Clearwater Beach Buyers Archives

The Balance of Success on Clearwater Beach

Balance of Success

About 15 years ago the city wrote policy designed to lure hotels and luxury resorts to the beach that was heavy with aging buildings and in need of an economic boost.

Clearwater is approaching a significant milestone in the beach’s history as a hotel density reserve created in 2008 has nearly run dry.

With intense redevelopment now accomplished, the next step should be better ways to handle the parking and traffic congestion that has followed, according to planning and development director Michael Delk.

“We’re at a point where we have to look at our transportation options,” Delk said.

Beach by Design required new hotels to provide parking for guests, but the city still struggles with accommodating the thousands of day-trippers who drive to the beach.

One parking solution in the works for nearly 15 years is the seven-story garage that broke ground last month on the north end’s Poinsettia Avenue. The structure is three stories higher than originally planned and will sit directly across from Day’s East Shore Resort, looming over bungalow homes and single-story structures.

William Selvidge, who retired to Clearwater Beach in 2010, sees the high rises and luxury resorts as benefits because development put everything within reach and created a walkable community.

For his move to Florida, Selvidge bought a convertible that has only 7,500 miles on it five years later. His only concern is congestion from what seems like a new development every day.

Buildings near the residential area are also getting bigger. Last month, the Community Development Board approved a complex of 22 three-bedroom units on a half-acre Avalon Street lot that was originally called Avalon Condos.

Beach By Design restricts condominiums in the district to 65 feet tall, but developers pitched the Avalon project instead as “resort attached dwellings,” a title that allows them to be used as residences or hotel rooms.

Promising the CDB they would reserve at least one unit at all times for a short-term rental, developers were granted the maximum height given to hotels of 75 feet.

Another north end project recently approved by the CDB is Somerset Vacation Townhomes, which will include 20 hotel rooms and a rooftop bar.

Charles Siemon, hired by the city from 1999 to 2001 to write Beach by Design, said redevelopment has been a balancing act of luring investment while maintaining quality of life for day trippers and residents.

But now that luxury hotels, restaurants, shopping and condos line the shore, Siemon said it may be time to re-evaluate whether the infrastructure has kept up.

“Success breeds success,” Siemon said. “The focus then was on getting something started. Now apparently there’s some perspective that they need to slow down.”

Siemon said Beach By Design called for parking strategies like city-run ferries, trolleys and shuttles to discourage cars on the island, but those alternatives have not materialized like he’d hoped.

To alleviate congestion, Siemon said the city could require more room between buildings, but limiting development once you’ve asked for it is tricky.

“You work like crazy to get people to invest, and when they do invest you tell them to slow down, so it’s not easy,” he said. “I think they should be going through the process of taking time to quickly analyze what’s good and what’s the bad and what’s the ugly. Fix the ugly. Promote the good and try to make it all work.”

TampaBay.com November 2015

Construction Spending at Seven-year High – US

Construction spending hit $1.1 trillion in September, its highest level since March 2008.

That’s according to an analysis by Associated General Contractors of America (AGC), which pointed out the number would have been even higher if it weren’t for a shortage of construction workers.

“Overall, demand for construction continues to grow at a very robust rate,” said AGC Chief Economist Ken Simonson. “It appears, however, that many firms performing private nonresidential work could not find enough qualified workers in September to keep pace with growing demand.”

There were only 479,000 unemployed construction workers in September, the smallest total for that month in 15 years, Simonson noted.

Construction spending has increased every month this year, and the latest gain suggested the economy remained on firmer ground despite some slowing in consumer spending and persistent weakness in manufacturing.

Economists polled by Reuters had forecast construction spending rising 0.5 percent in September. Construction outlays were up 14.1 percent compared to September of last year.

September’s increase is slightly above the gain the government had estimated in its advance third-quarter gross domestic product estimate published last week.

A recent AGC survey found that 86 percent of construction firms say they’re having a hard time finding qualified workers to fill vacant positions.

Both private sector and public sector construction spending continued to grow, with outlays in the larger private sector 16.0 percent above a year ago, and public construction spending 9.4 percent higher.

The fresh data suggested that the housing sector specifically remains healthy despite some recent data suggesting a slowdown.

