REPOST: Latinos Taking Over South Florida? Real Estate Buyers 68% Latin

South Florida is attracting an increasing number of ultra-high net worth individuals from Latin America, which means that real estate spending in the region must also see remarkable growths. Read the full story below:

In 2014, just a shade under 70% of the South Florida real estate clients from outside of the U.S. are Latinos | Image source: realtytoday.com

Things are looking up in the southern portion of the Sunshine State. And, we're not just talking about the influx of sun worshippers into South Beach, or the swarming of night owls who are out to take over the vibrant party scene in the area after the sun goes down. South Florida is also thriving when it comes to its real estate sector.

Realtors in the region are grinning ever so widely which is in large part due to the appeal of South Florida's market to real estate buyers from the Latin America. Take for instance the case in Miami-Dade and Broward counties in 2014, just a shade under 70% of the real estate clients from outside of the U.S. are Latinos according to an article from the RealDeal.

The South Florida real estate market has once again surpassed its annual numbers for four years in a row, Teresa King Kinney, CEO of the Miami Association of Realtors, was pleased to announce in the recently held Greater Miami Chamber of Commerce's South Florida Real Estate Summit on Friday, March 27th at Jungle Island.

"The difference between Miami today and Miami of a year or two ago is the ultra-high net worth individual," she said. The half-day conference looks at "current and future conditions of South Florida's residential, commercial and credit markets".

Amongst real estate international buyers, Venezuelans grab a hold of the top spot accounting for about 16 percent of the sales. The Argentines come in second at 12 percent. Buyers from Brazil and Colombia are also pouring in real estate money at 11 percent and 8 percent, respectively. Canadians and French buyers also got their fair share of the market, while Mexicans are closing in on them on the list with 4 percent.

Kinney said that they really appreciate the contribution of international buyers in the real estate market amidst their ineligibility for homestead exemptions, which means higher real estate tax. They also help the local economy because of their shopping and dining habits while on vacation. They are also spending a bigger amount for every property purchase -- $444,052 as compared to $245,000 for that of the Americans; and not to mention 81 percent of them are paying in cash.

The Chinese are also taking a small bite from the SoFlo real estate market pie at 2 percent. Kinney told the Real Deal that when it comes to new businesses, "China is the strongest market from anywhere in the world," And she said that Chinese investors are now taking notice of the South Florida real estate market, and they are very satisfied about it.

According to China Central Television-America (CCTV), a state-run broadcasting company, Chinese investors now have their eyes set on Miami and other thriving real estate market abroad. This is due to the over-construction and more expensive local market, plus the slow-down in the national economy.

So, what makes the South Florida attractive to Latinos? In a 2014 report by the DailyWealth.com, two reasons were cited which include the region's lack of city or state income taxes unlike the other metropolitan areas in the country. They also dubbed Miami as the Capital of Latin America because "wealthy Latin Americans hold South Florida property as an asset-protection measure".

Data from the report presented at the real estate summit was based on the study conducted by the National Association of Realtors for the Miami Association of Realtors.

Melissa Yardy is a licensed broker from Florida who can assist you in purchasing the home of your dreams. Visit this website for inquiries.

REPOST: Real Estate: What is a Contingency?

Contingencies, which are conditions or criteria included to an offer on a home, play a key role in determining whether a deal will push through or not. Learn more about this concept and how it influences real estate sales by reading the article below:

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What is a Contingency?

Quick Definition: A Contingency is condition put in a contract that must be met for the contract to be binding. Common contingencies include financing, inspection, and others which protect buyers of real estate and their earnest money.

In-Depth Explanation of Contingency

Contingencies, in general, are conditions of a contract. They need to be fulfilled for the contract to go through. In real estate, contingencies can be put in place that protect buyers and sellers from financial or other harm. Contingencies are written so that all parties to the real estate contract understand the they need to fulfill certain obligations before the real estate closing can happen.

The most common contingencies you'll hear about are financing contingencies and inspection contingencies, although there are many others. Financing contingencies can be written in many different ways, but the overall point is to make sure the buyer properly applies for financing, and to protect that buyer from financial loss in case the financing is not available.

Financing contingencies will often have a timeline in which the buyer must apply for a mortgage. The terms of the financing are often disclosed to the seller: down payment, type of loan, etc. The seller uses this information to determine the strength of the buyer's ability to purchase the property. If the buyer follows the terms of the contract, and the lending institution can't deliver the funds to make the home loan possible, the buyer usually has an option to get out of the purchase contract without losing earnest money.

