REAL Exclusive Magazine

Go Global

The Truth About Foreclosures, Bargain Priced Property And The Loonie!

By Patricia Tan

Florida is now acknowledged in international circles as THE place to buy real estate. There is growing evidence that the prices in many parts of our state have bottomed and started on the road to recovery, but buyers are still hesitant and search for data to support a buying decision. One key indicator that many buyers research is the number of foreclosures in a market. Another deluge of foreclosed properties will surely mean prices will drop further, right? Many investors look to the press for market indicators to support a buying decision, but news articles often tell conflicting stories.

Mark Twain attributed the 19th Century British Prime Minister Benjamin Disraeli with the saying “There are three kinds of lies: lies, damned lies, and statistics”, and readers could undoubtedly apply this to the foreclosure statistics they read in the press. So what do consumers need to know about foreclosure statistics?

First, readers need to understand that there are three situations that can be measured and reported as foreclosure statistics – The first, Lis Pendens, indicates that legal action has been taken on a property. After receiving a Lis Pendens notice, it is still possible for the mortgage holder to rectify the delinquent mortgage or sell the property as a “short sale” and avoid foreclosure- this can lead to a huge discrepancy between the number of Lis Pendens notices and the number of actual foreclosures. The second situation is when a Notice of Sale is filed. This notifies the mortgage holder that the property has been scheduled for foreclosure sale on a particular date. Finally, Real Estate Owned (REO) indicates that the mortgage holder now owns the property.

To illustrate how measuring these different stages of a delinquent mortgage can influence the perceived rate of foreclosure, let’s look at some “foreclosure statistics” from Tampa over the period March 2006 to February 2009. Over that period, there were 16,229 Lis Pendens issued, 3,429 Notices of Sale, and only 2,635 REOs. Tampa had more Lis Pendens than any other Florida market. However, the number of REOs was significantly lower than other markets. Cape Coral, for instance, in the same period had only 13,101 Lis Pendens, but a whopping 4,426 REOs.

As this news of Florida’s stabilizing prices spreads to different parts of the world, we continue to see a steady stream of overseas buyers, many of whom are looking to purchase our bargain-priced properties. But how does one identify a bargain? Traditional wisdom tells us that REO, or bank owned properties often present the best possible deals, but practical experience may show us that this is not actually the case in today’s real estate market. Prices achieved for foreclosed properties are often used by appraisers when determining the market value of a home offered for sale by a home owner who is not in distress. In effect, prices for distressed properties set the tone for the rest of the market, and actually become the market price. What this means in many situations, is that homes offered for sale that are not short sales or foreclosures, may be purchased at prices similar to distressed properties, but may be in much better condition and purchase transactions may proceed more smoothly.

We recently conducted a series of seminars in Toronto, and exhibited at a real estate expo there. This gave us the opportunity to share this kind of statistical information – whether “lies, damned lies or statistics” – directly with consumers and fellow real estate professionals, and to answer many of their questions about the state of the Florida real estate market. We also partnered with a Canadian real estate attorney who discussed the pros and cons of holding Florida property in the most tax efficient manner, and with Royal Bank of Canada who have attractive financing options available to Canadians buying property in Florida. In addition to our bargain priced properties, Canadian buyers have another great reason to invest in Florida properties now, and that is the favorable exchange rate – the Loonie reached parity with the U.S. Dollar again. As international real estate professionals, we have to be knowledgeable about the world currency markets, and how they impact our business. Working with another company who specializes in this area certainly enhanced our value proposition while we were in Canada.

It is seldom that several factors come together to make the perfect time to buy real estate. Canadians have that situation now – A strong currency, low mortgage rates and rock bottom Florida home prices. I am sure we will see many Loonies being invested in our real estate market here – no doubt some driven by foreclosure statistics, but many more by our attractive Florida lifestyle.

Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

Hit It Further And Straighter With Your Driver!

By Jonathan Yarwood

“Keep your head down!”….. How many times have you heard that! Well, I am here to tell you, that advice is responsible for a lot of problems with the driver including ‘skying’ it, ‘slicing’ it and a lack of power. It actually perpetuates many problems too, let me explain….