Private spending on housing construction, the largest component of all construction spending, picked up 1.8 percent in the month and gained 17.2 percent year on year.

Eventually that could turn into higher supplies of new homes, to ease the current tight market that has pushed prices high enough to deter buyers, according to industry specialists.

Pinellas County Real Estate Holds Strong for 2015

Pinellas County Real Estate Statistics for September 2015

Pinellas County real estate holds strong for 2015, even as the typically slower months approach.

Average sale price for a single family home was $256,543 in September 2015, up 15.1% from last September.
The average sale price for townhome/condo was $189,862, up 1% from $187,954 a year ago.
The number of closed sales for single family and townhome/condo combined for September 2015 was 1,863, up 13.8% from 1,637 in September 2014, and down just slightly from August 2015 (1,888).

Median sale price for single family was $190,000, a huge 15.2% increase over $165,000 last September. For the townhome/condo segment, median sales price was $120,000, up 9.1% over a year ago. Median days on market was also a bright spot, at 49 for single family (versus 50 last September), and 57 for townhome/condo (versus 63 last September).

Inventory remains low for single family, with a 3.4 month supply as compared to a 4.6 supply in September 2014. Active listings for single family and townhome/condo combined were 6,591, down 8.8% from 7,224 in September 2014. New listings are up 3.1%, at 2,204 versus 2,138 last September.

The Consumer Financial Protection Bureau’s (CFPB) new loan estimate and closing disclosure rules took effect October 3, with little fanfare. Experts are anticipating any issues that may arise presenting themselves in November, December and January.

Representing more than 6,000 members, the PINELLAS REALTOR® ORGANIZATION is one of the Tampa Bay area’s largest professional trade associations.

Pinellas Realtor Organization – November 2015

Breathtaking Harbor Views – 400 Island Way

Take A Tour —

Starboard Tower
400 Island Way, #1511
Clearwater Beach, Florida

Stunning Views. Magnificent Location.

Breathtaking water views from the private balcony and from every room in this magnificent 15th floor 2 Bedroom, 2 Bath condo on Island Estates overlooking Clearwater and the ICW. Beautiful Kitchen offers Kitchen-Aid Stainless Steel Appliances- Built-in and Hardwood floors, custom Mahogany cabinets & custom lighting. Both baths offer custom granite and marble flooring and granite countertops. Don’t miss this well-appointed home. Amenities include a tropical heated pool, an over sized spa, Tiki huts, Grills, fitness room, billiard room, Locker rooms with shower & saunas. On-site daytime management & night security guard. Great location with shops, restaurants and easy access to Clearwater beach and the Gulf of Mexico…Sold “As Is” with right to inspect.

Florida Home to 1 in 4 U.S. International Sales

Profile International Home Buyers 2015

ORLANDO, Fla. – Oct. 9, 2015 – The National Association of Realtors^® (NAR)’ research division just released the Profile of International Home Buyers in Florida 2015 Report, which it creates in cooperation with Florida Realtors.

According to the latest report, international sales are not the exception in Florida, they’re simply a normal part of doing business: A majority of Florida Realtors members (69 percent) say they have international clients. Overall, one in four U.S. international sales take place in The Sunshine State.

For the survey, NAR looked only at clients who are “citizens of another country,” which includes:

Non-resident foreigners with permanent residences outside the U.S. who typically purchase property as an investment or vacations
Resident foreigners who immigrated within the last two years or who hold temporary visas that last longer than six months

Report overview

About 25 percent of foreign home buyers purchasing U.S. property buy in Florida
International unit sales totaled 44,000 properties
As a percentage, international sales made up 12 percent of Florida’s residential market (15 percent a year ago) compared to four percent nationally
The dollar volume of international sales: $23.7 billion
By dollar volume, international sales made up 24 percent of Florida sales (19 percent a year ago), compared to 8 percent nationally
69 percent of Florida’s Realtors have international clients (52 percent a year ago). The U.S. average: 35 percent
31 percent of Florida’s Realtors have more than five international clients (19 percent a year ago). The U.S. average: 15 percent
The latest report saw a significant spike in buyers from Latin America – 56 percent compared to 23 percent one year earlier
Approximately 50 percent of foreign buyers purchased in Miami-Miami Beach (36 percent) and Fort Lauderdale (14 percent)
The average price of property purchased by foreigners: $538,600 ($300,600 in 2014).
63 percent of Realtors said that clients found Florida properties less expensive than comparable ones in their home country (76 percent a year ago)
29 percent of Florida’s Realtors reported an increase in the percentage of their international business (45 percent a year ago). The U.S. average: 13 percent

