegant building comprising of 423 residences + cabanas. The building has many amenities including restaurant, gym, concierge, tennis, card rooms, business center and more. A few years ago it underwent a huge assessment and renovation and when you walk in you feel the elegance, richness and high level of service the building is famous for.

We met with the Sellers and their attorney (it is an estate sale) and discussed the pricing strategy for the unit. We agreed to price it correctly from the beginning to achieve a high volume of traffic and hopefully multiple offers. Below are a couple of pictures of the unit and views...

I am pleased to say after three days on the market we have had over 6 visits scheduled to the unit and two offers presented. I am confident through our correct pricing strategy and constant marketing approach we should have this property under contract within a week…Now again ask me, “how is the Real Estate market doing” and again I will answer, “GREAT!!!”.

By the way, if you want to check this unit out call us at 786-333-6200 to schedule an appointment.

Aventura Condo Stats: Closed Sales Up...Have we hit bottom?

Yesterday there was yet another prediction report by a major research company that stated that it won’t be until 2011 until we see the market turning around, well what I believe is fact not fiction.

FACT: There were 53 closed condo units that closed in Aventura between January 1, 2009 and January 31, 2009. In the same period a year ago, only 44 condos sold.

FACT: Between January 1, 2009 and January 31, 2009 – 218 condos in the Aventura were listed for sale. In the same period a year ago, there were only 48 condos that were listed.

FACT: In the month of January 2009 of all the 218 condos that came on the market, 28 were short sales and 7 were Bank owned foreclosures. In the same period in 2008: 10 were short sales and none were bank owned foreclosures.

FACT: In the month of January 2009 the average price of a condo that sold was $303,997. A year ago for the same period the average price of a condo that sold was $490,098.

The analysis is there for all to see. More properties are still coming on the market but there are Buyers out there seeing the value and getting off the fence to buy. It will be interesting as we track these same statistics month on month, and year on year if we will continue to see a rise in closed sales, whether the average price will stay stable go up or go down? And whether ultimately we have hit bottom or are still on the way down.

Great Opportunity to buy at Turnberry, Aventura

When one thinks about Aventura, Florida the first two things that usually pops up in their minds is the world famous Turnberry Golf course, which just underwent a $40 million renovation and the Aventura mall – a indoor mecca of over 2.8 million sf of shopping, dining and entertainment.

Living in the city of Aventura is fantastic. It is literally 5 minutes from the beach, 15 minutes from airports and 20-25 minutes from South Beach. But for most, Aventura offers such a great life both day and night that you don’t really need to travel far to have fun!!!

Two to three years ago, 2 bedroom apartments at Turnberry went for over $400,000. Some reached as high as $650k. Today with the decrease in property values, you can get some amazing deals.

Check out this 2 bed 2 bath condo which is over 1500 sf and has a huge terrace. Located on the 4th floor you can enjoy views of the fountain, tennis courts and marina. During the high, the same unit on the 8th floor sold for $475,000. This unit is priced to sell at only $259,000 and is the lowest priced 2 bedroom in the building. Turnberry North Tower, which is located at the end of Turnberry Island has recently undergone a huge renovation and features a stunning lobby, new media room, new gym, new party rooms, lounges and conference room.

This condo is within walking distance to the golf course, Aventura mall and houses of worship. The building is located on the Intracoastal and is perfect for boaters as you dock your boat at your front door in the Turnberry marina.

Here are some pictures of the living room, dining area and huge terrace.

Check out more pictures of the lobby, media room, gym etc by clicking here.

If you need more information call the Golan Team at 786-271-1235.

THE GOLAN TEAM ANNOUNCES ITS NEW LOCATION

THE GOLAN TEAM ARE ON THE MOVE

The Golan Team, which has long been associated with the selling, purchasing and leasing of luxury Oceanfront and Intracoastal front Real Estate in Miami Beach, Bal Harbour, Sunny Isles, Aventura and Hollywood are pleased to announce their new affiliation with Keller Williams Realty.

