Clearwater Beach Lifestyles Archives

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

Getting a Large Home Loan Just Got a Little Easier

Large Home Loans

Chase Bank is easing the lending requirements for its large home loan programs — jumbo mortgages, which tend to be loans in excess of $417,000 in many markets and $625,500 in more expensive areas.

A potential buyer now only needs a credit score of 680 and a 15% down payment to qualify for a maximum loan amount of $3 million for a primary-residence home. Borrowers used to need a 740 score and put 20% down.

By easing its standards, the bank is hoping to gain more customers. “The performance we had on jumbo loans … has been fantastic. We think we are able to make high-quality loans to high-quality customers,” said Steve Hemperly, head of mortgage origination at JPMorgan Chase & Co.

The standards for second-home purchases requiring a jumbo loan have also eased to a 680 credit score and a 20% down payment. Buyers used to have to put down 30% to 50%.
The bank claims it’s the only lender allowing a 680 credit score with smaller down payments for primary and second home jumbo mortgages.

Loose lending practices helped bring down the housing market in 2008. In the wake of the Great Recession, credit markets froze and the mortgage industry upped their loan requirements.

While the standards have started to loosen, mortgage availability remains relatively tight and first-time buyers have been noticeably absent.

However, jumbo loans have performed well in the recovery. Hemperly said there’s been an increase in these large loans in California, the Northeast and Chicago.

Mortgages at a Glance

It is getting easier for some buyers to land a house with less money up front.

More lenders are lowering down-payment requirements, allowing borrowers to commit 3%—or even less—of a home’s purchase price to get a mortgage. Many had been requiring down payments of at least 20% since the recession began.

Some lenders also are waiving mortgage-related fees, and more are allowing down payments to be made by other parties, such as the borrower’s family.

The deals are aimed at buyers with good credit scores and a steady income who have been unable to save enough for a sizable down payment. They are often targeted at buyers who live in expensive housing markets, where even a small down payment can equal tens of thousands of dollars.

The WallStreet Journal & CNNMoney.com August 2015

Vacation Home Market Booming

MIAMI – The industry is booming as well-to-do people take advantage of gains in their stock-market portfolios, vacation-home experts said at the National Association of Real Estate Editors spring conference.

Numbers compiled by HomeAway, an online marketplace that links vacation-home owners with would-be renters, tell part of the story. Vacation home sales were up 57 percent in 2014 from 2013, surging to their highest level since 2003, according to survey results.

“We have not seen it as hot for new vacation-home developments in years as it is right now,” said panelist Phillip Day of IMI in Greenville, South Carolina. He said the market has an international aspect, as Europeans and South Americans, always looking for a safe haven for their money, are buying vacation homes in the Caribbean for the rental income.

Developers are even helping the buyers get passports, he said.

In Florida, Miami has the nation’s largest traveler demand for vacation rentals, with Fort Myers Beach at No. 7.

“The overall health of the rental market is very, very strong,” Gray said. “Two trends are accelerating: People are buying homes with the intent to rent them from the beginning. Ninety percent of people who are buying vacation homes — and we are seeing the highest numbers of vacation homes we have seen in a long time — plan to rent in the first year. That is great for the vacation-home market.”

It also is good for the vacation-home owner, because it does not take many weeks of rentals to put a serious dent in the annual carrying cost of a vacation property, Gray said. The average second home, when rented, generates $28,000 per year for the owners.

‘A pretty good time to buy’

The average vacation home costs about $150,000 a year, he said, which is below what it was when the market crashed in 2008.

“So, historically speaking, it is still a pretty good time to buy, in most people’s opinion — 85 percent of vacation-home buyers believe it is a good time to buy. Of course, that is a biased sample. But it creates an opportunity for people to buy into a home they might want to retire in down the road.”

The increase in listings indicates that more people are investing in vacation homes. “Although some wealthy second-home buyers don’t rent them out, Gray said, it actually is better to have people in the house rather than have it sit vacant most of the year.”

“If you had a second home and stayed in it six weeks a year, and it is sitting unoccupied for 46 weeks a year, that is not good for the home,” he said. “If people are staying in it and a cleaning crew is coming in after every stay, the home is in a better state of repair than it would be if you just left it there.”

Author and vacation-home investor Chris Cain, who is writing his third book on the subject, said the industry is picking up after “toddling along” since the bust.

Cain called vacation homes “America’s hidden treasure,” because the industry has provided millions of jobs in property management and maintenance. Most vacation home rentals are handled by management companies to reduce the hassle for owner-investors.

And they are not all rich. The median income of a vacation-home buyer in 2014 was $87,000, according to the panelists.

“More supply means more people are finding what they need in a vacation home,” Gray said. “About 84 percent of those people loved their stay and want to come back the next time. It creates a cycle where they tell their friends, and it makes the investment category more mainstream.”