The complete Profile of International Home Buyers in Florida 2015 Report can be downloaded at Florida Realtors’ website

The survey of Florida Realtors members took place July 7-Aug. 9, 2015; 1,203 Realtors provided information on their client interaction during the 12 months ended June 2015, and on the characteristics of their most recent sale during this period.

Florida Realtors 10/2015

Home Equity: You May Have More Than You Think

CoreLogic recently released their 2015 2nd Quarter Equity Report which revealed that 759,000 properties had regained equity in the last quarter. That means that 91% of all mortgaged properties (approximately 45.9 million) are now in a positive equity position. Anand Nallathambi, president and CEO of CoreLogic, reported:

“For much of the country, the negative equity epidemic is lifting. The biggest reason for this improvement has been the relentless rise in home prices over the past three years which reflects increasing money flows into housing and a lack of housing stock in many markets.”

Obviously, this is great news for the financial situation of many homeowners.

But, do they realize their equity position has changed?

A recent study by Fannie Mae suggests that many homeowners are unaware that their equity position has changed…in some cases dramatically. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, only 9% of homes are in that position.

The study also revealed that, though 69% of homes had “significant equity” (greater than 20%), only 37% of Americans realize it.

This means that 32% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

Every homeowner should be aware of the true equity in their house and also realize the opportunities that go along with it. If you are unsure of the savings you currently have built up in your home, contact a real estate professional to help ascertain that number. You may be surprised.

Keeping Current Matters 10/2015

Tax Planning for Owning a Second Home

Benefits of Owning a Second Home

Learn how mortgage interest, property taxes, rental property and tax-free profit affect your tax return.

If you are considering owning a second home, congratulations! Not only can you look forward to having a place to relax, you also can garner some tax benefits for that place at the beach.

You can use several tax breaks:

Mortgage Interest

If you use the place as a second home — rather than renting it out as a business property — interest on the mortgage is tax deductible just as interest on the mortgage on your first home is. You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes that was used to acquire or improve the properties. (That’s a total of $1.1 million of debt, not $1.1 million on each home.) The rules that apply if you rent the place out are discussed later.

Property taxes. You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

If You Rent the Home

Lots of second-home buyers rent their property part of the year to get others to help pay the bills. Very different tax rules apply depending on the breakdown between personal and rental use. If you rent the place out for 14 or fewer days during the year, you can pocket the cash tax-free. Even if you’re charging $10,000 a week, the IRS doesn’t want to hear about it. The house is considered a personal residence, so you deduct mortgage interest and property taxes just as you do for your principal home.

Rent for more than 14 days, though, and you must report all rental income. You also get to deduct rental expenses, and that gets complicated because you need to allocate costs between the time the property is used for personal purposes and the time it is rented.

If you and your family use a beach house for 30 days during the year and it’s rented for 120 days, 80% (120 divided by 150) of your mortgage interest and property taxes, insurance premiums, utilities and other costs would be rental expenses. The entire amount you pay a property manager would be deductible, too. And you could claim depreciation deductions based on 80% of the value of the house. If a house is worth $200,000 (not counting the value of the land) and you’re depreciating 80%, a full year’s depreciation deduction would be $5,800. You can always deduct expenses up to the level of rental income you report.

But what if costs exceed what you take in? Whether a loss can shelter other income depends on two things: how much you use the property yourself and how high your income is.

If you use the place more than 14 days, or more than 10% of the number of days it is rented — whichever is more — it is considered a personal residence and the loss can’t be deducted. (But because it is a personal residence, the interest that doesn’t count as a rental expense — 20% in our example — can be deducted as a personal expense.)

