An $11.8 million beach restoration project stopped short of the former Midnight Pass. The coastal inlet between Siesta Key and Casey Key has been closed since 1983. A breach and tidal exchange of gulf and bay water would not re-establish the pass.
A curious thing is happening at the south end of Siesta Key where Midnight Pass used to flow. Some unexpected scouring is narrowing the sliver of sand between Little Sarasota Bay and the Gulf of Mexico, raising expectations there could be a breach.
The unlikely event of a breakthrough, and a tidal exchange of water, wouldn’t necessarily mean the former coastal inlet has returned. But it would fan the flames of hard core Midnight Pass restoration advocates who want to see it open again.
“Mother Nature has not given up trying to reopen Midnight Pass,” Siesta Key resident Joe Steen said. “It appears there has been a substantial reduction in beach width at this site over the last few months. Dry sand at the narrowest point is zero feet.”
What’s perplexing about the scouring is that Sarasota County just paid $11.8 million to pump 800,000 cubic yards of offshore sand onto two miles of shoreline at the south end of Siesta Key, a beach restoration project that terminated just short of the former Midnight Pass. Read More from PelicanPress.org
Written by admin on May 5th, 2007 with no comments.
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An appraisal is an objective supported opinion of value of a piece of property commonly done while getting a mortgage by a typically licensed individual who has predetermined experience or qualifications to accurately estimate value of real estate.
In the appraisal report, comparable sales are related to information about the particular property being looked at, the community, local economy and other factors to support the given opinion of value.
Appraisals are done most commonly during the process of obtaining a mortgage, but can be used for reducing propery taxes, estate planning, divorce settlements or probate/death settlements.
Location within the region, locality and neighborhood are a major factor as well as the size of the house and amenities relative to the other houses. Bigger is not necessarily better in terms of value matched to square footage within a neighborhood.
Condos Appraise for More When:
- Well maintained inside and clean.
- Well taken car of yard and grounds.
- Located in a good school district.
- Properties throughout the condominium are well maintained.
- Condominium common property is well maintained.
- Not over improved compared to other properties.
Written by admin on May 5th, 2007 with no comments.
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People often become property managers. One of the possibilities when you are considering the purchase of your condo, home or villa type condominium is that you might be able to take advantage of the yearly season or seasonal rental period.
People are often willing to pay much more for a rental during peak times. As an owner, you must keep the following things in mind:
Property Management (who will manage)
Maintenance
Wear and Tear
Owners Association Restrictions
Governmental Restrictions
Your Restricted Use
Effect on Your Tax Situation (local and federal income tax)
Written by admin on April 2nd, 2007 with no comments.
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To determine how much you can afford, lenders use terms known as front and back debt to income ratios. This practice is widely used on the Mortgage companies serving Siesta Key and the Sarasota area.
Front Ratio - Percentage of your monthly income before taxes that is used to pay housing costs. (including homeowners fees and mortgage insurance)
Back Ratio - Same ratio with your consumer debt added into it.
33/38 is the common comfortability rate. Rates acceptable by lenders will vary by the program.
FHA guidelines state that a 29/41 qualifying ratio is acceptable. VA guidelines do not have a front ratio at all, but the guideline for the back ratio is 41.
Written by admin on April 2nd, 2007 with no comments.
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There are benefits to owning a second home.
If you read up on the net, you will find run downs of the various second home tax advatages.
These change from year to year, so it is always a good idea to consult with a CPA or Certified Public Accountant.
There are guidelines to the amount of time you must occupy the second home versus the total amount of time it is rented. You must be aware of these as conducting rentals beyond the allowance or not using the propery enough can cause the IRS to question your deduction and ultimately reverse it.
You can still rent the property after the amount of time that is calculated, but it may be subject to normal tax rates
Concept - The idea is to allow for the amount of after tax money that you would have applied to your rental accomodations coupled with the income that you receive, rather than treating the property as an investment property.
Interest and Property Tax Deductions - In most cases, you will be able to take these deductions as you do with your principal residence. This can be verified on the IRS page for real estate interest deduction. There is a wealth of info on this page relative to taxes and residential property as well as equity loan deductions for personal debts and losses due to damage from natural causes.
Written by admin on January 20th, 2007 with no comments.
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Tired of seasonal rental prices? There can be benefits to buying a condo…
Many have stood by paying their budgeted rental price each year and watched the owners they are paying their rent to cash in on equity and use the rental income to cover expenses while still being able to use their own condo when it was not in use for a rental (which can be a large part of the year).
A large percentage of the owners of condominiums in the Sarasota, Siesta Key and Longboat Key area started as renters only to explore the market and decide buying was right for them.
Renting is a great way to get a feel for the market while still being able to enjoy the free and non-committal vacation lifestyle.
Only you will know by the area when it is right to make the change. The benefit is that when you do, you will likely already have someplace that you are comfortable with both the people and the particular property.
There is more responsibility being a condo owner. You must pay the maintenance fees, possibly pay a mortgage (if you have one), handling arranging of renting the unit (if you choose to and paying property taxes.
It is not all profit as it seems to many who rent, but with equity appreciation seeming to escalate, however, sometimes quickly and other times more slowly, it can be a benefit.
You also don’t have to worry about your accomodation being at the will of another party.
Written by admin on January 20th, 2007 with no comments.
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There are many factors in selecting the right Florida condo. Different properties are right for different personal situation. Though this summary has been written in regards to Florida Condos, the basics outlined below will apply to almost any area.