Herald Tribune 6/25/2015

Discover Clearwater Area State Parks

Clearwater Area State Parks
Authentic Florida

Fort De Soto Park

Fort De Soto Park consists of a string of five small islands off the coast of St. Petersburg. The fort was built during the Spanish-American War in the late 1890’s and is open to the public. The last brickwork fort constructed in the United States, the fort never saw action and was donated to the county for use as a park in the 1940s. The beaches in the park are enormous and completely private. North Beach faces the Gulf of Mexico, and East Beach offers a stunning view of the St. Petersburg Skyway. Picnic shelters are located at both the North Beach and East Beach areas.

The campgrounds at Fort De Soto Park occupy all of St. Christopher Key. Bayside campsites enjoy a picture-perfect setting of tall, tropical plants and shrubs, offering cooling shade and a perfectly framed window on the bay.

Caladesi Island State Park

One of the few remaining undeveloped barrier islands in the state, most of coastal Florida at one time resembled Caladesi Island. Pine and palm forests lead to rolling dunes covered with indigenous grasses, which guides you to a long stretch of white sandy beach. A relative newcomer to Florida, the island was created when a savage 1921 hurricane separated it from what was then Hog Island. The actual origin of the island’s name is uncertain, though it has appeared on maps since the 1930s.

Accessible only by ferry from Clearwater and nearby Honeymoon Island State Park, visitors can fish, picnic, boat, shell or meander the pine and oak forests. A wide variety of coastal birds call this park home. Picnic tables and concessions are located near the beach, and a 99-slip marina is available for those who arrive by personal boat. Overnight dockage is permitted with registration.

Crystal River Archaeological State Park

One of the most important pre-Columbian discoveries in Florida, Crystal River State Archaeological Site consists of six ceremonial and burial mounds. These Indian mounds mark the site of 1600 years of human habitation, and stand in memorial to a vanished civilization. A museum holds a number of artifacts excavated on site, with an adjacent small gift shop.

Interpretive trails lead visitors past the six mound sites, which include Temple, Burial and Midden Area mounds. Two large limestone boulders seen along the trail may have served as ceremonial markers. The Temple mound also offers a beautiful view of Crystal River from an observation deck.

Gamble Plantation

Most do not envision Florida relative to the War Between the States. However, many plantations were established and prospered here. The sparsely settled peninsula created such difficulties with obtaining supplies and shipping product that few settlers were willing to take the risk. These challenges did not deter one Major Robert Gamble.

In 1844 Major Gamble, a veteran of the Second Seminole War, decided to settle in the area of the Manatee River and establish a sugar plantation. Gamble purchased 3,500 fertile acres northeast of what is now Bradenton and his plantation soon successfully produced sugar cane, molasses, citrus, grapes and olives.

The mansion became the showplace of the area. Designed with hot Florida summers in mind, the red brick and tabby walls of the Greek Revival home are nearly two feet thick. Strategically placed windows and a breezeway allow cross breezes, with upper and lower verandas that extended around three sides of the structure. Gamble also developed an elaborate water catchment system that survives to this day.

During the Civil War, Union soldiers destroyed the sugar mill. As the Confederacy collapsed, Judah P. Benjamin, the Confederacy Secretary of State, took refuge at the mansion to avoid capture by Union soldiers.

Following the war, the mansion was sold to the Patten family. A smaller home was added to the property for Major Patten’s son. When the Patten’s fell on hard times, the property was acquired by a fertilizer company for back taxes. The Daughters of the Confederacy saved the property in 1925, and restored the home to its rightful grandeur.

Today, visitors to Gamble Plantation State Historic Site can tour the beautiful mansion and grounds. The Patten House, an excellent example of a pioneer Florida farmhouse, is also open to the public. A visitor center features exhibits from Florida’s Antebellum and Pioneer periods, with a picnic area on beautifully landscaped grounds.

Hillsborough River State Park

Offering a great canoeing location, Hillsborough River State Park is a jewel in Florida’s State Park System. A huge man-made and spring-fed swimming pool draws crowds of swimmers on hot summer days. Boasting eight miles of hiking trails, this park appeals to the avid hiker and nature enthusiast.

Canoeing the Hillsborough River offers everything from rapids to tranquil paddling through pristine natural surroundings. Canoe rentals are available in the park. Hiking trails wander the hammocks of live oak, sabal palm and hickory.

Vistors can explore Fort Foster, a recreated 1830s fort located across the street from the park entrance. Volunteers clad in period dress re-enact the lives of the soldiers stationed at the fort, whose role was to protect a military road during the Indian wars.

Hillsborough River State Park features inviting camping areas, with 106 sites for tent and RV’s, of which 84 offer electricity. Each of the sites provides picnic tables and grills. The campground is equipped with restrooms, a snack bar, laundry facilities and hot showers.

Honeymoon Island State Park

Honeymoon Island was once an unnamed barrier island along Florida’s Southwest Coast. At various times inhabited by Tocobaga Indians, Spanish explorers, pirates, and fishermen, the island was initially shown on maps as Sand Island. By 1880, the island became known as Hog Island, which it remained until it was promoted as a resort location for honeymooners in the early 1940s.

Today’s visitors can enjoy the beautiful white sand beach that stretches the length of the island and includes a pet beach. Visitors enjoy swimming, shelling, fishing and several hiking several trails.