The more you keep your head down, the less your body winds up behind the ball. Your right hip gets ‘high’ as you go back and acts as a barrier to moving your weight. You end up in a classic ‘reversed pivot’ position, where your upper body weight is ahead of the ball at the top of your swing. The head being perfectly still, has this is the effect on the body. The body is forced to move out of the way on the downswing and produces an ‘over the top’ move that encourages a slice and loss of power.

If you think about it, in most sports that require you to propel an object forward towards a target, like tennis or baseball, all require that your weight moves away from the target going back and towards the target going through. Golf is no different, it may be even more important as it has an influence on the plane too which obviously affects the direction. That is the tough thing about golf, the ball is static. Most sports it moves and you use that momentum!

So do not try and keep your head still. Try and tilt your spine slightly away from the target at address. Then let your head move slightly so you feel that you upper body weight and chest is over your right leg at the top of your backswing. From there, release your right side and fire your weight through to the target and onto your left foot. The ball will go miles further and your body won’t ache so much at night!!!

Jonathan Yarwood was originally from the United Kingdom, but relocated to the United States in 1996. After a few years as one of David Leadbetter’s senior teachers, Jonathan branched out on his own and has enjoyed an extensive career with a track record that speaks for itself: He has coached, 2 US Amateur Champions including this years champion Ben An, 2 US Girls Champions and 1 US Open Champion in Michael Campbell in 2005. That is 5 USGA champs in 10 years, which is a record in itself. Add to that the four number one juniors, 3 AJGA players of the year, a collegiate number one, a male and female nationally ranked number one as well as a winner on every major professional tour, you have a record to rival the best. Jonathan was voted a Top 20 teacher under 40 years old by Golf Digest in 2006, after 5 straight years of being in the best teacher in state rankings for Florida.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

Top 10 Questions to Talk Over with Your Attorney Prior To The Pre-Foreclosure Decision

By Jim Soda

It is imperative that any homeowner seeking to determine if a short sale is in their best interest, be able to distinguish between their own interests and the interests of lenders, buyers, investors, and real estate-related professionals Read More

June 10, 2010 REAL Magazine Evening Networking Event.

Hosted by Florida Builder Appliances at their fabulous showroom on Tamiami Trail our event will feature delicasies from Jenn-Air prepaired by Chef Chris Covelli from 5:30-7:30. Read More

3rd Annual Lake Club REAL Magazine Event.

June 18, 2010          11:30AM to 1PM          Lake Club Clubhouse

Annual Update on Lakewood Ranch

Featuring Rex Jensen, Brian Kennelly & Milt Flinn

Read More

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REAL Magazine May 2010

Featuring: United Way charity golf tournament at The Ritz-Carlton Members Club, The Boys and Girls Clubs of Sarasota and more.

Read More

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Exceptional Properties May 2010

Fine Homes and Luxury Estates for Sale Over $1,000,000

Exceptional Properties Cover Feature:

Stephen Lingley, Signature Sotheby’s International Realty, 941.809.7580

714 Granada Avenue, Island of Venice, Venice, Florida

View the Gulf of Mexico from this spectacular Island of Venice retreat located at 714 Granada Avenue, Venice, Florida. The property is in a luxurious boutique community featuring 8 units within easy walking distance of the Gulf of Mexico. Beyond a walk on the pristine white sand beach the complex is within easy walking distance to quaint restaurants, retail shops and entertainment. Expertly constructed using the highest quality materials and workmanship each luxury unit contains a two car garage, private pool with spa and three levels of living space. Own a magnificent piece of the Island of Venice on Granada Avenue. Read More

The Ritz-Carlton Members Club

Sophistication, Sarasota Style

By Lalaena Gonzalez-Figueroa

Long known for its distinct blend of culture, style and easy elegance, Sarasota offers residents and visitors an enviable lifestyle with a wealth of exciting amenities.  At The Ritz-Carlton Members Club, guests may enjoy unique experiences at the luxurious Spa Club, the relaxing Beach Club and the well-appointed Golf Club.  With unparalleled opportunities for recreation, relaxation and dining, the Member’s Club welcomes guests to take advantage of the luxury and comfort that only The Ritz-Carlton can provide. Read More

Design Lines – Lightening The Look

By Pamela Hughes

One of the pleasures of life is simplification. As the world itself seems to be moving faster and becoming more complicated, the sanctuary of our homes is our place to restore peace, quiet and balance.