“The Keller Williams Belief system of

Win-Win - Or no deal
Integrity - Do the right thing
Customers - Always come first
Commitment - In all things
Communication - Seek first to understand
Creativity - Ideas before results
Teamwork - Together everyone achieves more
Trust - Starts with honesty
Success - Results through people

exactly mirror and matches that of the Golan Team.” Debra continues, “our clients have come to expect that extra level of service and attention and we found that same approach in Keller Williams.”

To contact the Golan Team please call 786-333-6200 or 786-271-1235 or visit us at www.golanteam.com.

Southeast Florida Luxury Real Estate - 10 New & Hot Trends in Home Design

The International Builders Show in Las Vegas is always a great place to visit as a tradesman, designer, builder, homeowner or contractor. There are many ideas and trends that are shown that basically set the pace for the coming year's NEW and HOT IDEAS.

According to industry leaders if you want to sell that property this year follow these tips:

1) Go contemporary - Today's minimalist design you may mix straighter furniture elements and use two different colors repeated throughout (i.e. green and white). But remember to add those fun and bold accessories (could be a crazy mod orange chair or a traditional gilded mirror).

2) Don't think of lighting as utility - think of it as art - look at creative and funky shapes and designs. Remember they can be decorative as well as functional.

3) Green is in - efficient appliances, LED lighting etc., conservation is the way.

4) His and Her "everything" is in - from closets to vanity think in pairs!!!

5) Windows are huge - Buyers are looking for that floor to ceiling window that let's lots of natural light in.

6) Wood details are back in style - use them in light and dark tones on ceilings, moldings, floor inserts and more.

7) Mirrors are hot!!! They can be a focal point, make a room look larger and add glamour.

8) Electronics everywhere - think IPOD docking station in the kitchen, plasma in the bathroom etc.

9) Bring Nature in - use trees and tree design as decorative art. Try to seemlessly flow the outside in and the inside out.

10) Outdoor living serves as an extension of your house - remember pay attention to the outdoor entertaining areas think - pool plants, fire pits, great seating areas, hammocks etc.

Hope these tips help you whether you are just decorating or intending to sell. If you want more contact us here.

EWM - The State of the market - Credit crises impact South Florida real estate market

This posting references the wise words and thoughts of Ron Shuffield, EWM Realtors President

"As we enter 2009, it's important to note that while the changes to our residential real estate market during 2008 were unprecedented, the opportunities that are evolving today are equally compelling. When all is said and done, it’s hard to imagine that we will ever see again a buyer’s market similar to what we will experience in the year ahead. Opportunities abound to purchase all types of housing at prices that we didn't dream possible two years ago. But, we will still have to dig out the real values. 33% of the total Miami-Dade and Broward MLS inventories are now listed as short sales and another 10% are listed as REO properties. That means that we are at a point where our buyers are now finding exceptional values in almost 50% of our listing inventory. While 2008 was the year of "analysis", 2009 will be the year of a sharp increase in the number of homes sold. Our industry sold 43% more single-family homes and condos in the 4th quarter of 2008 than we did in the same period in 2007; and, we believe that we will continue to see many more sales in 2009 than we experienced in 2008. Our buyers are recognizing the values that we are now offering."

Ron Shuffield's thoughts on the credit situation and how it affected Real Estate in 2008 and what his predictions will be for 2009.

Warren Buffet's Words of Wisdom

Everytime I write a blog I always make sure it is real estate related. However once in a while the lessons we learn every day transcend an industry and can affect our whole outlook on life.

Today's blog I leave it to you to reflect on the wise words of Mr. Warren Buffet, who is the ultimate owner of Esslinger Wooten Maxwell (EWM Realtors) and for whom I work...

Subject: Warren Buffet in 2009

Our happiness is diluted and our peace is threatened by the financial illness that has infected our families, organizations and nations. Everyone is desperate to find a remedy that will cure their financial illness and help them recover their financial health.Every new year, I adopt a couple of old maxims as my beacons to guide my future.This self-prescribed therapy has ensured that with each passing year, I grow wiser and not older.