If you limit personal use to 14 days or 10%, the vacation home is considered a business and up to $25,000 in losses might be deductible each year. That’s why lots of vacation homeowners hold down leisure use and spend lots of time “maintaining” the property. Fix-up days don’t count as personal use. The tax savings from the loss (up to $7,000 a year if you’re in the 28% tax bracket) help pay for the vacation home. Unfortunately, holding down personal use means forfeiting the write-off for the portion of mortgage interest that fails to qualify as either a rental or personal-residence expense.

We say such losses might be deductible because real estate losses are considered “passive losses” by the tax law. And, passive losses are generally not deductible. But, there’s an exception that might protect you. If your adjusted gross income (AGI) is less than $100,000, up to $25,000 of such losses can be deducted each year to offset income such as your salary. (AGI is basically income before subtracting your exemptions and deductions.) As income rises between $100,000 and $150,000, however, that $25,000 allowance disappears. Passive losses you can’t deduct can be stored up and used to offset taxable profit when you ultimately sell the vacation house.

Tax-Free Profit

Although the rule that allows home owners to take up to $500,000 of profit tax-free applies only to your principal residence, there is a way to extend the break to your second home: make it your principal residence before you sell. That’s not as wacky as it might sound. Nor is it as lucrative as it used to be.

Some retirees, for example, are selling the big family home and moving full time into what had been their vacation home. Before 2009, this had a very special tax appeal. Once you live in that home for two years, up to $500,000 of profit could be tax free — including appreciation in value during the years it was your second home. (Any profit attributable to depreciation while you rented the place, though, would be taxable. Depreciation reduces your tax basis in the property and therefore increases profit dollar for dollar.)

A few years ago, though, Congress cracked down on this break for taxpayers who covert a second home to a principal residence. A portion of the gain on a subsequent sale of the home is ineligible for the home-sale exclusion of up to $500,000, even if the seller meets the two-year ownership and use tests. The portion of the profit that’s subject to tax is based on the ratio of the time after 2008 when the house was a second home or a rental unit to the total time you owned it.

This can still be a great deal if you’ve owned your second home for many years before the law changed. Let’s say you have owned a vacation home for 18 years and make it your main residence in 2014. Two years later, you sell the place. Since the five years after 2008 the place was your second home (2009 through 2013) is 25% of the 20 years you owned the home, only 20% of the gain is taxed. The rest qualifies for the exclusion of up to $500,000.

Information obtained from Kiplinger.com

This information is for general guidance. The application and impact of laws can vary widely based on the specific facts involved. Accordingly, the information on this Site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers.

Southwest Florida Buyers Paying Cash

Home buyers in Southwest Florida are still paying with cash at one of the fastest rates in the nation.

Of the 10 metro areas with the highest share of cash purchases in the first quarter, more than half were in Florida, according to real estate analyst Zillow.

Southwest Florida Buyers Paying Cash
“In Florida, cash is king,” Zillow said. ” At the end of the first quarter, seven of the top 10 metros with the highest share of home purchases made in cash were in Florida, up from six at the end of 2014.”

All 10 of the U.S. metro areas with the highest share of cash buyers were east of the Mississippi River, while cash buyers were less common in the western U.S.

“Homes in many eastern markets are generally less expensive than in their western counterparts, which can be conducive to more cash purchases,” Zillow said. “Cash purchases are also more likely to be made by investors and institutional buyers looking to buy many less-expensive homes all at once to convert into rental housing and/or flip as the market improves.”

In addition, the analyst noted, Florida’s judicial foreclosure process can be slow, extending the period when investors are buying discounted homes from lenders as they clear foreclosure.

Florida posted the second-highest share of cash sales in June, at 45.8 percent, behind only New York’s 47 percent, CoreLogic said.

The U.S. rate was 31.3 percent, down from 34 percent over the year.

“The cash sales share peaked in January 2011, when cash transactions made up 46.5 percent of total home sales nationally,” CoreLogic said. “Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25 percent. If the cash sales share continues to fall at the same rate it did in June 2015, the share should hit 25 percent by mid-2017.”