Paired with making more time for ourselves is the possibility of making our homes more serene and welcoming. And that is what we will be focusing on this month.

Particularly, as one retires or is just coming to a second or part-time home, the ease of one’s life there, with minimal upkeep or effort, is important. One of the ways we make our homes more restful is to not fill them with clutter.

Those who are familiar with the ancient Oriental practice of Feng Shui know that the cleaning out of clutter is one of the main principles of this school of thought. Another one is that you should only own articles that are either functional or beautiful. These two principles alone will lighten your spaces.

Good design allows the eyes to rest. Another way to lighten up your home is to place pieces of furniture and art so that they have some space between them. They then become more important without visual competition with your other furnishings.

The space between objects not only makes a room seem larger and more spacious, but the objects themselves then have a greater impact in the feel of the whole room.

Another way to lighten room is to create neutral walls and ceilings so that your art and furnishings catch your eye rather than forcing them to compete with a bold or patterned background.

One of the trade secrets of good design is simply editing. For example, we often pare down the amount of accessories we use. A simple fine bowl for a table, rather than a collection of objects, however interesting, often pleases us more.

On the other hand, one of the things we have found most effective when we have clients with collections of objects is to group the objects together. A whole series of disparate objects is not nearly as intriguing as a table or shelf of the same thing. Then you can compare their differences and similarities, and notice the variety of shape, style, color and finish of each object. When they are scattered throughout a home they lose the impact they can have when grouped together. Whether they are a series of prints, a collection of art glass paperweights, perfume bottles or porcelains, all are enhanced by their own company in a group.

To create a peaceful and restful space, try to weed out the unnecessary and keep the personally important. Much of this is just organization. Sometimes it is very freeing to just get rid of things. Another tenet of Feng Shui is that keeping the things you don’t really need can hold you down or slow you down. By removing things that are not important, you make room for things that are important. Whether you believe in Feng Shui or not, you will be rewarded with light and space and that terrific feeling of order and peace that we all enjoy.

Pamela Hughes, the founder and owner of Hughes Design Associates, is well known nationally and internationally. Hughes Design Associates is one of the premier interior design firms known throughout North America for specializing in prestigious custom interiors. In Sarasota, Pamela has completed many exceptional projects including The Ritz-Carlton, The Members’ Beach Club, The Tower Residences, and Plaza at Five Points. Her portfolio also includes some of the most luxurious and distinctive residences in Sarasota. Pamela’s work has been published in the best interior design magazines such as Architectural Digest and Veranda, as well as numerous other publications. Also, Home and Garden Television (HGTV) featured her in the program, “Public Places, Private Spaces”, showcasing her work on the Four Seasons Hotel, Philadelphia, and a luxurious private home in Chicago. In addition to their work in Sarasota, Pamela and her firm design projects throughout the US, Canada, the Bahamas and the Caribbean. Pamela maintains offices in Sarasota, Florida and McLean, Virginia (Washington D.C.) and may be reached at 941.922.4767. Visit www.hughesdes.com for more information.

Read the REAL Magazine story on interior designer Pamela Hughes by clicking here.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

Outdoor Living Design

By Steve Murray

For the majority of people moving to Florida, drinking a cocktail and flipping the steaks on the barby whilst looking out over their pool or bayfront view is their idea of utopia. Every day begins and ends the same way….enjoying their outdoor living space.

As a result, over the years we have seen a trend in how homes have integrated lanais, covered decks and pool areas into the overall flow of the home. Homes built inland typically have more land and are less restricted on lot coverage allowing large living and eating areas under the protection of an expansive pool cage, whilst waterfront homes have historically had smaller covered areas due to coverage constraints.