Inspection contingencies work in a similar way. They will have a timeline in which the buyer can inspect the property (which should be done with a professional inspector), and then respond to the seller. The buyers can accept the property in its current condition, ask the seller for repairs or a monetary credit, or disapprove the inspection and end the contract. These contingencies can vary based on timelines and disclosures necessary to enforce them, so be sure to consult with your Realtor and/or a real estate attorney to make sure you understand your contract.

How contingencies could affect your real estate transaction:

Contingencies are the basis for contracts going forward, or contracts dying. Buyers use them as their safeguards. If you're buying a home, you'll need to pay strict attention to the timelines on your contingencies. Have you applied for a mortgage in the right amount of time? Buyers should get pre-approved before even visiting properties for sale, but the contingency may allow more time.

Have you inspected the property, and provided a written response notification to the seller within the correct amount of time? If not, your earnest money deposit may become forfeitable to the seller in case you don't close on the home.

If you're selling your current home to buy another, you may have a property sale contingency or a pending sale contingency that allows you to rescind the purchase of the 2nd home if the 1st doesn't go through. There are a wide range of contingencies, and you should be coordinating with your Realtor to make sure everyone is on the same page.

Melissa Yardy is a professional real estate broker with over 30 years of solid experience. Check more real estate trends and updates here.

Should You Buy a ? Some Issues to Consider

What is a distressed property? Basically, a distressed property is a property the owner can no longer afford to keep. They are often in a state of disrepair, and might have even been foreclosed. However, many properties are sold for what is called a "short sale," which means that the owner and the bank have agreed to sell the property for below the balance of the mortgage. These properties are viewed as being potentially profitable investments, since they can ultimately be sold at a markedly higher price once they've been restored.

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There are several advantages to distressed home purchase, but there are also several potentially problematic factors to consider. Here are a few things to keep in mind if you are in the market for a distressed home.

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Tenant Disputes 

The purchase of a distressed home can lead to ugly eviction procedures if the residents are still occupying it. This is generally not the case in short sale situations, since the owners have already agreed with the lender to sell the property in order to avoid foreclosure. But foreclosed properties often still have residents occupying them, and the new owners have to initiate sometimes lengthy eviction processes before they can proceed with home renovations.

Extreme Disrepair 

While it is possible that a foreclosed or short sale property is still in good, habitable condition, very often they are in a state of neglect. "Many inexperienced buyers fail to recognize the extent to which the properties are damaged, and this can lead to major problems very quickly," says Realtor and Certified Distressed Property Expert Melissa Yardy. "It is crucial to work with a Realtor so that you know exactly what kind of property you are getting, and what steps you have to take."

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In order to mitigate the possible headaches from distressed property acquisition, a buyer should work with a Realtor who will conduct the necessary research on the buyer's behalf. "There are innumerable issues a Realtor can address for the buyer," continues Melissa Yardy. "Since the goal is to acquire a potentially valuable piece of property, a wise buyer should use all the tools at his or her disposal, and one of those tools is definitely a dedicated Realtor."

Melissa Yardy: Interested in Buying a Certain House? Check out the Neighborhood Association First

While home sellers are often keenly focused on marketing their properties and making a profit in a deal, homebuyers have their own set of responsibilities and potential stressors. When buying a home, your biggest concern is likely figuring out how to navigate the often complicated, multi-step process and getting the most spacious and best-quality home for your money. One important part of the buying process includes determining whether or not you want to live in a neighborhood association, according to real estate broker Melissa Yardy.

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Condominiums and a majority of subdivisions that have been recently developed have rules that govern how you are able to use the property you have purchased. These rules are intended to give the area a uniform appearance. Your real estate broker can retrieve for you a copy of these rules.

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Some of the rules that cause the most trouble for homeowners is that you may not be allowed to erect a basketball hoop in your driveway. Likewise, you may not be able to park a work featuring your company’s name in your driveway. Some neighborhood associations have restrictions on motor homes, thus barring residents from parking these vehicles on their properties. Others ban clothes lines, while others dictate whether or not you are allowed to build a fence around your property or tell you the type of material you are allowed to use for your fence. Restrictions may also exist with regard to installing satellite antennas for television.

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You may also learn that your potential buy is situated in a neighborhood where you cannot paint your home a new color without receiving permission from the association’s architectural committee. Some neighborhoods additionally will not permit dogs of a certain size and weight. Understanding these rules upfront will prevent you from purchasing a home in an area that does not suit your personal lifestyle as a homeowner.