In recent months the South Florida market has experienced a significant increase in the number of home buyers that are opting to build their dream home as opposed to buying an existing property.  During the period from 2007 to 2010 residential construction loans were difficult to come by and when available the terms were not great but all that has changed.

Construction loans are available again and the rates and terms are very attractive.  With the drop in the price of vacant lots in prime neighborhoods like Coral Gables, Miami Beach, Pinecrest and Key Biscayne building has become a viable alternative once again.  In general residential construction loans in South Florida are available with the following terms:

30% down payment

Minimum loan amounts $1 million however smaller loans are available on an exception basis

Both fixed and adjustable rate programs are offered

Fixed rates are in the mid 5% range and adjustable rates in the high 3% to low 4% range

Expect to pay .5 to 1% construction loan administration fee

Loans are limited to primary residences

Minimum credit scores are about 680

Interest only payment during construction period of 18 to 24 months

If you or your client are in the market to build their South Florida Dream home feel free to give me a call with questions.

With more than 50% of all residential transactions in the South Florida market being cash purchases the influx of foreign buyers has served to the set the bottom and stage for recovery in local real estate values.  Our local economy and real estate markets are once again being defined by the international appetite for the South Florida lifestyle

Additionally as pointed out by Peter Zalewski of Condo Vultures :

“The other thing I don’t think people realize is, as the Venezuelans come and purchase real estate, any number of them are also trying to set up businesses,”  It’s not unheard of to buy [residential] real estate, and then buy a company, and with that company make a [visa] application to live and work here.”

Perhaps there should be differed tax credits for those who come to the U.S. buy real estate and a business and then pursue citizenship.  This would be a great way to stimulate the local economy and create jobs.

I may be a little bias having grown up there, but I think Sunrise Harbour is one of the best neighborhoods in South Dade.  With no fixed bridges to the bay and a location half way between Coconut Grove and South Miami the Sunrise Harbour area is ideally situated for congenial living.  Some older dry lot homes in the area are selling for less than $1M which is a bargain in my book.

For more information on this property contact Maria Marin at One Sothebys International Realty.

Take the ocean front home at 102 Canterbury Lane for example which recently sold for just 75% of it’s asking price.  To the bold go the spoils…and the bold are buying now.

photo courtesy of One Sotheby’s International Realty

We in the finance world have taken note of these positive market trends and have already loosened the purse strings a bit making Jumbo financing in these markets more readily available with easier qualification standards.  A clear example of this is a purchase I am closing at the end of the month on a Coral Gables home with Jumbo financing and only a 15% down payment…..and no mortgage insurance!

Another example of the liquidity returning to the jumbo market is the narrowing of the spread between conforming interest rates and non-conforming interest rates.  As I detailed in my post of April 1st, conforming interest rates (for loans below $417,000) did increase a bit (about .25% as I predicted) as a result of the end of the Fed’s MBS purchase program but interestingly we actually lowered our jumbo rates earlier this week.

If you are buying or selling a luxury home or commercial property in South Florida I would welcome the opportunity to help get you to the closing table.

Special thanks to Lowell Kuvin Esq. of www.CoralGablesZoningLaw.com for the image in this post.

With a 158% increase in the median home sales price over February 2009 median prices Coral Gables tops the list of the 500 most expensive neighborhoods from around the country.   While this data may be questionable it’s nice to see a South Florida neighborhood painted in good light.

Why get wet and drive all over town to see brokers opens when four luxury townhomes  in Deering Bay will be open for a progressive brokers open today October 21st from 12:00 to 2:00.  Please join us for lunch and a preview of some exceptional properties.

It is a short but beautiful drive down Old Cutler Road that will take you to a different world. Deering Bay Yacht and Country Club sits on over 220 acres of land populated by indigenous fauna, golf courses, luxury homes and condominiums as well as a world class marina.

I assure you it will be time well spent given the caliber of the properties, the expected turn out and the delicious lunch being prepared by renowned Chef Stella Burgess.

The addresses and Mapquest links are below….see you there!

13646 Deering Bay Drive (SW 60 Ave) – Listed for $1,149,000 by Joe Olozaga & Chris Monge 305-613-3121 ~ click here for map

13626 Deering Bay Drive (SW 60 Ave) – Listed for $1,249,000 by Geri Brodie 786-853-4374 ~ click here for map

13630 Deering Bay Drive (SW 60 Ave) – Listed for $1,200,000 by Elizabeth Montero 786-385-9638 ~ click here for map

13632 Deering Bay Drive (SW 60 Ave) – Listed for $999,000 by Valarie Byrne 305-960-2413 ~ click here for map

Advantageous financing is available for these luxury townhomes with as little as 20% down and interest rates in the low 5% range.

Additionally the charts for homes for sale in Coral Gables, South Miami and Miami Beach look very similar.  The perfect storm of disappearing inventory, increased buyer traffic and low interest rates is upon us.  The South Florida luxury home market has and will always be resilient so the smart money is buying now.

The Business Week article also mentions that some luxury home buyers have run into difficulty with appraisals.  In most cases in the South Florida market issues with properties not appraising are due to the fact that the appraisal is ordered through an appraisal management company and an out of area appraiser is given the assignment.  Under current market conditions it is imperative that the appraiser on any assignment have an intimate knowledge of the market in which the subject property is located.

Oh and the good news……..we are HVCC compliant but we don’t order our appraisals through a management company.  We use local seasoned appraisers with years of experience appraising Luxury homes in the South Florida market.

Even if  you have previewed this home previously you MUST see it again, the owners have made some great renovations and reduced the price!

Private chef Stella Burgess who has cooked in some of the worlds truly great restaurants will be preparing lunch.  We invite you to stop by, preview a beautiful well priced home and enjoy a delicious meal.

1645 Tigertail Avenue – Renovated and Reduced!