With the new trend of smaller yet better appointed homes, we are seeing architectural designs that allow living areas to flow to the outside decks transforming them into full fledged and often extremely lavish living rooms, dining areas and kitchens. With the installation of pocketing sliders, disappearing walls or multiple French doors, interior spaces suddenly double in size when opened allowing the outdoors in and creating large entertaining spaces.

Here are a few ideas for creating functional and desirable outdoor living areas:

• Outdoor Kitchens: This has evolved from a built-in BBQ grill to full-blown kitchens, including sinks, dishwashers, refrigerators and even beer dispensers. Large countertops and high bars for entertaining sometimes take the place of interior wet bars and place owners outside looking over their pool and views.

• Fireplaces: Exterior seating areas often congregate around a fireplace, which can extend its seasonal use through the colder nights and create a cozy ambiance.

• Audio Visual: Flat screen TV’s have transformed interior design and likewise allow television viewing in many more locations. Whole house structured wiring has also allowed zoning for speakers and keypads in the outdoor living areas.

• Décor and Lighting: Decks and lanais are being decorated with similar colors and materials as interior rooms such as cypress stained ceilings, fireplace surrounds, back-splashes and flooring thus seemingly expanding the indoor areas. Top Tip: always choose maintenance free products to ensure enjoyment rather than refurbishment!

In conjunction with pools and landscaping, you can greatly increase the value of your home whilst improving its flow and livability.

If you have any questions on how to spruce up your outdoor living spaces, please give us a call at 906-7000.

Steve Murray is the founder and owner of Murray Homes a residential construction company specializing in building custom waterfront homes on the Keys of Sarasota. He also owns Murray Realty with his wife Bev. Murray Realty is a full service real estate company offering customers a first class experience in finding, evaluating or selling houses and lots, primarily on the waterfront. Murray Homes is a Certified Building Contractor #CBC1250846

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

A No Non-Sense Approach to Green Building

By Mark Miller

Everyone today is talking about “Green” from your neighbor next door to the President of the United States.  With the topic on so many minds one would think that everyone has a good understanding of what the term green means. Who should we turn to for information on what it means to build “green”? Should we turn to our government for that answer? It wasn’t too long ago when it became news that ethanol production, which was supposed to be “green,” used more fossil fuel than it yielded. Even worse, later, this fact was also proven to be true regarding the harvesting of the corn (the main ingredient) in ethanol. How could that be? Producing gasoline from corn seems pretty “green,” doesn’t it?  Yet our government mandates that a certain percentage of our gasoline be made with ethanol. 

Ok, now that you’re probably scratching your head confused, let me tell you a story about a local project that used a “common-sense” approach to building a green house. Hopefully I will shed some light on building green by thinking “outside of the box.” 

Builders, architects, and designers have been improving our homes for years now. The homes built today are tremendously more energy efficient than homes built just a few years ago. The availability of cutting edge products has never been greater and at price points that are reasonable for everyone’s budget. For example, although LED lighting prices are higher than conventional lighting, the payback time can be in just one year as opposed to five to seven in previous years. But there is also another part to building green that is easily forgotten. How are the products made that are going into this building? Does the manufacturing process follow the same philosophy as the one being practiced in the construction process? Is the factory in close proximity to the project? These are all good questions. However, I would like you to consider other factors to keep in mind when building green. What if we could use some products that were left over from other projects? In addition to that, what if we could use some recycled products salvaged from some local buildings before demolition? Well, that is exactly what we did in our venture to be green. In one of my local projects, I blended some new cutting edge products with some left over and re-claimed materials. I will give you a brief outline of how this house was constructed and the unique materials that were utilized.