Jim Quinn, president of the Port Charlotte-North Port-Punta Gorda Association of Realtors, said cash sales have “consistently” accounted for less than 50 percent of activity this year, with distressed properties representing a smaller segment of sales.

“I would say both of these trends are indicative that more of the buyers are purchasing for personal use as opposed to investment,” he said.

No-financing sales accounted for 43 percent of home deals throughout Florida in August, while the U.S. average was 24.5 percent.

Herald Tribune 10/5/2015

St. Pete-Clearwater Beach – Beat the Beach Traffic

You don’t have to get stuck in beach traffic. Whether you’re down for the day or hanging out for the week, there’s no need to get in the car to move up or down the beach. There are multiple forms of transportation on St. Pete/Clearwater Beach. Here are some of your best options.

Rent a scooter/beach cruiser

Daily bike/scooter rentals are available. Great way to experience the beach.

“Free” beach shuttle

Rides are free to anywhere on the beach; drivers rely on tips. Cheap, drivers know the area. Doesn’t run after midnight.

FREE Rides

From the South end of Pass-A-Grille and cover all of St Pete Beach, Treasure Island, Johns Pass, Madeira Beach and South Redington Beach. Also travels across the Tom Stuart causeway to accommodate Courtyard Marriott Madeira Beach. See more

Take a Trolley

Ride the Suncoast Beach Trolley and explore area beaches, restaurants and local attractions the easy way–without worrying about directions or parking. Tour the Gulf Beaches stretching from Clearwater Beach south to Indian Rocks Beach, Indian Shores, Redington Shores, North Redington Beach, Redington Beach, Madeira Beach, St. Pete Beach and Pass-a-Grille. Offered by Pinellas Suncoast Transit Authority. Cheap, worry-free, and yay! Public transit. Buses run every half hour or so from 5:00 am to 10:00 pm. See more

Take the Jolley Trolley along Clearwater Beach or surrounding towns. Runs 7 days a week 10:00 am to midnight. See more

Taxi

BATS Taxi is headquartered on the beach, and plenty of other cabs are around. Drivers know the area, service is prompt. High demand times make it a little more time consuming to locate.

Uber

If you have the app on your phone, there are likely drivers around to take you up and down the beach. Probably your quickest bet. Note that your driver may not know the area well and might get stuck in the very traffic you’re trying to avoid.

By Ferry

Maybe try out the Clearwater Ferry serving Clearwater Beach, Downtown Clearwater, Island Estates, Caladesi Island and Dunedin. Regular operating hours are Monday – Saturday 6 a.m. to 10:30 p.m. and Sundays from 9 a.m. to 10:30 p.m. See more

Retirees Choosing to Up-size Homes

Up-size Homes

The new retirement choice

Americans traditionally chose to downsize in retirement, but that may no longer be true. A wave of today’s retirees decide to up-size and enjoy the best home of their lives in retirement, according to a recent Merrill Lynch and Age Wave retirement study of more than 3,600 respondents.

In fact, 65 percent of retirees recently surveyed say they’re currently living in the best home of their lives.

Within the next decade, the number of age 65-plus households in the U.S. is expected to bloom by nearly 11 million.

As more Americans move into retirement, they’re also looking to move into a new home. The study found that 64 percent of retirees are likely to move at least once during retirement. For retirees who do move, only half have downsized, and many are moving into larger homes, according to the study.

The study showed that 49 percent of retirees didn’t downsize in their last move, and 30 percent ended up moving into larger homes. Retirees’ top reason for up-sizing was a desire for a home large and comfortable enough for family members to visit (33 percent) or even live with them (20 percent). One out of six retirees – 16 percent – said they have a “boomerang” child who moved back in with them.

Nineteen percent of retirees also said they up-sized in retirement in order to have a more prestigious home and 16 percent say they wanted a larger home to have more room for friends to visit, according to the study.

The upscale homes in Florida have two downstairs master suites separated by sound proof walls. Whatever the amenities — whether increased space or quiet accommodations — retirees are increasingly willing to pull out all the stops for their relatives’ comfort and multi-generational living.

For those retirees who did downsize, the majority said their top reasons for choosing a smaller home was to have greater freedom from financial and maintenance burdens.

FloridaRealtors.org August 2015