This year, I invite you to tap into the financial wisdom of our elders along with me, and become financially wiser.

Hard work: All hard work brings profit; but mere talk leads only to poverty.
Laziness : Sleeping lobster is carried away by the water current.
Earnings: Never depend on a single source of income.
Spending: If you buy things you don't need, you'll soon sell things you need.
Savings: Don't save what is left after spending; spend what is left after saving.
Accounting: It's no use carrying an umbrella, if your shoes are leaking.
Auditing: Beware of little expenses; a small leak can sink a large ship.
Risk-taking: Never test the depth of the river with both feet.
Investment: Don't put all your eggs in one basket.

I'm certain that those who have already been practicing these principles remain financially healthy. I'm equally confident that those who resolve to start practicing these principles will quickly regain their financial health.Let us become wiser and lead a happy, healthy, prosperous and peaceful life.

Warren Buffet Opportunities are never lost. The other fellow takes that you miss.

Aventura, Miami Beach & Sunny Isles

Forget about shopping for a condo, now you need to shop for a building!!!


Sitting down with a cup of tea in hand I opened the Miami Herald Saturday morning, to see a blaring headline…”New rules raise bar for condo mortgage”

I got to thinking about the gist of this article and how was it going to impact our already suffering values of property. The new Fannie Mae guidelines in essence say that in order to qualify for new financing:

1) At least 70% of the units in a new condo building must be presold
2) No more than 10% of units can be owned by a single entity
3) No more than 15% of units can be more than 30 days past due on association fees.
4) No more than 20% of a condo can be devoted to commercial space
5) All condos new and old, must have fidelity insurance, which protects the association funds from fraud.
6) The seller is not allowed to help with down payments or offer other perks like deductions of association unless they are disclosed.
7) Condos must have hazard insurance
8) When investors buy in established projects, at least 51% of units must be owner occupied.

The article continued to debate whether this is good or bad. (Most contributors and Realtors quoted were saying it was disatrous) . Are we being a little too strong a little too late? After all it was not the condo buildings that got the market into this mess. It was the practice of easy lending that allowed buyers to purchase properties way beyond their means.

Now when a buyer is interested in purchasing a condo they first have to sort out which buildings are even viable options. It is very important that a Buyer work with a Realtor who is current with their market knowledge and knows the financial conditions of neighborhood buildings.

For those of you cash buyers, this news is like winning the lottery as your buying power has just exponentially gone up and you will have great power when it comes to negotiation.

Written By
Debra Golan
The Golan Team
EWM Realtors
786-333-6200

Hollywood Beach Florida - Staging Sells a Luxury Penthouse at the Diplomat

What a great post to write!!! We just closed our first luxury sale of the year. The Penthouse at the Diplomat is a magnificent 4700 sf+ 4 bed 5.5 bath + media room with stunning ocean and bay views just sold!!!

When we got this listing almost 9 months ago it was a sprawling and almost cavernous space. We hired stagers who came in and staged the entire place making it go from a space to a home.

If you own a property that isn't selling or if you are getting ready to list it for sale, think about staging the property. It really helped us and the Sellers in this case.

The Diplomat Oceanfront residences is located on the ocean in Hollywood Beach adjacent to the Westin Diplomat Hotel and residents of this building can enjoy all the services of the Westin Diplomat Hotel including room service, spa facilities, maid service and concierge. The apartment sizes range from 2200-7000+ sf. There are currently 30 properties for sale at the Diplomat Oceanfront Residences. We love showing properties there and all the clients that we have sold there absolutely love it!!!

If you are thinking about moving to the Ocean and want to wake up by the beach, this is a great building to consider and you can count on the Golan Team to get you the best deal.

Should you buy Residential Real Estate with a Commercial State of Mind?

Bay Harbor Islands, FL – Luxury Real Estate
Should you buy Residential Real Estate with a Commercial state of mind?