The concrete slab and cement blocks for the exterior walls of the house all came from a local company.  All of the interior walls were constructed with steel studs. The use of steel studs for all of the interior walls has many green benefits. First, we conserved trees as steel replaced wood. Now, we have created a structure that is immune to insects. This, of course, means that there is no need for any special chemical treatments like many builders use that never leave your home. Framing walls with steel saves time while the walls finish perfectly straight and plum. The windows installed contain tinted, insulated, impact glass.  In addition, decorative window treatments were utilized in a way that will increase the glass performance even more. Using High-efficiency air-conditioning systems is also very important. The air-handlers have variable speed motors and the condensation lines are plumbed to drain directly into the swimming pool. This “re-claimed” water will keep the pool topped off and remove the need to use tap water for replenishment. The attic has a spray-foam insulation applied to the underside of the plywood sheathing. This not only provides the best possible insulation from heat and cold but also substantially strengthens the entire roof structure by creating one solid structure.

The entire house including landscape lighting is LED. The LED lighting is as much as ninety percent more efficient than traditional incandescent and fluorescent lights. LED lights do not emit the quantity of heat that the incandescent lights emit. This greatly reduces the load on the air-conditioning system. What the homeowners find most attractive about going green with LED is the fact that they may not need to change a bulb or light for twenty years or more. Most of the interior wood-trim and moldings that we used are remnants from past local projects. Most of the tile used for the floor and walls was either re-claimed or left over from past projects. All of the brick pavers for the home were also left over from previous projects along with the granite and marble countertops for the cabinets. This saved the need to manufacture a substantial amount of products needed for this home. A few of the doors for the project were also left over from a previous project including the front door. All of the plumbing fixtures meet the latest “low flow” requirements for water use and the master bath even has a “waterless” urinal. This process is not only green by the fact that building this house created much less of a “carbon footprint” than that of the traditional process but also saved the homeowner a substantial amount of money. Building like this is much easier that one may think.  However, you must be a little open-minded to get the most out of it.

There are numerous sources for re-claimed building materials locally. Also, finding misordered, left over, and returned products is as simple as checking with your local building materials supplier. In many cases you can even name your own price.  In addition, a quick search on-line can be an invaluable tool. There are warehouses full of building materials throughout the region. Numerous buildings and warehouses have been abandoned allowing savvy investors to buy various materials from the banks that were holding the mortgages on the buildings. These products can be purchased sometimes for “pennies on the dollar” from the “junk investors.” A good place to start looking could be Craig’s List. In future issues I will be providing a more in depth look at some of the products mentioned in this article.

Being an environmentally conscious builder or homeowner does require a new understanding of the concept “going green.” It involves both the use of new and innovative energy saving products as well as utilizing existing left over materials. Building green is the wave of the present, the future, and a way of life.

MARK MILLER BIO
Mark Miller has been in the construction industry for over 21 years and founded Westwater Construction, Inc. 19 years ago. He also operates a handful of other construction related entities including a LED manufacturing company. Mark can be reached for any construction related questions at mark.miller@westwaterconstruction.com or any LED lighting questions at mmiller@fusionensol.com.

Copyright © 2010 REAL Magazine

Links to this story are encouraged.

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Interiors

By Clifford Scholz

The majority of what architects talk about is the exterior package of a structure, when in reality the majority of the time we spend is actually in the interior of the structure. I believe if you were to compare the two amounts of time that the interior part would be considerably longer in duration. Sleeping itself represents about 30% of the time spent inside. Regardless it is very obvious that as much time, or even more time, may well be spent on designing our interior surroundings as compared to the external package.

My architectural internship kept me very close to the layouts, flow, and finishing of interiors;
especially in the residential sector. Much of that work was very traditional in nature which frequently required symmetrical interior relationships. Grasping the importance of the relationship between the interior and exterior of an architectural element is critical is achieving the best interaction. A good example would be a window. This has an external proportion and position that is key to the overall look of the structure/home. It also has a direct interaction to the interior height of the window stool and head. It is critical to get this correct for the best solution. Accommodating interior furniture and window treatments are only the beginning of a successful interaction. Combining all of the exterior and interior elements in an overall successful design is the goal.

Living Room Before

The two examples I would like to comment on are renovations of existing interiors and the home office/study.