Area - First, one must look at the nature of the area. In Florida, there are both residential and seasonal condominium areas. Many of the areas still further could be one or the other. Selecting the right place to be goes hand in hand with the way you intend to use the condo you purchase, as well as future plans that you have for relocation if you are buying as a second home with plans to permanently relocate later. Use types tend to be grouped together, so you might find mostly second home type properties together one place and all residential another. Still over, you would typically find short term vacation or hotel type condos that owners can use when not rented grouped together. This also has to do with the -zoning- or allowed local government use plan for property within its boundries. The plan is often fairly concrete having been developed by the local municipalities throughout the years. For older communities, the way things were developed unregulated were the intial footprints for what the current regulated zones are.
Use - Figuring out why you need a property and how you will use it now and in the future must be a determination you are comfortable with prior to looking seriously at a purchase. This does not mean you should not look to get comfortable with the lay of the land and where the areas are. The basic use types are below.
- Residential or Second Home (No Renting)
- Residential or Second Home (Renting in Peak Periods)
- Longer Term Rental w/Use When Not Rented
- Aggressive Renting w/Minimal Use When Not Rented
How Do I Know a Condo’s Use? Each condo has an acceptable use according to the way it was developed and the intention of the owners who have bought into it. There are documents that are filed with the local municipality that outline these terms (typically required to be reviewed by you prior to the purchase being valid). The information is often common knowledge or easy to look up for each individual property (by a Realtor).
Don’t Assume all are the Same in a Close Area - One condominium may have an entirely different use capability than another. One may allow short term rentals and one may allow no rentals.
Your Present and Future Needs - Looking at your present needs (ie: do I need to use rental income to pay the mortgage for right now until I sell my house and permanently relocate) will dictate what type of purchase you make. You may want a house or condo. You may not need to rent it at all and wish to choose a totally residential area where rentals are not conducted. Further, you may wish to get a property you can vacation to that allows aggressive rentals that you feel will increase rapidly in terms of equity and then resell it later and purchase a more residential property in the same location.
Understanding the Market - Understanding real estate markets can be so tricky because you often have the subsets listed above. These tend to be -markets within a market- and have relative security levels. You will be a participant in the market once you own and the same should you need to sell. A real World example is given below:
Sarasota, FL - There are 3 market types.
- Rental Condos and Properties that can be rented from 1 day to 2 weeks. Mostly condos. Owners use the property when not rented.
- Seasonal Second Home Condos that People Rent in the High Season Due to Their Rental Rates Being So High. Some condos and some houses. Owners use the condo when not rented.
- Strictly Residential - Some condos and typically most houses. These can be rented on an annual basis and sometimes furnished for several months at a time (1 - 6 months). They typically lie in zoning areas that restrict short term rental operation.
Financial Items and Rules from the Condo - As mentioned earlier, you will be given a chance to analyze the items from the condo. You will have access to things such as rules and regulations (with things such as pet policies to others such as prohibiting commercial vehicles).
You will also be able to review budgets for operation of the common property and financial statements. This is very important because you agree to pay your portion of expenses for the common property according to your percentage of ownership. The condo board of directors will vote on how to conduct some financial operations themselves, while other decisions may involve a vote of all owners (this is outlined by State law typically, although these vary State by State).
Some owners opt to not fund packing away money year by year for things like a roof replacement as they do not want the increase to their maintenance fees. They prefer to pay their percentage all at once when the items come due. Most want to know that there will not be unexpected expenses though. It is your responsibility as a purchaser to find out what the status is of the condition of the property and the funds to keep it up, as well as the potential pitfalls. If you do not dilligently do this, you could be on the hook for an unexpected expense.
A diligent Realtor with condo experience can help you look at all the items prior to your purchase offer being binding so that you can have understanding of what it is you are buying into. There are often not too many secrets if you just look at the correct items. This sounds very simple, but many do not pay any attention to this process.
Just remember to treat each property as a separate business being operated that you are buying into. You will be paying a maintenance fee according to the operating budget and property condition and funding for future items. Be comfortable with it.
We are happy to answer any of your questions in more detail about any of the process, just ask them below on the comments or send an email if you wish!
Written by admin on January 20th, 2007 with no comments.
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Many are aware of that the widespread equity gain amongst property owners in Sarasota, FL. This has been referred to as the Real Estate Bubble. Across the entire State of FL, The Florida Real Estate Bubble. Having a high median sales price increase, Sarasota Real Estate Bubble has also been noted as a discussion point.
Florida had reached a peak in the median housing price for the entire State of $218,600 which was a 26 percent increase in a one year period making Florida an attractive purchasing destination.
Both the Bradenton and Sarasota markets dominated this equity increase being number 1 and 2 respectively of the top housing appreciation markets Nationally. The increase in this area was 45.6 percent for Bradenton and 36 percent for Sarasota. Median prices were $275,100 and $326,300 as of the first quarter of 2005 based upon a one year period back.
To give a barometer, the price in 2000 in FL was $115,900 (so the increase over a 4 year period to $216,600 was over 100 percent Statewide).
There are quite a few dynamics that will effect sales prices going forward. A large percentage of the purchases were done so with adjustable rate mortgage funds which have increased for the purchasers. Based upon financial indexes, this has created a payment that people were not expecting (and possibly cannot afford). Still further, some bought under this premise expecting to get in on a higher payment to quickly sell and obtain the equity. The changing market has left them with a large payment and longer marketing times without the ease of taking advantage of what seemed like an easy equity opportunity.
Other Interesting Sarasota and Florida Real Estate Bubble Articles:
Florida Real Estate Bubble in the 1920s - There was a bubble period in the early days of FL development. Very Interesting to read about.
Information on the Florida Real Estate Bubble including a chart comparing California to FL with a quote from Fortune Magazine
CNN Real Estate - Tips, Calculators, Market News, Mortgage Rates, Condition of America Housing
Wikipedia Defenition Page for a Condominium
What do you think about the Sarasota or State of Florida Housing Bubble and where values are going?
Written by admin on January 20th, 2007 with no comments.
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