When you go and buy the home you live in, it is a fact that you buy it with your heart and mind. Your heart takes in the decor, the paint on the walls, the amount of sunlight that streams in through the windows, how the bedrooms are laid out, the color of the kitchen granite etc. etc. etc. None of these factors really ever play in the decision making of a commercial property.

When purchasing a commercial property it is all about the numbers. The paint of the wall or the type of flooring is of less concern then does it work on a price/ft basis, or the income it will generate or the return on investment it will produce.

Of course some of the commercial conditions for purchase do not apply for a property you are going to live in, but certain trends remain common between commercial and residential real estate primarily - that is - location, location, location. Just like prime commercial real estate in an excellent location will fetch a higher price so to does this analogy work with residential real estate. So the question begs to ask – in this day and age where financing is tight and everyone is approaching real estate with caution should we approach Residential real estate (the house you will call home) with a commercial approach of buying it solely from a financial analysis?

Case in point – I am negotiating on a wonderful house in Bay Harbor Islands, Florida. This is a single family home neighborhood within walking distance to the beach, the shops at Bal Harbour and just minutes from South Beach. My client, who is a long time commercial buyer is approaching this purchase solely from a commercial aspect. He looks at the market and makes his offer accordingly. The Seller has rejected the offer...do you agree?

In analyzing Bay Harbor Islands Single Family homes over the past two years since this shift has begun we found the following information:

There have been only 23 single family homes sold in Bay Harbor Islands (this number reflects those sales we have sales price information for) since Jan 1, 2007. 11 of these properties were located either on the canal or wide open bay and 12 were on dry lots. The market year on year from 2007 to 2008 declined on average 21% (we analyzed waterfront properties average square price year on year). Though this number seems high it is actually much less than then the average Miami-Dade county drop which was 35% in the same time period (Source Trendgraphix).
We are finding more and more of Buyers are becoming more purchase savvy in this Real Estate market and are buying their homes with this frame of mind. As Realtors it is becoming more challenging to deal with this objection and convince a Seller that their property must not only meet a Buyer’s wants, needs and desires, but also stand up to the market shifting downward and the Buyers low purchase price offerings.

Aventura, Florida - Condo Sales are Up.

How many times in the recent weeks and months have you read negative press about the South Florida Real Estate market? How many times have you read positive reviews? I can almost guarantee the numbers are much higher for the question than the second one.

Well I am here to burst the bubble!!!

The numbers are fantastic.

In 2008 there were 748 condos sold in Aventura. That is a whopping 27% more than was sold in 2007 (only 589). Furthermore in the last quarter of 2008 there was a 55% increase in condo sales over the same period a year before (179 vs 120 units).

According to the same report, (Facts and Trends by Trendgraphix) there are currently 79 condos in pending sale in Aventura, which tends to make me believe that we are heading into a strong 2009 that should exceed even last year’s figures.

So for all of you that are sitting on the fence waiting for this “bubble to burst” --- guess what, the shift has come!!! Get off and buy while you still have great opportunities. Prices are at their all time low and with a good selection of foreclosures, short sales or just well priced units – there are a lot of opportunities out there.

Speaking of a great opportunity. Yesterday we listed a two bedroom two bathroom condo at Turnberry Isle at only $259,126. That’s only $170/ft. It has a huge terrace and is in a building with great amenities such as media room, state of the art gym, billiards room, stunning pool, various party and card rooms as well as a lounge, library and conference room.

If you would like me to email you some pictures contact us at info@golanteam.com and we will be happy to send you photos and more information.

In the meantime, whether you choose to buy or sell please call us for a confidential conversation of how we can be off assistance to you.

Regards
Eyal & Debra Golan
THE GOLAN TEAM
EWM REALTORS
www.golanteam.com
info@golanteam.comSouth Beach - Miami Beach - Surfside - Bal Harbour - Sunny Isles Beach - Aventura - Hallandale - Hollywood Beach - Fort Lauderdale – Boca Raton.