The interior renovation is an existing home on Useppa Island. We were asked to completely renovate an existing 3 story home which was dated and needed rejuvenating. Through the structural renovation we were able to open up the interior of the space and create a warm space with the use of cypress paneling. By reducing the number of different finishes in the house and simplifying the layout, we were able to revitalize the interior “feel” of the home. Sometimes, or most times, simple is better.

Living Room After

Another example of is the home office and/or library. With people’s lifestyles centering on their home life more and more, the versatile library/office has taken on many different uses. Our example here is a home on Bird Key. The client wanted a room that could be used as a library, an office and a media room. They wanted it cozy, but also big enough to entertain their guests in. The key here was to get the scale correct so that if you were in the room by yourself you felt comfortable and cozy, and if you were entertaining 4 people, you could use the room and not feel confined. The key is the furniture layout and traffic patterns. We also wanted to give the room a warm feeling through the use of mahogany raised paneling and cypress ceiling beams. The result is a truly versatile and elegant room.

Library

Interior spaces are an extension of ourselves and our lifestyles. The key elements to a successful space are proportion, light, scale and finishes. Successfully integrating these interior principles with the balance of the home elements is the formula for a great design.

As founder of CMSA, Cliff has over 35 years of experience in architecture and construction. His sense of design and clear-cut goals has created a reputation for quality and excellence for his firm. As lead architect, he is responsible for the design of projects consisting of custom residential developments, office structures, commercial renovations, golf clubs and high-rise condominium buildings. He takes a proactive role in every project as the client contact, and directs his team of highly skilled professionals to keep every endeavor in balance. Cliff received his Bachelor of Science in Architecture from Lawrence Institute of Technology in Southfield, Michigan, and a Bachelor of Architecture from the University of Miami in Coral Gables, Florida. Cliff is also a Licensed General Contractor in the State of Florida and certified as a LEED AP. Cliff may be reached at 941-923-2400 or via email at cscholz@cmsa1.com.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

Go Global – Brazil, The Land of Opportunity?

By Patricia Tan

We hear much talk today of the global economy and the growing role of the BRIC countries – Brazil, Russia, India and China. The term BRIC was first used in a Goldman Sachs report in 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers. Of the four countries, we probably see and hear more of Brazil, here in Florida.

Brazil covers nearly half of South America, is the continent’s largest nation and the only South American country whose language and culture is derived from Portugal. A Portuguese explorer, Pedro Alvares Cabral first claimed Brazil in 1500 and its colonization began in 1532.
 
In its early days, Brazil’s wealth was built on sugar exports but this was replaced in the late 17th century by the discovery of gold. In 1808, the Portuguese royal family, fleeing the troops of Napoleon, established the seat of their empire in Rio de Janeiro. The King returned to Portugal in 1820. His son stayed in Brazil and declared it independent on September 7, 1822. In 1889 Brazil was proclaimed a Republic and in the ensuing years was ruled by a series of military dictatorships, before it returned to stability under civilian rule. Massive social reforms in the early years of the last decade helped raise many millions of Brazilians out of deep poverty.

Today Brazil is the largest national economy in Latin America, and the world’s tenth largest economy based on its activities in the agricultural, mining, manufacturing and service sectors. It is self sufficient in oil and gas, a world leader in alternative energy, and has massive untapped agricultural resources.

Brazil is the fifth largest country in the world with 4,500 miles of coastline, and it has a very diverse topography – hills, mountains, highlands and plains with much of the land between 600ft and 2600ft above sea level. As you would expect, this gives rise to a variety of weather conditions and ecosystems. 

The Amazon rainforest is recognized as having the greatest biological diversity in the world, and the rich wildlife of Brazil reflects the variety of natural habitats. Larger mammals include pumas, jaguars, tapirs, anteaters, and sloths. Many species of New World monkeys are found in the northern rain forests.

