Financing a Tropical Dream

Once reserved for the rich and the famous, a second vacation home can now be part of a smart investment portfolio. Mortgage rates are low, making financing a home in the Florida Keys more affordable than ever. Also, unlike the rich and the famous, the average individual is likely to rent his vacation home out to tourists when he is not using it himself.

Waterfront property is especially popular as a vacation spot. It offers the amenities of the local community – restaurants, attractions, transportation, security – and the beauty of communing with nature. The income from these rentals often covers the entire mortgage, enabling the owner to enjoy a free vacation in the Keys whenever he pleases.
Waterfront property also tends to appreciate in value over the long term due to its lasting popularity. The savvy homeowner of a Florida Keys waterfront vacation home is also building equity while he vacations there and rents it out – equity that can either be cashed in at retirement or lived in on a full-time basis.

Peace of Mind

Ask any therapist. The soothing sounds of the ocean provide the perfect background for relaxation. With a vacation home in the Florida Keys, no tapes or compact discs are needed.
Simply open the windows to enjoy the ocean’s relaxing sounds.

Also, as stress is a significant risk factor in elevated blood pressure, a vacation home in the Florida Keys benefits the homeowner physically as well as mentally.
Stress melts away with the ebb and flow of the tide, with the beauty of the sun rising or setting over the ocean, with the gentle ocean breeze.

One can almost feel his blood pressure lower with the laid back lifestyle. Or, if the need for some company arises, the Florida Keys offer a variety of restaurants, museums, parks, and attractions to amuse and entertain.

Add to the scenic view, soothing sounds, and peace of mind that comes with knowing that. No matter how stressful life becomes, a little slice of paradise awaits. It is a reward at the end of the summer, or at the end of a career.

Article courtesy of Gary Smith

For example.

If you live in your vacation home for at least a portion of the year, it will fall into the residence category, but if you rent it to others for the entire year, it will be looked on as an investment or rental property instead.

Some stipulations:

Many properties—such as a condominium, cabin, duplex, detached house, recreational vehicle, or even a boat—can qualify as a tax deduction. (The law states that they must have a kitchen, a bathroom, and a sleeping area.)

Also, IRS regulations stipulate that your vacation home will qualify as a residence if you spend 10% of the rental period on the premises, or a minimum of 14 days annually.
By way or contrast, if you rent your second home for less than 14 days, the income from the rental does not have to be reported on your tax return, and it is tax free.
However, if you rent the property for a longer period, the rental income must be reported, but allowable tax deductions can also apply.
However, IRS rules will not allow you to claim a loss on a second home, and the best you can hope to do is to break even.

Your income plays a role:

If your expenses exceed your income on a rental property, you can offset the loss with passive income.
If your yearly income is below $100,000, you can claim as much as $25,000 in losses.
If your income is higher, the amount of the allowable loss is less, and if your income reaches $150,000, it is totally eliminated.

Over a number of years, you may also be able to deduction depreciation on your second home’s value, which reflects wear and tear on both the home and contents, rather than land value.
Before buying a vacation home, you absolutely should consult with your accountant to discuss how IRS regulations and tax advantages will apply in your particular situation.

Article Courtesy of Gary Smith

There is a lot of hard work that goes into buying or selling a house.
With today’s market and economy, that hard work has become even tougher.

That is exactly why it is critically important that you hire an expert to help you navigate through all the details and negotiations.

Yes, there are lots of Real Estate Agents, but not all of them may be looking out for your best interest. Therefore the first thing you need to do in this process is to find a real estate agent that you can trust, that has experience and importantly has great negotiation skills.

From the experience side of things.

A few things to ask a prospective agent?
How long have you been in Real Estate?
Do you do this full time?
What are your sales stats for the last couple years.
(These may seem like intrusive questions, but any top-producing agent will actually welcome them)

The importance of Negotiation.

Negotiating is probably the most important skill that an agent can possess. The agent could be an excellent salesperson, but without negotiating skills you might not be getting the best deal for your dollar.
A really great agent will listen to the concerns of both the buyer and the seller and then work on something that benefits both parties.
A great negotiator will ask the proper questions to find out exactly what those concerns are, and in addition what each side wants to ultimately accomplish.
The goal being, to turn your transaction into a win-win situation for both parties.

Area knowledge.

An agent should have in-depth knowledge of the area in which the property is located.
From a seller’s perspective, knowing the actual value of the property and how much the sellers could get for it is vital.
From the buyer’s perspective, the agent should know about schools, local amenities and even which local business are in the surrounding area. On the subject of tax rates, building codes, home repairs and insurance costs, an experienced agent can also point out exactly where to get the information.

In conclusion, picking an agent that has the experience and negotiating skills to help with selling or buying a home is an incredibly important step. Be careful to choose a strong partner in your pursuit of either selling or buying.

Article courtesy of Gary Smith.
Gary is a Top producing Real Estate Agent,that specializes in the sale of Commercial Real Estate both in The Keys and the Key West area.

In addition he is the owner of the website www.keywestlifestyle.com designed specifically to help people relocating to the Florida Keys and it’s communities

Surrounded by beautiful homes this property needs a complete restoration. The concrete footings are new and the interior is gutted. It is considered a duplex by the city but should be verified by purchaser. Quiet lane in old town, this is for the buyer who can add their finishing touches to the home. This is a short sale.

Own the famous Heartbreak Hotel with 6 guest rooms, nicely appointed, with baths and kichens. The first floor consists of almost 2000 sq. ft. of commercial space. Formerly a gallery, it has many possibilities. Located in the rear is a quaint cottage which could be used for owners quarters or additional rental space. This is truely a piece of Key West history and has not been offered for sale in a generation.

Price: $3,900,000

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)296-8105
www.keywestlifestyle.com
Click to E-mail

Surrounded by beautiful homes this property needs a complete restoration. The concrete footings are new and the interior is gutted. It is considered a duplex by the city but should be verified by purchaser. Quiet lane in old town, this is for the buyer who can add their finishing touches to the home. This is a short sale.

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)296-8105
www.keywestlifestyle.com
Click to E-mail

9 unit apartment building. Frontage on US 1. 3 one bedrooms. 6 efficiencies. CBS construction.

Price: $1,200,000

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)296-8105
www.keywestlifestyle.com
Click to E-mail

Furnished second floor office/commercial space at the Offices at Northside. Very well designed and built with high end materials. Great location and parking

$27,000 (LP)

Gary Smith
BROKER
Keys Commercial Real
Estate LLC.
P. O. Box 1974
Key West, FL. 33041
Direct – (305) 304-7009
Fax- (305)296-8105
www.keywestlifestyle.com
Click to E-mail