Florida Retirement Buzz

Many individuals have a strategy of purchasing a property in Florida and then offering it as a Florida home rental until they fully retiree, or during the off season months if they are snowbirds.

If you think that rental income from your eventual Florida retirement home will help pay for it, you may want to think twice.

Today’s economic climate has depressed the number of would be renters moving into Florida.

Additionally, many retirement homeowners associations are restricting the ability of owners to rent out their units or homes.  Sadly, many renters have little interest in maintaining a property to the standards that an owner has, and thus can potentially degrade home values in a neighborhood.

Many lending institutions are also weighing in on this subject by restricting loans to Florida condo projects where many units are rentals.  Fannie Mae and Freddie Mac refuse to underwrite mortgages in condo projects where a majority of units are rentals.

The battle lines are drawn between owners who need to rent to forestall foreclosure proceedings, and those who want to maintain a community where the residents are the property owners.

In the newly updated, August 2009 edition of “The Florida Retirement Book – An Insider’s Guide” we address this issue in more detail, along with dozens of timely topics critical for individuals investigating a move to the gorgeous Sunshine State.

For more assistance on retiring in Florida, refer to the most authoritative and up to date resource on the subject. 

Take advantage of special new edition pricing and read it cover to cover RISK FREE by clicking the book below or visiting Florida Retirement Info:

Many potential Florida retirees have been holding off buying their Florida retirement home because they are waiting for the real estate market to hit bottom. Then, they will jump in. 

Realistically, no one knows for sure when any financial asset has hit bottom until many months have passed after the event. However, economists like to use what are called “leading indicators” to predict the timing of a future event.  

One example is that a rise in the stock market will usually precede the end of a recession by 6-12 months. In this sense, changes in the rate of house foreclosures can be viewed as a “leading indicator” for future house values. If the foreclosure rate is decreasing, it may be predicting the bottoming out of the price declines. Conversely, if it’s increasing, forecasting more bad news lies ahead.   

Florida foreclosure filings dropped 9 percent to 49,190 during November when compared with the previous month and by 7 percent to 259,085 in the United States as a whole.

During November 2008, Florida had the second most foreclosures in the country, with one for every 173 households.  Nevada was first with one filing for every 76 houses. California and Florida cities accounted for 9 of the top 10 metro foreclosure rates. The number of foreclosures filed in Southwest Florida and across the state fell dramatically in November, 2008. 

Manatee County Florida saw the biggest drop in the region, reporting 363 foreclosure filings, 59 percent fewer than in October and 24 percent less than in November 2007, according to RealtyTrac, a market research firm. 

The following foreclosure filing data highlight some areas that are worth looking at for acquiring properties in foreclosures or short sales:

• Cape Coral-Fort Myers had the highest foreclosure rate with one filing for every 59 houses.
• Fort Lauderdale had one for every 117 housing units.
• Port Lucie-Fort Pierce had one for every 118 housing units.
• Sarasota County had one foreclosure filing for every 195 houses.
• Charlotte County had one for every 203 housing units.
• Manatee County had one for every 458 housing units.

It’s important to realize that these distressed properties are being purchased by someone and are not disappearing. There is a buyer for every sale. If you are trying to time the market and have developed your own “leading indicators”, it will be prudent to arm yourself with whatever data will help you make the best decision. 

For more assistance on retiring in Florida, refer to “The Florida Retirement Book – An Insider’s Guide” with limited time Free Updates.  The new 5th edition is the most authoritative and up to date resource on the subject.  Take advantage of special new edition pricing and read it cover to cover Risk Free by clicking the book below or visiting Florida Retirement Info: