Baby Boomers Seek Palm Beach Living

Now that the economy, real estate market and consumer confidence is at an all time low in the United States there’s not much to be happy about in terms of finance. But is this economic downturn bad for everyone? A silver lining for the Baby Boomer generation that is saving up and working on their golf game as retirement approaches is that real estate is cheaper than it has been in a long time. But, Florida is a big state and choosing somewhere in its 1,200 miles of coastline may prove difficult.

Palm Beach has seen a significant growth in popularity. South Florida is divided by three major counties: Miami-Dade, Broward and Palm Beach. Miami Dade and Broward have seen large commercial growth and urban renaissance, this development has made them lose a touch of residential seclusion as high-rises pock their skylines and mass transit floods their once quiet streets. Palm Beach has maintained its quaint appeal throughout the flood of development that has engulfed South Florida.

Palm Beach has seen a growth in interest from baby boomers, oddly enough during Florida’s traditionally slower summer months. Prices for condos and homes have dropped so drastically that interest has swelled among those hoping to purchase an underpriced property to spend their golden years. In some parts of Palm Beach oceanfront property has dropped over fifty percent.

Many have insinuated that Baby Boomers buying up cheap Florida real estate may help repair the states current housing market woes. Florida is currently just behind California in total economic loss from the housing market downturn. But real estate isn’t the only industry that stands to gain in Florida from Baby Boomers moving in. Many different industries have been preparing to service the Baby Boomer generation from medical care facilities to golf courses and are expecting the Baby Boomers to put an economic boom in the economy.

Pricing for Success

Is it impossible to sell a Palm Beach Florida home in the existing market? Not really. Probably the only major difference hindering a successful sale involves having to take the extra time out to ensure the initial list price the home is sold for is as strong and attractive to buyers as possible while making sure the Palm Beach home itself looks good.

Staging has always been a vital component of home selling. Proper pricing is also essential but perhaps more people were able to get away with demanding an inflated price than the property was worth back when South Florida homes were selling at a rapid pace which didn’t make the research quite as necessary. The market situation has changed considerably since then.

Pricing has always been fundamental but it appears that even in a real estate market where values have dropped and buyers are meticulous about where their money goes, many sellers are not taking the time to effectively and realistically price their home. Whether it’s because they believe the property is worth a certain value or perhaps because they’re trying to generate as much profit from it as possible, some properties have been languishing much longer than necessary on the market.

What’s causing this mostly unnecessary problem? It’s very simple. Some sellers are listing a property for $199,000 when existing homes in the area may have a value of or may be listed for something within the $160,000 range, that’s over $30,000 dollars a buyer would save. The higher figure instantly stands out and gives off the impression that the seller may be asking too much when the price is not justified.

Considering some of the roadblocks that could affect the sale of the property in the future (drop in value due to buyer non-interest, foreclosure depreciation), it makes total sense to take the time before listing a home on the market to make sure the price is competitive. What could be perceived as selling at a loss may actually prove beneficial.

A Simplistic Housing Crisis Remedy

Foreclosures weigh heavy on our lagging economy making real estate's immediate future unclear. Palm Beach and South Florida homes have been substantially affected by the amount of foreclosures on the market, prices have dropped and so has consumer confidence. With no clear future in sight what should those who can help do to ensure a better future for the real estate market?

Many plans have been considered with varying levels of commitment and complexity from Federal Government subsidies to the creation of a department that monitors credit lending. The method they are employing immediately is a simpler form than most but has proved effective nonetheless. The Federal Housing Association (FHA) is the government body poised on recovering the real estate market. FHA has formed FHASecure which allows borrowers the opportunity to refinance their loan into a more feasible payment plan.

There were many poor lending practices that led to the current foreclosure fiasco. The one type of loan in particular that stands out is subprime mortgage lending. Though this type of mortgage only makes up ten percent of mortgages in the U.S., it’s done enough damage to nearly bring real estate transactions to a halt. Rates have gone up after a sharp rise in defaults and foreclosures, causing serious disincentives for potential consumers in the housing market.

The FHASecure initiative that has been put forward by the federal government provides help for distressed homeowners by allowing them to refinance into payments that are more realistic. This will hopefully prevent foreclosures from driving down the price of homes across the nation. The FHA has already assisted 150,000 homeowners with this service and hopes to bring stability to the market by further assisting those that would otherwise default or foreclose on their property.

The FHA has been criticized for not having enough funds and resources to handle the expansive foreclosure problem in the real estate market. Their progress in the next couple months will either silence the critics or bring more attention to their criticisms.

Vera Wang’s Via Tranquilla For Sale

Wang and her brother Kenneth inherited the Spanish Mediterranean-style residence from their father, C.C. Wang, who bought it in 1995. Located at 640 S. Ocean Blvd., the 1923 mansion designed by noted Palm Beach architect Addison Mizner has fond memories for the well-known fashion designer.

Wang remembers the days when her children, now 17 and 14, were younger and the house seemed to be bursting at the seams with children running around, recalling with pride that it sometimes felt like a day care center.

Wang, who describes Mizner’s architectural style as “Spanish lite” says she has always been fascinated by his work, especially the sense of whimsy that shows through. She describes Mizner’s style as dramatic, and appreciates the fact that some of his proportions aren’t quite, well, proportional. When asked how she would design an Addison Mizner inspired dress, Wang immediately offered that it would have an uneven hemline. Add some exotic color combinations and some peacock feathers and there you go – another one-of-a-kind Vera Wang creation!

Via Tranquilla is offered for sale at $19 million. Its east wall faces the Ocean, where the master suite and four guest bedrooms, each with its own bathroom, are located. There are a total of 11 bedrooms, one of which on the Northeast corner could be used as a second master suite. There are 10 bathrooms, and the total square footage is 11,654, with 9,706 square feet of indoor living space.

Foreclosed Hearst Mansion Sells at Auction for $22 Million

One of the country’s most expensive residences, the Hearst mansion, sold at a foreclosure auction on Monday for a bid of $22 million from New Stream Capital. According to the attorney representing Veronica Hearst, the property will go back on the market so the creditor can recoup its investment.

The 20,000 square foot home was designed by Maurice Fatio and bought by Randolph Hearst in mid-2000 for $29.87 million, at that time the highest sale price on record in the state. Hearst passed away six months later, leaving his widow Veronica without the means to maintain the property.

Veronica Hearst borrowed millions against the home’s value to pay for property taxes and renovations. She sold 150 feet on the property’s south end for $6.2 million, explaining that potential buyers were uncomfortable with the considerable size of the home. She stated that, with an older property – the home was built in 1929 – you can either destroy it or refurbish it, and her decision as the owner was to refurbish it.

However, to some, any change to the historic home is unacceptable. According to one source, the daughter of the architect who designed the home says that any variation from the original design is wrong.

The home is located at 1100 S. Ocean Blvd. in Manalapan, which does not have a preservation board that may have been able to block Hearst’s decision to split the lot if it had been designated a landmark.

To Rent or Buy in Palm Beach

Let’s assume someone is looking for a place to call their own for the very first time in Palm Beach. The general consensus seems to be that they should wait a little longer, buying Palm Beach real estate will result in losses which is true. Renting, once considered a silly decision, now holds a larger degree of worth, just ask the experts.

Per the National Association of Realtors yet another mass of people contributed to another boost in renting. Considering how “iffy” real estate is right now and the lower prices of South Florida homes, this research makes complete sense and some may say is indicative of smart money management on behalf of the renter.

When we take a look at renting, it does make complete sense. After all, the renter gets a place to live and to customize to a certain degree without having to trouble themselves with all these things like property insurance, closing costs and most of all, mortgages. Once they’re ready to move to a larger place, the responsibilities on their end are mostly relegated to ensuring that the last month’s rent and utilities have been paid off and that the potential lease agreement has been satisfied.

Now let’s say this renter stayed in the home for a year. On the lower end, that’s more than $10,000 dollars spent in rent alone and all that money does not contribute to any long term benefits, a notable difference when a renter owns a home that can generate substantial equity and/or value. It’s also worth nothing that the year’s worth of rent payments are practically equivalent to a down payment on a no frills Palm Beach home.

Is this a thinly veiled advertisement persuading readers to buy a Palm Beach condo or home? Not necessarily. After all, buying is expensive and it requires large capital to deal with the numerous costs involved. Renting has its own excellent benefits but instead of just playing it safe because a friend says buying is a bad idea, try doing your own research or consulting an impartial real estate agent. A venture that seems audacious at first could reap long term rewards.

Affordable Beach Property Becomes a Reality

A couple of years ago, South Florida luxury homes were too high-priced even for some successful Americans. Waterfront properties seemed unattainable as they crept close to averaging one million dollars in some places. Even some in the wealthy class shrugged at the prospect of paying that much for a home. But now the prices are much more realistic, ranging from $400,000 to $600,000 in those same places. The sharp decline in real estate values the past three years has been devastating to homeowners but has potential investors "licking their lips" thinking of the opportunities.

The current status of the Florida housing market is unusually chaotic. The South Florida real estate market has not fallen so sharply in the last sixty years and South Florida's long term real estate investments are traditionally strong. Many investors are seizing this opportunity to buy up luxury property they believe is underpriced. Examples of this are Palm Beach Condos on the water which are considered luxury property but at the moment are certainly not priced for luxury.

Most people remain reluctant to buy into the current market. This decision may prove to be ill-advised because some projections are claiming the price of houses will go up at the end of the year, making it the best time to buy now. Existing and potential homeowners should evaluate their financial situation to determine whether or not they have the resources to invest in property now, so they don't miss this great opportunity to own luxury property.

Make sure you have valid risk assessment. If you have the capital to make a down payment and the resources to maintain mortgage, insurance and utility payments, then you're a viable candidate for property ownership. Check the prices of beachfront property in your area and see the valuable opportunities for yourself.