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In preparation for the South Florida winter buying season, there are three featured luxury developments that I am bringing in this issue. The Estates At Acqualina, Palazzo Della Luna and Aston Martin Residences. With the Miami skyline as the backdrop for these amazing structures, the lifestyle you want to live in weather you can enjoy year ’round is like no other in the world.
This is your first peek, but it does not have to be the last. It would be my pleasure to schedule a private tour to view the featured developments and/or any other properties in South Florida. Contact me to discuss how I can help you.
Thank you in advance for your interest and referrals, your highest and most appreciated compliment. Start your virtual tour HERE. Enjoy!
Erica Cabezas Marchese
As seasons change, as individuals, partners and families grow and as children leave the nest, lifestyle needs evolve. A FOREVER real estate agent understands that the concept of home is predicated on the many changes life can bring and it doesn’t start or end with a home purchase or sale.
It is my goal, and would be my honor, to be your FOREVER agent – a dream occupation for me is to help you become more strategic in the real estate decisions you make now and in the future. I am proud to electronically deliver to you the Berkshire Hathaway HomeServices Real Estate and Lifestyle Planning Guide, a FOREVER plan for smart and strategic real estate decisions.
The Guide is designed for organized thinking and real estate planning. It includes steps to identify and set lifestyle planning goals and to memorialize all in a lifestyle plan. The purpose is to help you review your present and future lifestyles and the considerations for life stages, such as renting vs. buying, considering move-up opportunities, moving with children and pets, downsizing by design, transitioning with multigenerational and special needs family members, and staging/merchandising your home.
I would be honored to walk you through the Real Estate and Lifestyle Planning Guide and help you create your lifestyle plan. As your real estate Trusted Advisor and FOREVER Agent, I will always be there to help you match your real estate goals and aspirations to the ongoing shift in your lifestyle.
Let’s discuss your strategic real estate decisions today.
In South Florida there is a wide variety of vacation homes or condos to suit your taste and budget. A favorable climate, low property taxes, no State income tax, and endless leisure activities add to the pros of buying a vacation property in South Florida.
If you are planning to buy a vacation home in the near future, now may be the time to consider getting started. Mortgage interest rates remain historically low, allowing you to get more home for your money. Start building equity now!
For more information on vacation homes or condos in South Florida, contact Erica at 305-542-2419.
The following article outlines some of the pros and cons of owning a vacation home.
According to Money Magazine, now is the time to purchase if you’re considering a second or vacation home. Across the country, prices are near or below their five-year lows. In Vail, Colorado, home prices are down 30% from their highs. Pebble Beach, perhaps the most renowned golf area in the U.S., has seen a decrease of 36.3% in square-foot prices compared to five years ago. And prices in Orlando, Florida, home of the Walt Disney World theme park, are down more than 50% from their highs.
Will prices go lower? It’s impossible to tell, but Stan Humphries, chief economist at Zillow, says, “It’s a fool’s errand to try to time the bottom for both economists – and buyers and sellers. If you find a house that you love and want to be in for a long period of time, now is potentially a good time to wade into the market.”
Whether you’re a skier who loves the mountain slopes of Colorado or Utah, a lover of the beaches of Southern California and Florida, or a potential retiree seeking to escape the snow-laden Northeast for the wide open, sunny lands of Arizona or South Texas, there are homes available to meet a wide range of budgets. The same benefits of home ownership apply to the owner of a condominium in Boston, or a mansion at the Homestead in Hot Springs, Virginia.
But real estate, like stocks, bonds and other investments, has always fluctuated in value and will likely continue to do so in the future. Therefore, be aware that there is no guarantee that a second home will sell for a higher price in the future.
Rental fees vary according to seasons and the popularity of the resort location. For most resorts, peak season weekly rental fees are usually equal to or greater than the property’s monthly mortgage payment, allowing you to break even with an annual occupancy around 30% from a cash flow viewpoint.
A common goal of retirement is to have a place of retreat for the times of the year we dislike the most at our main residence. Locating and buying a second home prior to retirement enables you to experience the benefits of a refuge before actual retirement, a time to correct and amend your plans if the reality is different than the dream.
The intangible benefit of owning and passing property from generation to generation – especially a home that has been and will continue to be the site of many happy gatherings – is incalculable.
As a partner in a house located in Pebble Beach, California, I once swapped a week at my house for two weeks in a home (with cook and housekeeper) on a Caribbean island. The owner of the St. Maarten home wanted to take his buddies for a long golf trip to the famous courses of Pebble Beach, while I wanted to take my family for an extended beach vacation. The swap worked out well for both parties.
Owning a second home, regardless of the location, is not for everyone.
In popular areas where space is limited, the house may be priced higher than the cost of your primary home. In addition, new homeowners typically incur the costs of furnishing the new purchase with everything from furniture to linen and dishes, costs that can easily exceed 25% to 33% of the purchase price.
Steps to Purchase a Vacation Home
The purchase of a home, whether a primary residence or a vacation spot, can be a complicated process and a significant financial commitment. However, by following the proper steps, you can make the experience as painless as possible.
If, for example, an investor purchased a fractional interest for $100,000 with the right to use the property for 30 days a year, the value of the property purchased could be as high as $1.2 million (12 investors * $100,000 investment = $1.2 million). There is usually a big difference in the look, accommodations, and appointments between $100,000 and $1,000,000 properties.
Fractional ownership differs from a timeshare. With fractional ownership, you own part of the real estate, whereas with a timeshare, you merely own the right to use the real estate. This difference accounts for the tax benefits of a fractional interest, as well as the ability to benefit from any price increases in the property.
Both fractional ownership and timeshares require coordinating with other owners to reserve time in the property. If you plan to use the property more extensively or just don’t want to deal with an outside agency, you can create a private partnership to purchase and own a piece of property.
My house in Pebble Beach was shared with two partners, and it was a perfect arrangement. We negotiated with a local Realtor to manage the maintenance of the property for a small monthly fee so that we didn’t have to deal with landscapers, house cleaners, or local utilities when we were on-site, making our vacation home a true getaway.
A friend recently purchased a fractional ownership share in a house within an exclusive golf resort in Austin, Texas, where his daughter will be attending college. The four-bedroom home, luxuriously furnished and maintained, includes golf and spa privileges at a nationally-ranked golf resort. The seller, a construction company owner, was willing to sell the interest for less than its original price eight years previous due to reversals in the construction industry, and a consequent need to reduce his personal expenses across the board.
Effectively, my friend was able to buy a share of the house below its construction cost. From his perspective, he now has a vacation home for three months a year for a price that is less than the expense and hassle of renting hotel rooms, paying resort fees, or buying expensive restaurant meals. The opportunities are out there – now is the time to begin a search for your dream vacation house.