But what of Brazil’s real estate market? Brazil has inexpensive beachfront property, a low cost of living and glorious weather making it an attractive option for tourism, or those looking to purchase second homes and enjoy another culture. However, Brazil also has a healthy economy to support a growing population that needs housing. This makes it an opportunity for investment in building or renting homes for Brazilians to occupy.

As far as tourism is concerned, northeastern Brazil offers excellent transportation links to Europe and the USA. New and resale properties are available for purchase, including condo-hotels. Now could also be a good time to buy into smaller hotel properties – boutique hotels catering to specific market sectors such as eco-tourism.

Those seeking to purchase a second home may consider buying pre-construction from the many local and European builders active throughout the country. However, there are some things to be aware of if this is your chosen path. For instance, you may be required to pay an extra fee during construction, known as an INCC. This takes inflationary costs into account and may be added to the final cost of the property at closing. There are consumer laws in place to protect those who invest in pre-construction purchases, but early consultation with a local attorney may afford the best protection.

Brazil’s rapidly growing population means there is a need for more housing to be built quickly. There are opportunities to invest with companies on a project-by-project basis. They use investor funds to quickly build low cost housing for rent to locals. Funds must be invested for a fixed period of time, and investors enjoy a rental return as well as capital growth when the project is sold at a later date.

Whether you are looking for a destination to enjoy for vacations, or an opportunity to invest in real estate for a financial return, Brazil should be on your list for consideration.

The International Division of Prudential Palms Realty in Sarasota represents a number of properties for sale in Brazil.  Call Patricia Tan on 941-504-9232 for more details. 

Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged

1031 Exchange

By Jeff Riddell

Although 1031 Exchange has been in the internal revenue code since 1921, the scope of its use in recent years is unprecedented. Originally an “out west” phenomenon, the use of 1031 Exchange has spread rapidly east in recent years. With all of the “unintentional millionaires” out there today, even the little guys are doing 1031 Exchanges. “Unintentional millionaires” are all those folks who bought a lot, house, condominium, etc. a few years ago who wake up one morning and find that their $250,000 property is now worth more than a million, but you knew that (hopefully you are one).

I assume everyone knows what 1031 Exchange does, i.e., don’t pay tax on the sale of real estate that has been an investment, rental or business property as long as you are willing to reinvest in replacement property, and follow the rules and regulations for completion of a successful 1031 Exchange. But following the rules is not easy unless you do it every day.

The basic rule is that you must arrange the exchange before you close the sale of the property for which you want tax deferral. By the way, 1031 Exchange is not a tax exemption, but only a deferral, but most people think it is sound economics to have the use of the tax money you would have paid, at least for awhile (free loan from Uncle Sam). There are also a couple of ways to permanently avoid the tax, but that will have to await another article.

But back to the rules. First you find a buyer for your property. You can sign a contract to sell your property even before you set up the exchange. But before the closing, you must retain a 1031 Exchange Qualified Intermediary (QI) company, sign an Exchange Agreement with the QI company and then, at closing, the QI company receives the proceeds of sale from the closing agent and escrows the proceeds until they are sent by the QI company to the replacement property closing agent to show as a buyer credit on the replacement property closing statement. After that, the QI company closes out the exchange and gives you an accounting of how the money came in and how it went out.

You can have more than one relinquished property and/or more than one replacement property, but the applicable deadlines run from the date of closing of the first relinquished property. The deadlines are 45 days to identify your replacement property or properties, and 180 days to close on your replacement property. The 180 days includes the 45 days, and you start the count with the day following the date of closing of the first relinquished property. The 180 day rule actually says “180 days or the due date of your tax return for the year of sale of the relinquished property” so for closings after October 15, it may be necessary to file for an extension of the April 15 filing deadline if you need the full 180 days to complete the exchange.

Identification is tricky. IRS says you can identify three different ways, but you must pick only one. The first rule is called the “three property rule” and says, by the 45th day if you have not already closing on the replacement property, you can identify up to three properties by street address (or some other unambiguous identification) without regard to their value. The second rule is called the “200 percent rule”. This one says that, by the end of the 45th day, you can identify any number of properties, but the total value of those properties cannot exceed 200% of the sale price of your relinquished property. There is a third rule called the “95% rule” but it is not used very often in real estate exchanges. If you give the QI company your identification list by the 45th day, but you are unable to actually purchase the property or properties you want as replacement properties, you will end up paying your capital gains tax because you cannot change the list after the 45th day.

Most QI Companies charge between $600 and $1,500 for a simple exchange, but for exchanges where the sale price of the relinquished property is over a couple million dollars, the fee may be higher, and there are usually additional fees for more complicated exchanges such as reverse and construction exchanges. QI companies are all over the place regarding interest on the funds held in escrow—some keep part or all of the interest, others give it all to the exchanger, so be sure to ask.

The general rule for successfully accomplishing a 1031 Exchange is that you must trade even or up in both equity and mortgage. Simply stated, that means your replacement property purchase price should be equal or greater than the sale price of your relinquished property. Said another way, you must reinvest all of the money you receive from the relinquished property sale back into the replacement property and the replacement property must have a mortgage put on it at closing at least equal to the mortgage paid off on the relinquished property. Money in your pocket or less mortgage on your replacement property is called “boot” and “boot” is taxable, but it doesn’t necessarily blow your whole exchange if it is a small percentage amount. How you figure this is beyond the scope of this article, and you don’t have to worry about it if you trade even or up in value.

Jefferson F. Riddell is a Florida Board Certified Real Estate Attorney with thirty-five years of experience assisting people with a variety of residential and commercial real estate matters. U.S. 1031 Exchange Services, Inc is a 1031 exchange qualified intermediary (QI) and a member of the Federation of Exchange Accommodators (FEA). As President of U.S. 1031 Exchange Services Jeff has been facilitating 1031 exchanges for more than twenty years. Jeff has been awarded the Certified Exchange Specialist (CES) certification. Jeff may be reached at 941-366-1300 or via email at jeff@us1031.com. www.us1031.com.

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Want To Make Putts?

By Jonathan Yarwood

 Want to make more putts!? Who doesn’t? A common thing I encounter is that people cannot read greens or putts correctly. As you can see in the photos, all putts are actually straight! The slope takes the ball off the line that you choose, but mentally you are thinking that the putt you are hitting is actually straight at your target, not necessarily the hole.

Let me explain. The amount of break is dictated by the slope, speed of the greens and how hard you hit it. When looking at a putt, get down low behind it. If it is a long putt, split the topography up into thirds and make a road map to the hole. Remember, everyone is guessing to a degree, even tour players. But the more you practice reading putts, the better. I like people to read the putt, then pick an aiming point to one side of the hole. Let’s say it breaks a ‘hole’ to the left. Then the aiming point is an imaginary hole to the right of the real hole. Then simply stand over the putt and feel the distance. There is a point where the slope pulls the putt off the straight line that you can see, this is the apex point. It is quite a good idea to get an apex point in mind too, as this helps to gauge how hard to hit the putt. Then simply, roll it down and see how good your guesswork was! It will get better, the more you do it.
 
Jonathan Yarwood
www.golfjy.com
(941) 322.1465

Jonathan Yarwood was originally from the United Kingdom, but relocated to the United States in 1996. After a few years as one of David Leadbetter’s senior teachers, Jonathan branched out on his own and has enjoyed an extensive career with a track record that speaks for itself: He has coached, 2 US Amateur Champions including this years champion Ben An, 2 US Girls Champions and 1 US Open Champion in Michael Campbell in 2005. That is 5 USGA champs in 10 years, which is a record in itself. Add to that the four number one juniors, 3 AJGA players of the year, a collegiate number one, a male and female nationally ranked number one as well as a winner on every major professional tour, you have a record to rival the best. Jonathan was voted a Top 20 teacher under 40 years old by Golf Digest in 2006, after 5 straight years of being in the best teacher in state rankings for Florida.

Copyright © 2010 REAL Magazine

Any reproduction in part or whole is expressly prohibited and will be in direct violation of Federal Copyright Law.

Links to this article are encouraged